SK Telecom
Encyclopedia
SK Telecom Co., Ltd.or Sunkyoung Telecom (Hangul
Hangul
Hangul,Pronounced or ; Korean: 한글 Hangeul/Han'gŭl or 조선글 Chosŏn'gŭl/Joseongeul the Korean alphabet, is the native alphabet of the Korean language. It is a separate script from Hanja, the logographic Chinese characters which are also sometimes used to write Korean...

: 선경 텔레콤) is a South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n wireless telecommunications operator, controlled by the SK Group
SK Group
SK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....

, one of the country's largest chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...

. As a part of SK Group
SK Group
SK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....

, SK stands for Sun Kyung.

SK Telecom is a provider of mobile service in Korea, with 50.5% of the market share as of 2008. Since being established on March 29, 1984 the company evolved from a first generation analogue cellular system, to second generation CDMA
Code division multiple access
Code division multiple access is a channel access method used by various radio communication technologies. It should not be confused with the mobile phone standards called cdmaOne, CDMA2000 and WCDMA , which are often referred to as simply CDMA, and use CDMA as an underlying channel access...

, then to the world's first third generation synchronized IMT-2000 cellular system. SK Telecom also became the world’s first to commercialize HSDPA
High-Speed Downlink Packet Access
High-Speed Downlink Packet Access is an enhanced 3G mobile telephony communications protocol in the High-Speed Packet Access family, also dubbed 3.5G, 3G+ or turbo 3G, which allows networks based on Universal Mobile Telecommunications System to have higher data transfer speeds and capacity...

 in May, 2006.

The company’s current services include NATE, a wired and wireless integrated multi-Internet service, June, a multimedia service, MONETA, a financial service, Telematic service such as NATE Drive and even Digital Home service. In 2004, SK Telecom launched Hanbyul, the world’s first DMB satellite. The carrier currently provides satellite DMB
Digital Multimedia Broadcasting
Digital Multimedia Broadcasting is a digital radio transmission technology developed in South Korea as part of the national IT project for sending multimedia such as TV, radio and datacasting to mobile devices such as mobile phones...

 to its subscribers through its subsidiary TU Media
TU Media
TU Media Corp. is South Korea's first mobile broadcast service company headquartered in Seoul, South Korea. Its name stands for "TV for you." It was established in 2003 as a subsidiary of SK Telecom. SK Telecom owns 44% of the company's shares. Currently about 1.3 million people are subscribers...

 Corp.
SK Telecom also offers a variety of internet services, many through its subsidiary SK Communications. Cyworld
Cyworld
Cyworld is a South Korean social network service operated by SK Communications , a subsidiary of SK Telecom .Members cultivate relationships by forming Ilchon or "friendships" with each other through their minihompy....

 is one of the most popular blogging services in South Korea and NateOn is one of the most popular instant messengers.

History

SK Telecom was established in March 1984 under the name Korea Mobile Telecommunications Services Co., but was renamed Korea Mobile Telecommunications Corp. (KMT) in May 1988. It was a wholly owned subsidiary of the state monopoly phone company, Korea Telecom. In June 1994 SK Group
SK Group
SK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....

 became KMT's largest shareholder. KMT officially joined the SK Group in January 1997 and changed its name to SK Telecom in March of that year.
In October 2000, SK Telecom became the second operator in the world after NTT's DoCoMo to launch a commercial 3G
3G
3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 specifications by the International Telecommunication Union...

 service using W-CDMA
W-CDMA
W-CDMA , UMTS-FDD, UTRA-FDD, or IMT-2000 CDMA Direct Spread is an air interface standard found in 3G mobile telecommunications networks. It is the basis of Japan's NTT DoCoMo's FOMA service and the most-commonly used member of the UMTS family and sometimes used as a synonym for UMTS...

 technology. In January 2002, this was followed up by launching the world's first CDMA2000
CDMA2000
CDMA2000 is a family of 3G mobile technology standards, which use CDMA channel access, to send voice, data, and signaling data between mobile phones and cell sites. The set of standards includes: CDMA2000 1X, CDMA2000 EV-DO Rev. 0, CDMA2000 EV-DO Rev. A, and CDMA2000 EV-DO Rev. B...

 1xEV-DO
Evolution-Data Optimized
 Evolution-Data Optimized or Evolution-Data only is a telecommunications standard for the wireless transmission of data through radio signals, typically for broadband Internet access...

 network, offering greatly increased data transmission speeds.

In May 2005, SK Telecom decided to sell 60% of SK Teletech stock to Pantech. In 2006, SK Teletech has changed its brand name to "SKY" and remains as Pantech's mobile phone line.

In the company's early stages (1984–1993), it launched a mobile phone service for automobiles and paging service. In March 1984, the company started as Korea Mobile Telecommunication Service. In May 1984, the company kicked off mobile communication service for automobiles. In July 1988, the company launched mobile Telecommunication Service.

In the company's privatization stage (1994–1996), through privatization, Korea Mobile Telecommunications Service became part of SK Group. Since then, the company established foothold in the global market with world’s first commercialization of CDMA technology. In June 1994, the company SK Group becomes largest shareholder. In January 1995, the company achieved 1 million subscriber mark. In June 1996, the company became the third Korean company to be listed in NYSE(ADR).

In the company's international stage (1997–2000), Korea Mobile Communication Corporation was transformed to SK Telecom. SK Telecom also became the 6th company in the world to surpass 10 million subscriber mark. The company also began constructing the Northeast Asian CDMA belt encompassing China, Japan, Vietnam, and the whole Asian continent. In March 1997, the company company name changed to SK Telecom. In October 1997, the company launched online service NETSGO. In June 1998, the company SK Telink Corp. started commercial overseas call service. In December 1998, the company SK Teletech Corp. launched first mobile handset. In April 1999, the company joined mobile comm. project in Mongolia. In July 1999, the company launched TTL, a telecommunication brand targeting the youth market . In Oct. 1999, the company started wireless internet service n.TOP. In Dec. 1999, the company surpassed 10 million subscriber mark. In Oct. 2000, the company launched world’s first commercial service for CDMA2000
CDMA2000
CDMA2000 is a family of 3G mobile technology standards, which use CDMA channel access, to send voice, data, and signaling data between mobile phones and cell sites. The set of standards includes: CDMA2000 1X, CDMA2000 EV-DO Rev. 0, CDMA2000 EV-DO Rev. A, and CDMA2000 EV-DO Rev. B...

. In Dec. 2000, the company won contract on asynchronous IMT-2000 (WCDMA) service.

In the company's ubiquitous age (2001–2007), it began wired/wireless multimedia service era and began efforts to combine and converge mobile communication service. In the meantime, the company started seeking new value-creating models such as M-Commerce and satellite DMB Service. In Jan. 2002, the company completed merger of Sinsegi Communications. In Jan. 2002, the company launched world’s first synchronous IMT-2000 commercial service. In March 2002, the company started global roaming between countries adapting CDMA or GSM services. In April 2002, the company signed contract with Pelephone in Israel to provide wireless Internet platform. In July 2002, the company signed MOU with China Unicom to establish a joint venture. In Nov. 2002, the company launched mobile multimedia service June. In Nov. 2002 , the company launched mobile payment
Mobile Payment
Mobile financial services, also referred to as mobile money, mobile payment, mobile banking, mobile money transfer and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device....

 service MONETA. In July 2003, the company started commercialized CDMA service in Vietnam. In Aug. 2003, the company June became the world’s first 3G service to get 1 million subscribers. In Feb. 2004, the company won certificate to establish UNISK, a joint corporate with China Unicom. In March 2004, the company launched world’s first DMB satellite. In November 2004, the company opened Melon
Melon
thumb|200px|Various types of melonsThis list of melons includes members of the plant family Cucurbitaceae with edible, fleshy fruit e.g. gourds or cucurbits. The word "melon" can refer to either the plant or specifically to the fruit...

, wired/wireless music portal service. In April 2005, the company started ‘1mm’ service. In November 2005, the company opened ‘Loview’, a digital photo frame service. In December 2005, the company reached 4 million subscriber base for Melon
Melon
thumb|200px|Various types of melonsThis list of melons includes members of the plant family Cucurbitaceae with edible, fleshy fruit e.g. gourds or cucurbits. The word "melon" can refer to either the plant or specifically to the fruit...

. In Janunary 2006, the company achieved sales record over 10 trillion KRW. In May 2006, the company commercialized handset-type HSDPA for the first time in the world. In May 2006, the company advanced into the U.S. mobile communication market with Helio. In June 2006, the company signed strategic partnership with China Unicom
China Unicom
China Unicom or China United Netcom Ltd , is a Chinese state-owned telecommunications operator in the People's Republic of China.-History:...

 and purchased CB worth 1 billion USD. In June 2006, the company started commercial Wibro
WiBro
WiBro is a wireless broadband Internet technology developed by the South Korean telecoms industry. WiBro is the South Korean service name for IEEE 802.16e international standard...

 service. In April 2007, the company S-Fone
S-Fone
S-Fone is the fourth largest mobile communication operator in Vietnam that uses the CDMA technology. Founded on July 1, 2003, in Ho Chi Minh City, Vietnam, S-fone became the third network of Vietnam. It is the trademark of S-Telecom...

 in Vietnam reached 2 million subscriber mark. In April 2007, the company launched TD-SCDMA project with Chinese government.

Services

SK Telecom provides convergence services in entertainment, business and finance.
  • Melon: Melon is SK Telecom's music service, which allows users to download or stream music over the internet, such as on mobile phones. The music can be played on mobile phones, digital audio players, portable media players and digital cameras. Users can also create their own ring tones.
  • m-Finance: m-Finance, a financial manager introduced in 2001, allows users to take charge of all their financial transactions. Properly equipped mobile phones can do basic banking such as wire transferring and checking balances as well as stock trading and credit card services. Users can also withdraw cash from ATMs through the mobile phones.
  • Digital Home: Digital Home allows users to control and monitor home appliances, lighting, security systems and fire alarms remotely. The service also incorporates mobile communications networks, high-speed internet and cable broadcasting networks.
  • Mobile RFID (m-RFID): Phones with embedded RF readers give users vital information about products before users purchase them. SK Telecom has tested this technology for six applications including, safety, authentication, package tracking, supply chain management, digital content usage and location-based services.
  • 11st: one of the biggest online store complexes in South Korea is under the management of SK Telecom.

Global Business

SK Telecom is currently putting its efforts in expanding into global markets, such as Vietnam, U.S., and China. The company is also forging strategic alliances with other global carriers and IT businesses.

China

In 2000, SK Telecom first entered China, later forming a joint venture with China Unicom
China Unicom
China Unicom or China United Netcom Ltd , is a Chinese state-owned telecommunications operator in the People's Republic of China.-History:...

 for wireless Internet service in February 2004. This joint venture between a foreign and local company, UNISK, is the first of its kind in China.

In 2006, SK Telecom bought $1 billion worth of convertible bonds of China Unicom
China Unicom
China Unicom or China United Netcom Ltd , is a Chinese state-owned telecommunications operator in the People's Republic of China.-History:...

 Hong Kong, a China Unicom enterprise and agreed to cooperate in joint sourcing of handsets, development of additional services, platform development, marketing and distribution, customer relationship management, and network development. One result of this partnership is jointly developing handsets to be sourced by Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

, LG
LG
LG may refer to:*LG Corp., a South Korean electronics and petrochemicals conglomerate*LG Electronics, an affiliate of the South Korean LG Group which produces electronic products* Lawrence Graham, a London headquartered firm of business lawyers...

, and Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...

.

In August 2006, SK Telecom signed an MOU making it the first non-Chinese company to participate in the TD-SCDMA
TD-SCDMA
Time Division Synchronous Code Division Multiple Access or UTRA/UMTS-TDD 1.28 Mcps Low Chip Rate , is an air interface found in UMTS mobile telecommunications networks in China as an alternative to W-CDMA. Together with TD-CDMA, it is also known as UMTS-TDD or IMT 2000 Time-Division .The term...

 Project. Under the agreement SK Telecom will work with China's National Development and Reform Commission (NDRC) on development of TD-SCDMA
TD-SCDMA
Time Division Synchronous Code Division Multiple Access or UTRA/UMTS-TDD 1.28 Mcps Low Chip Rate , is an air interface found in UMTS mobile telecommunications networks in China as an alternative to W-CDMA. Together with TD-CDMA, it is also known as UMTS-TDD or IMT 2000 Time-Division .The term...

, China's 3G
3G
3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 specifications by the International Telecommunication Union...

 mobile telecom technology standard.

USA: Helio

On January 26, 2005, SK Telecom announced that it had formed a $440 million joint venture with Earthlink
EarthLink
EarthLink , is an Internet service provider headquartered in Atlanta, Georgia, USA. It claims 1.94 million subscribers.- Business :EarthLink provides a variety of Internet connection types, including dial-up, DSL, satellite, and cable. Both dial-up and high speed Internet access are available...

 to form a new US mobile carrier named SK-Earthlink, later that year, the company name was changed to Helio. Combined with Earthlink, Helio is expected to offer a variety of advanced mobile devices, many of which are currently for sale in Korea. These models would be refined and updated for use by tech-savvy American consumers, allowing for the first time handsets with functionalities previously unavailable in the US market.

The now defunct venture operated on the premise of being a mobile virtual network operator
Mobile virtual network operator
A mobile virtual network operator is a company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service...

 (MVNO), using CDMA 1xEVDO network capacity leased from Sprint Nextel
Sprint Nextel
Sprint Nextel Corporation is an American telecommunications company based in Overland Park, Kansas. The company owns and operates Sprint, the third largest wireless telecommunications network in the United States, with 53.4 million customers, behind Verizon Wireless and AT&T Mobility...

. In 2007, SK Telecom began talks to purchase a stake in Sprint Nextel
Sprint Nextel
Sprint Nextel Corporation is an American telecommunications company based in Overland Park, Kansas. The company owns and operates Sprint, the third largest wireless telecommunications network in the United States, with 53.4 million customers, behind Verizon Wireless and AT&T Mobility...

, however by 2008 it had backed away from the deal.

On June 27, 2008, it was reported that Helio was being acquired in an all stock deal by Virgin Mobile
Virgin Mobile USA
Virgin Mobile USA, Inc. is a wireless communications services provider based in Warren, New Jersey, United States. Founded in 2001 as a mobile virtual network operator, Virgin Mobile USA, Inc. commenced operations under the Virgin Mobile brand in June, 2002...

- for a net acquisition price of $39 million – in stark contrast to the $500 million investment in the venture. All staff were eliminated and the company ceased as a going concern

USA: Mobile Money Ventures

On March 6, 2008, SK Telecom launched Mobile Money Ventures, a joint venture with Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...

. MMV designs, develops, implements, and supports mobile financial services solutions on a global scale. Its Mobile Money Platform can support existing mobile banking services as well as next generation services like P2P payments and NFC payments.

On March 28, 2011, SK Telecom made a surprise bid to acquire bankrupt movie/game rental company Blockbuster Inc.  SK bid $284.5 million for Blockbuster, but ended up losing to Dish Network
Dish Network
Dish Network Corporation is the second largest pay TV provider in the United States, providing direct broadcast satellite service—including satellite television, audio programming, and interactive television services—to 14.337 million commercial and residential customers in the United States. Dish...

.

Vietnam: S-Fone

In September 2001, SK Telecom established S-Telecom, Business Cooperation Contract (BCC) in Vietnam and SPT (Saigon Postel), a Vietnamese company with a CDMA license.

S-Telecom, the first CDMA mobile phone service provider in Vietnam, launched commercial service in July 2003 and has upgraded its system to CDMA2000
CDMA2000
CDMA2000 is a family of 3G mobile technology standards, which use CDMA channel access, to send voice, data, and signaling data between mobile phones and cell sites. The set of standards includes: CDMA2000 1X, CDMA2000 EV-DO Rev. 0, CDMA2000 EV-DO Rev. A, and CDMA2000 EV-DO Rev. B...

 1xEV-DO to meet the growing demand from customers. Currently the company is providing services to 64 cities including Ho Chi Minh City and Hanoi under the S-Fone
S-Fone
S-Fone is the fourth largest mobile communication operator in Vietnam that uses the CDMA technology. Founded on July 1, 2003, in Ho Chi Minh City, Vietnam, S-fone became the third network of Vietnam. It is the trademark of S-Telecom...

 brand.

As of October 2006, the company was providing EV-DO wireless internet services in five major cities including Hanoi and Ho Chi Minh City. S-Fone
S-Fone
S-Fone is the fourth largest mobile communication operator in Vietnam that uses the CDMA technology. Founded on July 1, 2003, in Ho Chi Minh City, Vietnam, S-fone became the third network of Vietnam. It is the trademark of S-Telecom...

 subscribers reached two million in April 2007, a little over three years after its start.

Employee Conditions

SK Telecom has its own workers union. SK Telecom abides by the Korean Labor Law and is executing a retirement age of 58. Unless an employee commits a crime more serious than imprisonment or an act in violation of ethical management of SK Telecom, employees are guaranteed to work until they reach the retirement age. SK Telecom follows a management system called SKMS (SK Management System), created by SK Companies.

Subsidiaries

SK Telecom has a number of subsidiaries that support its growth. In 2006, SK Communications strengthened its linked services with SK Telecom, strengthening Korea’s top community portal Cyworld, and developing its model into a global business. Currently, Cyworld services are expanding in Asia, Europe and North America. At home, NATE ON is the leading messenger service in 2006, with more than 13 million users. SK Telink, an international telephony company, launched international Korean SMS services in the U.S., and now operates in more than 170 countries. TU Media, the nationwide satellite Digital Multimedia Broadcasting (DMB) service, is also making fast growth, attracting more than 1 million subscribers in 2006.

SK Communications

Since its 2002 launch as an online portal service provider, SK Communications
SK Communications
SK Communications is a provider of internet service and web portal Nate in South Korea.In 2003, Nate merged with Cyworld, one of the leading social networking services in South Korea....

 has grown to be one of the most popular Internet portals in Korea. The largest online community site in Korea, Cyworld
Cyworld
Cyworld is a South Korean social network service operated by SK Communications , a subsidiary of SK Telecom .Members cultivate relationships by forming Ilchon or "friendships" with each other through their minihompy....

 has seen a sharp rise in its users, with members reaching 20 million from 16 million in 2005. SK Communications also provides the top instant messaging service NateOn. As of December 2006, NATE ON had 13 million users and led the local market. In 2006, the NATE.com portal refreshed its site as a Web 2.0 customer-focused portal with an emphasis on social bookmarking, personalized content and community services. Cyworld II also re-launched with Web 2.0 offerings, including a personalized mini-homepage, personalized search
Personalized search
Personalized search refers to search experiences that are tailored specifically to an individual's interests by incorporating information about the individual beyond specific query provided. Pitkow et al...

, UCC video and other Web-based applications that offer user-customization services.

The company is currently extending its online businesses into the global market. In 2006, SK Communications opened up its Cyworld services in China, Germany, Japan, Taiwan, the U.S., and Vietnam. To make full use of its premium base, the company is building a portfolio of high-quality content providers, including education company Etoos; consumer shopping services under the Cymarket brand, which leverage Cyworld’s network and traffic; gaming subsidiary SK i-media; and Egloos, the leading independent blogging service in Korea. In addition, the company acquired a significant stake (24.4%) in powerful online search engine, Empas
Empas
Empas was one of the popular total internet search tools and web portal sites in South Korea. The service was launched in 1998 by Knowledge Plant Corporation , which changed its name to Empas Corporation in 2004...

, for KRW 37.2 billion.

SK Telink Corp

SK Telink was established in April 1998 as an international telephony service provider and has grown into a major player in the international calling market. Under the brand name 00700, the company provides international call services. Building on the commercial long-distance telephony and value-added services launched in 2005, the company began offering Korean text messaging in June 2006 in the U.S. The service allows subscribers send and receive Korean text messages in the U.S., as well as to and from Korea.

TU Media Corp

Established in December 2003, TU Media
TU Media
TU Media Corp. is South Korea's first mobile broadcast service company headquartered in Seoul, South Korea. Its name stands for "TV for you." It was established in 2003 as a subsidiary of SK Telecom. SK Telecom owns 44% of the company's shares. Currently about 1.3 million people are subscribers...

 Corp. introduced a new digital media service— satellite Digital Multimedia Broadcasting (DMB). Subscribers can now view satellite TV broadcasts on their portable handsets or via vehicle-mounted terminals. As of December 2006, subscribers to TU Media topped 1 million, up from 372,000 in 2005. Its nationwide DMB is available on 37 channels, consisting of 16 video, 20 audio and one data, and provides programs on education, games, drama, music, news and culture. In 2006, TU Media launched TUBOX, a pay-per-view movie channel that allows subscribers to see movies prior to DVD release. In addition to South Korea's 84 cities, TU Media provides service in express highways and Seoul metropolitan subways. In 2006 the company expanded its satellite DMB coverage to include the Korea Train eXpress (KTX) Seoul to Busan line, Busan subways and 10 metropolitan Seoul local highways.

See also

  • SK Group
    SK Group
    SK Group is the third largest conglomerate in South Korea. The SK Group is composed of 92 subsidiary and affiliate companies that share the SK brand and culture....

  • SK Teletech (Now merged into Pantech & Sky Electronics
    Sky Electronics
    Sky Electronics is a mobile phone manufacturer company. headquartered in Seoul, Korea. it is group family by Pantech Curitel.-See also:*List of Korea-related topics*Economy of South Korea*Communications in South Korea*SK Teletech...

    )
  • Cyworld
    Cyworld
    Cyworld is a South Korean social network service operated by SK Communications , a subsidiary of SK Telecom .Members cultivate relationships by forming Ilchon or "friendships" with each other through their minihompy....

  • Nate
    Nate
    Nate is a South Korean web portal, developed by SK Communications. In 2003, Nate acquired the online community service Cyworld, and in 2004, it achieved first place in local page views with a total of 3.8 million, surpassing rival Daum for the first time....

  • KT
  • LG U+
  • TU Media
    TU Media
    TU Media Corp. is South Korea's first mobile broadcast service company headquartered in Seoul, South Korea. Its name stands for "TV for you." It was established in 2003 as a subsidiary of SK Telecom. SK Telecom owns 44% of the company's shares. Currently about 1.3 million people are subscribers...

  • SK Wyverns
    SK Wyverns
    SK Wyverns Baseball Club is a South Korean professional baseball team founded in 2000. Based in Incheon, they play their home games at Munhak Baseball Stadium.Their current manager is Man Soo Lee .-History:...


External links

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