Analysis of price plan changes

NEtwork Media Management and Optimization Lab.

Analysis of price plan changes

2009.12.28

Taehyun Kim

NEtwork Media Management and Optimization Lab.

KT strategyKT strategy

ContentsContents

Price plan changesPrice plan changes

SKT strategySKT strategy

ProblemProblem

11

22

33

44

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Price plan changesPrice plan changes

Membership price changes

Voice plan changes

Data plan changes

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Membership price changes

Membership price changes

SKT 55,000 40,000 won (27% off)

30,000 24,000 won (2009.12.1)

No change

KT

LGT

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Voice plan changesVoice plan changes

• The way of SKT's price : 10sec to 1sec (KT, LGT NO

change)

1 person can save 2,665won per month,

Family(2.9people) can save 7,730 won per month.

• KT : Fixed Mobile Convergence (FMC) Phone

(2009.10)

34,8% off for Voice, 88% off for Data

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Data plan changesData plan changes• KT : 2.01 0.25won per packet (88% off) / Smart phone

(2009.11)• ‘Smart sponsor’ : Phone aid price discount• Must use ‘ 음성다량요금제’ or ‘ 스마트폰 요금제’ . • 2,500∼20,000won discount per month depends on plans,

6,000∼11,000won additional discount benefit depends on period.

• ‘Smart sponsor’ : No promise policy during 3 years discount period.

• Teens price plan ‘Al cap150’ Message : 15 al 10 al / page. ‘Al cap junior’ : Basic price 10% off for elementary school students. 

• Price plan for smart phone : ‘Show smart 100/500/1000‘ Fixed price : 5,000∼1,5000 won, Free wireless data

500MB∼1000MB <Smart Sponsor>

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New price plans of SKTNew price plans of SKT

• Customized

: Specific user benefits enhanced

• Integrated

: Voice/Message/Data / WCDMA(3G)/Wibro

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New plan 1 (SKT)New plan 1 (SKT)

• Program for superior Users

Used more than 2 years, promise to use 12month or 24month, and use more than 29,000won/month. Then users can save 3,000 won ~ 22,000 won per month.

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New plan 2 (SKT)New plan 2 (SKT)

• PPS (Pre paid Service) plan : 62 won to 48 won per 10 sec (23% off)

• ‘PPS light’ : Basic : 166won/day, Voice : 39won/10sec, SMS :

22won/page

• ‘PPS plus’ : Basic : 266won/day, Voice : 34won/10sec, SMS

22won/page

• ‘PPS friends’ : Basic : 300won/day, Voice collected 3 numbers

25won/10sec, Others 50won/10sec, SMS : 22won/page 

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New plan 3 (SKT)New plan 3 (SKT)

‘Number 1’

• Users who use mobile phone a lot such as self-employed, freelace.

• price : 110,000won / month• Free Voice : 11,000Min (Out of net 1,000Min)• Voice price : 14won / 10sec

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New plan 4 (SKT)New plan 4 (SKT)

• ‘Ting PLUS’ Plan : For young people (Teens)

• price : 15,000~30,000 Won• Free use : 20,000~75,000won

(Voice/Video/Message/Wireless internet)• (15,000 20,000 / 20,000 30,000 / 25,000

50,000 / 30,000 75,000)

<Ting plus 150>

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New plan 5 (SKT)New plan 5 (SKT)

‘Safe data 100/150/190 control’

• Fixed price : 10,000 won 100MB (Before, 28MB) 15,000

won 500MB (Before, 42MB) 19,000won 2GB (Before 23,500won 1GB)

• Both smart phone and regular phone can regist. ‘Maximum protection’

• If user need to use more : 0.2won per 0.5KB

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NEtwork Media Management and Optimization Lab.

New plan 6 (SKT)New plan 6 (SKT)

• Voice·Message·Data Integrated

• ‘All-In-One’

price 35,000 ~ 95,000won

Free voice 150~1,000Min

Free Message 150~500

Free data 100MB~2GB

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New plan 7 (SKT)New plan 7 (SKT)

• Integrated price plan : WCDMA(3G) & Wibro

• ‘T-Login regular/premium control’

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NEtwork Media Management and Optimization Lab.

KT StrategyKT Strategy• FMC (Fixed Mobile Convergence)

• 3W (Wifi + Wibro + WCDMA)

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KT StrategyKT Strategy• i-Phone : 150,000 in 3 weeks. (1st in korea)

• ARPU by iPhone users : 44,366won

• ARPU by KT users : 30,749won

iPhone users use wireless data much more. And they expect to use internet by wi-fi ( 한국 투자증권 )

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Wireless data in USAWireless data in USA• Smart Phone market is growing explosively.• Verizon wireless’ wireless data income : $4.1 billion

(42.8%↑)• AT&T’s wireless data income : $3.6 billion (33.6%↑) Smart phone & FMC

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Global top 10Global top 10

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Total changesTotal changes

• 1.7 trillion won ↓ (2010), 2.1 trillion won↓ (2011) (Korea Communications Commission)

• 1 person can save 2,665won per month, Family(2.9people) can save 7,730won per month.

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ProblemProblem

• It doesn’t contain message price plan

• Users might not be recognized these policies

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