Saturday, March 29, 2008

Korean Providers to Invest $15.8B in IPTV In 2008

The Broadcasting and Communications Commission in Korea stated that telecom firms there are to invest around $15.8 billion on IPTV services in 2008.

KT, the dominant telephone and broadband Internet service provider, alone plans to spend $13 billion, and LG Dacom and Hanarotelecom plan to spend $1.475 billion and $1.23 billion, respectively.

According to the report from the commission, the firms have said that they will spend $10.6 billion won on improving networks, $1.14 billion on platforms, $2.23 billion on set-top boxes and another $1.8 billion on purchasing content.

The Electronics and Telecommunications Research Institute estimates IPTV will be a $5.4 billion market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.

According to the report from the commission, the firms have said that they will spend 1.06 trillion won on improving networks, 113.7 billion won on platforms, 223 billion won on set-top boxes and another 180 billion won on purchasing content. The Electronics and Telecommunications Research Institute estimates IPTV will be a 540-billion won market this year, meaning it will take a few years for the firms to start making any profits. Government agencies expect IPTV subscribers to reach 2 million this year and grow to 3.3 million by 2012.

It looks like IPTV will have a big year in Korea in 2008. I am still a bit confused about which of these services are Internet over the top and which are typical walled garden Telco IPTV services. I would appreciate clarification from anybody on the scene.

2 comments:

SAM said...

all these will be wall garden type. Akin to U-verse in USA.

Bob Larribeau said...

Sam,

Thank you for your comment. It appears to me that KT's service is a walled garden but that Hanaro's service is an over the top Internet service.

Is that correct? When will Hanaro evolve its IPTV service to a walled garden?

Bob Larribeau