2009/7/20 Ulink Group

Ulink

2009/7/20 Ulink Group

New 3G Services In China

Chances and challenges

for SK Telecom

Mobile

Application is

essential

Mobile social networks and

location services: two future

trends for mobile applications

Strategy Implementation

China Telecom Restructuring

SK Telecom should

launch location

based service in

China

Mobile Value

Chain Changed

Strategy Plan for SK Telecom SWOT Analysis

Chapter 1

Chapter 2

Chapter 3

Ulink

Network

TD-SCDMA

CDMA2000

WCDMA

Chances for SK Telecom

•SK Telecom has launched TD-SCDMA

project with Datang Mobile and SIM

Technology in China. It is a good chance

for SK Telecom to enter 3G cell phone

market in China because of the lack of

terminal types of TD-SCDMA.

•Advanced technology and experience of

SK Telecom in CDMA2000 can offer

more cooperation chances with China

Telecom.

•Long time partnership in terminal

manufacturing (SK Mobile) and service

provide (UNISK). SK Telecom can use this

opportunity to implant the mature 3G

service into network of the China Unicom.

New Mobile Operators

2009/7/20 Ulink Group

Ulink

Logo for 3G Service Launched Services

WIFI Music Zone; Fetion (IM);

Videophone; 139 Emai;139.com

(SNS, beta version)

WIFI; Mobile TV; Tianyi LIVE(IM);

Music Download; Walki-talki

WIFI; Music download; Mobile TV;

Videophone; Mobile Email; IM;

Mobile Search

New MO

Mobile Operators

(MO) begin to play an

important role in

content provider. This

is a big challenge for

SK Telecom in 3G era

of China

2009/7/20 Ulink Group

Ulink

Content

Provider

Service

Provider

Handset

Manufacturer

Mobile

OperatorConsumer

Applications play a core role now!

Handsets manufacturer, Internet giant

try to split revenue with MO in valued

added services. Competition is more

fierce.

Traditional Mobile Value Chain

At present:

2009/7/20 Ulink Group

Ulink

Type 3:

May coexist with type 2.

Each part in the chain split

one part of revenues of

the final services.

Application

Developer

Handset

Manufactu

rerConsumer

Mobile Operator

Content

Provider

Type 1:

Terminal manufacturers control the

service contents. Apple and AT&T is of

such type.

May happen in China is one kind of

handset can attract extremely large

number of users

Type 2:

This type is most probably happen in

China. MO plays a core role in service

contents.

How to cooperate with MO is essential

in this type.

Content

Provider

Consumer

Mobile Operator

Handset

Manufacturer

Content

Provider

Mobile

Operator

Consumer

Handset

Manufacturer

2009/7/20 Ulink Group

Ulink

Future

Enhanced 3G3G (Today)Low Speed

Today

Text Messages Pictures Multimedia

Analog Analog-Digital Digital Only

Location sensitive marketing,

such as location-based

advertising

Clips Streaming Interactive

Ringtones Download Streaming

Dual-Mode Wifi+Digital

Voice

SMS/MMS

LBS/mCommerce

Video

Ringtones/Music/Gaming

Data Access

Services are being deployed more frequently…

Services evolve over time …

Services are proliferating…

2009/7/20 Ulink Group

Ulink

Phone (or smart phone at present)in the future will be a personal digital device

with rich multi-functions. With high data transition speed of 3G networks, data

sharing service will be one trend.

0

100

200

300

400

2008 2009 2010 2011 2012 2013

source: Forward Concepts Corp.

Social network (SN) applications such as

Facebook, Myspace, Xiaonei and Kaixin link

people together on the internet. 3G will

make mobile SN popular. With numerous

consumers and rich data sharing services,

ARPU can be boosted greatly.

2009/7/20 Ulink Group

Ulink

With the development of position technology, more and more phones can be

used to locate the position accurately and quickly.Technology Networks Accuracy

A-GPS All 1-10m

GPS All 10-30m

AFLT CDMA 50-200m

EOTD GSM 50-200m

TDOA All 100-200m

EOA All 100-200m

Booming GPS handsets market.

0

100

200

300

400

500

2007 2008 2009 2010 2011

source: iSuppli Corp.

0

5000

10000

15000

20000

2007 2008 2009 2010 2011

2009/7/20 Ulink Group

Ulink

GPS + SNS = Location-based SN , another trend in the

future. With position technology, your cell phone can:

Tell where all your friends are.

Show people and things that match your profile and

interested related online service.

Discover hot and interesting places

“Local” will be another trend in mobile applications.

Location-based Social Networks Applications Abroad Location-based social networks in the

world could reach revenues as high

as $3.3 billion by 2013, a high ARPU

service.

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013

2009/7/20 Ulink Group

Ulink

1

2.5

3.2

2008 2009 2010 2011 2012

Market

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012source: eMarketer,Septemp 2008

LBS market size forecast in China and worldwide.

The Scope of LBS

Mobile Resource

Management

1. Sale force

Tracking

2. Fleet

Management

Entertainment

1. Location-based

social network

2. Location-based

games

Information

Service

1. Location-base

Advertising

2. Navigation

Personal Security

1. People Tracking

and Location

2009/7/20 Ulink Group

Ulink

ConsumerMAP Provider

MAP

Interface

Provider

LBS APP

Developer

Content

Provider

Mobile

Operator

Handset

Manufacturer

Position

technology

Provider

Based on the above value chain, strategies for SK Telecom entering

LBS market in China are as follows:

1) LBS is still in the emerging step in China, therefore, to attract more

subscribers, we suggest to launch location-based social network

application called Ulink.

2) Provide location-based service contents as value added service.

Besides the traditional data services such as music/video sharing,

we suggest to launch the location-based advertising (LBA) service

due to its large potential market.

3) Research new position technology or/and manufacture terminal

with built-in GPS module. This will aid SK Telecom to enter the 3G

phone market in China.

2009/7/20 Ulink Group

Ulink

1. Negotiation difficulties with

China Telecom, because of

less cooperation experience

2. Other mobile operators

may become the

competitors with SK

Telecom since they control

strictly in value added

services

3. Entering terminal market in

China is also difficult

because it is dominated by

other brands such as Nokia.

Technology Strength.1. Mature 3G technology and leadership role

in developing an end-to-end LBS platform

in the world

2. Abundant internet business in China

3. Productive R&D research center in China

4. Long time cooperation with companies in

China

Market Strength1. Rich market sale experience in LBS in

South Korea

2. Solid financial foundation

Culture Strength1. Similar traditional culture between China

and South Korea

2. Modern culture in South Korea is also very

popular in China, especially in entertain

domain.

Strength Weakness

2009/7/20 Ulink Group

Ulink

Market Opportunity: 1. Popularity of SNS may make

Ulink the most popular location-

base social network in China

2. Mobile LBS is in the emerging but

booming stages in China. SK

Telecom can utilize this chance to

integrate the internet business

that have launched in China

3. A chance to enter 3G cell market

in China , especially China

Mobile which operates the TD-

SCDMA network needs more

types of terminals. This can

further enhance the brand impact

4. May play a leading role in the

market of 3G value added

services.

Competition Threat:1. Mobile operators may develop their own

position technology. Knockoff cell

phones which have GPS module are

also threats.

2. Internet giants such Google and

Microsoft may enter LBS market by

proposing applications integrated with

their other products . Even terminal

manufacture like Nokia will be the

market competitor in the future.

3. Existing internet SNS applications such

Xiaonei and Kaixing may launch the

location-based substitutes.

Policy Threat:1. Location is one of the most private

information, any one who steal this

information for illegal usage may lead to

severe consequence.

Opportunity Threat

2009/7/20 Ulink Group

Ulink

1. Choose map interface provider

We here choose Mapabc as our

map provider because:

1. Large map database and

fast access speed

2. Share potential partners.

City8 provides 3D street

view for most of cities in

China, cooperation in the

future will make Ulink more

attractive for mobile users.

Provider Map Data Source Market Share Partners

68%

10.4%

10%

Baidu, Tencent

Google, Microsoft

City 8

NetEase

2. Build LBSN--Ulink

1.Choose the most potential partner: Bedo in China

because: The first LBSN in China, and is popular in GPS mobile

users in China

Honored as the 100 Winners for Red Herring Global 2008.

Win Top ten best internet applications in mobile phone

2. Integrate Cyworld China into Ulink

Ulink

Ulink

Mobile SNS launched by

China Mobile

(beta version currently)

2009/7/20 Ulink Group

Ulink

1. Incorporate internet service into Ulink

Ulink

Music download

and sharing

Location-base

game

Location-based

marketingWhen Ulink has attracted large number of

consumers, launch LBS into Ulink. This can be

carried out by incorporating internet business of

SK Telecom in China into Ulink

2. In LBS, LBA will be the emphasis which

leads to revenue for Ulink

The value chain of the proposed LBA

Ads database of Ulink contins:

User profile information of Ulink

User real-time location information

Ads of advertiser

Adviser Ads database MO

2009/7/20 Ulink Group

Ulink

1) Send advertisements and charge the advertiser based on response rate or click

numbers. Two schemes are proposed:

2) If Ulink becomes a strong brand and its services are generating a lot of traffic

volume( game, music etc.), it might consider asking the MO to pay for generated increased

traffic.

Business Model for LBA

ads

ads

adsads

ads

Where is the

restaurant?

Where can I

buy a glass?

Push scenario:

Send the advertising

messages actively to

the subscribers.

Advertisements

containing value-added

information will be

more attractive. This

method have great

potential in locations

with high traffic flow,

such as with public

transport system

Pull scenario:

Send the advertising

messages actively to

the subscribers.

Advertisements

containing value-

added information

will be more

attractive. This

method have great

potential in locations

with high traffic flow,

such as with public

transport system

2009/7/20 Ulink Group

Ulink

For high –end

consumers

For low –end

consumers

Both have strategic

partnership with ST

Telecom.Leading

automobile GPS

manufacture,

acquired by ST

Telecom in 2008

Leading provider of

GPS-enabled silicon

and software location

platform , partner

with SK Telecom

since 2004

Partners of terminal

Manufacturer

Mobile Operator of

China

GPS hardware/technology

Provider

Strategy plan for SK Telecom to enter the

GPS terminal market in China

SK Telecom can

provide terminals

with position

function to China

Telecom, since

they adopt the

same network

(CDMA2000)

2009/7/20 Ulink Group