Satellite to beam TV to cell phones, autos

SK Telecom, the largest mobile service provider in Korea, said yesterday that it has set up a consortium for its digital media broadcasting business with 200 affiliated firms. The new satellite broadcasting company will be launched in mid-December with initial capital of 130 billion won ($110 million). Satellite digital media broadcasting services would allow subscribers to watch satellite broadcasting through mobile phones or terminals installed in automobiles. Firms had until Oct. 31 to join the consortium. SK Telecom said its offer had been oversubscribed; other firms had offered a total of 200 billion won for a piece of the new venture. SK said the new company would launch a broadcasting satellite next January ― it has already bought the satellite ― and would start pilot services in March. SK Telecom will be the largest shareholder of the new firm, with a 30 percent stake. A Japanese partner, MBCo, will hold a 10 percent stake. The consortium also includes the mobile handset makers LG Electronics and Pantech and Curitel, media companies and two content providers, CJ Media and On Media. Hana Bank and KTB Network also have joined the consortium. But the new group does not include national over-the-air broadcasting companies such as Munwha Broadcasting Corp. or Seoul Broadcasting System. KT Corp., the largest high speed mobile service provider, also elected to stay away. “We left about a 5-percent stake in the consortium for national broadcasters. We are negotiating with them so that they take part in the project as soon as possible,” an SK official said. SK is also in talks with KT, a rival in the cell phone business, which demanded the same stake in the new company as SK Telecom as a condition for being part of it. by Kim Hyo-jin