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[Sponsored Report] SK Broadband looks to expand with new services

Mar 25,2011
The CEO of Duzon Newturns, left, CEO of SK Broadband, Park In-sik, middle and Barry McCarthy, CEO of First Data Korea, pose for a photo celebrating an MOU to establish a grand consortium for Bcube.

SK Broadband achieved record sales (2.1 trillion won) and a major business profit turn-around in 2010. This is because the fields the company is currently concentrating on have increased sales results more than it had expected.

SK Broadband’s corporate business sales increased 23 percent to 637.4 billion won and the company expects this year’s growth rate will be similar to last year.

And once SK Telecom starts selling the iPhone and iPad, it expects to increase business-to-business market competition with a reinforced lineup of popular wireless and wired products that attract customers.

Competition is only expected to head up.

SK Broadband is working to achieve a net profit turn-around this year as well. In addition, by cooperating with the group’s subsidiary companies, it plans to secure major clients expand its business base.

The company also continuously works to develop new services and secure a position in new innovations. SK Broadband plans to increase its corporate business sales up to 1 trillion won, which is expected to be about 40 percent of the company’s total sales by 2014.

To develop a solid business in 2011, SK Broadband will advance in new services and increase its strength in other services.

At the same time it plans to improve profitability by operating a smart business portfolio and will reinforce its mid- to long-term competitiveness by combining engaging wired and wireless products.

More specifically, by increasing strategic cooperation with group subsidiaries such as SK Telecom and SK C&C in the data industry, it plans to target major clients more actively than before.

In the Internet-phone business, it plans to develop an All-IP optional service and bundle that with other products like company-wide local area networks and ICT products. The company plans to concentrate more on industrial complexes or new buildings designed for the telecommunications industry.

To expand SMB clients it will operate Bcube at full speed and also offer coverage-free bundling with Internet phone, IPTV and intelligent networks.

SK Broadband B2B’s main service is W Zone.

With W Zone, you can use your mobile phone as an ordinary corded telephone in the office, providing that “always connected” feeling wherever you are.

In short, if the caller dials your office number and you are out of the office, it automatically gets connected to your mobile phone.

This way, you can answer your office phone no matter where you are. W Zone service is available without any additional installation and even if you use a different telecom company for corded-phone service, you can still use W Zone.

Another service is Bcube.

Bcube provides various solutions to business situations. SK Broadband plans to increase its sales by bundling PSTN, VoIP and IDC with Bcube, its SMB-solution service.

Since October 2010, it has started to offer, through its Web site, groupware services, payment gateways and printing solutions and will increase its service band and partner companies.

Bcube is currently providing service to SMB clients with 37 products and is developing new services that fulfill the needs of the SMB market, packaging legacy and new products.

The strategy of Bcube is to expand clients in the current company market and improve ARPU by up-selling on clients who are already using a product.

Through Bcube, the company expects to accomplish both growth and profitability.

SK Broadband also plans to maximize its synergy with SK Telecom. Thanks to the increase in smartphone use and SK Telecom’s Wi-Fi market, SK Broadband is expecting to benefit by receiving orders to construct Wi-Fi zones. This should increase sales and profitability.

By highlighting to clients about the need for Wi-Fi, SK Broadband hopes it can retain current clients and gain new customers. In addition, by providing Wi-Fi zones to potential clients, the company can up-sell.

Park In-sik the CEO of SK Broadband said: “This year’s management goal is to achieve continuous sustainable growth based on reinforcing profitability. Especially by maximizing synergy with SK Telecom, we hope to become Korea’s leader in wired and wireless communication and have a surplus this year.”

“To improve structural profit we will continue to lead new business trends, like ICT and cloud computing, and secure the leading role in new businesses and prepare new development areas,” Park added.



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