DMB causes data revenues to fall 10% by 2008

DMB causes data revenues to fall 10% by 2008

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Yesterday at the ongoing “Mobile Broadcasting Workshop” being held on the island of Jeju, South Korea, the 2nd largest mobile operator in South Korea, KTF, said that with the launch of Terrestrial DMB services mobile operators expect to loose 71b won or 10% of expected revenue by 2008. It said that the loss will result from the fact that users will use less of the wireless internet services offered by operators.

Further, KTF said that terrestrial DMB services are still in its nascent stages and will re-examine the issue sometime in late 2006 or 2007.

For KTF, DMB service is not proving to be attractive enough as the marketing costs involved are much higher than what it receives from the Satellite DMB provider TU Media, which is only 25%.

As of now, KTF has subscribed 3,000 people to satellite their DMB service which will be available from December, they expect to add another 10,000 by the year end.

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