KT "The Untact Era is the Era of Communication... Accelerating 10 Million with 'Cable-Free' Giga Wi-Fi" (Comprehensive)

Over 9 Million High-Speed Internet Subscribers
Launch of GigaWi... Targeting 1 Million by 2022
Accelerating Segmentation and Personalization Strategies Amid Market Saturation
"Opening the Era of 10 Million Internet Subscribers"

[Asia Economy Reporter Seulgina Jo] "The untact (contactless) era is soon to be the era of communication. Internet connectivity at home becomes much more important. Here lies a new opportunity."

KT, which has led the popularization of the internet in South Korea, is introducing a new concept internet service that eliminates LAN cables in the untact era. This presents a new paradigm 26 years after launching the first commercial internet service at 9.6Kbps speed under the name KORNET in 1994. Notably, it shifts focus from the traditional 'speed'-centered paradigm to also emphasize 'coverage' so that users can enjoy uninterrupted service anywhere inside the home.

Lee Seonghwan, KT’s Executive Director and Head of 5G & GiGA Business Division, explained, "As society rapidly shifts to untact, the home becomes the central living space. Many activities such as work, shopping, and learning are conducted through internet connectivity at home," adding, "We see new opportunities here and have prepared this service accordingly." KT, having reached 9 million high-speed internet subscribers, aims to open the era of 10 million subscribers through this.

◆Internet Beyond Spatial Constraints... Launch of Three GiGA Wi Services= On the morning of the 22nd, KT held a press briefing at KT Square in Gwanghwamun, Jongno-gu, Seoul, announcing plans to launch three types of internet services called 'GiGA Wi (GiGA Wi-Fi, GiGA Wide WiFi)'.

In response to the recent surge in demand for Wi-Fi connected devices and high-definition content usage at home due to COVID-19, KT is the first in the industry to combine the concept of wireless speed (WiFi) with spatial coverage (Wide). The three services are ▲GiGA Wi Internet ▲GiGA Wi Single TV targeting single-person households ▲GiGA Wi Single Eyes for small business owners.

Before the service launch on the 23rd, KT focused on the fact that customers’ devices used at home have shifted from fixed devices like desktops to mobile devices such as smartphones and tablets, and that internet access occurs in multiple spaces. According to KT’s own survey, internet access at home is 70% wireless and 30% wired, with wireless usage about 2.3 times higher. It also reflected the increasing customer demand for Wi-Fi that does not disconnect anywhere in the home due to the growing size of content.

Jeon Beomseok, KT Executive Director in charge of Internet and Voice Business, said, "We have become a society where simultaneous and multiple connections happen anywhere without delay. We recognized that the concept of speed alone limits sufficient wireless internet use in each space," adding, "This service boasts stronger speed and coverage within the space."

First, 'GiGA Wi Internet' is a service that automatically connects to the optimal Wi-Fi without interruption anywhere inside the home based on two Wi-Fi networks. It combines the basic Wi-Fi with a GiGA Wi-Fi Buddy. The small-sized Buddy connects wirelessly to the basic Wi-Fi without wired connection or separate setting changes, providing speeds up to 867Mbps. The monthly fee for GiGA Wi Internet 1G is 35,200 KRW (including VAT) based on a 3-year bundled contract. KT offers a discounted price of 34,100 KRW until August 31. Customers who want to subscribe to IPTV together must pay an additional 11,000 KRW per month.

The bundled internet and IPTV service 'GiGA Wi Single TV' targets single-person households. It is launched in two types: Basic with 229 channels and Essence with 250 channels. The monthly fees based on a 3-year contract are 33,000 KRW and 37,400 KRW respectively, which are 19% and 17% discounted compared to previous prices.

Lastly, 'GiGA Wi Single Eyes' for small business owners (SOHO) provides internet connection service along with the video security CCTV GiGA Eyes. The monthly fee starts at 37,070 KRW (i-Slim) based on a 3-year contract. However, for the Single service, only one device can connect to Wi-Fi simultaneously. If additional device service is used, up to two wireless lines can be utilized.

◆High-Speed Internet Subscribers Surpass 9 Million= KT reached 9 million high-speed internet subscribers as of the 31st of last month. Since launching the Megapass brand in 2000, KT has maintained its position as the number one internet provider. According to the Ministry of Science and ICT’s 'Wired Communication Service Statistics', as of the end of April, there are 22.05 million high-speed internet subscribers in South Korea. KT holds a market share of 40.8%, followed by SK Broadband (25.7%) and LG Uplus (19.8%).

KT’s high-speed internet service has evolved from the initial modem service through ISDN (1997), ADSL (1999), VDSL (2002), to GiGA Internet (2014) and 10GiGA Internet (2018), contributing to making South Korea a telecommunications powerhouse. Notably, in October 2014, KT declared the nationwide commercialization of GiGA Internet for the first time in the country, marking a milestone in internet history. Then, in November 2018, KT succeeded in commercializing 10GiGA Internet, which is ten times faster than GiGA Internet, for the first time domestically.

KT aims to expand the proportion of GiGA Wi Internet subscribers to 50% of all new internet subscribers by 2022. By the end of 2022, it plans to reach a cumulative subscriber count of 1 million. Through this, KT intends to open the era of 10 million high-speed internet subscribers in the same year.

Regarding the view that the high-speed internet market is essentially saturated, Head Lee said, "It can be considered saturated," but added, "We see market segmentation and the personalization of internet-based consumption within households as momentum," explaining that the GiGA Wi services unveiled that day emerged from this context.

Going forward, KT plans to introduce additional services beyond the three GiGA Wi types targeting general households, single-person households, and self-employed individuals. Head Lee said, "As South Korea’s number one internet provider, we will continue to offer innovative services that enrich customers’ lives by moving beyond the speed-centered Wi-Fi paradigm to GiGA Wi that encompasses both speed and coverage, in line with changing customer lifestyles."