KT, Korea's top wire and wireless communication operator, "aims to lead the data explosion and convergence market based on its superiority in smart phone and wireless networks," a top manager of the company said.
"KT will secure the future-oriented new growth engine by leading the convergence industry. We will create a new stage and convert KT into a global IT company in the near future," said KT Chairman and CEO Lee Suk-chae.
Noting that KT had a lingering affection for the general telephone market, the cash cow market of the past, he said, "From now on, KT will actively advance into the future-oriented convergence business in keeping with the changing market trend."
Lee said, "KT will lead the mobile broadband (MBB) market through smart phones. As a concrete step, we will increase the portion of smart phones to over 20 percent of the total handset line-up. Along with this, we will keep Android operating system (OS) at over 50 percent of the smart phone line-up and establish a separate computer system for convenience of smart phone users."
Major 2010 projects
CEO Lee also said, "KT will strengthen customers' value through 2W/3W fixed mobile convergence (FMC) by supporting WiFi for 55 percent of new handset models. KT will lead an era of mobile offices through mass supply of corporate FMC. We will commercialize all mobile office platforms supported by handset operating systems."
At the same time, KT will build a nationwide WiBro network by expanding the network to 84 cities across the country, he said.
To strengthen differentiated competitiveness of 3W integrated network, KT will increase WiFi investment and expand the coverage of wideband code division multiple access (WCDMA) network, Lee said.
"In the wire internet sector, KT will produce differentiated products and business power suitable for customers and achieve 99 percent in the fiber to the home (FTTH) national coverage. In the IPTV market, it will create customer value through introduction of Open BM," said Lee.
KT CEO Lee said, "In 2010, we will select scopes of SMART 6 (SMART-Enterprise, SMB/SOHO, Government, Green, Building, Zone) and strengthen the areas. Along with this, we will seek business tie-ups with domestic and foreign partners, small and medium-sized companies, and venture firms, while bolstering open-ecosystem business structures."
Leadership of CEO Lee Suk-chae
KT CEO Lee Suk-chae, who once served as information and communication minister, finally succeeded in merging KT and KTF, the company's long-cherished wish, last year.
Commenting that the merger of KT and KTF will expand the scope of the IT field, Lee said, "KT will jump toward becoming a global information and communication technology (ICT) leader in the world, based on convergence."
Declaring the official launch of the merged firm on June 1, 2009, Lee suggested the KT's future appearance under the 3.3.7 project, under which KT will increase its sales by 3 trillion won to 27 trillion won by 2012, jack up the operation profit ratio by 3 percent points to 11.4 percent, and expand the number of FMC subscribers by more than 7 times from 2009 to 2.1 million."
To create vital and creative corporate culture, he also announced the new management direction, called the "Olleh," which stressed on innovative management through reverse thinking, future-oriented management, management though communication with customers, and management satisfying customers.
He also suggested execution-oriented new KT way, called the "ACTION" program, which means all for customer (A), collaboration (C), trust (T), innovation (I), ownership (O), and now (N).
Improving corporate image
KT promoted its corporate image by introducing the home service integrated brand, QOOK, successfully.
The QOOK brand, which was introduced on April 8, 2009, ranked 6th among Korea's top 100 brands in the second quarter of the year thanks to KT staff members' active brand publicity activities.
Lee also introduced a new talent management system, which gives reward to employees with good business performance, while inflicting penalty to those with poor performance.
Maintaining the world’s best network
First of all, KT wants to maintain it’s policy of covering network speed, security, and unified management to continue to be the world’s best capable network.
To invigorate the WiBro enterprise, KT cooperated with Samsung and global IT businesses for sales and rent of WiBro facilities in which the capital scale of KRW 32 billion will be taken charge by the WIC(WiBro Investment Company), which will establish it during the month of June. Through WIC, KT will begin coverage in 84 places across the country and will construct and manage networks. Also, the plan includes offering stable services, planning out enterprises, and fulfilling marketing activities.
Also, customer movement lots of it in certain places, center WiFi focus installation for subways, Han River cruise ships and traffic methods and making WiFi easily to use egg, timely rain and terminal supply. Also, there is a lot of customer movements in certain places, so WiFi installation is the focus. This will make WiFi more accessible in subways, Han River cruise ships, and traffic situations. The plan is for the 3W network traffic to be distributed through the CCC(Cloud Communication Center) and the it will distribute the traffic and minimize network management and maximize capabilities.
Significant changes after Lee took office
The number of subscribers to SHOW (2G+3G) increased by 4.5 percent from 14.36 million in December 2008 to 15.01 million in the same month of 2009.
The number of subscribers to the QOOK home phone decreased from 19.86 million to 18.05 million during the corresponding period, but that of subscribers to the QOOK Internet telephone soared from 0.65 million to 2.13 million.
The comparable subscription figure increased from 6.75 million to 7.2 million for QOOK Internet, and from 0.72 million to 1.48 million for QOOK TV.
Meanwhile, the number of KT workers reduced by 16 percent from 37,496 in the first quarter of 2009 to 30,897 in the second quarter of 2010 under the Lee's management rationalization program.