Strategies of Mobile Value-Added Services in Korea

Abstract

As the growth of mobile market decreases and the market competition intensifies, mobile carriers have been trying to find new business models to retain their profits and expand their business boundaries. Development of value-added services increases the chances of keeping the growth with mobile carriers. This chapter discusses the motivation of mobile value-added service in terms of value chain and mobile adoption. Six mobile value-added services presented in Korea are introduced: short messaging service, personalized call ring service, mobile music service, mobile video service, mobile payment, and mobile games. The major characteristics of those value-added services are discussed with “4Cs”: customization, content-focused, connectedness, and contemporary. This chapter also discusses digital multimedia broadcasting (DMB) as a new value-added service and the impacts of value-added services on mobile market. This chapter is concluded with three plausible strategies of mobile carriers: real-time market-responding strategy, content-focused market strategy, and various bundling service.