Strategies of Mobile Value-Added Services in Korea

Abstract

As the growth of the 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: (1) short messaging service (SMS), (2) personalized call-ring service, (3) mobile music service, (4) mobile video service, (5) mobile payment (m-payment), and (6) mobile games. The major characteristics of those value-added services are discussed with “4Cs”: (1) customization, (2) content-focused, (3) connectedness, and (4) contemporary. This chapter also discusses digital multimedia broadcasting (DMB) as a new value-added service and the impacts of valueadded services on the mobile market. This chapter is concluded with three plausible strategies of mobile carriers: (1) real-time, market-responding strategy, (2) content-focused market strategy, and (3) various bundling service.