KT Partners with CMB to Launch Combined Mobile and Cable Services
Published2017.12.06 14:51KT announced that it has signed a Memorandum of Understanding (MOU) with CMB, a cable broadcasting operator (SO), to launch combined mobile/cable equivalent bundled services.
The two companies held a signing ceremony this morning at KT's Gwanghwamun Building East in Jongno-gu, Seoul, with about 10 officials in attendance including KT Mass Division President Lim Heon-moon and CMB CEO Kim Tae-yul. KT plans to collaborate with CMB to launch equivalent bundled services combining KT's mobile services and CMB's ultra-high-speed internet, targeting the beginning of next year.
CMB, with a history spanning over 50 years, is recognized as a strong mid-sized player in the cable broadcasting industry. It provides services to approximately 1.6 million subscribers, centered on major cities including Seoul, Daejeon, Daegu, and Gwangju.
KT has been exploring various approaches to build a healthy media ecosystem through mutual growth and cooperation with cable TV operators. In particular, KT and CMB previously signed a joint advertising business MOU in May of this year and launched a "regional advertising integrated product" utilizing KT's independently developed 'Targeting Channel Advertisement System (VACAS, VOD AD·Channel AD Switching System).'
VACAS is a technology that transmits advertisements by household or region, whereas IPTV traditionally could only broadcast advertisements on a nationwide basis. By utilizing this technology, KT's 'Olleh TV' subscribers in CMB's service areas can receive advertisements tailored to their regions. This was evaluated as contributing to revitalizing the regional advertising market and stimulating local commerce.
Both KT and CMB anticipate achieving a 'win-win' effect between telecom operators and cable broadcasting operators through the launch of equivalent bundled services. Consumer choice is expected to expand, and reductions in household communication expenses are anticipated.
KT Mass Division President Lim Heon-moon stated, "This equivalent bundled service product is the result of thorough preparation following extensive discussions with the cable broadcasting industry to provide customers with the best possible service. As a national enterprise, KT will continue to strengthen cooperation with the cable broadcasting industry to promote mutual growth with small and mid-sized cable operators and enhance the competitiveness of the media and content industries."
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