【出版时间及名称】：2009年11月韩国电信行业研究报告
        【作者】：HYUNDAI证券
        【文件格式】：PDF
        【页数】：74
        【目录或简介】：
Re-rating of telecom services unlikely anytime soon;Focus on subscriber market expansion
We reinstate our coverage on telecom services with a Neutral rating. With the telecom market still plagued by
weak growth (mere 1% growth in 2009 and 2% in 2010), telecom stocks are still trading at a discount to the
market. The discount appears appropriate because the telecom market is not likely to see a turnaround anytime
soon. Given its dismal growth prospect going forward, a quick re-rating is not likely for the industry, either.
Nevertheless, the following segments seem promising: 1) VoIP and IPTV in the fixed-line market, which will
likely enjoy an increase in subscribers; and 2) wireless Internet, which has a vibrant outlook.
From service bundling to merger of group affiliates
The increase in service bundling is expected to result in efficient cost control rather than market expansion. In
other words, the number of service providers per subscriber will decrease, and marketing strategies will become
integrated, leading to reductions in common costs and, in the long term, reductions in personnel and sales
commission expenses as well. The cost-reduction effect of service bundling provides a motive for mergers among
group affiliates. KT (030200) affiliates already merged on Jun 1, 2009, and the three telecom-service providers in
the LG group also seek to launch a merged entity early in 2010.
Differentiated bundling strategy;VoIP to be at the center of service bundling through 1H10
Bundling services between new fixed-line services (VoIP, IPTV), which saw a full-fledged increase in subscriber
base from 2009, and broadband Internet and fixed-line telephony services are prompting subscriber migration
within the telecom market. Based on each group’s strength, each telecom group is differentiating itself in terms
of strategy as well as what additional services they bundle with the broadband Internet service. Among the three
telecom groups, the fixed-line arm (LG Dacom + LG Powercom) of the post-merger LG Telecom will likely
pursue a strategy of securing subscribers based on its strength in VoIP services, and this strategy should give a
competitive edge to the entity through 1H10.
LG Telecom our top pick; Re-rating expected following consolidation
As our top pick in the telecom sector, we present LG Telecom (032640), under which three telecom companies in
the LG Group will likely be consolidated. The integrated telecom giant’s growth potential will exceed that of fixedline
companies, helped by LG Dacom (015940, existing fixed-line business) and LG Powercom (045820, Internet
phone and broadband Internet businesses). We present BUY with a fair value of KRW12,500 because discounts on
the company’s wireless telecom business (which has trailed peers’ wireless businesses) will likely be lifted, and the
stock is likely to be re-rated. Meanwhile, KT’s share price is undervalued the most among telecom stocks. We
present BUY with a fair value of KRW52,000 since profits are expected to improve due to cost reductions following
consolidation. We present Marketperform on SK Telecom (SKT: 017670) with a fair value of KRW210,000. We
believe the stock’s upside potential has weakened as foreign ownership hits the ceiling. SK Broadband (033630)
boasts strength in bundling services (mobile telephony + broadband Internet) and is expected to merge with SKT,
which is a positive. However, we present Marketperform on SK Broadband with a fair value of KRW5,000, given
continued net loss under inefficient cost structure and slim possibility of dividend payment.