KT launches IPTV service in South Korea

KT, the largest telephone and broadband line operator in South Korea, is launching its video-on-demand service Mega TV, which is set to rival Hanaro Telecom’s Hana TV service.

KT will begin to offer IPTV to its Megapass broadband Internet service users across South Korea. It has been offering test services in Seoul and nearby areas only. KT expects to draw 300,000 subscribers in 2007, and to increase the number to one million in 2008.

Hanaro Telecom’s Hana TV service has secured more then 500,000 users and aims to double the number by early next year.

There are 6.5 million Megapass customers all around the country and, now the product is ready, KT will launch promotion campaigns so customers can distinguish it from traditional TV. Research conducted during the Mega TV pilot phase revealed that 84% of target customers want to acquire the service when it becomes available.

Hanaro Telecom has pioneered the IPTV field in South Korea since last year. The firm is expecting its IPTV service to make profits from the first quarter of next year.

Both companies also offer discounts for subscribing to the multiple package of broadband Internet, IPTV and telephone. KT estimates that each household can save 48,000 won when purchasing the Internet-IPTV package.

The new Mega TV service will offer a multitude of video-on-demand programming services, and a range of interactive TV services, including an electronic program guide. Many programme genres are available, including movies, sports, culture, animation, documentaries, drama and educational content.