LG Telecom’s new CEO Lee Sang-chul said it is absolutely critical that LGT, along with its newly-merged units LG Dacom and LG Powercom, embrace the convergence era.
During his inauguration speech, Lee said the new LGT had to make the transition beyond the traditional telecoms sector.
“The three telecom firms spend more than 8 trillion won ($707.2 million) a year as subsidies, focusing solely on such things will lead to the downfall of all,” Lee told the Korea Herald. “Now is the time to change the basic mindset about the telecom sector. Moving beyond the boundaries is critical.”
As such, Lee said LGT will launch 20 new projects this year in its aim to transform the firm into a “personal value provider,” offering individualized smart services.
“One [service] can't be used to satisfy all the consumers,” he said. “In the end, true value is in providing the means for the consumers to create value for themselves.”
However, LGT will face stiff competition from its larger rivals, SK Telecom and KT, in its bid to tap new revenue streams.
In October, SKT announced a so-called “Industry Productivity Enhancement” plan, aimed at seeking new revenues outside traditional mobile businesses. Earlier this month, SKT revealed its first IPE venture, inking a memorandum of understanding with Chungdahm Learning to develop a wireless English-language e-reader service this year.
SKT hopes the new IPE businesses will generate 20 trillion won in revenues by 2020.
SKT revealed its new strategic direction in October, at the time it announced the sale of its residual stake in China Unicom.
Earlier this month, SKT also agreed to pay 400 billion won for a 49% stake in mobile money venture Hana Card.
Meanwhile, KT hopes to finalize its purchase of a 25% stake in mobile content developer Omnitel China - which provides VOD services and customized content to 12 million mobile subscribers in China - by end-July.