SK Telecom Announces Additional KRW 300 Billion Investment § To spend additional KRW 300 billion in 3G, LTE networks to strengthen its network leadership while efficiently responding to surging data traffic § The additional investment brings total CAPEX for 2011 to KRW 2.3 trillion, which accounts for over 17% of this year’s estimated total revenue |
Hong Kong, 3 May 2011 – SK Telecom (NYSE: SKM) announced that it will make an additional KRW 300 billion investment in telecommunication networks including 3G and LTE to to strengthen its network leadership while efficiently responding to surging data traffic.
The additional investment brings total CAPEX for 2011 to KRW 2.3 trillion, which marks the largest investment made by SK Telecom since its foundation as well as the highest CAPEX to revenue ratio (17.3%).
SK Telecom said the decision for additional investment was made to proactively respond to surging data traffic driven by rapidly increasing number of smartphone and tablet PC users, and to ensure fast and seamless wireless data communication by expanding network infrastructure.
The additional CAPEX is expected to help the company better provide flawless large-volume content services (e.g. movies, video, etc.), which will in turn trigger heated competition among mobile carriers in the area of network infrastructure to offer high-quality data services.
The KRW 300 billion investment will enhance data service quality by expanding capacity of 3G networks and improve data service speed by accelerating evolution to next-generation mobile networks including LTE.
Ha Sung-Min, president and CEO of SK Telecom said, “SK Telecom will provide its customers with the world’s best wireless data services through the largest network investment in the company’s history. Moreover, continuous investments will be made to meet customer expectations of SK Telecom’s high network quality and to expand the virtuous ecosystem within the IT industry.”
About SK Telecom
SK Telecom (NYSE: SKM, KSE: 017670) is Korea’s leading telecommunications provider with more than 25 million subscribers, which accounts for more than 50% of the total market. The company established in 1984, reached KRW 12.46 trillion in revenue in 2010. SK Telecom was the first to launch and commercialize CDMA, CDMA 2000 1x, CDMA EV-DO and HSDPA networks, and it currently provides cellular, wireless internet, mobile media, global roaming service and more. For more information, please visit www.sktelecom.com or email to press@sktelecom.com.
Media Contact:
Lauren H. Kim
SK Telecom Co. Ltd.
(822) 6100-3830
Irene Kim
SK Telecom Co. Ltd.
(822) 6100-3834
Winnie Pang
Hill & Knowlton Asia Ltd.
(852) 2894 6233
