CJ Hellovision, the largest Mobile Virtual Network Operator (MVNO) in Korea (launched early 2012), with 330,000 subscribers. MVNO is not the core growth strategy, but rather a bundled offering of Quadruple Play Service. It offers a valuable bundle to its QPS of cable TV, broadband, VoIP, and now wireless.
CJH believes that growth of MVNO depends primarily on operators’ support (KT Corp) for lower wholesale rates than government determined rates. CJH has no eventual plan to convert to an MNO business. In Korea, the government sets the wholesale rates.
Government oversight has led to lower handset subsidies for CJH, helping to better acquire MVNO subs. In 1Q13, when subsidies were high, CJH’s subscriber acquisition was slow, but now with subsidy levels having fallen, CJH is witnessing better sub acquisitions. CJH plans to focus on 2G/3G subscribers (niche market) given higher subsidies for LTE subs.