Despite investment in 4G networks, SK Telecom has posted revenue of KRW 4.229 trillion (–0.3 percent) and net income of KRW 572.3 billion (+29.3 percent) in the first quarter of 2016.

The decrease in the first quarter revenue was due to the elimination of sign-up fees and increased number of subscribers who select contract-based mobile fee discounts.

SK Telecom’s LTE subscriber base grew slow to 19.53 million, representing over 67.5 percent of the company’s mobile subscriber base.

The company’s LTE subscribers do not reflect in ARPU. The monthly ARPU of SK Telecom rose 0.3 percent year on year and fell 0.7 percent quarter on quarter to KRW 36,414 in the first quarter of 2016.

SK Telecom said it has focused on strengthening its core competitiveness as a mobile carrier through customer-oriented innovations, differentiated services / products and enhanced mobile network quality. It launched new differentiated services in the areas of Lifestyle Enhancement Platform, Media Platform and IoT Platform.

The Korean technology company will build networks dedicated for the Internet of Things (IoT) and develop new IoT business models through cooperation with small and medium-sized enterprises (SMEs) and startups.

“SK Telecom will continue to enhance its competitiveness and profitability through innovative products and services to maximize customer and shareholder value, while achieving a successful transformation into a next-generation platform player to further drive up its enterprise value,” said Hwang Keun-joo, head of Strategy and Planning Division at SK Telecom.