[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10548-10550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5295]
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DEPARTMENT OF COMMERCE
International Trade Administration
Cable Television Trade Mission to South Korea
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice and call for applications for the Cable Television Trade
Mission to South Korea, June 3-5, 2009.
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Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service is organizing a
Trade Mission to Seoul, South Korea, June 3-5, 2009. The mission will
provide an excellent venue for U.S. companies to promote their
television programming content, and broadcasting equipment and
services. The Korea
[[Page 10549]]
Cable TV Association (KCTA), a pillar in the Korean broadcasting
industry, and made up of over 100 network providers, has requested this
trade mission be held in conjunction with their annual KCTA Trade Show,
where a majority of the Korean network providers will be present and
looking to purchase program content and broadcasting equipment. The
participating U.S. companies will meet with Korean Cable TV system
operators, program providers, and terrestrial TV and Internet protocol
television (IPTV) service providers during the course of the show.
Commercial Settings
Korea's economy has recently moved away from a centrally planned,
government-directed investment model toward a more market-oriented
system. Korea's economic performance over the past 4 years has remained
stable, at or above 4%, and currently is at 2%-3%. Korea is the United
States' seventh-largest trading partner, ranking ahead of larger
economies such as France, Italy, and India.
The Korean cable industry's many subsectors present considerable
potential for growth and export opportunities. Korean cable television,
launched in 1995, currently has an audience of over 12 million
households. To date, 103 cable system operators (SOs) are transmitting
cable TV content throughout the country. Digital terrestrial TV was
introduced in 2001, with expectations of nationwide coverage by 2010.
Digital cable TV services were launched in 2004, when the Korean
National Assembly revised the broadcasting law, also allowing for
increased foreign investment in Korean SOs and program providers. This
investment will speed up the deployment of digital cable TV, which in
turn means increased opportunities for equipment suppliers and program
providers.
Korean cable TV SOs and program providers are now focused on
digitizing most of their broadcasting facilities. After the
introduction of direct-to-home (DTH) services in 2000, the Korea
Digital Satellite Broadcasting consortium acquired the necessary
license and launched pay TV services via its DTH satellite platform,
SkyLife, whose subscribers number more than 1.96 million.
The Korean cable industry is now discovering that programming
content is severely lacking, with providers often limited to showing
amateur videos. Also driving the development of improved digital
content are new and potentially exclusive channels, basic and premium
tier channels, plus on-demand content from domestic and foreign program
suppliers. The business of digital programming and content is made
highly attractive by significant competition from cable, the rise in
DTH services, the advent of IPTV, a projection that the digital TV
universe will be almost all-pay by 2015, and major gains in consumer
purchases of digital set-top-boxes (STBs).
Open IPTV will also try to join the industry in the near future.
IPTV service will trigger strong demand for U.S.-based digital online
content, a market estimated to have reached USD 180 million this year.
The Korean Communications Commission is open to selecting more IPTV
service providers that meet standards for technological expertise and
business management, boosting opportunities for U.S. companies. The
shortage of quality content for the growing new service platforms
represents additional opportunities for already popular U.S. content
providers, who are currently contributing 70% of Korea's foreign
programming content. Best prospects for imported programming are in the
areas of movies, sports, animation, drama and documentaries.
Market demand for U.S.-based mobile digital content is expected to
grow by approximately 7% to 8% annually over the next several years,
driven by digital multimedia broadcasting (DMB) service providers.
Since December 2005, terrestrial providers have moved into DMB, which
allows viewers to watch TV via a cell phone. The market for terrestrial
DMB service is forecast to reach USD 730 million by 2010, while that of
satellite DMB service is expected to grow to USD 640 million.
Currently, the United States has only a 25% share of this market, but
its share of the digital content market is at 80% and growing.
The market for TV broadcasting equipment and services also
continues to grow. Although equipment is currently being procured
primarily for terrestrial TV broadcasting, demand for digital equipment
for cable and satellite TV services is forecast to be very strong over
the next three to five years. Spending among the multi-station
operators has increased opportunities for suppliers of digital
equipment for terrestrial broadcasting. U.S. suppliers of a wide range
of broadcasting equipment will continue to enjoy significant
competitive advantages in technology and price. There are also no major
market access barriers for broadcasting equipment, and most categories
of equipment enter Korea with an 8% duty based on cost-insurance-
freight (c.i.f.) value.
The telecom and broadcasting industries are transitioning into a
new arena by combining each other's technologies in the IPTV services
market, which is expected to grow at an average annual rate of 8%-9%
until 2012, when it is projected to reach four million subscribers and
collect USD one billion in revenue. Acknowledging that the existing
Internet network does not have the capacity to manage the data traffic
potentially generated by IPTV services, Korea's largest Internet
service provider, KT, has embarked upon an ambitious program to connect
every household in Korea with fiber-to-home services at a cost of USD
one billion. There are currently 12.7 million Internet using households
in Korea, representing about 88% of total households in Korea.
Mission Goals
The Cable Television Trade Mission to South Korea is designed to
give U.S. firms excellent opportunities to promote their television
broadcasting content, equipment and services to Korea's broadcasting
industry. Mission participants will gain direct industry access through
prearranged business-to-business appointments and networking events.
They will also receive the most current information on the Korean
market and available U.S. Government trade financing programs.
Mission Scenario
The mission will take place in conjunction with the 2009 Korea
Cable TV Association Trade Show in Seoul, South Korea. The mission will
include one-on-one business matchmaking appointments with prospective
agents, distributors, and end-users; updates on major projects; Embassy
briefings on doing business in Korea; and networking receptions.
Activities may also include site visits and meetings with local
government officials, as appropriate. The U.S. and Foreign Commercial
Service in Seoul will continue to maintain a presence at the KCTA Trade
Show on Saturday, June 6, and will assist any mission members wishing
to remain to take advantage of visitor traffic at the show. This
assistance is offered to the delegation at no additional cost. In
addition, the timing of the mission will permit interested companies to
attend a major industry event in China, the Shanghai TV Festival
(STVF), June 8-12, 2009, should they wish to extend their stay in Asia.
Proposed Timetable
Tuesday, June 2, 2009:
Arrival in Seoul, South Korea.
Informal no-host dinner with U.S.
[[Page 10550]]
Commercial Service staff.
Wednesday, June 3, 2009:
Morning: Briefings by U.S. Embassy staff and local U.S. business
executives.
Afternoon: One-on-one business appointments at KCTA Trade Show.
Evening: Networking reception.
Thursday, June 4, 2009:
One-on-one business appointments at KCTA Trade Show.
Friday, June 5, 2009:
Morning: One-on-one business appointments at KCTA Trade Show.
Afternoon: Walk the show floor/Mission concludes.
Saturday, June 6, 2009:
Bonus day for companies to spend at show on their own, or depart
Korea.
Participation Requirements
All parties interested in participating in the Cable Television
Trade Mission to Korea must complete and submit an application package
for consideration by the Department of Commerce. All applicants will be
evaluated on their ability to meet certain conditions and best satisfy
the selection criteria as outlined below. A minimum of 6 and maximum of
10 companies will be selected to participate in the mission from the
applicant pool. U.S. companies already doing business in Korea as well
as U.S. companies seeking to enter the Korean market for the first time
may apply.
Fees and Expenses:
After a company has been selected to participate in the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee will be $3,565 for a large firm
and $2,375 for a small or medium-sized enterprise (SME).* The fee for
each additional firm representative (large firm or SME) is $350.
Expenses for travel, lodging, most meals, and incidentals will be the
responsibility of each mission participant. Access to the KCTA trade
show will be complimentary for participants.
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* An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Conditions for Participation:
An applicant must submit a completed and signed mission
application and supplemental application materials, including adequate
information on the company's products and/or services, primary market
objectives, and goals for participation. If the Department of Commerce
receives an incomplete application, the application may be rejected,
additional information may be requested, or the lack of information may
be taken into account when evaluating the application.
Each applicant must also certify that the products and
services it seeks to export through the mission are either produced in
the United States, or, if not, marketed under the name of a U.S. firm
and contain at least 51% U.S. content of the value of the finished
product or service.
Selection Criteria for Participation: Selection will be based on
the following criteria:
Suitability of the company's products or services in the
Korean market and target sectors
Applicant's potential for business in Korea, including
likelihood of exports resulting from the mission
Consistency of the applicant's goals and objectives with
the stated scope of the trade mission
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
and on a first come first serve basis. Outreach will include
publication in the Federal Register, posting on the Commerce Department
trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and
other Internet Web sites, press releases to general and trade media,
direct mail, broadcast fax, notices by industry trade associations and
other multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows. The International Trade Administration
will explore and welcome outreach assistance from other interested
organizations, including other U.S. Government agencies.
Recruitment for the mission will begin immediately and will close
on April 24, 2009. Applications are available on-line on the mission
Web site at http://www.export.gov/ICTkoreamission. They can also be
obtained by contacting the Mission Project Officer listed below.
Applications received after April 24, 2009, will be considered only if
space and scheduling constraints permit.
Contact: Ms. Karen Dubin, U.S. Department of Commerce, Washington,
DC 20230, Tel: 202-482-3786/Fax: 202-482-9000, e-mail:
[email protected].
Dated: March 6, 2009.
Karen Dubin,
CS Trade Missions, Department of Commerce, Washington, DC.
[FR Doc. E9-5295 Filed 3-10-09; 8:45 am]
BILLING CODE 3510-DS-P