SK Telecom’s Green ICT Business
September, 2009
Myung Sung Lee, Ph.D
CTO & Executive Vice President
Contents
I.
SK Telecom Overview
II.
Background & Strategy
III.
Key Tasks
IV.
Future Plans
1
I. SK Telecom Overview
SK Telecom’s growth mirrors the development of mobile telecommunication in Korea.
Since launching the world’s first commercial CDMA service, SK Telecom has contributed
to advancing the ICT industry by promoting production and creating added value and jobs.
1996
CDMA
1997
Various World Firsts of
Technology & Service Development
1998
1999
2000
- One of two Telco companies selected
(April 2005)
Winner of “National Customer
Satisfaction Index”
CDMA
2000 1x
-1st Place for 12 consecutive years
(April 2009)
2001
2002
World’s Most Innovative Companies
Ranked 91st
EVDO
2003
“Best Employers in Asia”
2004
- Awarded for
creative corporate culture
2005
(Hewitt Associates & WSJ Asia,
April 2007)
2006
HSDPA
2007
TD-SCDMA
2008
HSUPA
Test-bed
Red Devils
(World Cup
Ambush Marketing)
“Best Asia Telecom Carrier”
- Awarded two consecutive years
Marketing Leadership
(Telecom Asia & IDC,
April 2007)
2
II. Background & Strategy
1. Background
A company-wide organization and strategy in regards to environmental management is necessary
in view of global trends and growing demand from governments/NGOs and investors.
Increased demand for eco-data
from investors
Increase in green consumers
 Increasing interest in eco-consumption
- 2009 global consumption keywords
: Economical, Essential, Environmental
(KOTRA, 2009 Consumption Trends)
 Active adoption of eco-mark to support
green consumption
- Homeplus adopted carbon labeling for
PB products (Jan.2009)
Stricter regulations/monitoring
 Korea is likely to be mandated to reduce
GHG emissions from 2nd commitment
period(from 2013)
 Gov’t reveals GHG1) mitigation scenarios
(proposal) (Aug. 3, 2009)
 GSMA2) is expected to release report
containing position of mobile industry
operators regarding climate change
(before December 2009)
1)
GHG : Green House Gas
2)
GSMA: GSM Association
 Increased demand for eco-mgt/sustainable
mgt-related info
 Start of Carbon Disclosure Project in 2003
which requires companies to reveal their
plans to counter climate change
- In 2008, 385 financial firms asked for info
from 3,000 firms, and 1,550 responded
Increased eco-biz opportunities
 Increasing investment in new regenerative
energy, eco-technologies
- World environmental market is expected to
reach USD 768.7 billion in 20103)
 Announcement of 5-point strategy for
development of IT Korea (Sept. 2, 2009)
- To invest KRW189 trillion by 2013
 Industry showing visible response to climate
change
- Pursuit of Green IT development projects
3)
Environmental Business International
3
SK Telecom Issues
 Curb GHG emission
- GHG emission is
on the rise due to
increased investment
in 3G network
 Boost efficiency
- Reduce costs and
generate profits
via environmental
management
 Launch new business
- Explore new business
by developing green IT
 Raise customer awareness
- Enhance corporate
image and brand
value via environmental
management
II. Background & Strategy
2. Strategy
Use Green ICT to promote customers’ eco-friendly lifestyle. Increase eco-operations and
purchases, and communicate related efforts to customers to enhance SK Telecom’s eco-image.
• Promote customers’ eco-friendly lifestyle
Develop new businesses like Smart Grid, u-City
Navigation system that reflects real-time traffic
Expand use of e-billing
Promote collection/reuse of old mobile
phones/batteries
- Develop environmental services
• Greenify operations
-
- Expand use of video conferences
- Replace LED lights: stores, office, switchboard
room
- Expand operation of eco-friendly vehicles
- Introduce wind/solar power facilities
Lead
eco-mgt.
through
• Greenify supply chain by
establishing green purchase standards
ICT
- Continue to unearth and use eco product items
• Communicate eco-activities to
customers
- Energy saving campaign
- Boost environmental volunteering (induce
customer participation)
- Improve exterior look of base stations
- Support studies into effect of electromagnetic
radiation
- Protect customers and environment via
compliance to regulations limiting hazardous
substances in mobile phones
- Standardize and make universal mobile phone
peripherals
4
II. Background & Strategy
3. Areas and Organization
SK Telecom aligned its ICT strategy to the 3 areas of Culture, Process and Product set by the
SK Group’s Environmental Management Committee and set up the Green ICT Committee.
3 Key Areas
Green Culture
Green Process
 Draw up company-wide
environmental management
strategy
 Set up environmental
management system
 Environmental management
training and social contribution
 Internal/external communication
 Respond to climate change
 Draw up environmental network
strategy
 Secure green IT technology
 Draw up environmental
marketing strategy
 Draw up green purchasing
strategy
Board of Directors
Green Product
 Greenify existing products and
services
 Uncover new business
Corporate Citizenship
Committee
SK Telecom Green ICT Committee
CEO
MNO CIC
C&I CIC
Chairman
(GMS President)
Green Culture
GMS CIC
Green Process
Green Product
※ Created CSR Team which is dedicated to environmental management (Jan, 2009)
5
III. Key Tasks
1. Summary
Green ICT
Green Network
Eco-friendly wireless sites
-17,000(2007)→30,000(2008)
Adopt natural A/C units
-Cut electricity use by more
[GHG reduction(tCO2)]
9,506
6,937
2005
Energy saving
campaign(2008~)
Phone recovery/recycling
Unit: 1,000 units
2006
1,828
2,500
-Reduce use of disposable
items, air conditioning
-Install energy-efficient
facilities
676
2007
2008
Unit: 1,000 persons
2007
Green Office
2009(E)
Expand video
conferencing
Expand e-billing
3,011
2006
Green Marketing
1,264
than 50%
3,475
Green Technology
2008
Manage electromagnetic
waves from base stations
2,800
2006
3,900
2007
5,560
2008
8,000
-Korea 56, overseas 3 sites
-Replace biz trips
2009(E)
Eco-friendly LED lighting
-Measurements
-Replace lights at 2,000 stores(2008)
: 47(2006)→1,625 times (2008)
-Support related studies(2000~2011) -Currently replacing add. signs
6
Smart Grid business
-Participate in Jeju Smart Grid
Pilit Plant(2009)
-Develop convergence services
for Smart Place &
Smart Transportation sectors
u-City project
-Currently developing efficient
city management platform for
energy, environment, and
transportation
Eco lifestyle
-ITS(Intelligent Transport Systems)
minimizes travel time and
distance
III. Key Tasks
2. Smart Grid
Smart Grid should have far-reaching effects on infrastructure industries (eg, electricity, telecom)
and consumer industries (eg, home electronics, construction). SK Telecom is pursuing Smart Grid
pilot programs utilizing telecom network resources and preparing for pilot cities.
Smart Grid
Smart Electricity
Apply IT to grid for lowpriced consumption
Smart Renewable
: transfer remaining
energy to other areas
Phase
PHEV1) Management
Energy reduction service via
building electricity load
management and price info
provision.
Prepare for pilot program ( ~’09)
Key
Activity
 Secure R&C for participation
in pilot plant
- Partnership, technology,
service development
Direction
Secure pilot plant solutions like
M2M2), AMI3)
1)
Smart Home
Smart Building
PHEV : Plug-in Hybrid Electric Vehicle
2)
Smart meter checks fares in
real time and allow user to
select ideal fare program to
meet consumption pattern
Take part in Phase 1 pilot program
( ~’11)
Link PHEV and charging
infra to provide efficient
charging/discharging &
telematics link/control
Take part in Phase 2 pilot
program ( ~’13)
 Participation in pilot plant
- Solution sourcing, technology
development, Smart Grid complex
construction, technology verification
interoperability check
 Secure R&C for participation
to prepare for possible expansion
of pilot cities by the govt.
Build complex infrastructure,
build exhibition hall, strengthen
partnership
Upgrade M2M, AMI technology,
upgrade Smart Place technology
M2M : Machine to Machine
3)AMI
7
: Advanced Metering Infrastructure
III. Key Tasks
3. u-City
SK Smart City(u-Eco City) offers a differentiated service package and infrastructure
platform depending on the urban theme to deliver value to residents, the public, and
industrial sectors.
SK Smart City
(u-Eco City)
Efficient city mgt.
(for public)
Build a platform for
efficient urban
infrastructure and
integrated urban
management
Higher quality of
life (for residents)
Good work environment
(for industries)
Offer services that enhance
quality of life for urban
residents
Provide infrastructure and
services to support industries
in order to ensure city’s selfsufficiency
Sustainable City
City pursuing
sustainable
competitiveness
(address urban issues
such as quality of life,
environment)
SK u-City Architecture
Value Proposition
City Agenda
Service Package
Service
 Differentiated green service package depending on urban theme
(eg. IIBMS, uRMS, Smart Display, Marketplace, Home Automation)
Package
 Infrastructure control system for seamless urban service by
analyzing data compiled via infrastructure and using the data in
decision-making
 Smart Infra Green-IT Solution differentiated by infrastructure
domain (or integrated)
City
Platform
City Platform
Infra-IT Solution
Infra-IT
Solution
- Urban Utility Center: Model for integrated control of all utilities
that facilitates optimal energy usage
(World’s first solution for realizing “Energy Efficiency”+”Eco-friendly”
+”Cost-Down”)
Physical Infrastructure
8
III. Key Tasks
4. ITS
Provide real-time traffic info and navigation service which reflects current traffic situation to
minimize travel distance of customer vehicles. Induce use of public transportation by
providing related info on public transportation.
Intelligent Transport
System
Real-time traffic info
Provide traffic info by
region/sector
-Nationwide expressways,
expressways in major cities,
national highways, main
roads in major cities
-Plans to gather and provide
traffic info for a wider
regional scope
[Real time traffic info scope]
Up to ’07
‘08
Ideal
Public transport info
Shorter driving distance
Estimated carbon reduction
from IT-based navigation in
Korea for ’08: 458,000tCO2
Road guidance reflecting
traffic situation
- No. of SK Telecom’s ITS
users as of Sep. ’09
: 1.71 million
- 27.8% of 16 million cars
have navigation systems
- Increase in average speed
due to system: 3.5km/h
- Increase in energy
efficiency: 2.7%
- Estimated annual CO2
reduction: 176,000tCO2
2,420 km
4,873 km
(Source: National Information
Society Agency)
6,300 km
(Total road length is 104,236km)
9
Info on public transport
means like city bus,
subways and railroads
- Details such as
distance, timetable,
fees, transfers
IV. Future Plans
SK Telecom’s Mid/Long-Term Roadmap for Green ICT
Phase
Phase Ⅰ
(~ 2010)
Build
Green Biz
Foundation
Description
Build green mgt. strategy/system
• Unearth new biz opportunities through
partnerships in other industries
• Launch Green ICT Committee(May 22, 2009)
• Set up eco-mgt system & data mgt. system
- 10 strategic IT convergence industries like
autos, shipbuilding, energy, aviations, defense,
robot, medicine etc
• Build foundation to respond to
energy/climate change issues
• Form & operate eco-training program
Phase Ⅱ
(~2012)
Pursue
Operational
Excellence
Phase Ⅲ
(2013~ )
Systematic green mgt. operations
• Improve quality of life through ICT
• Set up green performance evaluation
system
- Transportation, public administration,
finance, education, culture, etc
• Greenify purchases & supply chain
• Improve operational efficiency
Secure global leader capabilities
Secure
• Develop/operate differentiated ecoprograms
Green Biz
Leadership
• Secure leadership in responding to
energy/climate change
- Introduce efficient operations to Internet Data
Center
- Adopt Thin Client
- Apply new regenerative energy etc
10
Thank you
11