WiFi hot spots may offer many laptop users
all the mobility they desire.
But if you need anywhere-anytime
connectivity, built-in wide-area networking
may prove irresistible.
(BusinessWeek, June 20, 2005)
Brief introduction of KT
Introduction of WiBro/mobile WiMAX
Business strategy
Vision for WiBro/mobile WiMAX
!"
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KTF: 12Million CDMA subscribers
KTH: Internet portal (www.paran.com)
As of Dec. 2004
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Business Domain
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$
$ %&'&
%&'&
WiBro
WiBro (mobile WiMAX)
on top of growth engines
1 Billion USD
670 Million USD
420 Million USD
KT’s New Growth Engines
()
)
*
+
Prospect
Prospect of
of worldwide
worldwide
mobile
mobile data
data
"!$#&% # '(& )* #&+ Average
Average31%
31%growth
growthper
per year
year
Revenue
(Unit: Billion, USD)
Source: IDC
Prospect
Prospect of
of domestic
domestic
mobile
mobile data
data
< 7;9 7 7 @BA&C D E FHGJ/ I. K0 4I . / LMF E N&E/ I, O0 1 6 / / 5 0 . 5
: 8 97 7 / - 01 / : 7;9 7 7
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7 < 7 =: < 7 ;< < 7 ;> < 7 ;?
Growing-up
Growing-up of
ofmobile
mobiledata
data
Revenue
(Unit: Million, USD)
Source: KISDI
Growth of mobile data usage worldwide
More bandwidth per user
()
*
- Broadband market trend
Broadband market
73%
Wireless broadband market
79%
64%
26%
12.2
11.2
What will be
leading the
market ?
9.9
Next
2%
4.0
(Unit: Million)
0.3
1.7
6.1
5.6
4.6
2003
3. 2005 (Korea)
Total broadband subscriber
Broadband household penetration
KT subscriber
1999
2000
2002
Continue to grow in residential broadband and expand into wireless broadband
()
*
- Demand for WiBro service
Service provider
Manufacturer
Saturation of market
• Telecommunication
• Fixed broadband
Customer
Mobile Internet
High-speed multimedia
Telematics/RFID
Various added service
Demand for New
Business Model
Government
Prosperity of IT Industry
Adoption of BcN
Breaking economic degression
WiBro/mobile WiMAX
Mobile Internet service
High-speed multimedia
Creating new service market
Developing domestic & abroad market
Early ubiquitous model
P
()
*
- What is WiBro?
Carry the high speed Internet in your pocket!
– Access the web, multimedia contents and whatever information you need as you move.
WiBro
More than 100 km/h
Full mobility
University
High data
rate
1Mbps per user
Even higher data rates
will be available later
Low access
cost
Basic rate + extra rate
Lower rate than
existing mobile internet
Building
Subway
On the street
Car
Airport
User
terminal
Laptop
Smart phone
Handheld PC
PDA
()
*
- WiBro positioning
Distinguished from the existing services by mobility, higher-speed data transmission, and
competitive price.
WiBro, 3G, and WLAN complement each other.
Characteristics
Characteristics
Positioning
Positioning
Cost effectiveness
Mobility
Data centric
High
ility
Mobility
Voice centric
3G (W-CDMA, HSDPA)
Cordless
phone
Wired
phone
AX”
t
WiBro
W iM
os
Terminal portability
2G
“W i
Bro
(IS-95, m
,
Nomadic Cellular) obile
r in c
r io e s s
p e cc
Su & a
e
rat
Data rate
4G
ta
(W-CDMA)
da
3G
cov Superi
or
erag
e & in
mob
WLAN
High speed Internet (xDSL)
Data Rate
Q
$
- Market estimation
• source: Korea Information Strategy Development Institute (2004)
• source: Maravedis (2004)
Wireless broadband market will keep growing
Domestic: In 2011, about 9 million users (KISDI)
Overseas: In 2008, mobile broadband market will be the 40% of broadband market
(Maravedis)
$
- Market analysis
User’s needs
Potential target users: Young generation (age 10-40), business professionals, students, etc.
Internet usage pattern: Web surfing & download (40%), email (20%), game (17%), etc.
Preferred services: email > game > web surfing > messenger
Preferred user devices: PDA (42%), laptop (36%), and other devices (<10%).
Preferred
Preferred device
device
PDA
Laptop
Handheld
PC
42.1%
59.5%
Cell phone
3.5%
School/work
55%
56.7%
50.6%
Bus/subway
46%
30.2%
28.6%
9.3%
8.7%
On
On move
move
email
email >> game
game …
…
36.3%
Smart
phone
Preferred
Preferred location
location
Preferred
Preferred service
service
PDA,
PDA, laptop
laptop
Streets
40%
Indoor
31%
email
game Web
MMS
messenger
13%
Business trip
R
$
BM strategy
Creating a strong value-chain with an open IP transport architecture.
- Creating synergy with the conventional services by optimizing the service positioning (Win-Win)
Aside from the individual users, create business models for enterprises and public
sectors.
- Networking of the individual, enterprise, and public sector will create synergy.
Enabler
Market
Barrier
Fixed/wireless
Convergence
CP
Carrier
/Portal
User
Carrier
+
CP
Open network
User
Wired Portal
Web site
Future
Future high-speed
high-speed mobile
mobile Internet
Internet
service
service architecture
architecture
Current
Current mobile
mobile Internet
Internet
service
service architecture
architecture
$
- Service model
Develop killer application model for multimedia/convergence
Emphasizing the strong points for high speed internet
Combining with existing service to expand customer’s feasibility and
maximize revenue generation
WiBro
WiBro Killer
Killer App.
App.
Existing
Existing Service
Service
•• Multimedia
Multimedia
•• Fixed/wireless
Fixed/wireless
convergence
convergence
Entertainment: VOD, games
m-Commerce: e-Banking, etc.
• Application of core technology of KT’s existing infrastructure
• Fixed (demand mobility) + Wireless (demand broadband)
Combined Service
Combination
Service
Wireless Service
Short Message Service (SMS)
Evolution
Core Service
Fixed Service
Information: Information search, e-mail,
etc.
Entertainment: Movie VOD, etc.
Other usage: e-Stock, e-Banking,
e-Learning
• MMS (Multimedia Messaging Service)
• Push-type service
- Group video chat, Ad & coupon service
• Game: IP based various network games
• LBS (Location Based Service)
• IP Multicasting service
- High-Quality VOD, broadcasting, movie
• WiFi combined service
• CDMA combined service
• DMB combined service
• Existing fixed/wireless contents + various internet services
Multimedia, 3D, upgrade by solution-combined production
S
$
,
$
Communication
Strategy for market expansion
Distinct service platforms
Killer
App.
Entertainment
Terminal
development
Content
gateway
Key Factor
for Success
Information
Backend
development
System
integration
Competitive content provider
Business
partnership
Strategic alliances
Commerce
$
- Network architecture
WiBro Network?
KT’s state of art premium back bone and optical access network
Lower cost and more efficient network
WiBro Network Architecture
WiBro Zone
Internet Node
Server Farm
AAA(Diameter)
Repeater
RAS
Metro
Ethernet
ACR
switch
U
Access Network
Transfer Network
KT BcN
Operate Management
System(Backend)
Application Service
Server(Core)
HA
Internet Back Bone
Server Farm
RAS: Radio Access Station, ACR: Access Control Router, BcN: Broadband Convergence Network,
HA: Home Agent
T
$
- Network deployment
April 2006, KT’s commercial WiBro service in Seoul
Network
Network deployment
deployment
Network
Network integration
integration planning
planning
Seoul
In-Cheon
2G/3G
Hot
Zone
Dae-Jun
Dae-Gu
Gwang-Ju
WiBro
Ul-San
Hot
Spot
A
P
Bu-San
Stage1
Stage2
Stage3
A
P
A
P
A
P
Library Airpor
t
- 2G/3G: Voice-oriented, wide-area, narrow-band
- WiBro: Urban cities
- WiFi: Hot-Spot
- Stage1 : Seoul, metropolitan (10)
- Stage2 : Metro, major cities (20)
- Stage3 : Minor cities (54)
$
- Terminal development roadmap
Terminal roadmap
DBDM
WiBro + Wi-FI
WiBro + CDMA
WiBro + DMB
WiBro only
PCMCIA’
PCMCIA’s
Embeded modem’
modem’s
PDA’
PDA’s
Early stage
Customized one chip
TBTM
Personal/business
Convergence
Application specific
WiBro + Wi-FI + DMB
WiBro + CDMA + DMB
Growing stage
Matured stage
WV
$
- APEC demonstration
First mover to hold WiBro demonstration
Date: Nov. 12 ~ 20, 2005
Place: Busan, Korea
Guest: Presidents and VIP of each nation,
Major company’s CEO, The Press
Demo Area: Bexco, DongBaek island,
resort areas
Demo Area
()
*
WiBro/Mobile WiMAX business vision
• CONVERGENCE for Ubiquitous Telecommunication
• Core DRIVER of new market
Demand
Creating mass market
Maximizing leverage based on
current customers of ADSL &
Wi-Fi
Positioning
• Core service of fixed/wireless
converged market
All IP convergence
Infrastructure
• Fast completion of nationwide
coverage
• Integration or Interoperation
with Wi-Fi , CDMA and DMB
Business Environment
Paradigm shift
Stagnation of sales growth
Convergence between services
and industries
X
()
WiBro
*
WiMAX
Manufacturing &
operating
Extensive network &
terminal expertise
Relaxed regulation
Mutual cooperative
partnership
Broadband Life Partner
W