‘s Broadband Strategy
xDSL & NGN
Insung Jun, Ph.D.
Vice President
Network Engineering Center
KT Corp.
December 2003
Contents
Global Leader: KT
Converged Services
KT Vision & Strategy
2
Global Leader: KT
3
Where Korea Stands
Korea’s Information Society Ranking
Broadband Penetration Level by Country
Panama
Denmark
0
Netherland
U.K
5
Iceland
Hong Kong
Germany
10
Austria
16
15
18
22
20
22
20
Belgium
Sweden
19
U.S.A
22
Singapore
23
'95
Korea. Rep.
'96
'97
'98
'99
'00
'01
25
'02
Canada
Finland
0
Source: IDC(Int’l Data Corporation)
1
2
3
4
5
6
7
Source: WEF(World Economic Forum),
‘Global Information Technology Report 2002~2003:
Readiness for the Networked World’
4
Broadband penetration in OECD countries
19% (June.2002)
20.0
18.0
16.0
14.0
Subscribers to other broadband platforms, June
2002
12.0
Cable Modem Subscribers Per 100 Inhabitants,
June 2002
10.0
DSL Subscribers per 100 inhabitants, June 2002
8.0
6.0
4.0
2.0
Ko
re
Ca a
na
Sw da
De eden
nm
ark
Un Belg
i te ium
d
St
at
Ic es
el a
n
Au d
str
ia
J
Ne ap
the an
Sw rlan
itz ds
er
Ge land
rm
a
No ny
rw
a
Fi y
nl
an
d
Sp
ain
Fr
an
Po ce
rtu
Un A gal
i te ust
r
d
Ki alia
ng
do
m
Ne
Ita
w
Z ly
Lu eal
xe and
mb
o
Cz Hu urg
ec ng
h R ar
ep y
ub
M lic
ex
ic
Ire o
lan
Po d
lan
Tu d
rk
ey
0.0
Source: OECD
5
Traffics of Major KT Services
Local call
International call
M L call
7.E+09
6.E+09
Long distance call
LM call
5.E+09
4.E+09
3.E+09
2.E+09
1.E+09
2001
2000
1999
1998
0.E+00
6
Broadband Market Share in Korea
KT
Hanaro
Thrunet
Dreamline
Dacom
SKT
Onse
Source: MIC
4.3
47.3
2002
27.6
12.5 1.6
1.4
49.1
2001
0
20
26.5
40
60
16.8
80
3.1
2.3
1.6
100
(%)
7
Broadband Market Share Trends
(Unit : thousand)
14000
12000
13,500
Jan. 2003
Oct. 2002
10,000
10000
10,573
7,863
8000
xDSL : 62%
(+LAN)
6000
KT (5,053)
4,018
4000
Hanaro(2,896)
2000
Others (1324)
14
1999
325
CATV : 37%
Thrunet (1,300)
ISDN : 1%
2000
2001
2002
2003
2004
2005
2006
8
History of KT Broadband Business
Jan. 2003 Number of
Subscriber
Exceed 5million
Jan. 2002 – Wireless LAN
“Nespot” Launched
Sep. 2000 –
Number of Subscriber
Exceed 1million
May. 2002 –
VDSL Service Launched
Jun. 2000 – Biggest Market Share in the Nation
Jun. 1999 – Commercial Service Launched
Jun. 1998 – Competitor Thrunet
Launched Its Commercial Service
1997- First Trial Service
Apr. 1999 - Competitor Hanaro
Launched Its ADSL Service
Sep. 1998 - Second Trial Service
9
Key Success Factors
External Factors
• Urban Geography
• Competition
• Government Support
• Equipment
• Mentality
Internal Factors
• Aggressive
Marketing Strategy
• Stable Network
• Systematic
Management Support
System
10
Converged Services
11
Convergence is
Inevitable Phenomenon
IT products
Financial products
Home Theater
Total Asset Mgmt
Private Banking
Package products
Package
PC+Printer+Scanner…
Integrated Financial Product
Play Station2
Converged Service
New car Sales+
Old car scrapping
X box
12
What Triggers Convergence?
Customer Needs
Multi-Function
Product Convergence
Convenience
Marketing Convergence
Affordable Price
Network Convergence
Device Convergence
Content Convergence
Development of Technology
: Digitalization
Media Convergence
13
KT’s Service Evolution Phases
NGN
xDSL
2.3GHz
Jan. 2003: Number of Subscriber Exceed 5 Million
DMB
Home Digital Service
May. 2002: Service Launched
VDSL
Jan. 2002: Service Launched
NESPOT
Telephone
ADSL
Sep. 2000: Number of Subscriber Exceed 1 Million
Jun. 1999: Commercial Service Launched
May. 1997: The Number of Telephone Subscribers Exceed 20 Million
Oct. 1988: The Number of Telephone Subscribers Exceed 10 Million
14
KT WLAN: NESPOT
Business
Objective
•To Meet an Ever-growing Needs for Mobile Internet Service
•To Develop ‘front-end service’ by Combining
Widespread Broadband and Wireless Solutions
Hot Spot
•About 18,000 Hot Spots is available in Korea
•25,000 Hot Spots accessible through the global roaming
by the end of 2003
Service Launch
No. of Subscribers
March, 2002
293,000 as of Aug. 2003
Target Market
Residential Customer, Enterprise Customers, Travelers
15
Public WLAN Positioning
Speed
10Mbps
Megapass
2Mbps
PC
W-LAN
PDA
CDMA/Phone
Stationary
Coverage
Throughput
Terminals
Application
Customers
Megapass
Home, Office
high
PC
WEB
Students at
home
Quasi- Mobile
Mobility
Wireless LAN
Hot spots
high
PDA, Notebook
E-book, VOD, AOD,
POP3 Mail, Messenger
Students on Campus
Businessman at Hotel, etc
CDMA
Wide area
slow
Phone, PDA
Voice, Short
Message
Ordinary
16
Digital Life - Home Digital Service
Partners
HDS Platform
Application Service
Partners
Total
Solution
Customer
Application
Service
Commerce
Brand
Collaboration
Customized
H-CRM
Commerce Partners
Interactive
Platform
Entertainment
Broadcasting
Gateway
Communications
Electric
application
Advertising
Security
Vehicle
Advertising Partners
Platform
Service
HDS Platform
PCS
17
Digital Multimedia Broadcasting
nd
Hz
Ba
0G ㎓
S63 55
2. 2.6
~
5 ~
60 30
2. 2.6
KT KT
*S
nd
-Ba .883㎓
u
K
3
~1
4
2
8
13.
12.2 Ku-B
1~ 1 and
2.23
㎓
DMB Transmission center
(Digital Multimedia Broadcasting)
Contents
(Audio,Video,data)
Repeater for
poor
reception
(Gap Filler)
S-Band
Log-in/Registration
Mobile IP
Internet
Call Center
distribution channel
DMB Center
Cellular/Portable
internet network
Seeing & hearing
By portable handsets
Seeing & hearing by
vehicle mounted
terminals
18
KT Vision & Strategy
19
Strategic Direction of KT
Wired/Wireless
4G Network
Coverage
NOW
Convergence
Multi Functional
Device
Content & Solution
Future
Fixed-Mobile
Content
20
Next Generation Network
NGN
Today
Single-service Network
Multi-service NW/client-server
Services
Content
Content
Servers
CATV
Data/IP Networks
PSTN/ISDN
PLMN
Communication
Control
Backbone Network
Access
Access
Access
Clients
Access Transport & Switching Networks
21
KT’s NGN Evolution Roadmap
Preliminary Stage
Stage
Stage 1
~ 2002
2003
NGN Foundation
Stage 2
2004
VoIP
(H.323/SIP)
Softswitch(Class 4, 5)
VoIP(MEGACO)
. Introduce Access G/W
. Replace semielectronic switching
systems
. Develop/evaluate SSW
. Build packet backbone
netwrok
2007 ~
NGN
Completion
Trunk G/W
Open IN Service
Major
Action
Item
2006
NGN Migration & Expansion
Access G/W(v5.2)
Roadmap
2005
Stage 3
. Introduce trunk G/W
. Introduce soft switch
(Class 4, 5)
. Build packet backbone
network
VoP
Over QoS IP
IP-based IN Service
. Expand VoP
(Increase supply of SSW)
. Expand application service base
. Provide QoS
IP-based
VoP service
22
Ubiquitous World
23
Converged Broadband Services on
NGN Will Guarantee KT’s Continuous
Lead in Global IT Industry
Thank you!
24