Beyond Broadband Access
Dr. Sanghoon Lee
Executive Vice President
Agenda
Agenda
‹ Broadband Internet in Korea
‹ Beyond Broadband Services
‹ Features and Directions
‹ Summary & Remarks
-2-
Broadband Internet Business in Korea
Broadband Internet in Korea
(unit: thousands)
30,000
100.0%
28,610
26,270
25,650
24,380
25,000
80.0%
22,230
19,040
20,000
16,400
56.6%
58.0%
59.4%
64.1%
51.6%
15,000
44.7%
10,405
38.5%
9,430
10,000
7,806
11,103
11,180 40.0%
8,717
6,251
22.4%
5,000
60.0%
20.0%
3,870
3,103
2,274
7.4%
0
0.0%
1998.12
1999.10
2000.8
2000.12
2001.6
2001.12
2002.6
2002.12
Internet Users
Internet Users Population percentage
Broadband Internet households
1998. 7 1999. 4 1999. 6
Thrunet Hanaro KT
2003.6
2003.12
~73% of total
households
(ref: www.krnic.or.kr)
-3-
Changing Life Style
Broadband Internet in Korea
Phenomenal increase of broadband Internet usage
Weekly hours spent on Internet & TV
(ref: isis.nic.or.kr)
% of daily Internet users
16.5 h
TV
Internet
71.9%
14.1 h
13.47 h
30.8%
6.76 h
2000.3
2000.3
2002.12
2002.12
• On-line banking: More than 30% of total transactions
• On-line stock trading: More than 50% of total transactions
• e-Commerce: 17% of total commerce transactions
• On-line gaming: Market size 2.5 times the size of console game market
Æ Evolving into another type of entertainment area: game league
-4-
Two Sides of Broadband Internet
Business in Korea
Threat
&
Revenue: Saturating market with flat rate
‹ Expenditure: Increasing CAPEX/OPEX
due to doubling traffic
‹ High customer expectation level:
- avr. ~4.5Mbps bandwidth per customer
- customer sensitivity to network quality
‹
Opportunity
Has established
- high quality infrastructure
- Large customer base
‹ Opportunities in application
& value-added services
‹
-5-
The Way Broadband is Being Used Today
80
(%)
Mainly used for best-effort,
data/control/file-oriented,
store-&-forward applications
70
60
50
40
30
•
20
10
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Beyond Broadband Services
Main Internet usages
Where people are using Internet today
80
(%)
70
2001.12
60
2002.12
2003.12
seldom used for high
quality, interactive/
distributive media service
Today’s broadband Internet
service is limited to
•
•
•
•
specific locations
specific time of day
specific terminal
specific applications
50
40
Should overcome these
barriers to generate mass
application market
30
20
10
0
Home
Work
School
PC café
etc
(ref: isis.nic.or.kr, Jul. 2003) - 6 -
Beyond Broadband Service
Beyond Broadband Services
From simple Internet access to “quality life/work services”
Yesterday
Today
Tomorrow
Rich
s
Rich Content
Contents
Any
-Access
Any-Access
Browsers
Browsers
Web
Web Pages
Pages
Wireline
HTTP
RT P
WAP VoIP P
RTS
HTTP
FTP …
P2P,Game
P2P,Game
Servers
Servers
Wireless
-7-
Beyond Broadband Service: Features
Features and Directions
Different business
From access service to end-to-end service
Both best-effort & quality service
From network service to solution/application services
Applications: from niche market to mass revenue market
Different focus
Ubiquity
Convergence
Beyond
broadband
Handy business
Bandwidth
Current broadband
“access” business
Quality
Personalization
-8-
Bandwidth
Features and Directions
Evolving access bandwidth
Past
Fixed
Present
PSTN Modem
ADSL
VDSL
1-8Mbps
ISDN
20~50Mbps
Future
FTTH
100+ Mbps
MegapassTM: avr. ~4.5Mbps
IEEE802.11
WLAN
1+ Mbps
PCS
(IS-95A)
Mobile
IEEE802.11b
IEEE802.11g (2.4GHz)
11Mbps
per AP
IS-95B
14.4 kbps 64 kbps
CDMA2000
1X
144 kbps
IEEE802.11a (5GHz)
54Mbps
per AP
1X EV-DO
1X EV-DV
2.4 Mbps
shared
W-CDMA
-9-
3.1Mbps
shared
Portable
Internet
(2.3G)
~1Mbps
per device
384+ kbps
(Megapass is an umbrella brand for KT’s
broadband Internet service)
Ubiquity
Features and Directions
Ubiquitous network connectivity
Integrated connectivity with seamless mobility
Cellular Network (IS-95, cdma2000 1x, etc.)
2.3GHz Portable Internet
WLAN
- 10 -
Wireless LAN Service
Features and Directions
NespotTM & Nespot SwingTM
Nespot: Wireless LAN-based access service
Nespot Swing: Both WLAN & Cellular service
Internet +
Voice
Internet
Hot Spot,
Home
Outdoor
Base
Station
Access
Point
2.5G / 3G
Network
KT Network
Number of Nespot users
Number of KT Hotspots
400000
12000
350000
10000
300000
8000
250000
200000
6000
150000
4000
100000
2000
50000
0
0
2003.3
2003.6
2003.11
2004.3
- 11 -
2002.12
2003.12
Portable Internet Service
Features and Directions
Portable Internet (PI)
~1Mbps speed, mobility > 60km/h, coverage 500m~3km
Mobility: between WLAN and PI areas
AAA Server
Internet Backbone(KornetTM)
MA: Mobile Agent (HA, FA)
<Legend>
Telecom office #1
MA
Telecom office #2
AP
MA
AP
W-LAN(2.4GHz)
W-LAN(2.4GHz)
Base Station
AP
Base Station
W-LAN(2.4GHz)
PI (2.3GHz)
PI (2.3GHz)
Fixed or moving
subscriber
- 12 -
QoS
Issue
ER
Complexity: Multiple
vendor equipments with
T1
ER
differing capabilities
ER
CR
100M
LAN
…
OC3
T1
T1
CROC3
OC3
Standardized QoSCR&OC48
Security mechanism needed
T1
…
Features and Directions
Basic tool for differentiated services from Telcos
OC12
ER
B-RAS
adsl
GE
GE
OC3
Evolution:
Handling
QoS-blind, QoS-weak
equipments
OC3
ME-R
Killer App
DSLAM
…
…
GE
…
100M
…
Enterprise
ME (MDF)
100M
GE
DSLAM
ME-R
GE ME-S
GE
ME-S
…
… GE
ME (CO)
…
GE
100M
GE
RT
…
…
…
Home
100M
…
…
DSLAM
…
Home
- 13 -
Home
…
GE
ME-R
GE
…
…
Home
GE
…
adsl
…
B-RAS
OC3
ER OC3premise network beyond Telco’s
End-to-end
control:
control
CR
Home
…
Enterprise
Personalization
Features and Directions
Features
Personalized value-added & application services
Site authentication Æ personal authentication
Single sign-on between network login and application login
Customer profile-based network setup
D
ad
om
M
D
au
r
e
t
h
g
n
o
S
Auth
Edge Service
Control Platform
Policy
Access
Customer
INTERNET
Edge Node
- 14 -
AAA Server
Convergence
Features and Directions
Fixed & wireless
Telecommunication & broadcasting
OnePhone service
Digital Home service
(Broadband Internet + broadcasting + VoD)
DMB
(Digital
Multimedia
Broadcast)
Telecommunication &
finance
K-Bank service
- 15 -
Handy
Features and Directions
Easily accessible service through various terminals
Easy ,simple, intuitive, consistent user interface
From general purpose PC to appliance-type terminals
Portable, carriable terminal
vs.
- 16 -
The Next Generation Networks
Too costly, per-service network
architecture
Single/simple/cost-effective network
infrastructure for existing & new services
Services
Network control (QoS,
Security, IP Mobility)
CATV
Data/IP Networks
PSTN/ISDN
Existing and newly
emerging services
Mobile Networks
Features and Directions
The following picture has been in place for more than 10 years
Multi-Service IP
Backbone
Wireless
Wireless
Access
Access
Access Transport & Switching Networks
- 17 -
Wireline
Wireline
Access
Access
NGN: From Vision to Reality
Features and Directions
BcN Initiative in Korea
high-quality broadband multimedia services integrating
telecom, broadcasting, and Internet seamlessly at anywhere,
anytime, and using any devices
- 18 -
Summary & Remarks
Summary & Remarks
Broadband business in Korea calls for new market
Next generation broadband:
different business & different network
Networking capabilities for next generation services
Broadband Convergence Network as an enabler
Further considerations
9 Deployment cost
9 Services that pay off
9 Regulatory issues
- 19 -
Thank You
- 20 -