Post on 11-Jan-2016
description
WiBro Deployment &3G Evolution in Korea
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KT OverviewKT OverviewKT OverviewKT Overview
1981 Established KT Corporation
1993 # of Telephone lines reached 20 M
1999 Opening of local telephony market
2002 Privatization completed
Population: 47.8 M Household: 15.3 M
As of December 2004
# of Employees Revenue (2004)
Telephone Subscribers
Broadband Subscribers
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Service ProviderManufacturer
Customer Government
Saturation of market • Telecommunication• Fixed broadband
Prosperity of IT Industry Adoption of BcN Breaking economic depressionDemand for New
Business Model
WiBro/Mobile WiMAX
Mobile Internet service High-speed multimedia
Mobile Internet High-speed multimedia Telematics/RFID Various added services
Creating new service market Developing domestic & abroad market Early ubiquitous model
Demand for WiBro/Mobile WiMAX Service Demand for WiBro/Mobile WiMAX Service
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Korea Broadband MarketKorea Broadband Market
Bandwidth1000 TimesBandwidth1000 Times
50M56K
‘95 ‘04
InternetUser
103 Times
InternetUser
103 Times 31M0.3M
‘95 ‘04
‘95 ‘04
PC
5 TimesPC
5 Times26.2M5.4M
2M
4M
6M
8M
10M
12M
Dec. 2001 Dec. 2002 Dec. 2003 May 2005
Wireline Broadband Total
ADSL/VDSL
Cable
Subscriber StatusSubscriber Status
LAN
6.7M
4.2M
1.2M
12M
Mobile1xEV-DO 11M
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More Needs for Wireless Data More Needs for Wireless Data
Wireless data market in Korea is tremendously increasing at CAGR of 20.20%.The other markets are decreasing or getting saturated.
Telecom Market Forecast in Korea (KISDI, 2004)
0
2
4
6
8
10
12
14
2004 2008
Revenue (
10
0 M
illio
n U
SD
)
CAGR = 4.77%
CAGR = 20.2%
CAGR = -3.08%
CAGR = - 6.23%
Fixed
Voice
Fixed
Data
Mob
ile V
oice
Mob
ile D
ata
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Revenue Share for Fixed Service
Revenue Share for Wireless Service
0%
20%
40%
60%
80%
100%
LM/MM
Voice
Mobile Internet
(source: SKT 2004 Annual Report)(source: KT 2004 Annual Report)
0%
20%
40%
60%
80%
100%
Mobile Resale
LM
Voice
Broadband
Growth in Wireless Data Market Growth in Wireless Data Market
Data service revenue is 35 % of fixed and 23 % of mobile revenue.
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Userterminals
Carry the high speed Internet in your pocket any-time, any-where, any-device ! WiBro is a data-optimized broadband wireless service complementary to cellular and/or WiFi.
What is WiBro/Mobile WiMAX? What is WiBro/Mobile WiMAX?
University
Subway
Car Airport
WiBro
On the street
Building
Full mobility
High data rate
Low access cost
More than 100 km/h
1Mbps per user Even higher data rates
will be available later
Basic rate + extra rate Lower rate than
existing mobile internet
Laptop Handheld PCPDA Smart phone
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Positioning of WiBro/Mobile WiMAX Positioning of WiBro/Mobile WiMAX
Distinguished from the existing services by mobility, higher-speed data transmission, and competitive price. WiBro, 3G, and WLAN complement each other and are partially competing.
Cost effectiveness
Mobility
Terminal portability
Data rate
WiBro
3G (W-CDMA, HSDPA)
CharacteristicsCharacteristics
Data centric
Voice centric
Data Rate
2G(IS-95,
Cellular)
Mobility
Wired phone
Cordless phone WLAN
High speed Internet (xDSL)
3G(W-CDMA)
PositioningPositioning
“WiBro, Mobile WiMAX”
Superior incoverage & mobility
Superior in
data rate & access cost
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Evolution Path Internet: IEEE802.3(LAN) IEEE802.11(WLAN) IEEE802.16(WiBro) Cellular: 1G(Analog) 2G(Digital) 3G(IMT-2000) 3.5G(HSDPA)
Evolution Path Evolution Path
2G/2.5G
4G 4G Convergence Convergence
NetworkNetwork3G3.5G
WirelessLocal Loop
AMPSGSM /
cdmaOne
WCDMA /cdma-2000
HSDPA /EV-DV
WLL
IEEE 802.3
IEEE 802.11
IEEE 802.16e
WiBroWiBro
2000 2005 2010
WiFi
LAN
Cel
lula
rIn
tern
et Nespot
Megapass
FTTC
FTTH
ADSL/VDSL
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• source: Maravedis (2004) • source: Korea Information Strategy Development Institute (2004)
Market Estimation Market Estimation
Wireless broadband market will keep growing Domestic: In 2011, about 9 million users (KISDI) Overseas: In 2008, mobile BB market will be 40% of BB market (Maravedis)
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Creating a strong value-chain with an open all-IP transport architecture. Creating synergy with the conventional services (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.
CP Carrier/Portal
User
Enabler
Carrier
Wired PortalWeb site
UserCP
Fixed/wireless
Convergence
+
Open network
MarketBarrier
Current mobile Internet service architectureCurrent mobile Internet service architecture
Future high-speed mobile Internet service architectureFuture high-speed mobile Internet service architecture
Business Model Strategy Business Model Strategy
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Development of multimedia and convergence application using existing infra Creation of brand new customer experience
Application of core technology of KT’s existing infra Fixed (demand mobility) + Wireless (demand broadband) Combined Service
Existing fixed/wireless contents + various internet services Multimedia, 3D, upgrade by solution-combined production
Business Models Business Models
MMS (Multimedia Messaging Service) High Quality Image Mail/Messaging
Push-type Service Group Image Chatting, Ad & Coupon
Game : IP based Network Game LBS (Location Based Service)
Applied Services based on LBS IP Multicasting Service
High Definition VOD, Real Time Play, Movie Short message service (SMS)
Entertainment (VOD, Simple game)
m-Commerce (e-Banking)
Wi-Fi Package Service
CDMA Package Service
DMB Package Service
Wireless
Service
Multimedia
Convergence
Fixed-Wireless Link
Co
re Service
Packag
e S
ervice
Information (Web surfing, e-Mail, etc.)
Entertainment (Movie, VOD, etc.)
Others: e-Stock, e-Banking, e-Learning
Evolution
Existing Internet ServiceExisting Internet Service WiBro Killer ApplicationsWiBro Killer Applications
Fixed
Service
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Network Architecture Network Architecture
Transfer NetworkTransfer Network Internet Back BoneInternet Back Bone Server FarmServer FarmAccess NetworkAccess Network
switch
WiBro Zone
AAA(Diameter)
HA
MetroEthernet
RAS
Internet Node Server Farm
ACRKT BcN
Operate Management System(Backend)
Application Service Server(Core)
Repeater
WiBro Network Architecture
WiBro Network? KT’s state-of-art premium back bone and optical access network Lower cost and more efficient network
※ RAS: Radio Access Station, ACR: Access Control Router, AAA:Authentication, Authorization and Accounting
BcN: Broadband Convergence Network, HA: Home Agent
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- Stage1 : Seoul, metro cities- Stage2 : Metro, major cities- Stage3 : Minor cities
- 2G/3G: Voice-oriented, nation-wide, narrow-band- WiBro: Urban cities- WiFi: Hot-Spot
Network DeploymentNetwork Deployment Network IntegrationNetwork Integration
KT’s commercial WiBro service in Seoul in April 2006 Network integration with KT’s existing infra
Network Deployment & Integration Strategy Network Deployment & Integration Strategy
Daejeon
Seoul
Incheon
Gwangju
Ulsan
Busan
Daegu
Stage1Stage2Stage3
WiBro/Mobile WiMAX
2G/3G Network
WiFi
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Early stage Growing stage Matured stage
WiBro onlyPCMCIAPCMCIAEmbeded modemEmbeded modemPDAPDA
WiBro + WiFI WiBro + CDMA WiBro + DMB
DBDM
TBTM WiBro + WiFI + DMB WiBro + WiFi + CDMA WiBro + CDMA + DMB
Personal/businessPersonal/business Convergence Convergence Application specificApplication specific
Customized one chip
Terminal Roadmap Terminal Roadmap
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Mar2005
Nov2005
2006 2007 2008
- Phase II
Large & Medium Cities
- Phase III
Medium & Small Cities
KT’s Licensed Spectr
um
KT’s Licensed Spectr
um
- Phase I
Initial Commercial Service
(Seoul Metropolitan Area)
Aug2005
Commercial ServiceCommercial ServiceSite
Construction
Site Construction
APEC DemoAPEC Demo
KT’s WiBro subscribers 3.1 Million
KT WiBro revenue 1.2 Billion USD
Cumulative Capex 1 Billion USD
2010’s Key Target Figure
Service Rollout Plan Service Rollout Plan
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APEC Demonstration 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
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WiFi
IEEE802.16d/e Air Interface standard
Expanded WiMAX WiFiLiaison
InterworkingWiBro
Fixed Mobile
WiBro B3G Solution in Korea and Worldwide− WiBro B3G Solution in Korea and Worldwide−
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Relaxed regulation Relaxed regulation
Extensive network & terminal expertiseExtensive network & terminal expertise
Manufacturing & operatingManufacturing & operating
Vision for WiBro/Mobile WiMAX Vision for WiBro/Mobile WiMAX
Mutual cooperative partnershipMutual cooperative partnership
WiBro WiMAX
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Broadband Life Partner
Sung Ho YoonKT London Officeshoyoon@kt.co.kr