FMC Marketing Group

www.nespot.com

HAHN, WON-SIC Ph.D.Managing DirectorFixed Mobile Convergence Business DepartmentMarketing GroupKT

hahn@kt.co.kro) 82-31-727-2970Hp) 82-16-9777-6711

June 4, 2002

Value networking via FMCValue networking via FMC(Broadband Extension by Wireless LAN)(Broadband Extension by Wireless LAN)

FMC Marketing Group

OverviewOverview

Broad band market Broad band market Mobile broadband service motive Mobile broadband service motive

New emerging service New emerging service ““NESPOTNESPOT””

Network structure of NESPOT accessNetwork structure of NESPOT access

NESPOT PDA applicationsNESPOT PDA applications

NESPOT service visionNESPOT service vision

StatusStatus

SummarySummary

FMC Marketing Group

Broad band global market shareBroad band global market share

15.66

2.715.79

7.81

53.54

14.49

0

10

20

30

40

50

60

Kore

a

Japa

n

Ger

man

y

USA

Chi

na etc

Market Share

FMC Marketing Group

Broad band market share of KT in KoreaBroad band market share of KT in Korea

48.99

27.13

16.57

7.32

0

10

20

30

40

50

60

KT Hanaro Thruet etc

Market Share

FMC Marketing Group

Broadband Market Prospect

0

2

4

6

8

10

12

1998 1999 2000 2001 2002 2003 2004 2005

( unit : million )

100%

11%

Broadband Market Prospect

Total number of household as of 2000 : 24.4 million

Saturation number expected : 62~65% of household

FMC Marketing Group

Mobile Broadband Service motive (I)Mobile Broadband Service motive (I)

Users demanding more applicationsTerminals are getting smaller & smarter

Web pad

PDA

Next Generationterminal

Notebook PC

Smart phoneCommunication

preferenceHigh

Dual function

Preference

(communication+ computing)

Mobility

Computing

PreferenceLow

Driving force

Computing performanceHigh Low

FMC Marketing Group

Mobile Broadband Service motive (IIMobile Broadband Service motive (II))

Mobile

internet• 1x-EVDO mobile internet service launched

• 24 million mobile internet subscriber (2001.12)

Limitation ofmobileinternet

• High tariff : 0.8~0.85US$/10min

Emerging need for high speed & reasonably priced wireless internet service

• Low Speed : 64 k ~ 2.4Mbps (384 kbps for moving)

• Basic PCS : Small display panel & simple function

Mobile Internet

• Rapid growth of mobile phones

• 30,275,323 subscribers (end of 2001)

Hi

• Fast growing of internet users

• 24,380,000 user (end of 2001)

gh end power user

FMC Marketing Group

New emerging service New emerging service ““NESPOTNESPOT””

Business Goal

To meet increasing demands for mobile terminals and

to preoccupy rapidly growing high-speed mobile internet market

To develop the ‘Front-end service’ based on combining the mass

deployed broadband and wireless solution

-> Convergence of fixed line broad band internet and mobile internet

Business Frame Work

High speed but low tariff wireless internet service business

IP backbone + xDSL + Wireless LAN : indoor wireless internet

1x-EVDO, W-CDMA : out door mobile internet

Target market

8millions B.band subscriber

enterprise who want clean office and BB mobility

FMC Marketing Group

Broadband Extension for Hidden Market(I)Broadband Extension for Hidden Market(I)

CDMA/Phone

Megapass(BB)

PC

Speed /Users

7.8M (2001.12)

29M(2001.12)NESPOT

PDA,

Notebook PC

Hidden Market

8Mbps

2Mbps

MobilityQuasi-Stationary Mobile

PC, DSL, Router, Portal

Students at home

WEB

PC

high

Home, Office

Megapass

CDMA, Phone

Industry

Ordinary

Voice,

Short Message

Phone, PDA

Low

Wide area

CDMA

PDA, Wireless-LAN, NotebookIndustry

boomed

Students/business man at home and

on Campus/office

Internet power user on hotspot

Customers

E-book, VOD, AOD, mp3

POP3 Mail, Messenger

Applications

PDA, Notebook,Desk topTerminals

highThroughput

Hot spots + Home + Office

NESPOT

Coverage

FMC Marketing Group

Broadband Extension for Hidden Market(II)Broadband Extension for Hidden Market(II)Unit:1,000

33.4%

4,068

239

12,167

2006

30.4%

3,632

354

11,928

2005

26.7%

3,089

884

11,574

2004

17.1%

1,829

1,155

10,691

2003

2.0%

191

1,691

9,536

2002

Subscription ratio to Broadband sub.(%)

Wireless LAN + BB Users Expected

Net addition

Broadband Subscriber Expected

0

2000

4000

6000

8000

10000

12000

14000

2002E 2003F 2004F 2005F 2006F

FMC Marketing Group

Feature of Fixed Mobile Convergence ServiceFeature of Fixed Mobile Convergence Service

Internet

xDSL

E1, T3, STM1M/E…

Wireless Home

WLAN office

AP

In the air

Mobile NetworkLLLL

2G/3G 2G/3G + + WLANWLAN

2.5G, 3G

HOT ZONE

FMC Marketing Group

Network Structure of NESPOT AccessNetwork Structure of NESPOT Access

DHCPserver

CustomerCare

AAAWeb/Content Servers

SubscriberManagement system

NetworkOperation

Center

AP

Public W-LAN Zone

AP

Private W-LAN Zone

InternetInternet/Intranet Private

Authentication Server

AP

W-LAN Zone

LocalNetwork

Intranet Hot Spot Home

FMC Marketing Group

Coverage extension of NESPOTCoverage extension of NESPOT

Office University

HOT SPOT

Home

NESPOTizing

First target : NESPOTizing of enterprise customer’s office, residential area

=> familiarizing of life style with NESPOT service

Second target : Deploying the Hotspots along with the NESPOT accustomed user’s moving path

=> extending the NESPOT Service coverage with Real Hot Spot

First target : NESPOTizing of enterprise customer’s office, residential area

=> familiarizing of life style with NESPOT service

Second target : Deploying the Hotspots along with the NESPOT accustomed user’s moving path

=> extending the NESPOT Service coverage with Real Hot Spot

FMC Marketing Group

NESPOT PDA Applications

NESPOT PDAEVDOW-CDMA

NESPOT PDA Applications

IS-95C

PIMS

LightOff-line after

On-line

heavyOff-line after

On-line

lightOn-line

heavyOn-line Basic

IM/MailVoice MMS Video Clip

Chatting GameSMS Streaming Music Clip

PIMS AP LBS Map

Game World Cup E-book

Banking Movie e-Book

Terminal Serv.

CDMA : W-internet in pockets

DSL : Internet at desk

NESPOT PDA : Life style Internet

FMC Marketing Group

NESPOT service visionNESPOT service vision

desk top PC Mobile phone

KTF/KTIcom W-LAN

Low resolution PDA

High resolution PDA

Seamless service independent of network and device.

FMC Marketing Group

STATUS STATUS

Trial serviceTrial serviceConnection base serviceConnection base serviceo Target device : Laptop PC o Target user : business men, students and sales person on hot Spotso Duration : 20th Oct . 2001 ~ 30th Jan. 2002

Portal service Portal service o Target device : Laptop PC, high resolution PDA(640x480)o Service type : SMS, e-mail, e-book, VoD etc o Duration : May through June , 2002

Hot spots(coverage)Hot spots(coverage)

HOT SPOT StatusHOT SPOT Statuso 42 Hot Spots on trial siteo 70 nation-wide Hot Spots (about 1000 APs)by the end of March

NationNation--Wide HOT SPOTWide HOT SPOTo About 6000 Hot Spots by June o About 15,000 Hot Spots available through the country by the end of 2002

FMC Marketing Group

SummarySummary

Broadband lines at most homes (Max. 60%)

New revenue creating Network models

by Speed up by next-DSL

by Home and Hot-spots Extensions for customers

Wireless LAN, Bluetooth

New market by Wireless LAN access

Wireless PDA (networked PDA) applications

Life style Internet Applications ( E-books, Video Clips, Maps, Courseware's,

Combination of CDMA & Wireless LAN( Light app. via CDMA, Heavy app. Via Wireless LAN)

KT launches Wireless LAN based public access service

NESPOT : NETworking enable internet SPOT

Since Feb. 2002

At Universities, Hotels, even to Homes

FMC Marketing Group

AppendixAppendix NESPOT Home PageNESPOT Home Page

https://www.nespot.com/

FMC Marketing Group

NESPOT zones (Hotspots)NESPOT zones (Hotspots)

FMC Marketing Group

Accounts ModelsAccounts Models

FMC Marketing Group

FIN