WiBro Deployment &
3G Evolution in Korea
KT Overview
1981 Established KT Corporation
1993 # of Telephone lines reached 20 M
1999 Opening of local telephony market
2002 Privatization completed
# of Employees
Revenue
(2004)
Telephone
Subscribers
Population: 47.8 M
Broadband
Subscribers
Household: 15.3 M
As of December 2004
- 2/18 -
Demand for WiBro/Mobile WiMAX Service
Service Provider
Manufacturer
Customer
Mobile Internet
High-speed multimedia
Telematics/RFID
Various added services
Saturation of market
• Telecommunication
• Fixed broadband
Demand for New
Business Model
Government
Prosperity of IT Industry
Adoption of BcN
Breaking economic depression
WiBro/Mobile WiMAX
Mobile Internet service
High-speed multimedia
Creating new service market
Developing domestic & abroad market
Early ubiquitous model
- 3/18 -
Korea Broadband Market
Subscriber Status
12M
12M
Wireline Broadband Total
Mobile
1xEV-DO 11M
10M
Bandwidth
1000 Times

56K
50M
‘95
‘04
8M
ADSL/VDSL
6.7M
6M
PC
5 Times
Cable
4.2M
4M
2M
LAN
1.2M
Dec. 2001
Dec. 2002
Dec. 2003
May 2005
- 4/18 -
Internet
User
103 Times

5.4M
26.2M
‘95
‘04

0.3M
‘95
31M
‘04
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)
CAGR = -3.08%
12
10
CAGR = 4.77%
8
0
CAGR = 20.2%
Mobile Data
2
Mobile Voice
4
Fixed Data
6
Fixed Voice
Revenue (100 Million USD)
14
CAGR = - 6.23%
2004
2008
- 5/18 -
Growth in Wireless Data Market
Data service revenue is 35 % of fixed and 23 % of mobile revenue.
Revenue Share for Fixed Service
Revenue Share for Wireless Service
100%
100%
80%
Mobile Resale
LM
60%
80%
60%
Voice
Broadband
40%
40%
20%
20%
0%
0%
LM/MM
Voice
Mobile Internet
(source: SKT 2004 Annual Report)
(source: KT 2004 Annual Report)
- 6/18 -
What is WiBro/Mobile WiMAX?
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.
WiBro
Full mobility
University
Building
Subway
On the
street
Car
Airport
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
User
terminals
Laptop
Handheld PC
PDA
- 7/18 -
Smart phone
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.
Characteristics
Positioning
Cost effectiveness
Mobility
Data centric
3G
(W-CDMA)
Data rate
Mobility
2G
(IS-95,
Cellular)
Voice centric
Terminal portability
Cordless
phone
Wired
phone
WiBro
3G (W-CDMA, HSDPA)
WLAN
High speed Internet (xDSL)
Data Rate
- 8/18 -
Evolution Path
Evolution Path
 Internet: IEEE802.3(LAN)  IEEE802.11(WLAN)  IEEE802.16(WiBro)
 Cellular: 1G(Analog)  2G(Digital)  3G(IMT-2000)  3.5G(HSDPA)
Cellular
2000
2005
4G
3G
2G/2.5G
AMPS
WCDMA /
cdma-2000
GSM /
cdmaOne
Convergence
Network
3.5G
HSDPA /
EV-DV
WiBro
WLL
Wireless
Local Loop
Internet
2010
IEEE 802.16e
FTTH
WiFi
IEEE 802.11
Nespot
LAN
FTTC
ADSL/VDSL
IEEE 802.3
Megapass
- 9/18 -
Market Estimation
• source: Maravedis (2004)
• source: Korea Information Strategy Development Institute (2004)
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)
- 10/18 -
Business Model Strategy
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.
Enabler
Market
Barrier
Fixed/wireless
Convergence
CP
Carrier
/Portal
User
+
Open network
Carrier
CP
User
Wired Portal
Web site
Future high-speed mobile
Internet service architecture
Current mobile Internet
service architecture
- 11/18 -
Business Models
Development of multimedia and convergence application using existing infra
Creation of brand new customer experience
WiBro Killer Applications
Existing Internet Service
 Entertainment (Movie, VOD, etc.)
Evolution
 Others: e-Stock, e-Banking, e-Learning
Multimedia
Convergence
 Entertainment (VOD, Simple game)
 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
Fixed-Wireless
Link
 High Definition VOD, Real Time Play, Movie
Package
Service
Wireless
Service
 Short message service (SMS)
Core Service
Fixed Service
 MMS (Multimedia Messaging Service)
 Information (Web surfing, e-Mail, etc.)
 m-Commerce (e-Banking)
 Application of core technology of KT’s existing infra
 Fixed (demand mobility) + Wireless (demand broadband)
 Combined Service
 Wi-Fi Package Service
 CDMA Package Service
 DMB Package Service
 Existing fixed/wireless contents + various internet services
 Multimedia, 3D, upgrade by solution-combined production
- 12/18 -
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
Internet Node
WiBro Zone
Server Farm
AAA(Diameter)
Repeater
RAS
Metro
Ethernet
ACR
※ RAS: Radio Access Station,
Application Service
Server(Core)
HA
switch
Access Network
KT BcN
Operate
Management
System(Backend)
Transfer Network
Internet Back Bone
Server Farm
ACR: Access Control Router, AAA:Authentication, Authorization and Accounting
BcN: Broadband Convergence Network,
HA: Home Agent
- 13/18 -
Network Deployment & Integration Strategy
KT’s commercial WiBro service in Seoul in April 2006
Network integration with KT’s existing infra
Network Deployment
Network Integration
2G/3G Network
Seoul
Incheon
WiBro/Mobile WiMAX
Daejeon
WiFi
Daegu
Gwangju
Ulsan
Busan
Stage1
Stage2
Stage3
- 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
- 14/18 -
Terminal Roadmap
Customized one chip
DBDM
 WiBro + WiFI
 WiBro + CDMA
 WiBro + DMB
WiBro only
PCMCIA
Embeded modem
PDA
Early stage
 Personal/business
 Convergence
 Application specific
TBTM
 WiBro + WiFI + DMB
 WiBro + WiFi + CDMA
 WiBro + CDMA + DMB
Growing stage
- 15/18 -
Matured stage
Service Rollout Plan
Mar
2005
Aug
2005
Nov
2005
KT’s
Licensed
Spectrum
Site
Construction
APEC Demo
2006
2010’s Key Target Figure
2007
2008
Commercial Service
- Phase I
Initial Commercial Service
(Seoul Metropolitan Area)
KT’s WiBro subscribers 3.1 Million
KT WiBro revenue 1.2 Billion USD
Cumulative Capex 1 Billion USD
- 16/18 -
- Phase II
Large & Medium Cities
- Phase III
Medium & Small Cities
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
- 17/18 -
WiBro − B3G Solution in Korea and Worldwide
Expanded WiMAX
Fixed
Mobile
WiBro
IEEE802.16d/e
Air Interface standard
WiFi
- 18/18 -
WiFi
Liaison
Interworking
Vision for WiBro/Mobile WiMAX
WiMAX
WiBro
Manufacturing &
operating
Extensive network &
terminal expertise
Relaxed regulation
Mutual cooperative
partnership
- 19/18 -
Broadband Life Partner
Sung Ho Yoon
KT London Office
[email protected]
- 20/18 -