But if you need anywhere-anytime connectivity, built-in wide-area networking may prove irresistible.
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- Tobias Benedict Shelton
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1 WiFi hot spots may offer many laptop users all the mobility they desire. But if you need anywhere-anytime connectivity, built-in wide-area networking may prove irresistible. (BusinessWeek, June 20, 2005)
2 Brief introduction of KT Introduction of WiBro/mobile WiMAX Business strategy Vision for WiBro/mobile WiMAX!"
3 !" KTF: 12Million CDMA subscribers KTH: Internet portal ( As of Dec. 2004!" Business Domain
4 7777!"!"#$%&'& WiBro (mobile WiMAX) on top of growth engines WiBro 1 Billion USD 670 Million USD 420 Million USD KT s New Growth Engines () * ) + Prospect of of worldwide mobile data Average 31% growth per year Revenue "!$#&% #### '( &)* #&+ Source: IDC (Unit: Billion, USD) < < < < 7; :::: :::: 7; Prospect of of domestic mobile data Growing-up of of mobile data Revenue Source: KISDI (Unit: USD) KI LMF EEN&EI //// ////---- //// //// //// OOOO,,,, //// //// ,,,, //// //// < < < < =: < < < < ;< < < < < ;> < < < < ;? Growth of mobile data usage worldwide More bandwidth per user
5 () * - Broadband market trend Broadband market 64% 73% 79% Wireless broadband market 26% Next 2% (Unit: Million) (Korea) What will be leading the market? Total broadband subscriber Broadband household penetration KT subscriber Continue to grow in residential broadband and expand into wireless broadband () * - Demand for WiBro service Service provider Manufacturer Customer Saturation of market Telecommunication Fixed broadband Government Mobile Internet High-speed multimedia Telematics/RFID Various added service Demand for New Business Model Prosperity of IT Industry Adoption of BcN Breaking economic degression WiBro/mobile WiMAX Mobile Internet service High-speed multimedia Creating new service market Developing domestic & abroad market Early ubiquitous model P
6 () * - What is WiBro? Carry the high speed Internet in your pocket! Access the web, multimedia contents and whatever information you need as you move. WiBro More than 100 km/h Full mobility University High data rate 1Mbps per user Even higher data rates will be available later Low access cost Basic rate + extra rate Lower rate than existing mobile internet Building Subway On the street Car Airport User terminal Laptop Smart phone Handheld PC PDA () * - WiBro positioning Distinguished from the existing services by mobility, higher-speed data transmission, and competitive price. WiBro, 3G, and WLAN complement each other. Characteristics Characteristics Positioning Positioning Cost effectiveness Mobility Data centric High ility Mobility Voice centric 3G (W-CDMA, HSDPA) Cordless phone Wired phone AX t WiBro W im os Terminal portability 2G W i Bro (IS-95, m, Nomadic Cellular) obile r in c r io e s s p e cc Su & a e rat Data rate 4G ta (W-CDMA) da 3G cov Superi or erag e & in mob WLAN High speed Internet (xdsl) Data Rate Q
7 $ - 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 broadband market will be the 40% of broadband market (Maravedis) $ - Market analysis User s needs Potential target users: Young generation (age 10-40), business professionals, students, etc. Internet usage pattern: Web surfing & download (40%), (20%), game (17%), etc. Preferred services: > game > web surfing > messenger Preferred user devices: PDA (42%), laptop (36%), and other devices (<10%). Preferred device PDA, laptop Preferred service > game PDA 42.1% 59.5% 56.7% 50.6% Preferred location On move 55% School/work Laptop 36.3% 46% Bus/subway Handheld PC 9.3% 30.2% 28.6% 40% Streets Smart phone 8.7% 31% Indoor Cell phone 3.5% game Web MMS messenger 13% Business trip R
8 $ BM strategy Creating a strong value-chain with an open IP transport architecture. - Creating synergy with the conventional services by optimizing the service positioning (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. Market Barrier Fixed/wireless Enabler CP Carrier /Portal User Convergence + Open network CP Carrier Wired Portal Web site User Current mobile Internet service architecture Future high-speed mobile Internet service architecture $ - Service model Develop killer application model for multimedia/convergence Emphasizing the strong points for high speed internet Combining with existing service to expand customer s feasibility and maximize revenue generation Existing Service WiBro Killer App. Fixed Service Wireless Service Information: Information search, , etc. Entertainment: Movie VOD, etc. Other usage: e-stock, e-banking, e-learning Short Message Service (SMS) Entertainment: VOD, games m-commerce: e-banking, etc. Evolution Multimedia Fixed/wireless convergence Core Service Combination Service MMS (Multimedia Messaging Service) Push-type service - Group video chat, Ad & coupon service Game: IP based various network games LBS (Location Based Service) IP Multicasting service - High-Quality VOD, broadcasting, movie WiFi combined service CDMA combined service DMB combined service Application of core technology of KT s existing infrastructure Fixed (demand mobility) + Wireless (demand broadband) Combined Service Existing fixed/wireless contents + various internet services Multimedia, 3D, upgrade by solution-combined production S
9 UUU $, $ Communication Distinct service platforms Strategy for market expansion Killer App. Content gateway Entertainment Terminal development Key Factor for Success Business partnership Information Competitive content provider System integration Backend development Strategic alliances Commerce $ - 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 WiBro Zone Internet Node Server Farm AAA(Diameter) Operate Management System(Backend) Repeater RAS Metro Ethernet switch ACR KT BcN HA Application Service Server(Core) Access Network Transfer Network Internet Back Bone Server Farm U RAS: Radio Access Station, ACR: Access Control Router, BcN: Broadband Convergence Network, HA: Home Agent T
10 $ - Network deployment April 2006, KT s commercial WiBro service in Seoul Network deployment Network integration planning Seoul In-Cheon Dae-Jun 2G/3G Hot Zone Dae-Gu Ul-San WiBro Hot Spot Gwang-Ju Bu-San A P A P A A P P Stage1 Stage2 Stage3 Library Airpor t - Stage1 : Seoul, metropolitan (10) - Stage2 : Metro, major cities (20) - Stage3 : Minor cities (54) - 2G/3G: Voice-oriented, wide-area, narrow-band - WiBro: Urban cities - WiFi: Hot-Spot $ - Terminal development roadmap Terminal roadmap DBDM WiBro only PCMCIA s Embeded modem s PDA s WiBro + Wi-FI WiBro + CDMA WiBro + DMB TBTM WiBro + Wi-FI + DMB WiBro + CDMA + DMB Customized one chip Personal/business Convergence Application specific Early stage Growing stage Matured stage WV
11 $ - 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 Demo Area () * WiBro/Mobile WiMAX business vision CONVERGENCE for Ubiquitous Telecommunication Core DRIVER of new market Demand Creating mass market Maximizing leverage based on current customers of ADSL & Wi-Fi Positioning Core service of fixed/wireless converged market All IP convergence Infrastructure Fast completion of nationwide coverage Integration or Interoperation with Wi-Fi, CDMA and DMB Business Environment Paradigm shift Stagnation of sales growth Convergence between services and industries X
12 () WiBro * WiMAX Manufacturing & operating Extensive network & terminal expertise Relaxed regulation Mutual cooperative partnership Broadband Life Partner W
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