A Study on Commercialization of Combined Broadcasting and Telecommunication services utilizing HFC Network

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1 A Study on Commercialization of Combined Broadcasting and Telecommunication services utilizing HFC Network 한 국 정 보 사 회 진 흥 원

2 SUMMARY 1. Title A Study on Commercialization of Combined Broadcasting and Telecommunication services utilizing HFC Network 2. Objectives and Importance of the Research With the rapid advancement of digital information technology, a new concept in network infrastructure in which digital convergence is applied in all forms of traffic including voice, video, and data has become necessary. The Broadband Convergence Network (BcN) will not only exceed the expectations of simple convergence of broadcasting and media but will play a major role in bringing future oriented ubiquitous era one step closer The broadband HFC network has over 90% Home Pass rate nation wide and through it, over 14 million cable broadcasting and over 5 million data (internet) service is being provided. Commercialization of BcN service based on such HFC network infrastructure will contribute overall service quality to all citizens of Korea as well as enhance individual's quality of life Provide multi-cable services including HD Cable broadcasting, data broadcasting, high-speed internet, and VoIP. Early commercialization of Triple Play Service (TPS) through enhanced quality, security, and speed in HFC subscriber network. Contribute Digital TV, Set Top Box (STB) and cable modem related industry revitalization through development and commercialization of new converged services as well as revitalizing domestic and export market while acquiring technological edge for domestic manufacturers 3. Details of R&D A. Service Model Development Bundled Voice & Data Service: Cable Infra Based VoIP Advanced Digital Cable Broadcasting: Web TV HD Based Bi-Directional Data Broadcasting: T-Commerce, T-Banking TV Based VoIP Optional Service: On Screen Caller ID

3 Advanced Cable Internet: 200Mbps Internet Service B. Development of Pilot Service Network & Acquire Pilot Service Subscribers Launch Pilot Service to 700 subscriber households in 5 SO districts nationwide. Gang-Dong (200), Yangcheon (100), Suwon (100), Chungju (100), Jeju (200) C. Advanced Network Adcanced Transmission Network: Develop Dual DMC-SO 10G MSPP Network Advanced Subscriber Network: Expand HFC Network's Bandwidth and reduce subscriber per cell D. Quality Assurance & Development Verify HD Digital Cable Standards Verify High-Speed Data Subscriber Network Technology Develop Interoperable and Converged Network Develop and Expand Cable Technology Verification Test-Bed Standardize Cable Industry Technology 4. R&D Achievements A. Service Model Development HD Based Bi-Directional Data Broadcasting - HD Based T-Commerce: HD TV based home shopping - HD Based T-Banking: HD TV based e-banking Advanced Digital Broadcasting - Web TV: Provide IP based digital cable broadcasting TV Based VoIP Optional Service - On Screen Call ID: Display Caller's phone number on TV screen

4 Advanced Cable Internet - 200Mbps Internet: Euro DOCSIS 3.0 Technology, 8MHz 4 Channel Bonding Cable VoIP - Internet Telephony Service based on Cable Network Expand HD Digital Broadcasting - HD Resolution (1920x1080i), Increase Serviced Channels (SD: 97channels, HD: 17channels) B. Pilot Service 1) Status of Pilot Service Pilot Service is being provided in 700 households in 5 SO districts nationwide. Gang-Dong, Seoul: HD Based Data Broadcasting to 200 homes Yangcheon,Seoul:WebTVto100homes Suwon, Gyeonggi: TV Caller ID to 100 homes Chungju, Chungbuk: 200Mbps Cable Internet to 100 homes Jeju: HD Digital Cable Broadcasting to 200 homes <Pilot Service Provided to 700 Households in 5 Districts>

5 Pilot Serviced households per SO districts ; 2) Commercialization Deployment and Plan BcN Service Districts Deployment Date Note고 HD Based Data Broadcasting Gang-Dong TPS Web TV Yangcheon TV Based VoIP Optional Service Suwon Mbps Internet Chungju HD Digital Broadcasting Jeju TPS Service which bundles HD Digital Broadcasting, 100Mbps Internet, and VoIP has been commercialized in 07. C. Development and Verification of Core Technology Development and verification of broadcasting and telecommunication convergence technology - Analysis and verification of channel bonding technology PHY, MAC, IP as well as service type feasibility study Verification testing per channel bonding type (8MHz 4 channels, 6MHz 8channels) - Cable Network Quality of Service (QoS) Technology Analysis (PCMM) - Cable Network security technology (BPI+) analysis and verification Verification of Advanced HD Digital Broadcasting Technology - Develop and verify Standardized Verification System for HD Digital Broadcasting - Verify M-Card technology for PVR - Establish and Verify CAS System for Content Protections - Verify interoperability between terrestrial and cable

6 broadcasting - Web TV Verification Testing - HD Data Broadcasting (T-Commerce, T-Banking) Verification Testing High-Speed Data Subscriber Network Technology Verification - 200Mbps Cable Modem Technology Verification - Establish KOREN linked Network and verify IPv6 Verify Cable VoIP Technology Quality Verification Testing for Cable VoIP Verification Testing for TV Based VoIP Optional Service (On Screen Caller ID) Establish KLabs Test-Bed and Conduct Verification Testings D. Cable BcN Standardization Efforts Standardization Working Group: Digital Broadcasting, Data Broadcasting, & VoIP Standardization Achievements Established Standardized Extended API for Korea's Data Broadcasting Operators Created specification (proposed) for Digital Cable PVR Created Specification Guideline for Multi-Stream Cable Card Certification Testing Submitted recommendation for amendments pertaining to expanded upstream bandwidth, application of H.264 compression technology, and discontinuation of usage of CableCard E. Promotional Activities for BcN Pilot Projects Promotional Activities in Pilot Serviced Districts: Launched BcN Pilot Service and Promotional Activities Promotional Activities through Website: Cable BcN Website as well as

7 participating companies' Websites Promotional Activities through Media Promoted by Cable BcN Standardization Working Group BcN Strategies related news article in Digital Times Media Release of BcN Service by participating companies District promotional activities through local channels of participating SOs Promotional Events Cable BcN Booth at BcN Achievement Exhibition Hosted Cable BcN Conference Published BcN news in monthly newsletter of KCTA F. Speeches & Presentations Apr. 2007: IT Forum Korea Jun. 2007: KCTA 2007 Conference Oct. 2007: Cable BcN Conference Nov. 2007: BcN Development Meeting & Conference5. Recommendations Pertaining to Utilization The existing broadband HFC subscriber network allowed early commercialization of bundled TPS service. Government support is necessary to utilize such network for development and deployment of BcN converged services. The necessity exists for supplementing existing regulations and legislatures in accordance with the BcN service development as well as the advancement of network and maximize public usage of home network infrastructure resource. Must promote new cable related technology development and increase industry's application of such technologies by providing support and development guidelines to Service Operators (SOs) and manufacturers by the government for accelerated digitalization transition6. Anticipated Achievements By connecting Pilot Service to commercialization, early commercialization of high quality TPS was launched. By utilizing existing HFC network, nationwide service is currently being pursued. By advancing HFC subscriber network through development of Cable based converged

8 services as well as development and verification of core technology, early completion of ubiquitous infrastructure will be achieved. Through standardization efforts of Cable BcN, standards were established for Digital Broadcasting and Data Broadcasting Operators in Korea, while leading the standardization efforts for broadcasting and telecommunication convergence by developing various specifications such as testing verification procedures for Multi-Stream Cable Card Korean manufacturers were able to achieved technical capabilities in the areas including HD STB and cable modems through commercialization of new converged services including HD Digital Broadcasting, 100Mbps Internet Service, and VoIP and revitalized domestic market while increasing opportunities for export market

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