A Vision for Wireless Broadband Internet WiBro. WiBro

Transcription

1 A Vision for Wireless Broadband Internet WiBro WiBro Sept 11, 2004 Ho Tark Hwang, Ph.D.

2 Presentation Outline! Introduction! What is WiBro! Service Demand! Service Provision! Network Strategy! Business Model! Mobile Devices! WiBro s Macroeconomic Effect! Standard Issues! Future of Telco Beyond Broadband 1

3 Introduction Growth of Broadband in Korea No. of Subscribers 9.9M 11M 1750% Growth Rate 7.8M 981% 4M 0.02M 0.37M 95% 27% 11%

4 Introduction Business Environment Providing convergence services becomes a must regarding customer needs, deregulation, intensifying competition, and digital convergence. Competition Convergence New players (portals, CPs) Market saturation Intensifying competition for the convergence-driven future market Competition Digital Convergence Fixed-line decline/mobile growth Appearance of hybrid services (W-LAN, One One-phone phone ) Customer Needs Always On Deregulation Seamlessness Personalization Introduction of Number portability and local line unbundling Market-opening policy 3

5 Introduction 4

6 Introduction Same development of Mobile Internet? Mobile High-end power users Internet Rapid growth of mobile phones 36,240,988 subscribers (Jul of 2004) Fast increasing internet users 36,070,000 users (Jul of 2004) Mobile internet 1x-EVDO mobile internet service launched 24 million mobile internet subscribers (Dec. 2001) Limitation of mobile internet High tariff Low Speed : 64 K ~ 2.4Mbps (384 Kbps on the move) Basic PCS : Small display panel & simple function Emerging needs for high speed & reasonably priced wireless internet service 5

7 Introduction Goverment Policy ㅇ Oct. 2002: Re-allocating KT and Hanaro s WLL Frequency for WiBro ㅇ Jun. 2004: Completion of TTA PhaseⅠStandardization ㅇ Aug. 2004: Announcing Time Schedule "Sep. 2004: Announcing Operator Selection Policies "Dec. 2004: Business Proposal Submission "Feb. 2005: Operator Selection Principle of Standard o Reference Standard "Satisfy both IEEE d and IEEE e/d3 (all versions) - If d conflicts with e, e should be satisfied o System Requirement "Minimum data rate - UL: 128Kbps, DL: 512Kbps (cell edge, 60Km/h) "Channel Bandwidth 9 MHz "Roaming between the systems of different operators "Frequency reuse factor = 1 "Duplex mode: TDD (Synchronization required) 6

8 What is WiBro Service Definition Carry the High Speed Internet in Your Pocket! Access the Web, Multimedia Contents and whatever Information you need as you move. While on the move Anywhere at Anytime High Data Rate Low Access Cost # Nomadic service in the early stage (60km/h) # Low mobility # Seamless service in the urban streets # High mobility # 1Mbps per user # Even higher data rates will be available later. # Low access cost # 30,000-40,000 Won/M User Terminal Cell [핸드폰형 핸드폰형] Phone [PDA] Handheld [핸드헬드 핸드헬드PC] [노트북 노트북PC] Laptop [핸드폰 Laptop 형 connected 소형단말기/ to PDA를 PI 노트북에 Phone 연결] Laptop [노트북 노트북/PDA or PDA에 with PCMCIA 카드 장착] modem card 7

9 What is WiBro Service Characteristic Cost Effectiveness Service Positioning Mobility Data Oriented Data Rate Mobility Voice Oriented High Nomadic 2G (IS-95, Cellular) 3G (W-CDMA) Superior in Coverage & Mobility Superior in Data Rate & Access Cost 2.3GHz WiBro Terminal Portability Cordless Phone WLAN WiBro 3G (W-CDMA, HSDPA) Wired Phone High Speed Internet (xdsl ( xdsl) Data Rate WiBro,, 3G and WLAN complement each other. 8

10 What is WiBro Comparison to Other Services WiBro xdsl WLAN 1x EV-DO IMT-2000 Coverage In-door/Out door/out-door (Hot Zone) In-door In-door/Hot Spot In-door/Out door/out-door Data Rate High Very High Very High Middle/Low Mobility Low Mobility No Mobility Nomadic High Mobility Service Contents Multimedia Multimedia Multimedia Limited Multimedia Access Cost Low Lower Lower High Device Type PDA, Laptop, Smart Phone, etc Desktop, Laptop PDA, Laptop Cell Phone, PDA 9

11 Service Demand Revenue ( Million ) 9 8 Revenue Demand ( Million ) Demand Y Y+1 Y+2 Y+3 Y+4 Y+5! Research predicts that there are tremendous market demand for WiBro.! The number of users in the year Y+5 is estimated as 8.9 million.! The market size in the year Y+5 is estimated as $2.6 billion. (c.f. The market size for 2G/2.5G mobile Internet was $1.5 billion in 2003.) 10

12 Service Demand Market Size $0.57 Billion (Year 2000) $3.32 Billion (Year 2003) Dial-up modem PC communications Cable modem & xdsl High Speed Internet $1.5 Billion (Year 2003) $2.6 billion (Year Y+5) 2G/2.5G mobile Internet WiBro 11

13 Service Demand User s s Needs! Service demands of the current 2G/2.5G mobile Internet users are Entertainment (58%), Communications (17.6%), Business Applications (9.3%).! CDMA 1x EV-DO is suffering from Low Data Rate, Lack of Contents,, and High Access Cost.! WLAN is limited in coverage and lacks QoS provisioning (ISM band).! WiBro users are those who demand High Data Rate with Low Access Cost. Devices Services Locations PDA 42.1% Laptop 36.3% Handheld PC 9.3% 59.5% 56.7% 50.6% 30.2% 28.6% 55% 46% 40% School/work place Bus/Subway On the Street Smart Phone Cell phone 8.7% 3.5% Game Web Messenger MMS search 31% 13% In-building On a trip (ETRI, Demand Survey, ) (Korea Research, ) 12

14 Service Provision! Offering a variety of distinguished services according to Product Life Cycle Market Size Introduction Stage Growth stage Maturity Stage Entertainment Service Information Service Communication Service Service Information Service Communication Service Entertainment Service Killer App. Web search & download, m-commerce, m-learning community , Chatting, MMS (multimedia messaging service) High quality AOD & VOD, IP-based network game, LBS, Telematics 13

15 Network Strategy! In the first three years, WiBro will cover 84 cities in Korea. Coverage Plan #Phase 1(Year Y) : Seoul and 6 metropolitan cities SEOUL #Phase 2(Year Y+1) : Major cities INCHEON #Phase 3(Year Y+2) : Small cities $90% of 48 million population will be covered DAEJEON DAEGU $After Y+2, the coverage will expand as the market demands. ULSAN Year Y KWANGJU PUSAN Year Y+1 Year Y+2 14

16 Business Model BM Development! Providing Total Network Service: Seamless convergence of xdsl + WLAN + CDMA! Targeting the personalized services in mobile environment! Providing Multimedia communication services using the broadband access. LBS (Location Based Service) Message Based Service GPS-built built-in in Device LBS Platform Portal xdsl 1. Phone call 2. Map 3. Coupon PDE MPC WiBro App. Ser ver Wibro user WiBro Megapass WLAN Megapass user Nespot Nespot user 15

17 Business Model Individual Service User Portal User Interface Platform Real-time Broadcasting Messenger Mobile xdsl WiBro Multimedia Blog Interworking Web storage Enterprise Service On the move Internet or Leased line At work Groupware & legacy sys. WiBro WLAN Manager & user 16

18 Mobile Devices! According to the user s s needs and the evolutionary trend of mobile devices,! Different types of user devices are required.! In the earlier stage of WiBro,! PCMCIA type modem card (for laptops and PDAs), dual mode smart phones! In the later stages,! Multi-mode smart phones and user device with dedicated or compound functionalities Device Type Roadmap Early Stage Developing Stage Mature Stage Laptop PCMCIA Card PDA CF Card Combo Card One Chip Smart Phone * CF: Compact Flash, SD: Secure Digital SD Card Dual-Mode (WiBro+WLAN WiBro+WLAN, WiBro+CDMA) Multi-mode (WiBro + WLAN + CDMA ) 17

19 WiBro s Macroeconomic Effect! WiBro will boost the economy by creating jobs and leading technological advances.! During the first 5 years, the gross product will be $15 billion while the number of jobs created is 270,000.! The size of market for WiBro systems and user devices is more than $11 billion. Num. of Jobs Jobs Created Economical Effects 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Y Y+1 Y+2 Y+3 Y+4 Y+5 Year 5,161 6,244 3,860 11,352 3,632 IT Industry Other Industry Additional Value Created Total Export Total Import (Unit: Million) (Reference: ETRI, IT Technology Trend Analysis,, Dec. 2003) (Unit: Million) Year Y Y+1 Y+2 Y+3 Y+4 Y+5 Total IT Industry Gross Other Industry Product Sub Total Additional Value Created Amount of Export Amount of Import Number of Jobs created 116 1,068 2,397 2,890 2,794 2,086 11, `` 3, ,141 3,165 3,815 3,688 2,753 14, ,319 1,590 1,537 1,147 6, ,104 1,331 1, , ` 3,860 2,746 25,395 56,960 68,666 66,392 49, ,713 18

20 Standard Issues! Korean National Standard for WiBro # Major specification approved (Jan 2004) # Detailed specification approved (Apr 2004) # Final approval (June 2004)! Commercial Service Schedule H H H H 2006 Technology Service Schedule Technical Standard Deployment of Commercial Service system Selection of Service Carrier Field Trial Test Pre-commercial Service Commercial Service 19

21 Wireless & Broadband Convergence In the near Future IP based convergence backbone: KORNET Terrestrial radio (<2GHz) Portable Internet (2.3GHz) WLAN: Nespot (2.4, 5, 60GHz) Mobile gets IP MacroCell Rural WiBro MicroCell Urban IP goes mobile PicoCell IN-building 20

22 Future of Telco Beyond Broadband Profitable Broadband Services! Single Single-Service Service Provider % Multiple Multiple-Service Provider! Revenue Stream : fixed & wireless Internet, devices, application services billion $ xdsl Land-to to-mobile PSTN & Leased Line WiBro Broband Application & Solution Year 21

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