KT U-City Business

Home , Paju

KT U-City Business

Jinsik Park [email protected] Senior VP Global & Enterprise Group 2011. 07.08 Table of Contents

1.KT Introduction

2.U-City Overview

3.KT U-City Business

4.KT-Cisco Partnership 1. KT Introduction KT Overview 1. KT Introduction

KT, a global IT leader filled with energy and creativity

1981.12 Establishment of KT Corporation Employees Revenue 2002.08 Privatization from Gov. Owned Company

2006.04 Commercial Launch of World’s first Mobile WiMAX - WIBRO $ 20.2B 31,602 2008.11 Commercial Launch of Real-Time IPTV (2010) 2009.06 Merged with KTF

Telephone Mobile Broadband TV Subscribers Subscribers Subscribers Subscribers

Cellular 19.4 m 7.3 m 4.1 m (M/S 87.6%) 15.9 m (M/S 42.9%) (M/S 31.5%)

PSTN 16.8 m IPTV 1.9 m WiMAX VOIP 2.6 m 0.34 m Sat-TV 2.2m

* F/X Rate: 1,000 KRW=1 USD 3 As of Oct 2010, except for revenue Organization and Business Areas 1. KT Introduction

Home Customer Group Private Business Customer Group Customer Group

Smart Space WCDMA Data / Leased Line Wi-Fi Enterprise WiBro/WiMax Internet / VoIP / IPTV / Smart Home Communication Music IDC / ICC Game Business Solutions News Media Messenger / SNS

Service Design Group(R&D) Corporate HQ & Support Group

4 Direction of Business 1. KT Introduction

KT started out as a provider of voice network and has expanded its business areas to wireless, internet, broadcasting. Focuses on being a total IT service provider for the future.

Wired/ Total Wireless NW IT service Provider Internet Contents Provider

•Voice •3G •Fixed Broadband •WiFi •U-City •Wibro •Cloud Computing •Broadcasting •FMC •Content Provider •M2M •Smart Services

5 Major Subsidiaries 1. KT Introduction

KT expands its business boundaries into various industries based on its traditional strength of Information and Communication Business and Technologies with 24 subsidiaries

Security Service

Multimedia Contents production and distribution

Movie Production Digital Satellite Broadcasting Music Distribution

On-line Education

Internet Mobile Marketing Digital Advertisement Advertisement 6 Solutions 2. U-City Overview (Ubiquitous City) Background (1): Key Issues in National Development 2. U-City Overview City connectivity is becoming the competiveness of the city as self sustainability is becoming of importance.

Population Concentration Phase 1: 1990s Phase 2: up to Present

Paju Yangju New New City Ilsan City new Gimpo city New Jungdong City SeoulSeoulSeoul Seoul Songpa new city New City

Pyongchon Pangyo New city New City Bundang Sanbon Suwon New City New City New City

Hwasong New City PyungTak New City

• Concentration of • 5 new cities developed • The Development of self- population and around Seoul sustaining towns industries in Seoul metropolitan • High expectation of good • Emphasis on population living: welfare and well- dispersal produced a being number of bed towns

8 Background (2): Expanding role of IT 2. U-City Overview As the technology develops, the role of IT is becoming even more important on every level of competitiveness (personal, sectorial, and spatial)

IT as a tool IT as an enabler IT as an environment

Finance Education

IT system IT system

Healthcare Government

IT system IT system

• IT as a tool for • IT as an enabler for • IT as a city-wide repetitive processes to increasing infrastructure and increase productivity competitiveness of the environment to level-up on a personal level various industrial sectors the quality of life and efficiency of the various activities (work, live and play) of the city

9 Background(3): U-City Development 2. U-City Overview

U-City selected as National growth engine in the government’s IT convergence policy & strategy

Government Green Growth Korea policy Trend of IT & Construction [Korea is expected to become Technology & Ecology Global designated Green growth Cities Convergence Convergence country by 2013]

Urban Dev. U-City Green Trend in Service Korea U-City Space Tech

Advancement A Law for public support of of U-City export ICT expected to be enacted Related law legislated (2008. 9.29) U-City Law

To define roles of related governmental agencies To apply the U-City Concept to other New City projects in the future

10 Background(4): U-City as Government Agenda 2. U-City Overview

KT had proposed U-City concept to the Korean government as a new model of city development through government-private collaboration

MOCT―MIC collaboration Applying U-City to facilitate U-City concept in Dongtan development Phase 2 project

KT: U-City project planning / Model of Integrated City MOU signed between MOCT* implementation to operation Administration and MIC** with Local government: Test-bed for IT-Construction KLC***(subsidiary of MOCT) operation & maintenance Other Phase 2 new cities such Convergence on U-City implementation as Paju decided to adopt U-City concept

* Ministry of Construction & Transportation ** Ministry of Information and Communication *** Korea Land Corporation 11 U-City Concept 2. U-City Overview

With its state-of-the-art City Control Center and its advanced network infrastructure, U- City will offer diverse urban IT services in an integrated way, which will enhance the efficiency of city administration, as well as greatly improve the life quality of residents.

IT-based Administration of City

Integrated Operation Center(IOC) § Solutions § FTTH specialized for § VoIP* specific Convenience Healthcare Comfort Safety § customers IP-TV § Home Network § Health Care § Water Supply § Crime/Disaster Advanced § ITS** § Management Commercial Remote Prevention IT Services § U-Learning Diagnosis § Air & Water N/W Services § Public Facility § § Pollution U-Business Automated Management § City Portal Facilities Management

Broadband Mobile-Fixed Network / Sensor Network / Service Platform

*Voice over Internet Protocol **Intelligent Transport System

12 Traditional Urban ICT and U-City 2. U-City Overview

While traditional ICT systems are implemented for specific purposes, U-City provides integrated and converged urban ICT system based on comprehensive urban planning.

Traditional Urban ICTTraditional ICT U-CityU-City

§ §Individual design and implementation of Comprehensive design and Vision and implementation for quality of life and ICT infrastructure and service for Integration competitiveness from the planning GoalGoal specific user requirements phase

§Redundant initial investment and §Low cost, highly efficient urban ICT OperationOperation operational cost for common ICT Efficiency management possible due to integrated elements plan and stepwise implementation

§ § Limited urban information(ITS, CCTVs) Range Wide range of urban information InformationInformation of (Traffic, safety, life and community § ServicesServices Limitation on time and space for Information information, etc) service usage § Any where, Any time, Any device

13 U-City at a glance 2. U-City Overview

U-Traffic Smart Signal Control Traffic Information Parking Information Illegal Parking Detection

U-Building Intelligent Building System Integrated Operation In-Building Communication Network Smart Office and Business Solutions Center

U-Urban Underground Facility Infrastructure Identification Water-pipe Monitoring U-Park Streetlight Monitoring RFID Ticketing Park Info Child ID

Public Surveillance Smart Bench and Street Furniture Mobile Community and Tourist Info Kiosk, Signage, Screens, LED mood lighting U-Home Floors, Projections, etc. Home Automation U-Street Home Security U-Media Signage

14 3. KT U-City Business KT U-City Business Model 3. KT U-City Business

KT U-City business started with a focus on Urban Infrastructure that can easily expand to adjacent areas. Now there is an emphasis on Biz Space with proven technologies and services and is planning to focus on service for individual Citizens in the future.

Layers of a City Customers Needs

KT’s U-City Approach Individual Convenience & Citizen Customers Satisfaction

Biz Space (Complex and Building Private Profit Structures) Developers

Urban Infrastructure Government & Public Benefit (Physical Structure and Public Public Developers Services)

16 KT U-City Project Process 3. KT U-City Business

U-City is planned, designed and implemented in line with new city development process.

U-City Strategic Detailed Implementation Operation Planning (USP) Design Phase Phase

--City Masterplan Analysis U-City Operation

y Process y - Service Planning U-City System Design - Software Development Outsourcing - Center Planning - Detailed Technical - Solution Configuration - Operation & - N/W Infra Planning Design of U-Services / - On-Site Construction Maintenance Training U-Cit - Implementation Planning Infra / Center - Service Development - Operation Planning Support

Zone Designation Planning Implementation Process

Visioning & Zone Designation Completion Completion Detailed Planning Research & Approval Land Development & Inspection Reporting

Land distribution / building construction / sales / moving in City DevelopmentCity

17 KT U-City Major References 3. KT U-City Business

•14 U-City Strategic Planning projects and 9 detailed design projects including IFEZ USP, the world’s first Public U-City U-City planning project To be developed as •U-City Implementation: Dongtan, Paju, Yongin, Total Managed Service Business Pangyo, Homesil, etc. of City Operation •U-City Operation: Dongtan (5 years contract for outsourcing)

U-Building & To be expanded with Complex Operation Business & KT Solution Provision Business •StarCity •FutureX •D-cube (Operation) (Implementation) (Planning)

Specialized U-Park & Service Design U-Street Focusing on Culture & Tourism • Busan U-Park • Seoul U-Tour (U-Street)

• Conducting Sidi Abdellah U-City Masterplan Global U-City enabler in Algeria Global U-City Based on • Conducting Consulting and Planning in Thailand, domestic experiences Indonesia, China, UAE, Malaysia and Uzbekistan

18 KT U-City and Smart Community References 3. KT U-City Business

Category Major Projects Comment • 2004 Incheon Free Economic Zone U-City Strategic Planning Project • 2005 Seongnam Pankyo Digital City Implementation Planning Project • 2005 Ubiquitous based Ochang Scientific Industrial Complex Management Corporation Construction Planning Project • 2005 Paju U-City Construction ISP Project • 2006 U-Kangwon Construction Strategy Planning Project • 2007 Incheon Songdo IFEZ Integrated Sensor USP Project Total : 14 EA Consultation • 2007 Feasibility Study of IFEZ U-City Integrated Command Center Project • 2008 Gwanngyo U-City designing and Construction Project • 2008 Daesung D-Cube City USP Project • 2008 Sihwa MTV U-City Strategic Planning Project • 2008 Korea Housing Corporation U-City Model Development Project • 2008 Hwasong Dongtan U-City Facility Management & Maintenance Project • 2009 Asan Baebang/TangJeong U-City Strategic Planning and Designing Project • 2010 Busan U-Park Strategic Planning Project • 2006 Busan Metropolitan City U-Traffic Basic Design and Detail Designing Project • 2007 Kimpo Yangcheon U-City Designing Project • 2007 Busan Disaster Prevention System Strategic Planning and Designing Project • 2007 Seongnam U-City Construction Designing Project Design • 2008 Seongdo IFEZ U-City Basic Facility Designing Project Total : 9 EA • 2009 Namyangju Byelne U-City Designing Project (On-Going) • 2009 Daegu Innovation City & Technopolis U-City Construction Designing Project (On-Going) • 2010 Seongdo U-City Detail Designing Project • 2010 Uoonbok Leisure Complex U-City Designing Project • 2006 Busan Metropolitan U-Exhibition Service Implementation Project • 2006 Busan Yangsan-Kimhae Bus Information System Implementation Project • 2007 Kangwon U-Heath Project (Chronic Disease Remote Monitoring System Expansion Project) • 2007 Busan Metropolitan U-Tourpia Construction Project • 2008 Koreyong Standard U-City Service Model Development (Koreyong U-Kaya Tour Guide System Implementation) • 2008 Seongnam Pangyo U-City Construction Project • 2008 Yongin Heungdok U-City Construction Project • 2008 Paju Uoonjong U-City Construction Project Implementation • 2008 Hwasong Dongtan 2nd Phase U-City Construction Project Total : 18 EA • 2009 Gwangyo New City U-City Construction Project (On-Going) • 2009 Mapo U-Park USP & Pilot Project • 2009 Seoul City U-Tour System Construction & Service Operation • 2009 Songdo U-Pilot City Construction Project • 2009 Suwon Homaeshil U-City Construction Project (On-Going) • 2009 Cheonan Cheongsu U-City Construction Project • 2009 Paju Eco-Bike System Construction Project • 2010 Asan Baebang/TangJeong U-City (On-Going) • 2010 Incheon Cheongra U-City Construction Project (On-Going) Operation • 2009 Hwasung Dongtan U-City Operation & Maintenance Project (On-Going) Total : 1 EA • 2009 Algeria Sidi Abdella U-City Master Plan Project • 2010 UAE Aldar Al Raha Beach Feasibility Study Project Global • 2011 UAE Masdar K-Cluster Master Plan Project (On-Going) Total: 4 EA • 2011 UAE Al Ain Wildlife Park & Resort Smart Community Plan & Design Project

19 Case Study: Hwasung Dongtan U-City: General 3. KT U-City Business

Basic InformationInformationBasic

Location: Dongtan, Hwaseong, GyeongGi (40km South from Seoul) Size: 9,037K㎡(903.7ha) Population : 120,730 Number of Household : 39,825

UU--City SpecificsSpecificsCity

Project key point : World’s first u-City development Development Period: 2006.05 ~ 2008.09 Budget : 45 billion won (About 40 Million USD) Service : • Crime Prevention • Transportation Information & Traffic Control • Remote meter reading of waterworks • Monitoring of under-ground facilities such as drain pipe, electric and gas supply etc 20 Hwasung Dongtan U-City: Project Scope 3. KT U-City Business Jan. 2006 May. 2006 Dec. 2007 Jan. 2009 Present 1st 2nd Design Operation Implementation Implementation

Second Phase (8)

First Phase (4)

Traffic Info Dongtan Portal Realtime Signal Mgt.

Traffic Public Admin Convenience Automated Services Vehicle Services Identification Environment Environmental Life Safety Water Leakage Illegal Parking Public Area Management Pollution Management Management Security Services Service Information

Integrated Platform U-City Facility Mgt. Fiber-optics Network Infra MSPP, BBM/BBS

Integrated Operation CenterIntegrated Center Public Information NetworkNetworkPublic Case study: Hwasung Dongtan U-City : Public Info Services 3. KT U-City Business

Anti-Crime CCTV

Traffic Info Signage U-Placard Traffic CCTV

Bus Info System Real Time Signal Control Media Board

Pressure Meter U-Placard Flow Meter

Detecting illegal parking Air-Pollution Information

U-Parking License Plate Detector

22 Case study: Hwasung Dongtan U-City 3. KT U-City Business

U-Placard Traffic Information Signage

Bus Information System Vehicle23 Licence Plate Sensing Case study: Hwasung Dongtan U-City 3. KT U-City Business

Integrated Operation Center Facility

24 Expected Value of U-City 2. U-City Overview

• Increased Asset Value & Marketing Effect • Public Benefit through U-City Services Safe and Secure City

U-City Feasibility •49.3% Decrease in crime rate Study from Korean Government

Effective Urban Infra

Dongtan Ubiquitous City

§Parking lot capacity increases up to 40% with Intelligent •Total public benefit of U-City implementation and operation Parking Service(Dongtan) will be about 104 million USD (Benefit/Cost Ratio of 1.57)* § •Residential Asset Premium: About USD 600 per square meter 4% Decrease in water pipe (10% increase compared to the competing cities around leakage Dongtan)

* Based on operation period from 2008~2018 with 7 services

25 Case Study: Algeria Sidi Abdellah U-City (1) 3. KT U-City Business

To overcome the growing population density and encourage a science/technology oriented city, KT introduced U-City to Algeria government’s Sidi Abdellah

Project SummaryProject Summary

§ Algeria Sidi Abdellah U-City Master plan Project § Location and Size: 30km southwest from Alger, 40km2 § Project period: 2008.11 ~ § Project Owner: Ministry of Land Development and Environment

Country InfoInfoCountry ChallengesChallenges

§ • 90% of population in 20% of Population: 35,423,000(2010) land area § Capital: Alger • Overcrowding: Planned 500Tà population: 5,000,000 Residents 3.5M (2011, metro) - Steep housing cost, traffic § Per Capita GDP: $4,400(2010) congestion § Annual Economic Growth: 6% • Evolve into a new power in regional economy

26 Case Study: Algeria Sidi Abdellah U-City (2) 3. KT U-City Business

Based on characteristics of the city and development directions, four themes were proposed for U-Sidi Abdellah services: U-Public, U-R&D Support, U-Eco, U-Life

U-Public U-R&D Support ¡ Web Based U-City Info Portal ¡Virtual R&D Community Service Service ¡ Anti-Crime Service ¡Internet R&D Data Center ¡ Traffic Control & ¡Tele-Work Support Service Information Service

U-Eco U-Life

¡ Environment Monitoring and ¡Home Security Service Management System ¡Housing Complex ¡ Water Circulation Management Service Management Service

27 4. KT-Cisco Partnership KT + Cisco Partnership 4. KT-Cisco Partnership

KT’s experience as a ICT service provider and Cisco’s expertise as a world-class network vendor brings competitiveness to the partnership for global business

The first mover Aims to provide of Smart Space business the most competitive city model with newest technologies and to the emerging cities innovative services in the world

29 Conclusion 4. KT-Cisco Partnership

Competitiveness of Competitiveness of City Country

Competitiveness Through IT

30 Thank you!