South Korea: Busan Green U-City Smart City Builds on Cloud Services Delivered by Public-Private-Partnership

South Korea: Busan Green u-City Smart City Builds on Cloud Services Delivered by Public-Private-Partnership

Executive Summary Connected devices, distributed sensors and Internet technologies are enabling cities to capture valuable data, deploy new services and enhance existing services, ushering in the era of smart cities. These services can improve the effectiveness of city management, generate new growth opportunities for local businesses and raise the quality of citizens’ lives. An early example of a smart city, South Korea’s Busan Green u-City is using a cloud-based infrastructure delivered by a successful collaboration between the local government, the global technology supplier, Cisco, and South Korea’s largest telco, KT. Building on a total investment of USD n Improve access to care services for time. Moreover, by opening municipal 320 million, Busan Green u-City is now chronic diseases, reducing the need for data to third party developers, the moving forward and implementing its patients to visit remote hospitals Busan government is encouraging multi-staged development plan. This innovation in the public service sector. n Create new markets for participatory will result in the launch of community urban regeneration projects applying n The public-private-partnership set centres and numerous urban services for u-City technologies up between Busan Metropolitan City, its citizens. Cisco and KT, shares both the costs n Provide wider revenue creation The benefits of these new services to and the risks of the project. Building opportunities by open innovation- citizens are varied and numerous, for on their successful collaboration in based urban regeneration framework example: IFEZ(Incheon Free Economic Zone) In the first stage, the partnership set up and Busan, Cisco and KT have n Increase citizens’ benefits by timely the Busan Mobile Application Centre established a joint venture, KCSS, welfare services information (BMAC) which has now generated new which is now providing a full range of distribution revenues of USD 2.2 million and online ICT solutions to other cities in Asia. n Improve information accessibility by sales revenue of USD 42,000 through n The role of the mobile operators in delivering information through various the launch of 13 new companies and the the Green u-City model goes beyond media channels and devices development of 70 new apps by small connectivity. KT, for example, has creative start-ups. n Improve learning experiences by two- been instrumental in supporting way video communication enabled Busan’s Green u-City is underpinned by and investing in u-City design and mentoring several key innovations: development, and manages the overall operation of Busan u-City. KT is also n Increase free education contents and n A cost-effective cloud-based providing several crucial enablers its quality for low income community architecture that enables the easy of the new cloud-based model: its residents and students, and thus to provision of new urban services to mobile broadband network contributes deal with social divide issues a large numbers of users. The Green to deliver ubiquitous coverage and u-City’s multi-service open platform n Reduce overall / regular health care bandwidth for the Green u-City, while can deliver both commercial services cost, especially for low income residents cloud-based applications are accessible for the city, as well as free services for and solitude living aged people via mobile and embedded devices. its citizens that can be expanded over Busan Green u-City: Introduction develop and implement 31 ubiquitous Busan is the second largest city in South urban services. The Green u-City project Korea, the largest city port in the country, is designed to help Busan achieve these and the world’s fifth busiest seaport. It objectives. is located on the south-eastern tip of the Busan Green u-City is a public- Korean Peninsula. private-partnership between the Busan Busan started its u-City (ubiquitous city) Metropolitan Government, the Busan programme in 2005, retrofitting next- IT Industry Promotion Agency, Cisco generation technology into the city’s and KT. Central and city governments, major infrastructure, encompassing and private partners are investing the port, transportation, tourism and approximately USD 452 million in the convention sectors. Green u-City project. To support its continued growth, in 2012, The partners are implementing the uses open city data. In stage 2, new Busan started the second four-year phase project in three stages. During stage services for the city and its citizens were of a development programme with four 1, they focused on the design, and trialled and key platforms for content strategic goals: building a City with a brought together city administration management were developed. Stage 3 will Smart Economy, a City with a Smart and developers in the Busan Mobile deploy commercial end-user services and Life, a City with a Smart Culture, and a Application Centre, a new shared build a more robust cloud platform for Smart Green City. Busan also planned to application development platform that commercial and industrial applications. “Cities have an opportunity to use the network as the platform for visualizing and modelling urban infrastructure to provide innovative urban services and manage urban Population: 3.6 million people in Busan, 4.4 million in sustainability. Using the network as the metropolitan area Area: 760km2 critical infrastructure (in addition to Gross Regional Domestic Product electricity, water, and natural gas), cities (GRDP): USD 50 billion can integrate multiple systems to deliver on-demand services over an Internet- enabled cloud infrastructure supported Busan by open innovation.“ Nicola Villa, Managing Director, Global Public Sector, Cisco Internet Business Solutions Group Busan Green U-City Blueprint

Smart Smart Green Smart Smart Smart Community Urban Energy/ Safety and Green (Smart Work/ Mobility Resource Security Logistics Learning/ Recycling Healthcare)

Smart work Busan PTA Green urban Integrated safety Real-time Mobile App Dev Smart travel services center and security logistics Center stations Smart energy with CCTV infrastructure management build-to-lease Green logistics Video contact Smart parking IOC center center operation Mobile Emergency system Smart learning augmented Smart buildings response and Green u-logistics Smart health- reality tour Eco-mileage disaster (eco-card) information care Busan eco-pass prevention utility service (smart pricing)

Smart City: Cloud Vision Services Cities need to develop, run and expand a Green U-City Services Cloud Infrastructure large ecosystem of services efficiently and securely, while controlling spending. To Busan Mobile Application Center Applications Integrated Operation Center do this, they need to collaborate and share (BMAC) (IOC) information across public and private Application Development Platform Personal Life Assistant Services (Platform as a Service) Public Data Platform (Software as a Service) communities. Cloud-based city services and opening up access to public data can help cities achieve this objective. Source: Cisco Cloud architectures need to be built on robust networks, fault-tolerant As an incubator, BMAC provides a growth initiatives covering the five datacentres and ubiquitous network reach physical space, virtual tools, testing vertical sectors as outlined below. to support fast deployment of new smart and consultation services for small- and An incubator of smart city services, city services. In Busan, the blueprint and medium-size businesses developing BMAC’s multi-service platform is used business architecture of the Green u-City citizen-centric mobile applications and to develop a combination of free public was developed by Busan Metropolitan services. The selection process to enter services and value-added commercial government and Cisco. This architecture into BMAC is competitive and mainly urban services (sometimes referred to as is founded on a ubiquitous IP network based on the submitted business plan. a Freemium model) that aim to improve that combines next generation broadband Once businesses complete their start-up all aspects of a Busan resident’s daily life. technologies. This network supports mission, or start generating revenue, These Freemium services will be provided a cloud infrastructure made up of an they prepare to move their base from through smart community centres; three intelligent city management system – an BMAC to other locations, such as smart such centres will be launched between Integrated Operation Centre (IOC) - and work centres. This cloud infrastructure September 2012 and March 2013. an application development platform. is already enabling a first set of green-

“ This isn’t a one-off Busan Green U-City Blueprint release or consulting partnership, but a Smart Smart Green Smart Smart Smart Community Urban Energy/ Safety and Green way of developing a (Smart Work/ Mobility Resource Security Logistics long-term cooperative Learning/ Recycling business model, Healthcare) which is by far the more meaningful.

Smart work Busan PTA Green urban Integrated safety Real-time Through this project, KT’s core aim is Mobile App Dev Smart travel services center and security logistics not just the commercialization of smart Center stations Smart energy with CCTV infrastructure management build-to-lease Green logistics space solutions, but the accumulation Video contact Smart parking IOC center center operation Mobile Emergency system of business experience and the fostering Smart learning augmented Smart buildings response and Green u-logistics of talented human resources and Smart health- reality tour Eco-mileage disaster (eco-card) information care Busan eco-pass prevention utility service many other goals in other business (smart pricing) fields also that can be accomplished through the strengthening of our global competencies.“ Suk-Chae Lee, Chairman and CEO, KT Source: Cisco

Green U-City Services Cloud Infrastructure

Busan Mobile Application Center Applications Integrated Operation Center (BMAC) (IOC) Application Development Platform Personal Life Assistant Services (Platform as a Service) Public Data Platform (Software as a Service) Smart City Operating Model: Public-Private- n Creation of new businesses and jobs: undertaken 13 strategic planning projects Partnerships During the first year of the operation of nine detailed design projects and 20 Public-private-partnerships are a way BMAC, 13 companies were established implementation projects. to finance smart city projects, combine and 70 applications developed by small In Busan, KT’s U-City Practice is involved different sources of expertise, and market creative start-ups. The city’s goal is to in the development and delivery of three new services to end-users. employ 3,500 app developers and 300 layers of services: sole traders by 2014. In Busan’s Green u-City project, two n Services for the city: KT manages the private partners – Cisco and KT – provide n Plans to become a greener city: Busan overall operation of Busan u-City using the technical and operational expertise aims to reduce its carbon emissions by its operational know-how developed in required to set up collaborative cloud- 2,981 metric tons by 2020, 67.8% lower other u-City projects in South Korea. based infrastructure and manage the city than in other newly-developed Korean operations. Cisco has led the project since cities that do not possess Green u-City n Smart space services to create smart November 2009. KT, which was a partner services. This level of CO2 reduction streets, smart buildings, and smart for Busan City in the first phase of its will be driven by citizens now able to parks. These services use connected u-City project, joined Green u-City as a monitor and control their consumption devices, combined sensor and prime contractor in 2011. of electricity with the help of new broadband networks, machine-to- applications and services. machine, WLAN, NFC and RFID The Busan Metropolitan Government, technologies to provide services which provides financing for Busan The success of collaboration between for both citizens and governments. Green u-City, plans to recover its costs Cisco and KT led them to establish a joint Examples of smart space services both from operational savings and new venture - KC Smart Service. KCSS will use include digital signage and smart revenue streams. BMAC also gives a ubiquitous sensor networks, broadband bus shelters, NFC-based payments, share of its revenue back to the Busan convergence networks, and machine-to- posters, ads and access control, as well IT Industry Promotion Agency, which machine technology to design, implement as energy management services for provides training and education for the and operate new services that address all commercial and residential business, participating small and medium-size aspects of city life from parks to buildings. among many others. application developer companies. Initially, KCSS will focus on providing a full range of ICT solutions to smart cities n Services for citizens, delivered The initial results of the Green u-City in Asia. anywhere, at any time, on mobile and project and BMAC performance show that embedded devices. The reach of KT’s it is becoming a new source of revenue for networks and its existing relationships the government, and a driver of new jobs Role of Mobile for Smart Cities – Beyond with end-users enables the delivery in local companies: Network Connectivity of applications that span a wide range n First year revenue in excess of USD Mobile networks are crucial for ubiquitous of public sectors, from healthcare to 2.2 million: After the first year of connectivity within cities and supporting transport energy and safety. operation, the applications and services cloud-based urban services for both city developed by BMAC have generated administrations and citizens. In Busan, the external project revenues of USD2.2 next generation broadband infrastructure, million and online sales revenue of the Busan Information Highway, combines USD42,000 for Busan City. fixed and 3G/4G mobile broadband networks. n Helping Busan City to become more cost efficient:Through the use of But the role of mobile operators in extensive public data, the Green u-City smart cities can go beyond connectivity, operating centre (IOC) is helping the encompassing other parts of urban ICT Busan city management to improve solutions. Network operators can help the use of resources, city logistics and cities design their smart city strategy and waste management, thus reducing the provide ongoing operational management operating costs for the city. of smart city services. KT, for example, has Busan Green U-City: Conclusion & Learnings Successes Busan Green u-City is a pioneering example of how collaboration between the local government and private sector partners can build a cloud-based smart city infrastructure with an open municipal data platform that can be accessed by third party application and service developers. After only one year of operation, the enabling infrastructure of the smart city is starting to prove the feasibility of involving small businesses and citizens with public service provision and information-sharing processes.

Challenges As Busan Green u-City enters its final phase, the city acknowledges that some challenges are yet to be overcome. Busan will need to continue developing innovative business models to ensure that Korea, taking part in strategic planning, KC Smart Service (KCSS) new city services are profitable. Its initial design, implementation or operation of In 2011, KT and Cisco launched a joint focus on the business sector also needs u-Cities. Additional information about KT venture, KC Smart Service (KCSS), to to be broadened in order to stimulate can be found at www.KT.com. address the demand for smart cities and sufficient public support and ensure that smart building construction in Asia. KT is new cloud-based services are adopted by the main stakeholder of this new strategic the entire community. Cisco partnership based in Korea, holding Cisco (NASDAQ: CSCO) is a global about USD 30 million in enterprise value. provider of intelligent networking The focus of KCSS is mainly on 14 global Busan Green u-City: Partner Background technologies and solutions that transform markets including Korea, Japan, China and KT how people connect, communicate New Zealand. KT Corporation is a leading and collaborate. Its Smart+Connected telecommunication operator in Korea Communities (S+CC) initiatives enable Further Information providing wireless, fixed line, broadband cities to become “smart+connected” Cisco® Internet Business Solutions and IP TV. It holds 86% of the national through using intelligent networking Group (IBSG): fixed-line market, 32% of the wireless capabilities to weave together people, www.cisco.com/go/urban_innovation market and 45% of the broadband market services, community assets, and (19.3 million, 16.3 million, and 7.6 million information towards pervasive urban Cisco IBSG Point of View paper on Busan’s subscribers respectively). KT proposed the infrastructure solutions for homes, offices, cloud based services: U-City concept to the Korean government transportation, healthcare, education, www.cisco.com/web/about/ac79/docs/ps/Busan- as a new model of city development retail, government services, energy, and Green-u-City_IBSG.pdf through government-private collaboration, real estate. Information about Cisco’s Busan u-City Project: and applied it in the first u-City project in Smart+Connected Communities solutions http://english.busan. www.cisco.com/go/ Dongtan in 2006. Since then, KT has been can be found at: go.kr/02government/04_08_01.jsp involved in 48 u-City projects in South smartconnectedcommunities. GSMA Connected Living Programme sectors. The Connected Living The GSMA’s Connected Living programme is also working with the city programme is a three-year market of Barcelona, the Mobile World Capital, to development initiative whose mission develop and showcase smart city services. is to help mobile operators accelerate Our work focuses on the adoption of the delivery of new connected devices mobile-based solutions and services to and services. Our target is to assist in ensure that the cities of the future are safe the creation of 700 million new mobile and healthy places to live and work. connections, whilst stimulating a number of service trials and launches in the Email: [email protected] Automotive, Education and Healthcare www.gsma.com/connectedliving/smart-cities