A Vision for Wireless Broadband Service
‘WiBro’
2005.2 Outlines
I. Introduction II. Business Environment III. Business Strategy IV. Service Plan
-1- I. Introduction 1. What is WiBro?
High Speed Internet in Your Pocket!
“Wired Internet + Mobility”
“Anywhere “While on the Move” “High Data Rate” “Low Access Cost” at Anytime”
Nomadic Service Seamless Anywhere 1 Mbps/User $30~$40/Month in the early stage - Mixture of - High Mobility - Even Higher Later - Low Mobility Meter Rate & Flat Rate
UseUserr TeTerrmmiinnalal Laptop connected to Laptop or PDA with Phone Type PDA Handheld PC Laptop Phone PCMCIA modem card
-2- II. Business Environment 1. Korean Wireless Data Market
Wireless Data Market will expand from 3 tril. Won in 2004 to 6 tril. Won in 20061)
Wired Wireless Wireless Data Market expands rapidly. Market saturated after Competition between 10milion subscribers the wired and wireless - 0.18 tril. Won(2000) Æ 1.9 tril. Won (2003) sector begins - 3 tril. Won(2004) Æ 6 tril. Won(2008) % CAGR = 4.77 % .20 20 = WiBro Market in 2008 : > 1 tril. Won R AG 6. 43 DATA C 6. 7 8. 5 (assuming 20% market share) 3. 08 - EV-DO (meter-rated billing) takes over 10% market share in 2 years. 2004 2008 2004 2008 C AG C A R G R = = 6. 5 -6 - .23 3 .0 y Wireless Data Market Expectation % 13. 1 8 % Institution Rate of Growth(2005~2010) 5. 0 11. 6 OVUM (2003) 20% (National) 2004 2008 2004 2008 VOICE IDC (2003) 31% (International) Wireless is preferred Wireless Market is to Wired saturated ARC (2003) 45% (National)
< IT Market Analysis (KISDI) >
1) Reference : KT Business Management Research Lab
-3- II. Business Environment 2. WiBro Market
Market Size in Y+5: 9.2~10.7 mil. subscribers WiBro will creates 270,000 new jobs, and the gross product of 18 tril. Won Systems and User Terminal Market is greater than 10 tril. Won ( 1 Device per Home Æ 1 Device per User Æ 1 Device per Appliance/Machine )
MarketMarket PredictionPrediction EconomicalEconomical EffecEffectt
1200 (Unit: million) Gross Product 17.98 tril. Won SKT: 11
1000 KT: 9.6 Value Created 7.43 tril. Won
KISDI: 9.2 Total Export 6.28 tril. Won 800 Total Import 4.63 tril. Won
600
-4- II. Business Environment 3. Evolution Path
r 2000 2005 2010
ula 4G
Cellular or Vehic 3.5G 3G Convergence 2G/2.5G Network W-CDMA / HSDPA / AMPS EV-DV GSM / cdma-2000 cdmaOne
Mobility WiWiBrBroo WLL Wireless Access Network IEEE 802.16 WLAN IEEE 802.11 Nespot (WLAN)
IEEE 802.3 LAN Internet Megapass (xDSL) Pedestrian
EvolutioEvolutionn ofof thethe TechnologyTechnology WiredWired Internet:Internet: IEEE802.IEEE802.3(LAN)3(LAN) ÆÆ IEEE802.11(WIEEE802.11(WLAN)LAN) ÆÆ IEEE802.16(WIEEE802.16(WiiBroBro)) CellularCellular NetwoNetworrk:k: 1G1G (Analog)(Analog) ÆÆ 2G2G (Digital)(Digital) ÆÆ 3G3G (IMT-2000)(IMT-2000) ÆÆ 3.3.5G5G (HSDPA)(HSDPA) WiBroWiBro iiss aa ‘‘lastlast milemile’’ extensionextension ofof thethe wiredwired Internet.Internet.
-5- II. Business Environment 4. Service Positioning
SerServviiccee CharacteriCharacterisstiticc SSeervicrvicee PositioPositionniningg Cost Effectiveness Mobility Orientation: Coverage, Data Oriented High Mobility
3G Orientation: (W-CDMA) Broadband, Data Rate Mobility 2G QoS, Cost (IS-95, NomadicCellular) Voice Oriented WiBro
WLAN Terminal Portability Cordless Fixed High Speed Internet (xDSL) WiBro 3G (WCDMA, HSDPA) Data Rate
☞W☞ WiiBro/3G/WLANBro/3G/WLAN complementscomplements eacheach other.other.
-6- II. Business Environment 5. Technology Comparisons
W-CDMA CDMA 2000 Item WiBro R4 R5 (HSDPA) 1x EV-DO 1x EV-DO Rev.A (1)
Duplex TDD FDD FDD FDD FDD
Multiple Access OFDMA CDMA CDMA CDMA CDMA
Bandwidth (FA) 10MHz 5MHz x 2 5MHz x 2 1.25MHz x 2 1.25MHz x 2
Frequency 2.3~2.4GHz UL :1.94~1.98/DL:2.13~2.17G 800M/1.8G 800M/1.8G
Down 18.432 Mbps 2 Mbps 13.976 Mbps 2.4576 Mbps 3.072 Mbps Max. Data Rate (1FA 1sector) Up 6.144 Mbps/User 2 Mbps/User 2 Mbps/User 153.6 kbps/User 1.2288 Mbps/User
Average Down 5.95 Mbps 1.04 Mbps 5 Mbps(2) 850 kbps 825 kbps Throughput (1FA 1sector) Up 1.53 Mbps 1.21 Mbps 1.5 Mbps 266.1 kbps 465.4 kbps
802.16e D3 (04.05) Standardization 2001.3 2002.6 2000.10 2004.2 802.16e D4 (04.08)
Network Deployment yr. 2006 Seoul Area yr. 2006 Operating yr. 2005
(1) In Revision A, the performance of 1x EV-DO is increased to that of 1x EV-DV.
-7- II. Business Environment 6. Relationship to Similar Services
WiBroWiBro vvs.s. xDSLxDSL WiBro provides High Speed Internet Access as xDSL. WiBro’s Mobility and Portability will attract xDSL users to WiBro.
WiBroWiBro vvs.s. WLANWLAN
Demand for coverage expansion in WLAN will attract WLAN users toWiBro.
WiBroWiBro vvs.s. 3G3G Low access cost will attract 3G users to WiBro. There will be partial competition between the services; however, they will complement each other in general.
-8- III. Business Strategy 1. KT-WiBro Vision
WiBro: Cornerstone of Wired/Wireless Convergence/Ubiquitous Network
Wired/Wireless Convergence KT Vision 2010: 5 Business Engines and Ubiquitous Network
4G
Customer Base Positioning Infrastructure
Create Mass Market Create New BM for Create synergy combining using KT-xDSL and Convergence and KT&KTF Infrastructures Digital Content KT-WLAN customer Ubiquitous Era base Home Networking
Create Future Business Leading IT Industry KT Group Level Synergy IT Service
Media Secure Wireless Data Keep dominating in the Utilizing KTF’s Contents Market Wired-Data Market(xDSL) Marketing/Dist. Systems, Service Platforms Exp. Annual Sales in 2010 : 17 tril. Won
-9- III. Business Strategy 2. Key Strategic Factors
Systems Development User Terminal Application {Early Int’l standardizations to Development Development create Multi Vendor Environment { Early DBDM chipset development {Development Managing Systems { Develop Killer App exploiting - Develop Business alliance for early system development the Broadband and Mobile model with vender Characteristics of WiBro { Early standardizations of the User { Develop Detailed Marketing Terminal features for timely Strategy for each App Service development KT-WiBro’sKey Strategic Factors
Building Wireless Contents Networks Development
{ Reuse or share the conventional Develop Key Application Contents network infrastructures to { reduce capital expenditure. Marketing { Develop Business alliance model with Contents Provider { Secure network construction/ { Categorizing customer’s needs operation/management personnel { Recognizing Target market { Develop Package services in connection with other services and their customer base.
-10- III. Business Strategy 3. Service BM
Killer Applications: Exploiting the Mobile and Broadband Characteristics. Convergence Services: User Convenience and Max. Revenue.
ConventConventiionalonal ServicesServices WiBroWiBro KKilleriller App.App. MMS (Multimedia Messaging Service) Information: Web search, e-Mail 9 High Quality video-mail/messaging “Push”type Services d Entertainment: Movie, VOD e Evolution: 9 Group video chat, Ad & Coupons
Wir Game : IP-based Network Game Others: e-Stock, e-Banking, LBS (Location Based Services) 1. Multimedia Multimedia e-Learning IP Multicasting Services 2. Wireless/Wired 9 High quality VOD and Movie Convergence 9 Real-time Broadcasting Short Messaging Service (SMS)
less VOD, Simple Games, Entertainment xDSL, WLAN, CDMA, DMB integrated e
rgence services e Wir e-Banking, m-Commerce Conv
UseUse KTKT’’ss WWLAN/LAN/xDSLxDSL NetwoNetworrkkss && OperationOperation Know-HoKnow-Howw WireWired/Wd/Wiirerelelessss CCoonntetennttss ++ InternetInternet WebWeb ServiceService Wired
-11- IV. Service Plan 1. WiBro Portal
WiBro Portal Use KT’s Internet Portal (‘Paran’) as a WiBro Portal
Develop Wireless+Wired Portal with KTH
Develop Easy-to-Use/Customer-Friendly UI Develop New Contents, and Up-grade KTH’s Conventional Content Service
WiBro Portal Service Model
KTH KT + KTH KT
Platform Contents Network Terminal (Portal/Platform)
Wired Service Wireless Laptop Wired PDA WiBro Wireless Service PDA Phone (High-Speed Internet) Phone Device Specific Contents Integration
KTKT GGrouproup’’ss WWiirerelelessss/W/Wireiredd PPoorrtaltal
-12- IV. Service Plan 2. WiBro Contents
Contents Development and Management Strategy
Utilize KT’s Conventional Portals and Services to Develop Multi-Purpose Porta
(VOD, music, game etc.)
Utilize KT Group’s Contents: KTF (Fimm/MagicN), KTH (Paran), KDB
Utilize KTH’s MCP: Strengthen CP Relations
Develop CP Management System: CP Selection, Support, Evaluation
Collaborate with Video KT Convergence Biz Group HomeN/HomeMedia/NESPOT KT New Biz Develop Group For Contents Development Music MCP (Video/Music/Game etc.) (KTH) Game Contents Collaborate with Contents Sourcing Education Supply KTF/KTH/KDB FIMM/MagicN/Paran/KDB & CP Management For sharing Contents CP News Management
LBS Out-sourcing WiBro-customed Contents For WiBro-customized Contents Development Commerce •••
-13- IV. Service Plan 3. User Equipments
Variety of User Equipments: PCMCIA card, Laptop, PDA, HPC, Smart Phone Wireless+Wired Integrated Terminals: Friendly and Easy-to-Use UI DBDM, TBTM Equipments: WiBro + WLAN/CDMA/DMB
TypeType RoadmapRoadmap
IntroductionIntroduction StageStage GroGrowwthth StageStage MatuMaturityrity StageStage
Multi-modeMulti-mode Single Chip WiBroWiBro oonnllyy ;;WiBroWiBro++ CDMA+GPSCDMA+GPS Laptop ;;PCMCIAPCMCIA etc.etc. ;;EmbededEmbeded ModemModem ;;PCMCIAPCMCIA ; Embeded Modem ; Embeded Modem CustomizationCustomization ;;Personal/BusinessPersonal/Business DBDMDBDM Convergence WiBroWiBro oonnllyy ;;ConvergenceConvergence ;;WiBroWiBro++ WLANWLAN TBTMTBTM ; Application Specific Portables ; Application Specific PDA Portables ;;WIBroWIBro++ DMBDMB ;;WiBroWiBro ++ WLANWLAN ++ CCDMADMA ;;WiBroWiBro++ GPSGPS ;;WiBroWiBro++ CDMA+CDMA+ DMBDMB
DBDMDBDM PortablesPortables ;;WiBroWiBro ++ CDMACDMA Smart Phone
-14- IV. Service Plan 4. Network Planning
3-Stage Network Deployment Plan
Network Planning Access Network Integration
Seoul In-Cheon
2G/3G Hot Dae-Gu Zone Dae-Gu Ul-San WiBro Hot Spot Gwang-Ju Bu-San AP AP A A Stage 1 P P Stage 2 Park Airport Stage 3
- Prep. Stage (2005): APEC Demo, Test Service - 2G/3G: Voice-Oriented, Wide-Area, Narrow-Band - Stage1 (2006): Seoul, Metro, Major Cities (20) - WiBro: Urban Cities - Stage2 (2007): Medium Size Cities (18) - WLAN: Home, Hot-Spot, Airport etc. - Stage3 (2008): Rural Cities (46)
-15- IV. Service Plan 5. Network Planning
Sharing the Cnventional Network Infrastructure to reduce Capital Expenditure Æ KT Internet Backbone, KT Optical Networks, KT Transmission Lines Æ KTF 2/3G Base Station Infrastructure , KTH Service Platform Æ Sharing Access Network with other WiBro Service Providers Capex/Opex Reduction: 420 billion Won
WiBro Network Structure
Hot Zone Local Node Intermediate Node Center Node
KT BcN
WiBro RAS Access Router
RAS AAA/DHCP/Portals
xDSL Modem M/E HA
WLAN AP Access Network Edge Router Internet Back Bone Server POP
-16- IV. Service Plan 6. Vendors’ Schedule
Production Schedule RAS (Base Station) PSS (Mobile Station) Vendor Samsung, LG, POSDATA Samsung, POSDATA, Orthotron, RunCom Schedule End of 2005 End of 2005 ~2006
2005.11 Busan APEC : City-wide WiBro Demonstration 2006.04 Seoul : Commercial Service (Service extends to 84 cities within 3 years)
Standard RAS
FAN-S
RMB
Air Baffle
백 보 H 드 B I Front End Unit T Mini-RAS / U F m m 0
180 Channel Combiner
PDP
CBP BL
A Power Amplifier N K
FAN-P
700mm -17- IV. Service Plan 7. License/Bandwidth
KT, HTI, DACOM, SKT has been competing for WiBro Service license. Government announced the competition results last month. (2005.1) KT : 1st Place SKT : 2nd Place HTI : 3rd Place KT will select one frequency band of its choice at the end of this month. Commercial service begins KT : 2006.4 SKT : 2006.6 HTI : 2006.6
2.3 GHz 2.4 GHz
30MHz 30MHz 30MHz WLAN A B C (3FA) (3FA) (3FA)
9 9 9 9 9 9 9 9 9 MHz MHz MHz GB MHz MHz MHz GB MHz MHz MHz GB
4.5 MHz 4.5 MHz 10 MHz
-18- Thank You
-19- [Appendix] R&D / Standardization Efforts
DevDevelopelop CellCell DesignDesign ToolTool CellTrek/OPTCellTrek/OPT.. 2004.2004. 44 R&DR&D OptimizedOptimized forfor WiBroWiBro CellCell DesignDesign -- RReedducingucing tthehe titimmee andand manman powerpower neededneeded foforr cellcell planningplanning
ActivelyActively involvinvolveded inin TTATTA standardizationstandardization andand ETRIETRI ‘‘ss HPHPII PProrojectject.. PlayingPlaying majormajor rolerole inin TTATTA standardization.standardization. ShortestShortest standardizationstandardization resultingresulting timely-commercialization.timely-commercialization. ContributiContributioonn forfor HPIHPI ProProjectject :: 33 BillionBillion WoWonn (2003~2005)(2003~2005) PlayingPlaying mmaajorjor rolerole inin IEEEIEEE802.16802.16 standardization.standardization. StandardStandard EstablishEstablish IInternationalnternational StandarStandardizationdization FoForum,rum, BWFBWF.. ((2004.1.20)2004.1.20) ☞☞ BBroroadbandadband WiWirrelesseless Forum:Forum: KTKT,, Sprint,Sprint, NexteNextel,l, KDDI,KDDI, SKTSKT,, HanarHanaroo TTelecom.elecom. ☞☞ LLeadingeading vandorsvandors areare activelyactively parparticipatingticipating (I(Inntel,tel, SamsSamsungung etetcc..)) HarmonizingHarmonizing TTATTA andand IIEEEEEE StStandardizatioandardizationsns ☞☞ CCoonntributingtributing 2424 keykey technicaltechnical draftsdrafts
EstablishEstablish PIIPII (Portable(Portable InternetInternet Initiative).Initiative). (2003.3.11)(2003.3.11) OverOver 100100 MemberMember CompaniesCompanies (2004.9)(2004.9) IndustryIndustry ContributionsContributions CoalitionCoalition -- DevelopDevelop WiBroWiBro BusinessBusiness ModelModel -- SSharingharing technicaltechnical andand businessbusiness informationinformation amamoongng members members www.pii.or.kr
-20- [Appendix] WiBro TDD Repeater
KT developed a first TDD Repeater in South Korea.
TDDTDD RepeaterRepeater R&DR&D WorkingWorking GroupGroup (2004.2)(2004.2) InitiatingInitiating TDDTDD RepeaterRepeater ReseaResearchrch (involving(involving 55 CompaniesCompanies andand 66 Systems)Systems) RepeaterRepeater OpticalOptical RepeaterRepeater :: SolidSolid TechTech.,., Eastelsystems,Eastelsystems, NeotelecomNeotelecom RF Repeater : Acetech, C&A Microwave R&DR&D RF Repeater : Acetech, C&A Microwave DemonstrationDemonstration andand TestTest HighHigh PowerPower TDDTDD RFRF RepeaterRepeater DemoDemo (20(2004.8.23)04.8.23) WiBroWiBro RRepeaterepeater R&DR&D ReportReport (2004.9.23)(2004.9.23)
RF Repeater Master
BS RF Repeaetr (RAS) Remote
Repeater Service Area
KT Central Office Test Vehicle
-21-