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Presentation 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 6.7 8.5 C (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 CA R GR = = 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 <Jobs Created> (Unit: person) 400 70,000 60,000 50,000 200 40,000 30,000 20,000 0 10,000 0 Y Y+1 Y+2 Y+3 Y+4 Y+5 YY +1Y+2 Y+3 Y +4 Y +5 (Reference : ETRI, IT Industry Trend Analysis,2003.10) -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. <Service coverage of WiBro and WCDMA(HSDPA)> W-CDMA(HSDPA) WiBro Competition Zone Voice Low Data Midium Data Multimedia Rate Rate -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<Wired<LacksLacks MobilityMobility>> ++ WireleWireless<ss<SmallSmall BBWW>> ÆÆ ConvergenceConvergence Up-gradeUp-grade toto Multimedia/3Multimedia/3DD++CCoonvnverergencegence ServiceServicess -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
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