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Recent Development of Wireless Broadband Technology in South Korea

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Recent Development of Wireless Broadband Technology in South Korea Recent Development of Wireless Broadband Technology in South Korea Jun-Seok Hwang, Ph.D Program Director, International IT Policy Program Professor, Techno-Economics Policy Program College of Engineering Seoul National University January 26, 2005 ContentsContents Current mobile service market What is WiBro? Features of WiBro Technical roadmap Service plan Market potential of WiBro WiBro Regulatory Policy Conclusion 1 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Current communication service market Rate of growth is slow SO We need NEXT BIG THING !!! 2 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Current mobile service market (2) • Forecast of international wireless • Current status of wireless data service data service market market in Korea Rapid increase of wireless data market compared with wireless voice market !! 3 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Current mobile service market (3) • Number of subscribers of • Number of subscribers in public wireless internet in mobile WLAN service service But, application service is not so activated Fail to create mass market 4 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Current mobile service market (4) • What’s problem in growth of mobile internet ? mobility + Service WiBro stability + Charge decreasing 5 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference What is WiBro? • Providing hi-speed wireless internet connection service in anytime, anywhere using portable terminals – WiBro is the abbreviation for Wireless Broadband Portable Subscriber Station voice Service shall support the various types of multimedia-enabled terminals such as Local/long-distance/ handset, notebook, PDA, or smart phone. Mobile phone overseas call Under the stationary or mobile environment Service shall support stationary, nomadic and medium-speed mobile mobile wire wireless users. internt Anytime and Anywhere Internet Service shall provide seamless Connectivity regardless of the place ADSL,VDSL,HFC WLAN WiBro and time. High data rate Service shall support the various types data of wireless multimedia applications with a data rate of at least 1 Mbps. 6 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Features of WiBro (1) • Major technical specifications of WiBro Category Specifications Spectrum 2.3 GHz ~ 2.4GHz Channel Bandwidth 10Mhz Multiplexing Technology OFDMA Duplexing Technology TDD Mobility Under 60 Km/h Data rate Downlink : over 3 Mbps/subscriber Uplink : over 1Mbps/subscriber Handover time Under 150ms Cell range Pico : 100 M Micro : 400 M Macro : 1 Km 7 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Features of WiBro (2) • Comparison with other wireless services Service WLAN WiMAX WIBro Satellite DMB W-CDMA (HSDPA) Category MAX data 11~54Mbps ~70Mbps 30Mbps 7mbps 14.4Mbps rate Avg data rate 1Mbps ~7Mbps 1Mbps 205~512Kbps ~500Kbps (channel for movie) mobility fixed fixed ~60Km/h ~300Km/h ~300Km/h terminal Desktop PC , laptop PC, laptop PC, Mobile phone, Mobile laptop PC, PDA , PDA, Exclusive terminal phone PDA Mobile phone Service High speed High speed High speed Broadcasting, Voice, wireless wireless wireless cinema wireless internet internet internet multi mode terminalinternet Handoff not Not yet Support Support support Cell coverage 50~100m ~7Km ~1Km ~1Km ~3~4Km Base station 200000 N/A 130 million 40million KRW 200million KRW KRW price ~500000 KRW 8 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Technical roadmap (1) • HPi (High-speed Portable internet) Project Purpose developing WiBro equipment Period 2003~2005 Who ETRI, Samsung electronics, KT, KTF, SK Telecom, Hanaro Telecom Fund Samsung electronics($25M), KT, KTF,SKT, Hanaro Telecom($11M) 2 0 About 30 researchers in SamSung Electronics have joined to make technology specification 0 3 and to design a system. 2 0 Both ETRI and Samsung Electronics developed each of system and shared their research 0 4 work. demonstrated WiBro commercial version in November 2 0 0 Plan to develop WiBro commercial version 5 2 0 Expect to one-chip solution which can afford WiBro transmission and reception functions 0 7 for various types of terminals after 2007. ~ 9 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Technical roadmap (2) Technology development • System development with ETRI and device manufacturer Syetem/ • Building WiBro testbed, termianl performance test • OFDM optical repeater, TDD RF repeater • portable internet terminal • engineering technology • 2.3GHz model, radio interference test tool Basic tech • cell planning tool, NMS for business • Portable Multimedia solution • Multicast,VOD • Performance test system • Traffic modeling, system level QoS Furture • Portable internet core technology technology • OFDM, Smart antenna, MIMO 10 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Service plan (1) Apply License : Nov. 2004, Applied KT,SK Telecom, HanaroTelecom (All applicants could be select to the WiBro providers if they satisfies the requirements) Hearing from regulator : Jan. 2005.01.14 Examination and Announcement the result: Feb. 20 . 2005 Focus Weakness Strength Main service KT !Creation of !Contents business !convergence of !Lap-top computer and bundling network PDA phone service with !SI service for firm !Bundling with fixed fixed line customer line, Terrestrial DMB, and wireless !Experience ADSL and WLAN ADSL,WLAN service SK !Enlargeme !No experience of !firmness of existing !WiBro is nt of fixed line service user of mobile complementary service Telecom convergence service for HSDPA service !First mover of !Handset and PDA based on satellite DMB phone wireless !Marketing & !Bundling with HSDPA service contents and satellite DMB Hanaro !Improvem !No compete value !Experience of ADSL !Lap-top computer and ent of the chain PDA phone Telecom value of the !Lack of experience of !Bundling with fixed firm mobile service line, Terrestrial DMB, !Not enough capability ADSL and WLAN of investment 11 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Service plan (2) • WiBro Service Vision of Korea Telecom Existing internet service WiBro Killer Application • MMS • information search, e-mail Multimedia Core • Push type service Wire • Movie VOD , entertainment service • Game: network game based on IP • e-stock, e-Banking, e-learing Convergence • LBS • IP Multicasting service Connection Joined • WLAN joined service Wireless • SMS between wire service • CDMA joined service • VOD, simple structure Game and wireless • DMB joined service • E-Banking-> m-Commerce • VDSL joined service KT’s existing infrastructure and Existing content + various internet service high speed internet technology → multimedia+3D+Solution Wire+ wireless ⇒ up-grade → joined service 12 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Service plan (3) • WiBro Service vision of SKT – Phase deployment of application service for WiBro Phase 1 Phase 2 Phase 3 Personalized Location based VOD Service VOD VOD Service VOD Service Migration of Network Game Virtual Reality Game Game fixed env. game Real-time Location based Real-time Personalized News News Personalized News Personalized News Shopping Video Shopping Personalized Shopping Location based Shopping Online Education Video Education Interactive Education Customized Education 13 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Service plan (4) • Main target terminal is handset type which is most preferred type of the user • PDA and card type for laptop provided for needs of the user type category terminals Features Mobile Handset Support multimedia terminals Smart phone Full feature phone General O/S PDA Built-in WiBro modem Laptop/HPC Built-in WiBro modem Additional Wireless modem Laptop/PDA PCMCIA, terminals SD card type Fixed type Telematics 14 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Market potential of WiBro (1) • Expected subscriber : Max 9.5 mil. user after Y+10 year • Expected total market size : $ 3.2 ~ 3.7 bill. at Y+5 year • Risk Factor : Competition with W-CDMA or DMB Total Subscribers of WiBro Total Service Revenue of WiBro Individuals Firm Service Revenue(1) Service Revenue(2) (mill USD) (Thousand User) 10000 4000 370 3,520 370 3500 3,223 8000 3,019 370 3000 2,768 2,474 2500 6000 2,131 360 2000 8,490 8,930 4000 7,120 1,401 1500 1,211 270 4,540 1000 2000 485560 2,040 500 100 610 115131 0 0 Y Y+1 Y+2 Y+3 Y+4 Y+5 Y Y+1 Y+2 Y+3 Y+4 Y+5 15 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference WiBro Regulatory Policy (1) LicenseLicense PolicyPolicy !! GovernmentGovernment allowsallows thethe licenselicense toto threethree providersproviders whichwhich havehave competitivenesscompetitiveness toto encourageencourage thethe investmentinvestment andand thethe serviceservice ofof thethe WiBroWiBro !! AfterAfter threethree year,year, ifif totaltotal subscriberssubscribers ofof WiBroWiBro , , thethe regulatorsregulators induceinduce MVNOMVNO inin WiBroWiBro service service toto enhanceenhance effectiveeffective competitioncompetition ofof thethe marketmarket inin thethe futurefuture !! SpectrumSpectrum licenselicense feefee isis aboutabout $10~$10~ $12$12 bill.bill. forfor sevenseven yearsyears forfor every every providerprovider (tentative)(tentative) !! EncourageEncourage sharingsharing ofof basebase stationsstations andand roamingroaming amongamong WiBroWiBro carriers carriers toto reducereduce over-investmentover-investment andand toto increaseincrease efficiencyefficiency FutureFuture PlanPlan !! ReceiveReceive proposal proposal for for license license : :Nov. Nov. 2004. 2004. !! ExaminationExamination & & selection selection : :Feb. Feb. 20. 20. 2005 2005 (Recently (Recently Done) Done) !! DevelopmentDevelopment commercial commercial system: system: End End of of 2005 2005 !! CommercialCommercial service service : :the the first first half half of of 2006 2006 16 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Conclusion • WiBro is the first wireless broadband service in the world using 2.3 GHz band. – Provide 1Mbps data rate with low speed movement(60Km/h) • New type of wireless service complements fixed broadband internet and 3G wireless service. – User can access plain internet website in mobile environment with low price – Various types of bundling strategies exist 17 Jun-Seok Hwang @ MIT CFP/CII 2005 Conference Thank you! [email protected].
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