7 3 Youngsoo Seo

KT’s Strategy on Broadband Access Network Evolution: 

KT’s Strategy on Broadband Access Network Evolution Youngsoo Seo Manager Network Engineering Center

Contents: 

1. Korea Internet Market Overview 2. KT’s Broadband Internet Service - Past 3. KT’s Broadband Internet Service – Present 4. KT’s Broadband Internet Service - Future Contents

Korea Internet - Overview: 

Korea Internet - Overview 1996 1997 1998 1999 (’000 users) 20,000 6,000 0 Source: KRNIC,2002.7 2002.6 10,000 4,000 731 1,634 25,650 10,860 3,103 1999 2000 2001 (’000 users) 6,000 0 Source : KRNIC,2002.7 2002.6 10,000 4,000 299 4,022 9,173 8,052 2,000 8,000 Internet Users in Korea Broadband Internet Users in Korea

Korea Internet – Evolution Path: 

Korea Internet – Evolution Path 1990 1997 1998 1999 2000+ Year Fax Text-based E-mail FTP E-mail Dial-up Service Chatting ISDN Broadband Services (xDSL, Cable Modem, Ethernet, etc) Web Surfing Real time streaming service Network Game JPEG, GIF M-GIF Video-Phone MPEG 4 Remote-education Internet Cafe MP3 MPEG 2 P2P Era of Dial-up Era of Broadband Bandwidth (bps) 9.6K 28.8K 56K 128K 1M 8M

Korea Internet – Market Status: 

Korea Internet – Market Status ADSL 56.1% CATV 35.7% Etc. 1.5% Number of Subscribers of Korean ISP’s Home-LAN 6.7% Source : KRNIC,2002.7 (‘000) Market Share Access Methods

Slide6: 

Korea Internet - Success Factors Internet Powerhouse

Slide7: 

Internet / Data service Wireless/ Satellite Service Local/Long /International Telephone Service Intelligent Network Service KT PCS IMT-2000 TRS DBS Local Call/Long-distance Call International Call Service Dedicated Leased Line/FR Service KORNET Megapass(ADSL~ Satellite Internet) Internet Portal KT IDC, EnTum B2B/E-Commerce IP VPN/IP Transit Automatic Collect-Call UMS Nationwide Representative Number Toll-free Numbers KT – Business Domain

KT Broadband Internet Service - History: 

KT Broadband Internet Service - History 1998.9- Second Trial ADSL Service 2000.5 – Megapass(KT’s Umbrella Brand) Launch 2000.9.22– Megapass Reaches 1 million Subscribers 2000.11 – Ntopia Service(G-bit Ethernet Service) Launch 1999.5- Satellite Service Launch 2000.7 - BWLL service Launch 1999.10- B&A(Building & Apartment) Service Launch 1999.6- ADSL Service Launch (Commercialization) 2001.2.13– Megapass Reaches 2 million Subscribers 2002.3– Subscribers of Megapass Exceeded 4 million 1997- First Trial ADSL Service

KT Broadband Internet Service - Megapass: 

KT Broadband Internet Service - Megapass Megapass B&A 407,271 Megapass Satellite Internet 11,986 Megapass ADSL 3,782,437 Megapass BWLL 894 Total 4,333,268 2002.6 Megapass - KT’s Umbrella Brand for Broadband Services Megapass Ntopia 130,680 subscribers

Slide10: 

Emerged as an Internet Powerhouse KT Internet - Success Factors

KT Broadband Internet Service – Megapass Network: 

KT Broadband Internet Service – Megapass Network

KT Broadband Internet Service – Current Status: 

KT Broadband Internet Service – Current Status Market Saturation Broadband Subscribers : 10 millions(70% of national households) Severe Competition : Churn for Lower Price & Quality Alternative Technology Metro-Ethernet VDSL PON Various Customer Demand More Bandwidth Mobile Internet Video Service

KT Broadband Internet Service – Short Term Strategy: 

KT Broadband Internet Service – Short Term Strategy To cope with severe competition, Market Segmentation Premium services Focused Marketing Premium Services Metro-Ethernet Service for Enterprise Customers VDSL for Residential Subscribers Focused & Aggressive Marketing Metro-Ethernet Service for PC Rooms VDSL for Apartments, which KT has lower market share Value-Added Services for Broadband Internet Users Wireless LAN Service, VoDSL, VOD with VDSL, CDN, etc

Slide14: 

More Bandwidth than ADSL ⇒ VDSL Post-ADSL KT’s Strategy KT Broadband Internet Service –Technology Selection

Slide15: 

VDSL & Metro Ethernet Service Network Structure KORNET VDSL Customer Central Office Concentrated BackBone DSLAM Metro Switch G-Router G-Switch RT ATU-R VOICE Media Metro Ethernet Filter Copper Line | | | MDF Switch 1000Base FX 100Base TX 100Base FX 1000Base FX Switch Aggregation Switch

Slide16: 

KT Broadband Internet Service – Evolution Plan

Slide17: 

Summary KT’s Broandband Internet - History Marketing Strategy Backbone Infrastructure KT’s Broandband Internet – Current Status Market Saturation & Competition Technology Selection: VDSL, Metro Ethernet KT’s Broandband Internet – Evolution Plan FTTC + xDSL  FTTH

Slide18: 

Thank You Let’s KT !!