HAHN, WON-SIC Ph.D.Managing DirectorFixed Mobile Convergence Business DepartmentMarketing GroupKT
[email protected]) 82-31-727-2970Mobile) 82-16-9777-6711
2002.10.16
Broad band mobility via PWLANBroad band mobility via PWLAN
www.nespot.com
OverviewOverview
Part I. Market Push Part I. Market Push
Part II. Motivation of PWLANPart II. Motivation of PWLAN
Part III. Part III. NESPOT, PWLAN Service in KOREANESPOT, PWLAN Service in KOREA
Part I. Market PushPart I. Market Push
www.nespot.com
15.66
2.715.79
7.81
53.54
14.49
0
10
20
30
40
50
60
Korea
Japa
n
Germ
any
USA
China etc
Market Share
Broadband Global Market ShareBroadband Global Market Share
48.99
27.13
16.57
7.32
0
10
20
30
40
50
60
KT Hanaro Thruet etc
Market Share
2002 Broadband Market Share in Korea2002 Broadband Market Share in Korea
CDMA
Broad band
Mobility
Speed /Users
PC, DSL, Router, PC, DSL, Router, PortalPortal
Students at homeStudents at home
WEBWEB
PCPC
highhigh
Home, OfficeHome, Office
Broad bandBroad band
CDMA, Phone CDMA, Phone IndustryIndustry
Ordinary usersOrdinary users
Voice, Voice, Short MessageShort Message
Phone, PDAPhone, PDA
Low Low
Wide areaWide area
CDMACDMA
PDA, WirelessPDA, Wireless--LAN, NotebookLAN, NotebookPromotedPromotedIndustryIndustry
Students/businessmen at home, Students/businessmen at home, campus and officecampus and office
Internet power users in hotspot areaInternet power users in hotspot area
CustomersCustomers
EE--book, VOD, AOD, mp3book, VOD, AOD, mp3POP3 Mail, MessengerPOP3 Mail, Messenger
ApplicationsApplications
PDA, Notebook,Desk topPDA, Notebook,Desk topTerminalsTerminals
highhighThroughputThroughput
Hot spots + Home + OfficeHot spots + Home + Office
WLANWLAN
CoverageCoverage
10M (Sep. 2002)
31M(2001.12)
Stationary MobileQuasi-
WLAN
Hidden Market
Broadband Extension for Hidden Market in KOREA (I)Broadband Extension for Hidden Market in KOREA (I)
8Mbps
2Mbps
33.4%
4,068
239
12,167
2006
30.4%
3,632
354
11,928
2005
26.7%
3,089
884
11,574
2004
17.1%
1,829
1,155
10,691
2003
2.0%
191
1,691
9,536
2002
Subscription Ratio out of Broadband sub.(%)
Wireless LAN + BB Users Expected
Net Addition
Broadband Subscribers Expected
0
2000
4000
6000
8000
10000
12000
14000
2002E 2003F 2004F 2005F 2006F
Unit:1,000
Broadband Extension for Hidden Market in KOREA (II)Broadband Extension for Hidden Market in KOREA (II)
Source : LG Investment & security. 2002.2Source : LG Investment & security. 2002.2
Part II. Motivation of PWLANPart II. Motivation of PWLAN
www.nespot.com
Mobileinternet
• 1x-EVDO mobile internet service launched
• 24 million mobile internet subscribers (Dec. 2001)
Limitationof
mobileinternet
• High tariff : 0.8~0.85US$/10min
Mobile Internet
Emerging need for high speed & reasonably priced wireless internet service
• Low Speed : 64 K ~ 2.4Mbps (384 Kbps on the move)
• Basic PCS : Small display panel & simple function
• Rapid growth of mobile phones
• 31,325,323 subscribers (2002.9)
High-end power users
• Fast increasing internet users
• 25,653,000 users (2002.9)
Mobile Broadband Service Motive (service)Mobile Broadband Service Motive (service)
Desk top PC
Notebook PC
PDA
Smart phoneCommunication
preference
Dual function
Preference
(communication+ computing)
Computing
Preference
Computing performance
High
High
Low
Low
Driving force
Next Generation
terminal
Mobility
ll Users demanding more applicationsUsers demanding more applicationsll Terminals are getting smaller & smarterTerminals are getting smaller & smarter
Mobile Broadband Service Motive ( terminal)Mobile Broadband Service Motive ( terminal)
Part III. NESPOT, Part III. NESPOT, PWLAN Service in KOREAPWLAN Service in KOREA
www.nespot.com
ll BusinessBusiness ObjectiveObjectiveØØ To meet the increasing demand for mobile internet To meet the increasing demand for mobile internet
ØØ To develop a To develop a ‘‘FrontFront--end serviceend service’’ by combining the massively by combining the massively deployed broadband and wireless solutiondeployed broadband and wireless solution
--> > Convergence between fixedConvergence between fixed--line broadband internet and line broadband internet and mobile internetmobile internet
ll Business FrameworkBusiness FrameworkØØ HighHigh--speed, lowspeed, low--tariff wireless internet service tariff wireless internet service
§§ IP backbone + IP backbone + xDSLxDSL/L.L. + Wireless LAN : indoor wireless /L.L. + Wireless LAN : indoor wireless internetinternet
§§ 1x1x--EVDO or WEVDO or W--CDMA : outdoor mobile internetCDMA : outdoor mobile internet
KTKT-- NESPOT NESPOT
o Big target market - broad band subscribers : 10 million
- customer having notebook PC or more than 2 PC
- enterprises who want clean office or broad band
mobility
o Easy structuring NESPOT infra- Hot spot with xDSL
- Inexpensive network elements
-> AP (including ADSL modem) : ~140 US$
-> NIC (WiFi) : ~60 US$
o Back end systems- AAA servers
- APNMS etc.
Strong points of KT NESPOT Strong points of KT NESPOT
Internet
xDSL
E1, T3, STM1M/E…
Wireless Home
HOT SPOT zones
W-LAN office
AP
On the move
Mobile Network
2.5G, 3G
2G/3G + WLAN2G/3G + WLAN
LLLL
Features of FixedFeatures of Fixed--Mobile Convergence ServiceMobile Convergence Service
AP
DHCPserver
Private W-LAN Zone
CustomerCare
Private Authentication Server
AAA
NetworkOperation
Center Web/Content Servers
Internet
LocalNetwork
AP
Intranet Hot Spot
AP
Home
SubscriberManagement system
Internet/Intranet
Public W-LAN Zone BB+WLAN
Network Structure of KTNetwork Structure of KT--NESPOT AccessNESPOT Access
vv SubscribersSubscribers
vv Application service open (www.Application service open (www.nespotnespot.com).com)o Basic service : e-mail, SMS, communityo Value added service : entertainment, VoD, VoIP, MMS, e-
book
KTKT--NESPOT Status NESPOT Status
vv Hot spots coverageHot spots coverage
65,46565,4653,5533,55327,73627,73632,30132,3011,8751,875# #
totaltotalxDSLxDSL+WLAN+WLAN
(waiting)(waiting)xDSLxDSL + WLAN+ WLANHot spot Hot spot
onlyonlyEnterpriseEnterpriseproductsproducts
unit : # ID ( 2002.10.10)
o 5,277 sites open(2002.9.30) o About 7,000 Hot Spots available by the end of 2002
PWLAN in KOREA(others)PWLAN in KOREA(others)
service- 2002.2.1 (HanaFos Anyway)- No. of users : several hunderds(2002.7) (estimated)- No. of hot spot: about 200 (estimated)
Business Model
- targets mostly homes and business customers? similar business model with KT
Hanaro
status- providing trial service- try to utilize its own mobile network(e.g. EVDO) providing
W-LAN service
SKT
status- Thurunet, Dacom trying PWLAN business - as additional service of broadband internet access service at homes(inactive investment on constructing hot spots)
others
Hot Spot ( KT NESPOT Zone) Status (I)Hot Spot ( KT NESPOT Zone) Status (I)
vv NESPOT ZoneNESPOT Zone
o Public Hot spot for NESPOT users
o 5,277 sites in KOREA
o Plan to expand 7,000 sites in 2002
NESPOT Zone Kiosk NESPOT Zone Kiosk in in JejuJeju IntInt’’l Airportl Airport
vv Competitive Advantage of NESPOT ZoneCompetitive Advantage of NESPOT Zone
o Cost Efficient Network Investment ; using nationwide ADSL network
vv Target SiteTarget Site Priority for Priority for NESPOT ZoneNESPOT Zone
o In & Around University
o Complex Mall (exhibition center, theater, shopping center, subway station, concert hall)
o Hotel (1st class)
o Franchise (Mcdonald, Hollys coffee shop)
o Bank, Stock Marketplace..
THANK YOUTHANK YOU
FINFIN
