___________________________________________________________________________

2009/TEL39/LSG/RR/005 Agenda Item: 1

NGN Promotion Policy in Korea

Submitted by: Korea

Regulatory Round Table - Facilitating Next Generation Network Development: Policy and

Regulatory Priorities for a Vibrant ICT Environment

Singapore 15 April 2009

Regulatory Roundtable

April, 2009

NGN Promotion Policy

in Korea

NNGGN PN Prromotion Policy omotion Policy

in Koreain Korea

PH.D. Song, Jung-Su (justice_song@kcc.go.kr)

Director, Network Planning Division

Broadband in KoreaⅠⅠ

Future Plan (UBcN)

BcN Promotion Policy

ContentsContents

SummaryⅤⅤ

Experiences in BroadbandⅡⅡ

ⅢⅢ

ⅣⅣ

2

디지털디지털 융합융합 환경에환경에 대응한대응한 방송통신서비스의방송통신서비스의 경쟁력경쟁력

강화를강화를 위해위해 방송통신방송통신 정책정책 및및 규제기능규제기능 일원화일원화 ((’’08.2)08.2)

Ministry of Information and Communication

(MIC)

Telecommunication

Committee

Korea Internet Safety

Commission

Korea Broadcasting Committee

(KBC)

(Deliberation)

Korea

Communications

Commission

(KCC)

Korea Korea

CommunicationsCommunications

CommissionCommission

(KCC)(KCC)

Korea Communications Standards

Commission

Unification of Regulation & Polices to strengthen Competitive Unification of Regulation & Polices to strengthen Competitive

power of Telecompower of Telecom · Broadcast Services in Digital Convergence Broadcast Services in Digital Convergence Environments (Environments (’’08. 2)08. 2)

Launch of KCCLaunch of KCC

ⅠⅠ Broadband in Korea

4

ICT Policy in Past DecadeICT Policy in Past Decade

· · · ·· · · 1998 · · · · · · · ·· · 2003 · · · · · · · 2007 · · · ··· 2010 · · · · 2013

1995 1999 2001 2002 2008

KII Project19951995

20042004

20052005

* KII : Korea Information Infrastructure* BcN : Broadband Convergence Network * Korea Population : 48m

KIIProgram

KIIKIIProgramProgram

PCs : 10MInternet : 10M

PCsPCs : : 10M10MInternetInternet : : 10M10M

e-Banking10M

ee--BankingBanking10M10M

m-phone30M

mm--phonephone30M30M

PCs: 26MInternet: 36M

m-phone: 46Me-banking: 53M

m-banking: 8.5Me-signature: 14.1M

e-stocks: 55%

PCs: 26MPCs: 26MInternet: 36MInternet: 36M

mm--phone: 46Mphone: 46Mee--banking: 53Mbanking: 53M

mm--banking: 8.5Mbanking: 8.5Mee--signature: 14.1Msignature: 14.1M

ee--stocks: 55%stocks: 55%

UBcN Project(~2013)

20092009

BcN Project 20102010

* UBcN : Ultra Broadband Convergence Network

5

ICT History in Past DecadeICT History in Past Decade

7

20 Million Subscribers(1997)

1990 2000 2005

PSTN

30 Million Subscribers(2003)

Commercialize Mobile Phone

(1984)Wireless Network

(100K)

10 Million Subscribers(2002)

12 Million Cable Subscribers(2003)

Wibro/HSPA(2006)

VoIP(2005)

CDMA(1996)

(1M)

Broadband Internet(2002~)

IPTV (2008)

(2M)

High-speed Internet(1998)

(9.6K) (50M ~ 100M)

Cable/Satellite Broadcasting

(1995)DMB

(2005)

Wired Network

Broadcast Network

Commercialize Internet(1994)

2008

6

Status of Broadband in Korea (1) Status of Broadband in Korea (1) Status of Broadband in Korea (1)

2000

3,950

2001

7,810

2003

11,180

Household Subscribers

2002

10,410

(Unit: thousands)

By 2008 Nationwide Broadband Networks established covering 100% - 95% of households have access to broadband Internet up to 2Mbps

- 60% of households have access to broadband Internet up to 100Mbps

National Broadband Status

Seoul2Seoul2Seoul1Seoul1

BusanBusan

KwangjuKwangju

DaeguDaeguDaejeonDaejeon

Broadband Penetration at Home

…

2006

13,900

2008

15,475

7

Per 100 inhabitants Total Subscribersindex xDSL Cable Fibre/LAN etc Total

2005 13.6 8.3 - 3.4 25.4 12,190,7112006 11.4 10.7 7.0 0.0 29.1 14,042,7282007 9.5 10.5 10.4 0.0 30.5 14,709,998

2008.6 8.4 10.5 12.2 0.0 31.2 15,059,029

10,405 11,178 11,921 12,19114,043 14,710 15,059 15,475

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1 2 3 4 5 6 7 82002 2003 2004 2005 2006 2007 2008.6 2008.12

(thousand)

※Source : OECD, Statistics

Status of Broadband in Korea (2)Status of Broadband in Korea (2)Status of Broadband in Korea (2)

Broadband Internet from 2002 to 2008

8

Status of Broadband in Korea (OECD)Status of Broadband in Korea (OECD)Rate of FTTH Subscribers

Broadband Prices (mbit/s)

rank country Subscribers

1 South Korea 12.2

2 Japan 10.2

3 Sweden 6.0

4 Denmark 3.2

avg OECD 1.9

rank country Broadband price (USD,PPP)

1 Japan 0.13

2 France 0.33

3 Sweden 0.35

4 South Korea 0.37

5 Finland 0.42

rank country Number of subscribers

1 Japan 93.7M

2 France 44.2M

3 South Korea 43.3M

4 Sweden 21.4M

avg OECD 13.7M

rank country subscribers(per 100 inhabitants)

1 Denmark 36.7

2 The Netherlands 35.5

7 South Korea 31.2

15 United states 25.0

avg OECD 21.3

(OECD 2007.10)

(OECD 2008.6)(OECD 2008.6)

(OECD 2007.10)

Broadband Download Speed

Broadband Subscribers

Experiences in BroadbandⅡⅡ

10

“Korea Information Infrastructure” Project (’95 ~ ’05)“Korea Information Infrastructure” Project (’95 ~ ’05)

KORENKORENFor R&D

· To provide a high-speed Network environmentfor R&D

UniversitiesResearch Institutes

· Budget : government. · Project Management :

NIA · Network O& M : KT

Objec-tive

MainUsers

R&R

KIIKII--GGFor taking the lead

· To deploy Nationwide Infra· To provide High Speed service

GovernmentNon-profit Organization

· Budget : Government(pay back by price discount )

· Project Management : NIA· Network O&M : KT, Dacom

KIIKII--PPFor Diffusion

· To extend Commercial Network · High Speed Service promotion

Enterprise, IndividualHome users

· Loan from Government· Pilot Service : NIA,

& Major Carriers· Network O&M : Carriers

11

“BcN Construction in Rural Area” Project (’06~’08) ““BcNBcN Construction in Rural AreaConstruction in Rural Area”” Project (Project (’’06~06~’’08) 08)

Broadband Internet home pass ratio is 87% in rural areas by 2002

Broadband Internet home pass ratio is 94% in rural areas by 2005

Broadband Internet home pass ratio is 100% in rural areas by 2008

• Construct Broadband Networks with matching fund (ISP, Government) since 2006

• Impose obligations to KT, when KT Privatized in 2002

• Low interest loans to other ISPs

BcN Promotion PolicyⅢⅢ

13

What is BcN?What is BcN?

< one network for one service > < one network for multi-services >

Serviceconvergence

Transmissionnetwork

Subscribernetwork

Automobile Mobile PC VideoPhone

Robot BroadbandInternet

u-Work

IPTV

Applications

Controlplatform

Contents

Packet-BasedALL-IP Network

WiBroHSPA

4G

FTTxHFC

FTTOFTTB

Networkconvergence

Terminalconvergence

On-Linenetwork

TDXSwitch

Circuit

Station

Circuit

Internet(DATA)

RouterDSLAM

Packet

Telephone

HFCPSTN 3GWLAN

xDSL

Cell-phone

LeasedLine

RouterATM

Circuit

CMTS

Broadcast

PC TVEnterprise

Mobilenetwork

Exclusivenetwork

Broadcastingnetwork

Services

IntegratedService & Management

14

All-IP Based convergence Network forvoice·data, wired·wireless, telecom·broadcasting

Provide QoS of backbone & access network

Wired : 50~100M per household

Wireless : more than 1Mbps per subscriber

Convergence

Enhanced Functions

BcNQoS

Guarantee

Provide IPv6, Security, Open API service

Characteristics of BcNCharacteristics of BcN

Broadband

15

BcN Pilot Project

Promote BcN Pilot Project through grand consortiums (Communication · Device · Solution)- Develop and verify new services, devices, solutions

Quality Management

Promote established network of End-to-End Quality

- Promote commercialization of the BcN quality-guaranteed services and utilization

R&DSecure IT sector competitiveness by developing New Technologies of convergence services that shift IT paradigm and integrating infrastructure technologies

Environmental Improvement

for BcN Utilization

Improve Legal Framework

Develop and Operate KOREN (KOrea advanced REsearch Network)

Upgrade BcN in public sector

Major Agenda of BcNMajor Agenda of BcN

16

60% of Total Households converted to BcN26.36 million in 2008 ( Fixed line : 9.62 million, Wireless : 16.74 million)

Development of New Services

Accomplishment of BcNAccomplishment of BcN

Soft phoneSoft phone VoIPVoIP Video PhoneVideo Phone Video conferenceVideo conference

IPTVIPTV Digital CATVDigital CATV e-Learninge-Learning

Future PlanⅥ

18

- Fixed line : 1G per household- Wireless : average 10M per subscriber

Ultra Broadband

- All-IP based Network converged voice-data network, wired-wireless network and telecom broadcasting sensor networkConvergence

- Seamless mobility between heterogeneous wireless networks- Automatic response to changes in environment, physical condition, atmospheres

- The capability of Self-properties in Telecom · Broadcasting Network

Intelligent

CharacteristicsCategory

What is UBcN?What is UBcN?

All-IP based intelligent Ultra Broadband convergence Network (Fixed line : 1G, wireless : 10M)

19

Category 2009~2010 2011~2012

BackboneNetwork

All-IP evolution of fixed telephone network 30% 70% (by 2013)

All-IP evolution of mobile telephone network - 15% (by 2013)

Local loops

FixedBroadband (50M~100M) 12 million 14.00 million

Ultra-broadband (up to 1Gbps) - Commercial service

WirelessBroadband(1M~2M) 28 million 40 million

Ultra-broadband(10M in average) - Commercial service & 300,000

(by 2013)

Broadcasting Network

Digital terrestrial broadcasting coverage 93% 96%

Home Pass Rate of the Digital Cable TV Network 93% 95%

Sensor Network Network upgrade Linking with public institution’s sensor

networks

Develop All-IP-based UBcN as Ultra-broadband speed, 10 times faster than broadband by 2012

Plan of UBcNPlan of UBcN

20

Future Direction of NetworkFuture Direction of Network

2008 2010 20121998 2006 2013 ~ 2015

Giga FTTHFixed Line Subscriber

NetworkFTTH

Telecomm

unication-N

etwork

HSPA(nationwide) HSPA+

3.9G/4G(nationwide)

Wireless Subscriber

Network

xDSL/Cable High-speed

Internet(nationwide)

FTTH(60%)

Coverage expansion

Coverage expansion

FTTH(90%)

Broadband Network

(nationwide)

WiBro Wave I(capital area)

W-CDMA

FTTH(70%)

Backbone Network

Fixed Line-basedALL-IP convergence

Network

Fixed·WirelessALL-IP Convergence

Network

Terrestrial Broadcasting

Network(Analog, one-way) Two-way

Broadcasting Network

TerrestrialBroadcasting

Network

Cable

Digital Terrestrial Broadcasting

Network(coverage : 87%)

Digital Terrestrial Broadcasting

Network(coverage : 92%)

Cable(Analog) Digital cable

(coverage : 90%)Digital cable

(coverage : 95%)

Broadcasting N

etwork

Digital cable(coverage : 93%)

Digital Terrestrial Broadcasting

Network(coverage : 96%)

21

Future Direction of ServicesFuture Direction of Services

Broad-

casting

Terrestrial/Setellite/DMB

DCATV

Two-day digitalBroadcasting

service

Internet TV Service (IIPTV)

Two-way digitalBroadcasting

service

Internet Telephony(VoIP)

Ultra-high speedInternet(1~2M)

Broadband Internet(50~100M)

TV-based Service(education, Healthcare,e-Gov,

e-Commerce)

WiBro/HSPA(avg 1M)

4G Mobile Telecommunication

(avg 10M)

Giga Internet(MAX 1G)

Mobile Internet TV(Mobile IPTV)

Mobile Internet Telephony(Mobile VoIP)

WiBro VoIP(010 accepted)

Triple Play Service(TPS)

Quadruple play service(QPS)

Mobile Triple Play Service

(Mobile TPS)

Converged

Broadcasting-

Telecomm

unication

IPTV

Multi-Purpose Service

Voice

Telecomm

unication

Internet

2008 2010 20121998 2006 2013 ~ 2015

Broadcasting Service

(3DTV/UDTV)

PSTN Telephony

22

Global Leader of Telecom·Broadcast

Network

Strategy of UBcNStrategy of UBcN

Creation of

favorable investm

ent environm

ent

Increased Increased RevenueRevenue

Investment in Investment in Network Network

UpgradesUpgrades

Enhanced User Enhanced User benefitbenefit

Active Development Active Development and Adapting New and Adapting New

ServicesServices

Improvem

ents in service

environment

Promotion of Telecom·Broadcast

network use

Promotion of Telecom·Broadcast

network use

[Virtuous Circle]

3

4 2

1

a

d

c

b

Increased use of services

Improved Service Capability

Acceleration of technological and service innovation

Revenue-based expansion

Use expansion of services

Supply Demand

Stronger investment incentives

Promotion of Development &

Investment in Network

Technology Development and Standardization

Efficient use of national

communication resources

Satisfaction for service needs

More re-investment

Synergy Creation through

cooperation of Gov and Private

(Gov):Lead Development

(Private): Diffsion

Developmental Succession

of BcN

23

Establishing Fundamental Environment, Investment and Utilization Improvement to promote Network Upgrades of

Telecom · Broadcast companies

User-based Service Provide

Universal Service Provide

Social Cost Minimization

Global ICT Leader

Promotion of Development & Investment in Telecom ·Broadcast

Network

Policy GoalsPolicy Goals Main AgendaMain Agenda

Main Policy AgendaMain Policy Agenda

Efficient Use of National Communication Resources

Core Technology Development and Standardization

Utilization Improvement of Telecom · Broadcast Network

Needs-based Network Upgrade

SummaryⅤ

25

Digital Opportunity Index(ITU)

11

National Information Index(NIA)

The Networked Readiness Index (WEF)

National CompetitivenessIndex (IMD)

Global ICT Leader

1st rank(’05 ~ ’07)

3rd rank

9th rank 6th rank9

17

6

Technology infrastructure

Korea ranks second in the ITU ICT Development Index (2009.3)Korea ranksKorea ranks secondsecond in the ITU ICT Development Index (2009.3)in the ITU ICT Development Index (2009.3)

Broadband of Korea – OverviewBroadband of Korea Broadband of Korea –– OverviewOverview

26

SummarySummarySummary

Korea has become a world first ICT country and is ready to share its experience & co-operation

- Superior experience in building-out a Broadband CommunicationNetwork and its Services

New Infrastructure Construction Plans to prepare for the future

- Medium/Long Term Plans (UBcN) such as IPTV, WiBro. IP-USN

New Infrastructure Construction contributes Global Green Policies

- Green Telecom · Broadcasting Solutions and Environment

Q&AQ&A