Evolution of Broadband Policy

in Korea

28. April. 2011

Sung-Wook HURDirector of Network Planning & Protection Division

Korea Communications Commission

KANZ Broadband Summit 2011

Contents

1. Broadband History of Korea

2. New Challenges on Broadband

3. Direction for Future Broadband

2

Broadband History of Korea

3

Brief History of Broadband Policy

4

1987 · · · · · 1993 · · · · · 1998 · · · · · 2003 · · · · · 2007 · · · · · · 2010 · · · ·2013

Phone

10m

National Basic DB

(Citizen, Land)

KII Rollout

Broadband(10m)

Mobile phone ( 20m)

1987 1991 1995 2002

2011

Basic communication

Facilities

(Phone, Computing) Korea IinformationInfrastructure - KII (xDSL, a few Mbps)

Broadband Convergence Network – BcN(Fiber-Ethernet, ~50Mbps)

2003 2005

Giga-Internet(~2013) : 1Gbps

2009

2010

Realtime IPTV

Iaunching

IPTV: 3.7m

BcNSubscribers

-Wire:15M

-Wireless:30M

2008

2010

• Giga-Internet Commercialization(~2012)

• Rural Broadband Expansion(2010~)

• Future Network R&D

1. KII Project(1993~2005)(KII : Korea Information Infrastructure)

5

Objective

Strategy

Outcome

World Class Network Infrastructure Rollout and Universal Internet Service Provision

- Government Investment in Core Network. Recoup Investment by Off-Set Deposit Scheme

- Induce Telco. Investment in Core&Access Network. Low-rate loan for access network construction

- Universal Internet Service of 2Mbps- Proliferation of Services including e-government and e-business

Ref: Off-Set Deposit Scheme(rate discount & support )

6

KII Project(KII : Korea Information Infrastructure)

7

KII TestbedFor R&D

. To provide a high-speed network environmentfor R&D

Universities,Research Institutes

. Budget : Government.

. Project Management : NIA, KT

. Network O&M : KT* R&D : ETRI, KT

Objec-tive

MainUsers

Management

KII-GFor deployment

. To deploy nationwideNetwork Infrastructure

. To provide high-speed service

Government,Non-profit Organizations

. Budget : Government(pay back by charge discount )

. Project Management : NIA

. Network O&M : KT, Dacom

KII-PFor diffusion

. To expand commercial network

. To promote high-speed services

Enterprise, IndividualHome users

. Loan from Government

. Pilot Service : NIA, & Major Carriers

. Network O&M : Carriers

100b Won (100m Dollars)GovtFunding

800b Won (800m Dollars)* off-set deposit scheme

713b Won (713m Dollars) * Loans to industry

2. BcN Project(2003~2010)(BcN : Broadband convergence Network)

8

Objective

Strategy

Outcome

- Broadband. Wire : over 50Mbps, Wireless : Avg 1~2Mbps

- Convergence. Voice/Data, Broadcasting/Telecom, Wire/Wireless

Public-Private Partnership- Govt : Pilot Projects, Institutional Environment,

Standardization- Private : Network Rollout, Service Commercialization

- BcN Coverage for most parts of Country- IPTV/video communications/video streaming expansion- Joining Leading Countries in International ICT Index

BcN Project – 3 Stages

9

1st Stage(04~05) 2nd Stage(06~07) 3rd Stage(08~10)

. Over 40 New Services

Implemented including

Internet Phone

(Video/Voice)

. Commercialization of

Digital Cable TV

. Advanced Subscriber

Network (Wire 2.5m

households, Wireless 0.5m

Subscribers)

. 25 New Services

Implemented including

IPTV

. 14 Services

Commercialized(TV Portal,

Interactive Digital CATV,

etc)

. Advanced Subscriber

Network(Wire 7m, Wireless

5.6m)

. Nationwide BcN Backbone

Network (Premium Net)

. New Wire/Wireless

Convergence Services

Implemented(mVoIP, 4-

screen seamless svc. etc)

. IPTV commercialization

. Advanced Subscriber

Network(Wire 15M,

Wireless 30M)

. Expansion of BcN into

Rural Areas

Voice/Data Convergence

Broadcast/Telecom Convergence

Wire/Wireless Convergence

3. History of Wireless Broadband

• Leading world telecommunication market as host country of CDMA • World’s First in Commercializing CDMA(‘96) and launching Video

call service(‘01)

101996 2002 2008

CDMA

GSM(Europe)

CDMA

GSM(Europe)

CDMA

(Voice call + Data)

June, Fimm

CDMA

(Voice call + Data)

June, Fimm

2G 2.5G

WCDMA

(Voice + data)

Video conferencing,

MMS

WCDMA

(Voice + data)

Video conferencing,

MMS

3G

WiBro commercialization

WiFi Commercialization

(i-Phone, Android)

WiBro commercialization

WiFi Commercialization

(i-Phone, Android)

4G

WiBro Advance

LTE/LTE-A

(Long Term

Evolution)

WiBro Advance

LTE/LTE-A

(Long Term

Evolution)

2012

4. Key Factors of Broadband Success

11

CompetitionP o l i c y

GovernmentLed DemandC r e a t i o n

Environmenta l E f f e c t

I n d u s t r yP r omo t i o nw i t h I C TF u n d

- Lowering Entry Barriers for New Providers- Increased Competition with BB. Quality Evaluation

-Government Led Investment⇒ Return through “Off-set Deposit Scheme”

- e-government, e-learning services …

- early adopter, high population density

- ICT Fund (1995) : support R&D ⇒ Development & Commercialization of

key technologies : CDMA, Wibro, etc

5. Current Status of Broadband in Korea

• BB. Household Subscribers : 17.2million(2010)

※ HFC(Hybrid Fiber-Coaxial) : Fiber(local->node) , Coaxial(node->subscriber)

※ Korea(South) Population : 48 million (2010), Total Household : 17.3 million

- Fiber based Subscription rate : 85.3%

- Service Charge(100Mbps) : US 25~30$

• Mobile Subscriber : Appr. 50million

- 3G mobile service available almost everywhere12

FTTH HFC xDSL Total

Household 9.5million 5.2million 2.5million 17.2million

percentage 55.3% 30.0% 14.7% 100%

Max. Speed 100M 10M~100M A few M~50M

New Challenges have come in Smart Era

- Mobile Data Explosion

- Rise of Massive Video Centric contents

- Expansion of network accessibility

(Cloud, N-Screen, M2M)

13

Explosion of Wireless Data Traffic

• Mobile Traffic in Korea

- July. 2009 : 250TB ⇒ Oct. 2010 : 2,305TB

• Induced by Smart-Phone

- Traffic by 1 User per Month in Korea

<Smart-Phone> : 448.2MB

<Feature-Phone> : 8.6MB

• Sustained Increase in Traffic Forecasted

(Diffusion of Handheld Device- Tablet, Phone..)

14

Rise of Massive Video Centric Contents

• High Bandwidth Data of 3D, UDTV

• Distribution of Video Content through Network will Increase with Wide Adoption of Smart TV

15

Expansion of Network Accessibility

• ICT Resources (Network S/W, Platform, Data, etc) absorbed into Network

• Increase in Efficiency of ICT Resource Utilization and Decrease in Costs

• Data Access Possible whenever and wherever Network is Connected

16

Expansion of Network Accessibility

17

• Today, through PC and smartphone; Tomorrow, through things connected to network, we can gather, manipulate, process and deliver information intelligently, to be applied to cars, power grid, healthcare, logistics, environment monitoring, etc.

• Network-connected Device Forecast(Bell-Lab)

- 2010 : 10 Billion ⇒ 2020 : 100 Billion

1960 2020 2040

100:1 1:1

2000

1:50 1:100

Expansion of Network Accessibility

• N-Screen : Seamless usage of content across multiple screen platforms (PC, Pad, Smartphone, TV, etc) with mobility

• Commercial N-Screen service began in Korea in Jan. 2011 by SKT, providing video content(movie, drama, news) via dedicated device

18

다양한 기기간 동영상 이어보기

Smart Pad(indoor, outdoor)

Smart Phone(indoor, outdoor)

Smart, Multi-Screen TV(indoor)

PC (indoor)

Direction of

Future Broadband Policy

- Improving Wired Network(Gigabit)

- Improving Wireless Network

- Qualitative Enhancement

- Future Network

19

Improving Wired Network (Gigabit)

20

Objective

▷ Provide commercial Giga-Internet service 10 times faster than current

BcN by 2012

▷

Agenda

Incremental Approach : 1st Stage : Initial Pilot(‘09～’10), 2nd Stage : Expansion Pilot(‘11～’12)

▷

Public Private Partnership to realize Giga-Internet▷

Respond to high bandwidth traffic generated by high quality, realistic

services (fast-download, videophone, full HD IPTV, 3D TV, etc)

Provide 100M~1Gbps Internet Service through ultra broadband

subscriber network technology (FTTH, RFoG, Gigabit-LAN)

Improving Wireless Network (4G ..)

21

Short Term Plan

▷Increasing 3G data capacity ▷

Mid & Long Term Plan

Developing LTE-adv / Wibro-evo▷

Consider using TV white-space▷

Commercialize LTE▷Data Off-loading : WiFi / Femtocell

Implementing Giga-WiFi based on Giga-internet▷

Qualitative Enhancement

22

Broadband for Rural Area

▷Fullfil universal service▷ Matching fund among central govt:local govt :industry

(1:1:2)▷Achieve nationwide 100M coverage

▷Evaluate & Measure Internet QoS & QoE▷ Increase User satisfaction through competition

Safe Internet Environment

▷Pre-emptive response to computer incidents/Prevent information leakage

Management of Broadband Service Quality

Future Network

Re-Design of network architecture, to fundamentally resolve limitations of current IP network (security, QoS, scalability, mobility, etc) and accommodate future services

23

• Establish foundation for R&D, testing, validation for Future Network technologies such as virtualization, programmability

• KOREN(KORea advanced Research Network) : testing & validation environment for optical packet transmission equipment and virtual resources management solutions via KOREN research network

• TEIN/APII: Joint R&D on Future Network technologies(Openflow, DCN, etc) through international research networks

* TEIN : Trans-Eurasia Information Network

* APII Testbed : Asia-Pacfic Information Infrastructure Testbed

14

Network Promotion Policy in KCC

Thank You

25