Beyond Broadband Business

1
Beyond Broadband Business

• Sanghoon Lee
• KT

2
Telecom Business So Far

• 1990s Golden age
• After 2000
• Downfall of Main Revenue Stream
• (PSTN leased line biz)
• Symptoms
• Competition
• Commoditization of bandwidth connectivity
• IP technology
• Moores law outpacing demand
• Stock market collapse

3
Broadband Wireless/Mobile as a Rescue

• Mobile/wireless market goes over the fixed
  communication market

Mobile, CAGR 13
1800
2.5 / 3G
1500
No of Subscriptions (million)
Fixed, CAGR 1 (POTS/ISDN)
1200
900
Fixed Broadband CAGR 44
600
300
0
2000
2001
2002
2003
2004
2005
2006
2007
4
Two Sides of Broadband InternetBusiness in Korea

Threat
Opportunity

• Revenue Saturating market with flat rate
• Expenditure Increasing CAPEX/OPEX
• due to doubling traffic
• High customer expectation level

• Has established
• - high quality infrastructure
• - Large customer base
• Opportunities in application
• value-added services

(Unit Thousand)
(Unit Thousand)
5
Beyond Broadband Business

• From simple Internet access to quality life/work
  services
• From network service to application services

Tomorrow
Today
Yesterday
Any-Access
Rich Contents
Web Pages
Browsers
Wireline
HTTP
HTTP FTP
RTP
VoIP
WAP
RTSP
Servers
P2P,Game
Wireless
Simple Internet Access
Quality Life/work services
6
Two Basic Questions for Telcos

1. Will A gtgt B?
2. Will Telcos dominate the market?

A
B
7
Beyond Broadband Business Features

• Different business
• From access service to end-to-end service
• Both best-effort quality service
• From network service to solution/application
  services
• Applications from niche market to mass revenue
  market
• Different focus

Ubiquity
Convergence
Beyond broadband business
Quality
Handy
Bandwidth
Current broadband access business
Personalization
8
The Next Generation Network

• The following picture has been in place for more
  than 10 years

Single/simple/cost-effective network
infrastructure for existing new services
Too costly, per-service network architecture
Services
Network control (QoS, Security, IP Mobility)
Multi-Service IP Backbone
Data/IP Networks
Mobile Networks
PSTN/ISDN
CATV
WirelessAccess
WirelineAccess
Access Transport Switching Networks
9
NGN From Vision to Reality

• BcN Initiative in Korea

high-quality broadband multimedia services
integrating telecom, broadcasting, and Internet
seamlessly at anywhere, anytime, and using any
devices