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Beyond Broadband Business. Sanghoon Lee KT. 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 Moore’s law outpacing demand Stock market collapse.
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Beyond Broadband Business Sanghoon Lee KT
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 • Moore’s law outpacing demand • Stock market collapse
Broadband take-up over first 10 years is faster than previous services across the OECD countries. Cellular Subscribers (1985-1995) Broadband Subscribers (1997-2003) Narrow-band Internet Subscribers (1992-2001) ISDN Subscribers (1989-1999) 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
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)
Beyond Broadband Business • From simple Internet access to “quality life/work services” • From network service to application services Yesterday Today Tomorrow Rich Contents Any-Access Web Pages Browsers Wireline HTTP HTTP FTP … RTP VoIP WAP RTSP Servers P2P,Game Wireless Simple Internet Access Quality Life/work services
Two Basic Questions for Telcos • Will |A| >> |B|? • Will Telcos dominate the market? A B
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
Existing and newly emerging services 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 Mobile Networks Data/IP Networks CATV PSTN/ISDN WirelessAccess WirelineAccess Access Transport & Switching Networks
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