The new keyword, Smart Communications
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1 2011 Malta Conference The Keynote Speech The new keyword, Smart Communications, Ph. D. Legislator The National Assembly of the Republic of Korea NOTICE: This material is proprietary to the writer. It shall not be used, reproduced, copied, disclosed, transmitted, in whole or in part, without the permission of the writer copyrights reserved 1
2 ICT status in Korea
3 Korea s rankings in global ICT indices # 1 UN E-government development index as of 2010 Capacity & willingness in using e-government for ICT-based national development # 1 UN e-participation index as of 2010 Online participation of citizens on national issues and policies # 3 ITU ICT development index as of 2010 Development of information society including information divide # 1 Household internet penetration rate among OECD nations as of 2009 (ITU) 3
4 How much Korea is connected 16 million broadband subscribers (pop. 48m) 77.2% of internet usage rate 18 million DMB users (8 TV, 11 Radio) 49 million mobile phone users 2.6 million IPTV subscribers DMB: Digital Multimedia Broadcasting Source : NIA
5 Key success factor Key factor Government Government Market Visionary Visionary policies leadership & policies Risk-taking CEOs Capable local vendors Fierce market competition Consumer Early-adopting & picky 5
6 Keywords of the Current Market Stand-alone PC Networked computing Narrowband Broadband Cloud service Mobile computing Social networking Fixed-line Mobile 6
7 Smart-phone Tsunami in Korea
8 November 2009 in Korea Source : Yonhap News 8
9 Smart-phone wave 25,000 (unit:000 users) 1,420% 7, Nov 2009 Dec 2010 Dec 2011(E) Source : KCC
10 Data traffic explosion 50,837 GB 12,200% 415 GB Jan 2009 ~ Nov 2009 Dec 2009 ~ Jan 2010 Note : Data traffic from smart-phone users Source : 10
11 No.1 in mobile data traffic (/user/mo) Korea Japan World average 271 MB MB MB Note : ATPU (average traffic per user/per month) Source; Informa Telecoms & Media Nov
12 Korean smart phone apps 7, apps per user on average 215% 2, % smart-phone users have at least one paid-app % paid-app users spend more than $ 10 per month Source : KCC & KISA, July
13 Spend 59.4 minutes accessing Internet Smart-phone usage 41.6%, over 60 min. Internet Music Moving picture LBS services Camera App usage 120~ min. 17.2% 60~120 min. 24.4% ~5 min. 14.2% min. 18.1% 5~10 min. 7.7% Documentatio n (%) 30~60 min. 18.4% Note : Only internet connection duration counted Source : July 2010, KCC & KISA 13
14 Skyrocketing SNS visitors facebook Twitter 7,380 8, % 527% 984 1,379 Sep 2009 Sep 2010 Sep 2009 Sep 2010 (000/mo) Note : 2.5 million FB users & 2.4 million twitter users as of Jan 2011 Source; Metrics, The Segye Daily Newspaper Jan
15 Smart-phone widows? Go to hell with your smart phone! Well, then, bury me in a WiFi zone! 15
16 One of the success factors Affordable package prices i-slim i-light i-medium i-premium Monthly charge($) Voice 150 min 200 min 400 min 800 min SMS Mobile data i-phone 3GS 100MB 500MB 1GB 3GB $396 $264 $132 free Note : $1=\1,000(Korean won) assumed., 2year-subscription Source : KT 2009 price table 16
17 Flat rate being a curse? $50/mo unlimited data usage (21.6% of total subscribers*) Daily limit $50/mo 75Mbytes $60/mo 100Mbytes $70/mo 150Mbytes $90/mo 300Mbytes Note : started from Aug Source : July 2010, KCC & KISA 17
18 What does this all mean?
19 Truly mobile Always-on Strictly personal 19
20 Mobile power in the US Source : Bain Analysis 20
21 User diffusion speed Time to reach 20 users from 5 users/100 (persons) yr 6yr 8yr 10 5 (1) (2) (3) (4) 31yr fixed-line internet mobile phone smartphone Note : How long it takes to reach 20 from 5 users among 100 people Source : SERI, June
22 Global mobile traffic forecast 131% annual growth Source : Bain Analysis 22
23 Proportion of mobile operators voice revenue Asia Pacific Western Europe North America data revenue = voice revenue in North America in 4 years Source : Ovum
24 Challenges
25 Challenges Privacy, strict guard or show off? Security, always-on : hackers playground Smart-divide Network, who pays for it? 25
26 To cope with data traffic explosion Short-term ; Upgrade & detouring Upgrade network 4G (LTE/Wibro Evolution) Mobile Core Network detouring Femto-cell, Wi-Fi Internet Source : KISA
27 Network evolution roadmap (Korea) KT SKT LGU+ HSDPA 384Kbps/14.4M (National coverage) (National coverage) 2006 CDMA2000 Rev.A 3.5G HSUPA 5.7M/14.4M (84 cities) (59 cities) HSPA+ 5.7~11M/21~42M (pilot, Seoul) (Seoul) LTE pilot 36~75M/73~150M 2011 (Seoul) (Seoul) (Seoul) 4G LTE commercial service LTE Device 2011 (modem type) 2012 (phone type) 2012 (6major cities) 2013 (nation-wide) 2012 (dual mode) 2013 (single mode) LTE Advanced 150M~/300M~ Commercial service in
28 To cope with data traffic explosion Long-term; Migration from CDN to CCN Pre-Caching On-demand CDNAPP TCP/IP D/L PHY APP CCN D/L PHY Note : CDN (Contents Delivery Network), CCN (Contents Centric Network) Source : KISA 2011 Add-on network 28 Architecture integration
29 Smart-phone OS competition & Telco s strategy OS competition Telco s cross platform strategy App Store Cross Platform IOS Android Windows Symbian Others Others N-screen Global Telco Alliance (WAC) 29
30 Take away
31 The world is different now Be prepared for mobile economy! Utilize mobility to enhance productivity - Mobile office (Korail case) Seize new business opportunities - LBS service, contents mash-up Note : Korail provided 6,500 staff with smart-phones to monitor subway systems 31
32 PatientsLikeme.com Personal feedback Free community service Data collection PatientsLikeMe Commissions Sell data Pharmaceutical companies Similar patients Internet Explosion of information flow Mobile True ubiquitous environment SNS Cohesive group formed by exchanging trust & emotion Source : SERI CEO, Jan
33 Governments should be reminded Timely, timely, timely Pave way to boost mobile economy - Find measures to support the industry If not sure, let the market move ahead - Ex ante regulation should be avoided - Leave the private sector in the driver s seat Strengthen global collaboration - Privacy & security, no longer domestic issues 33
34 Power of social media Knowing social media wins power Market Government Government Customer power Social networks = Multiply influence Individual Network power Χ Citizen power Real-time = Multiply information 34
35 Thank you
36 IPTV(live/on demand)+internet+phone=$38 Service 100M internet LiveTV 32ch on demand Subscription QOOK Modem QOOKTV STB Phone Base Rental Base Rental Additional Total 3 yrs $27 - $7 - $4.6 $38.6 Phone None $34 $8 $9.7 $7 $5 $64 100M internet Live TV 50 Ch On demand 3 yrs $27 - $8.6 - $4.6 $40.2 Phone None $34 $8 $11 $7 $5 $65 100M internet Live TV 70 Ch on demand 3 yrs $27 - $11 - $4.6 $42.6 Phone None $34 $8 $15 $7 $5 $69 Note : $1=\1,000(Korean won) assumed 36
37 Network proportion by technology 20% CDMA 1XEV-DOWCDMA 40% WCDMA 35% HSDPA 59% HSPA 13% WCDMA Source; Ovum
38 Media evolution trans media cross speech alphabets printed digital 38
39 At dates: attracted more to smart phones 39
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