KT s FTTH Service Scenario

Transcription

1 KT s FTTH Service Scenario September 4, 2006 Jong-Lok Yoon Contents I II III IV V VI Telco s s Threat & Opportunity Telco s s Challenge to Crisis (C2C) Service Mega Trends & KT s Service Evolution System & Network Strategy Pilot Projects Concluding Remark 2 1

2 I Telco s s Threat & Opportunity Limitless Competition [1] Internet service Internet connection fee per 1Mb/s Broadband Internet penetration rate in Korea (Cents/Mbps) Broadband penetration rate 100% 80% 60% 40% 20% 0% 23% (3,870) (13,720) 83% 67% 72% 73% (11,920) 63% (10,410) 47% : Number of household [thousand] 4 2

3 Limitless Competition [2] Mobile subscribers surpass fixed line Types of Internet connection Fixed Line/Mobile subscribers in Korea (unit: %) (unit: thousands) xdsl * MIC (Ministry of Information and Communication) Dial Wireless Cable Internet Modem Modem ISDN W-LAN * NIDA (National Internet Development Agency of Korea) 5 Biz Boundary Collapse [1] Producing Brokering Delivery Service Providing Future Competition within the same value chain boundary Æ Competition beyond the traditional value chain boundary 6 3

4 Biz Boundary Collapse [2] IIC(Inter Industrial Collaboration) Current Growth Engine Stand-Alone Next Growth Engine Convergence/Fusion Semi- Conductor Vehicles ICT,BT Bio-IT Bio Sensor Nano IT DNA Computer Ships ICT Oil & Chemical NT,ET ST,CT Network PC U-Vehicles Home Robot Remote Medical Care Based on ICT & Networks Intra-Industry Convergence Inter-Industry Collaboration ICT: Information & Communication Technology, BT;BioTech., NT:Nano Tech. ET: Environment Tech.ST:Space Tech., CT:Culture Tech. 7 Asymmetric Regulations in Korea Telecommunication-Broadcasting convergence services The law and regime of Telecom/broadcasting convergence services are not yet fixed in Korea Internet/VoIP of SO/MSO is permitted by law IPTV of Telco is prohibited by law Dominant market leader regulation Definition of dominant market leader Single company which has more than 50% of market share Less than three companies which have more than 75% of market share Regulation Ban of bundle services Permission of price & agreement of services by government LLU 8 4

5 Network Neutrality Definition All Internet sites and traffic must be treated equally 3 basic principles Non discrimination Interconnection: Right & obligation for mutual interconnection Access: Connection between endusers(human/modem/switch/device) Key issues (Telco s view points) Net neutrality will retard the network innovation Net neutrality will collapse the free competition system (Different service & priority, different price) The latest news The USA Senate rejected the net neutrality (06/27/2006) 9 II Telco s s Challenge to Crisis 10 5

6 Market Value of Traditional Telco High Market Value Sales > Brokering or Service Providing Google (16.2) Ebay (9.5) Yahoo (7.9) Microsoft (5.2) Value in-flow Value dragging Delivery (Traditional Comm.domain) Disney (2.0) Verizon (1.8) KT (1.4) KTF (1.4) 0.5 Low 0.0 High Operating Profit Growth Value out-flow Low 11 Premium Services [1] Strategic Direction Differentiated services on differentiated infrastructure step 1: basic application services over the premium infra step 2: innovative ICT-based life/work application services over the consolidated premium infrastructure Analogy From plain seaside to water park Best Effort Internet Quality-guaranteed, secure IP network Free/cheap, Unstable Quality, Unmanaged, Insecure Fee-based, Guaranteed Quality, Managed, Secure 12 6

7 Premium services [2] Premium Services through the Premium N/W Service differentiation by network differentiation Best Effort Services Best effort Network Access Network (wire/wireless) PC Non-PC Premium Network Edge Router RGW Premium Services IP-TV, Video-Conferencing, Video-Learning, etc.. Premium network with the high level of QoS & availability Strengthen bandwidth control of wire & wireless networks Offer ~ % of availability for broadcasting service 13 Total Service Provider Importance of TPS (Triple Play Service) Incremental revenue Restraining churn-out Incremental Revenue 1.2% % 1.0% 10 Video 8 0.8% Data % Video 0.9 % Data 0.6% Voice 0.4% % Voice 0.2% E 2005E 2006E Retained Voice 2007E 2008E High-Speed Date 2009E 2010E 0.0% Cable + Data Cable + Phone Video Source : 2005, Telcordia Data + Phone Cable + Data + Phone Source : 2005, Cox Benefit of TPS for customer Convenience: single bill, single A/S call number, etc Economy: discounted price (bundle effect) 14 7

8 Harmonizing the Free & Charged Services Free services round up customers and extend the market size Examples: UCC, P2P, On-demand services (free & besteffort) Charged services differentiate the services from the competitor s and increase the revenue Examples: IPTV, VoIP, Video telephony, On-demand services (charged & premium) 15 III Service Mega Trends & KT s Service Evolution 16 8

9 Personalization & Participation Personal Broadcasting, Video Blog Visitors (per million) New York Times You Tube Exceed 4.8 Million Channels just in 10 months Afreeca Personal Broadcasting TV in Korea 17 On Demand Broadcasting (VoD casting) Source : BBC 18 9

10 Potential of VoD Casting in News Service Pseudo Real time comparing to Conventional VoD Simple & Easy Quality Selective Deep & Detail Personalization comparing to Web surfing comparing to IPTV or UCC comparing to IPTV or UCC comparing to Conventional TV UCC: User Created Contents 19 KT Vision 2010 Convergence Communication & Broadcasting Convergence Wire & Wilreless Convergence Voice & Date Vision New Growth Base 2006 WiBro IT Service IP TV Growth Engine Media FTTH, BcN, IPv6, All IP Network 2010 Contents Venture Ubiquitous Society Carrier Vendor 20 10

11 KT 2.0 [1] ICT Mega Trends Technological and Industrial Trends requires Telco to shift to Telco 2.0 Management Paradigm. Tech & Industry Trends Network Technology Convergence Voice Data Computing Power Bandwidth Security Intelligence Inter-Industry Collaboration Service Convergence Management Paradigm Shift Telco 2.0 Telco 1.0 Red Red Ocean Ocean Traditional Traditional ILEC ILEC Blue Blue Ocean Ocean Network Network Provider Provider Unity Unity & & Reconciliation Reconciliation Solution Solution Provider Provider Creativeness Creativeness Mix-Match Mix-Match Industry Industry Labor-intensive Labor-intensive Public Public Company Company Venture Venture Spirit Spirit Dynamic Dynamic Identity Identity 21 KT 2.0 [2] Network provider Æ Solution provider Telco will be transformed into total solution provider through the new business paradigm shift. To-Be Model Potential Partner Mid-term Total Solution Provider Multimedia Service Aggregator Knowledge Consulting Biz As-Is Communication Service Provider New Growth Engine S/W Solution Biz Computing Power Biz Contents Biz Cultural Complex Biz Communication/Broadband Biz 22 11

12 KT 2.0 [3] Open R&D and IIC Strategy KT is seeking more cooperative relationships for core technology & New Biz. with Open R&D & IIC Strategy. Obtain Tech. Trade Tech. Open R&D Tech. Environment KT Univ. Value Integration Leader KT KT Research Industry Search Tech. Develop Tech. IIC : Inter-Industry Collaboration u-hospital u-auto Mobile KT Sell Tech. u-construction u-environment 23 KT IPTV Services [1] Service & Technical Requirement Service Provider Customer Stable Network Seamless Service Robust System High Quality Service Economics Variety of Services Security Format : H.264 Middleware : ACAP Security : CAS 24 12

13 KT IPTV Service [2] Service Classification 1 Conventional TV Terrestrial Channels Program Provider PPC (Pay per Channel) T-information Weather, Traffic News etc. 2 Bidirectional Services T-Entertainment T-Commerce Game, Karaoke etc. Shopping, Banking, Delivery etc. T-Communication SMS, Messenger T-Learning Language school etc. Near VoD(PPV) 3 VOD Services Real VoD Subscription VoD 25 IV System & Network Strategy A drawing of the first Ethernet system by Bob Metcalfe 26 13

14 Why FTTH? QoS / Bandwidth To provide minimum bandwidth guarantee regarding to user traffic Service Availability Availability required for broadcasting service : ~99.999% 0.4min/month of service discontinuity OPEX Saving More than 50% reduction effect for RBOC (2005. Telcordia) 10% failure rate reduction effect for KT 45% operation cost down effect for KT 27 System requirements TPS platform Beyond the Bandwidth QoS manageability High Availability OPEX saving technology Long Life cycle Easy management Minimized Inventory cost FTTH System Requirements Deployable in any field Green/Brown field Easy connection using the existing customer premise infrastructure Standardized technology To setup reasonable trade off between complexity vs cost by using mass producible components To promote system development in worldwide 28 14

15 Commercial FTTH Deployment Status Massive deployment in the metropolitan, single dwelling unit area NOW 20 thousands subscribers already connected at the end of 2005 About 120 thousands subscribers more to be connected by the end of 2006 Internet & on demand services Future Massive deployment in the apartment area To provide FTTH service in the newly built / remodeled / existing MDU Multicasting(IP-TV ) / symmetric(voip ) / personalized services 29 KT s WDM-PON SDU solution 100M WDM-PON 2003~2005 Joint development OLT λ 1 λ 32 RN 100Mbps 32 ch M/H 100Mbps ONT Joint development bet KT & Novera Optics Korea MDU solution λ 1 λ Gbps 32 ch OLT CO 32 split RN MDF 1G WDM-PON 1.25Gbps 1.25Gbps ONU basemen t Fx/ UTP / TP CPE box 2006~ Development project group Multiple vendors are participating in this development project group 30 15

16 FTTH Roadmap FTTC + UTP/VD니 FTTH Internet Access Triple Play Service Seoul (20,000) SDU WDMWDM-PON MDU E-PON Gwangju (2,000) SDU Nationwide Nationwide AON MDU 31 V Pilot Project 32 16

17 FTTH Pilot Project in Gwangju City Outline Title : FTTH(Fiber to the Home) Service Development Pilot Project Period : Y2005 ~ Y2009 (5 years) Total Budget : Billion Won ($119.4 Million) Goals Deploying FTTH infra to 20 thousand subscribers in 5 years Providing Convergence Services through 100Mb/s Optical Pipe Technical Evaluation of FTTH based Service Platform 33 FTTH Service Services Broadcasting Value Added Service Video on Demand Internet Access Details IP TV : over 22 channels Electronic Program Guide Service (EPG) Network-based Personal Video Recorder (N-PVR) Network-based Timeshifted TV Service Network-based Video Recording Service KT HomeN VoD (Movie, TV Drama, Animation, Kids Education, Sports, Health, etc) KT Megapass (FTTH) IP STB for FTTH Service Service Main Screen EPG, IPTV N-PVR VOD 34 17

18 FTTH Deployment in Gwangju WDM-PON based FTTH Service Center Head-End, Server Farm, Routers, Monitoring System FTTH Area KT North Gwangju Branch WDM-PON OLT KT Sang-Mu Branch WDM-PON OLT KT South Kwangju Branch WDM-PON OLT 35 FTTH Service Platform FTTH Feeder & Distribution Line Central Office OLT FDF RN(1:32) - WDM-PON : AWG - E-PON : Splitter IDF Drop Cable 1 32 Optica Outlet POTS ONT OJC 1 EPON OLT WDMPON OLT Home Distribution Fiber SDU Use UTP Internet IDF 1 Feeder 1 Cable IDF Distribution Fiber 32 Optical Outlet ONT In-Door Cable MDU USE KORNET KORNET IP TV OJC IP STB Firewall IP-TV IP-TV HE HE KT HomeN KT HomeN KT HomeN Authentication Server VOD DB Srv VoD Srv. AAA Server Farm TV UI App. Srv (EPG) N-PVR Srv TV UI Server/N-PVR Server Farm IP TV Monitoring System IPTV Head End System 36 18

19 National BcN Pilot Project BcN : Broadband Convergence Network Outline Y Deployment Area Seoul Incheon (200) (200) 5 Big Cities (Seoul, Incheon, Daejeon, Daegu, Gwangju) Services Voice and Data Convergence Video Phone, Video Messaging Daejeon (200) Daegu (150) High quality Voice Phone Wire and Wired Convergence WCDMA Connected Gwangju Communication and Broadcasting Convergence (200) T-Commerce, TV Portal U-Service U-Learning, U-Farm ( ) Number of Subscribers 37 National BcN Infrastructure Seoul Connection Access&Control Control Platform Platform SSW(POTS, MMS) PSTN Media PLS/IM Server Contents Wireless KTF WGW Other Consortium N/W Firewall Shared 메시징 Platform 서버 Open Service G/W L3 Switch Open Service Application Server Wibro KOREN PC VDSL BcN Backbone SIP Video Phone VDSL Hub PONONU PON OLT VDSL IP-TV SIP Video Phone L3 Switch Hub PONONU PON OLT PC SIP Video Phone Firewall PC SIP Video Phone VDSL PC AAA VDSL PC Gwangju SSW(MMS) Numbering Daejeon 38 19

20 Concluding Remarks Business boundary has already collapsed Telco should leap up to change from network provider to total solution provider Growth Strategy Service differentiation through FTTH Service migration for PC to TV and portable devices Strengthen the IIC(Inter-Industrial Collaboration) 39 Thank You! 40 20