From Network Service Provider To Solution Provider

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1 From Network Service Provider To Solution Provider The Value Networking company

2 INTRODUCTION 2002 KOREA/JAPAN FIFA WORLD CUP 1

3 Key to Success Power-based. All round Player 2

4 Future Network Powerful IP-based All kinds of services will be on IP Network VOICE VoIP, Mobile TELEMETICS DATA Mobile, Line Powerful IP NETWORK HOME DIGITAL SERVICE BroadBand Access BUSINESS SOLUTION 3

5 Broadband Services in KOREA The growth of Broadband Access in Korea (million) Composition of Market by Access Technology (Mar. 2003) CATV xdsl ISDN Total 12 Mil xdsl % 1% 61% 4000 CATV ISDN

6 KT Broadband MarketShare Local Leading Market Share 22,108,582 22,110,000 subs 97% (1) Rank #1 DLD 85% (1) #1 Leased Line ILD 71% (2) 66% (2) #1 #1 BroadBand Internet 4,076,799 5,600,000 subs 50% (3) #1 Wireless Data 10,000,000 9,628,000 subs 39% (1) #2 Wireless 9,768,909 9,800,000 subs 33% (1) #2 Source : Company Data and MIC Note : (1) as of Feb Jun 28, 2002 (2) as of Dec 31, 2001 (3) as of Sep Mar 30, 2002 # Domestic Market Share 5

7 Telcos decline Worldwide Telco s Managing environments The traditional telco s stock charts are gradually sluggish - AT&T, NTT, BT Korea is the Bench Marking model of the world in the field of Internet business which has more than 10 million Broadband Internet Access subscribers 6

8 New Engines for Value Network Broadband Access Capability e-portal IP N/W Infrastructure Fixed & Mobile Convergence 7

9 New Engines for Value Network Any Time, Anywhere, Any Device, Any Service 8

10 New Engines for Value Network Elements of Value Networking 1: BROADBAND Access xdsl FTTH Ethernet? NETWORKING Value Creation 2: IP Network Infrastructure High Speed & Convergence NGN, IP-VPN, VoIP? 9

11 New Engines for Value Network 2: IP Network Infrastructure -NGN Architecture 3 rd App. Server Media Server App. Server SCP API Packet Network Softswitch MEGACO SIP/H.323 SIGTRAN Trunking Gateway Signaling Gateway PSTN INAP SS7 Kornet Access Gateway Access Network Wireless Network Pre NGN Decision : Q, Analog SW Access Gateway substitution NGN Decision: Q, Softswitch Development Worldwide 1 st Deployment: Risk and Opportunity 10

12 New Engines for Value Network Elements of Value Networking 1: BROADBAND Access xdsl FTTH Ethernet 3: Fixed & Mobile Convergence Adding Flexibility in Broadband Access Seamless Service between Any Device NETWORKING Value Creation 2: IP Network Infrastructure High Speed & Convergence NGN, IP-VPN, VoIP? 11

13 New Engines for Value Network 3: Fixed & Mobile Convergence - Broadband Wireless LAN Public Wireless LAN Service High speed up to 11Mbps with IEEE 802.1x security mechanisms Nationwide Hotspots Reasonable prices Target Market Hot spot areas Business centers, Hotels, Universities, Airports, etc. SOHO and Home Café, Restaurant, SOHO, Home, etc. Seamless Communication Service between any terminal Mail, MMS, IM, SMS 1X phone, PDA, Notebook, Desktop 12

14 New Engines for Value Network Elements of Value Networking 1: BROADBAND Access xdsl FTTH Ethernet 3: Fixed & Mobile Convergence Adding Flexibility in Broadband Access Seamless Service between Any Device NETWORKING Value Creation 2: IP Network Infrastructure High Speed & Convergence NGN, IP-VPN, VoIP 4: e-portale B2B Platform B2C Platform 13

15 New Engines for Value Network 4: e-portale SSO(single sign on) Customer 4 Private Solution G/W Supplier PC PCS PDA e-directory 2 Multi- Access G/W SSO (single sign on) Service Gateway 1 Customer Interface G/W On/ Off Line merge KT service Portal, VoIP e-shopping etc. KT branch Wireless DATA, Community Web Phone 3 Billing & Payment G/W Affiliate Service MSN, Yahoo, Daum, Etc. 5 KT e-biz Data Center Service Gateway which is on the base of DB unification & e-financing, supplies Personalized Solution supports various Terminals 14

16 KT s trial. on Business Solution Business Solution Portal(bizmeka) Packaging of internet access line, consulting and lots of solutions for 3 million small-medium enterprise and independent businesses EDI ASP e-mp bizmeka Platform IP Network / KT-IDC Business Models Solution rental service. Equipment solution rental service including server, network, IDC for Application service providers. Customized Platform services to bank, credit card company and so on. 15

17 KT s trial. on Business Solution ex) Hair-Shop 16

18 IT general Trading Company Solution Distribution N/W : solution 1 Company A - solution#1 KT BT Company A - solution#1 Company B - solution#2 Solution Distribution Network Company B - solution#2 Company C - solution#n AT&T.... Company C - solution#n Solution Organizer - Get the best Solution for each Service - Organize lots of Solution company Solution Converter - Show standard fit for service - 1 Brand Marketing for overseas Information Feeder - Get Overseas information 17

19 Let s KT Thank You 18

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