WiBro (Moblie WiMAX) Overview of Technology, Service & Policy. WiBro (Moblie WiMAX)
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1 WiBro (Moblie WiMAX) WiBro (Moblie WiMAX) Overview of Technology, Service & Policy Jik-Dong Kim, Ph.D. Industry Policy Team Information & Communication Policy Bureau, MIC
2 Contents I II III WiBro (Mobile WiMAX) Service Outline Tendencies of Home and Abroad WiBro (Mobile WiMAX) Market Analysis IV WiBro (Mobile WiMAX) Service Policies V Q & A
3 I. WiBro (Mobile WiMAX) Service Outline I-1 I-2 I-3 I-4 I-5 Introduction WiBro (Mobile WiMax) Service Concept WiBro (Mobile WiMax) Service Features Comparison between Mobile Phone (2G) and WiBro (Mobile WiMAX) Network Coverage Concept for WiBro (Mobile WiMAX) Network
4 I-1. Introduction Telecom Market Snapshot Fixed Wireless CAGR = -6.23% CAGR = -3.08% Voice Data CAGR = 4.77% CAGR = 20.20% Source : KISDI (unit : billion $) Limitations of Revitalized Wireless Internet Diffusion Mobile Phone : Low Transmission Speed, High Service Charge Wireless LAN : Small Base Station Radius(Within 100m), Non-guaranteed Mobility Guaranteed Mobility. New Wireless Internet Service needed cheaper than Mobile Phone
5 I-2. WiBro (Mobile WiMAX) Service Concept Anytime, Anywhere and Even in Motion, High Transmission Speed Service Enabled Complementary Mobility of of High-Speed Internet Wireless LAN Cheaper than Mobile Phone Wireless Internet (Low Investment Cost, High Transmission Capacity) Voice Local, National and International Telephone Mobile Phone Cable Mobile Phone Wireless Internet Wireles s Cable High-Speed Internet (ADSL, VDSL, HFC) Wireless LAN WiBro (Mobile WiMAX) High-Speed Internet
6 I-3. WiBro (Mobile WiMAX) Features Comparison with Existing Service Midway between Mobile Phone and Wireless LAN Difficult Voice Service with WiBro Technology but but Voice Service expected with the the combination of of Mobile Phone Section Wireless LAN WiBro (Mobile WiMAX) Mobile Phone Transmission Speed for each subscriber Over 1 Mbps around 1 Mbps around 100kbps Mobility Walk 120km/h 250km/h Terminal Desktop, notebook, PDA Notebook, PDA, cell phone Cell phone, some PDAs Cell Radius around 100m around 1km 1km ~ 3km Rate System Flat sum system WiBro (Mobile WiMAX) ) Terminal Meter-rate + flat sum system Meter-rate system Expected Support of of Various Terminals as as uses (cell phone, PDA, notebook, etc) Expected Support of of Multiplex Mode such as as Mobile Phone, WiBro(Mobile WiMAX), DMB, etc. in in a Single Terminal
7 I-4. Comparison between Mobile Phone(2G) and WiBro (Mobile WiMAX) Network Network Structures Wireless Network Section Cable Network Section Mobile Phone (2G) Base Station BSC BSC MSC PDSN IWF Internet network WiBro (Mobile WiMAX) IP router Internet Protocol Internet Protocol IP Backbone HA AAA HA : Home Agent Gateway Router All-IP Network Based Simple Structure Direct Connection with IP IP Internet Network Improved Spectrum Efficiency with the Introduction of of OFDMA
8 I-5. Coverage Concept for WiBro (Mobile WiMAX) Network 2G/3G Hot Zone WiBro (Mobile WiMAX) Hot Spot WLAN AP AP AP AP University Library Airport 2G/3G voice-centered wide area service, narrowband data WiBro (Mobile WiMAX) : downtown-centered broadband data service WirelessLAN : specific region service - Airport, Hot Spot, etc
9 II. Tendencies in Korea and Outside II-1 II-2 II-3 II-4 II-5 II-6 Overseas Tendencies Korea s WiBro (Mobile WiMAX) Service Supply Status Overseas Expansion Status for WiBro Technical Standard Status for WiBro (Mobile WiMAX) Relations between WiMAX, Mobile WiMAX and WiBro Developmental Outlook for WiBro (Mobile WiMAX) Terminal
10 II-1. Overseas Tendencies Tendency for WiBro-related related Technology Development of of Commercial Technology and and Market Occupation for for Broadband Wireless Internet Service ArrayComm, Navini, Flarion, IP IP Wireless, etc etc Tendency for Supplying Similar Services of WiBro Supply of of Fixed Wireless Service in in Most Areas Showing Low User Rate of of High-speed Preparations for for Mobility-guaranteed Mobile Wireless Internet Service by by Some Companies(Nextel, Softbank, etc.) Service Offering Tendency of W-CDMA Expected Rapid Growth by by an an Average of of 122% per per Year in in the the International Market by by 2008 (OVUM, ) Countries: Common Carriers Offered Commercial Service (2006.2) (HSDPA Included) Around Million Subscribers over the the World (Europe 51%, Asia/Pacific 48%, Others 1%) 1%) Europe: Market leaded by by New Common Carrier, Hutchison, Vodafone Commenced the the Commercial Service since 2004 Japan: NTT-DoCoMo Secured approximately Million Subscribers by by 2005
11 II-2. Korea s WiBro (Mobile WiMAX) Service Supply Status Commercialization Schedule in 2006 March :: KT began the Test Service for Internal Staffs April 3 :: KT began the Test Service for the Public May :: SKT commenced a Test Service June :: KT & SKT will supply the World s First Commercial WiBro Service KT Test Service Commenced Commenced the World s First Test Service( ) for the Public --Location :: Kangnam, Shinchon, Bundang, Subway Bundang Line in in Seoul Area PCM-CIA Card and Exclusive PDA Terminal for Note PC --Around 3,000 Test Subscribers
12 II-3. Overseas Expansion Status for WiBro (Mobile WiMAX) Telecom Italia(TI), Italia s biggest common carrier, plans to to supply commercial service from 2007 after test service in in 2006 TVA, cable TV provider of of Brazil s biggest media group ABRIL, plans to to supply commercial service in in Sao Paulo from the second half of of the year after test service in in the first half of of the year in in 2006 Omnivision, Venezuela s cable TV provider, plans to to supply commercial service in in the capital Caracas from the third quarter of of the year in in 2006 PORTUS, the second wire communication provider in in Croatia, plans to to supply commercial service from the end of of 2006 Arialink, Michigan State s local communication provider in in America plans to to supply commercial service after test service in in Muskegan, Michigan Source : Samsung Electronics
13 II-4. Technical Standard Status for WiBro (Mobile WiMAX) Tendency of Domestic Standardization :: Announced change of of frequency for for 2.3GHz wireless internet ( ;Ministry of of Information and and Communication) :: Adopted first stage standard of of PHY/MAC :: Announced Wireless internet standard(revised-standard) :: Adopted standard draft for for 2.3GHz Wireless internet s cross certification mechanism :: Announced wireless internet standard(second stage revised-standard) ** Standardized wireless internet second stage :: Enabled 50Mbps transmission speed support through improved efficiency and and enlarged capacity :: Announced wireless internet IOT/RCT standard IEEE e :: Announced IEEE e/D11 after Taiwan Meeting in in September :: Reflected Recirculation result of of IEEE e/D11 and and announced D :: IEEE-SA s final approval (Reflected WiBro on on standard of of IEEE e) WiMAX Tendency of Overseas Standardization :: WiMAX TF TF organization corresponding to to standardization of of WiMAX forum :: Confirmed mobile-wimax(mtg) System Profile
14 II-5. Relations among WiMAX, Mobile WiMAX, and WiBro Items WiMAX (Fixed) (802.16d) Mobile WiMAX (802.16e) WiBro Radio Frequency (GHz) 3.5, , 2.5, 3.5 etc 2.3 Bandwidth (MHz) 3.5, 7, 10, , 7, 8.75, 10, 14 etc 8.75 Duplex Method TDD/FDD TDD TDD Multiple Access TDMA OFDMA OFDMA WiMAX Mobile WiMAX WiBro
15 II-6. Developmental Outlook for WiBro (Mobile WiMAX) Terminal Forms of Terminal Roadmap for Terminal Development Introduction Period Growth Period Maturity Period Notebook PDA Smart Phone Special Purpose Terminal -card type, internal type Exclusive Portable Terminal DBDM Portable Terminal - WiBro+CDMA Multiplex mode Terminal - card type, internal type - WiBro+CDMA+GPS, etc DBDM Portable Terminal TBTM Terminal -WiBro+WLAN - WiBro+WLAN+CDMA -WiBro+DMB - WiBro+CDMA+DMB -WiBro+GPS One Chip Specialized Terminal - personal/business terminal - intelligent fusion terminal - service leased terminal
16 III. WiBro (Mobile WiMAX) Market Analysis III-1 Demand and Ripple Effect III-2 Implications for Existing Services III-3 Introduction Opportunity and Danger of WiBro Service
17 III-1. Demand and Ripple Effect Service Demand and Market Scale of WiBro Prospective Service Subscription: around 8.5 million won in in 2010 Prospective Service Sales: around 7,000 billion won from 2006 to to2010 Existing Possibility of of Reduced Demand, with the the Advent of of New Services, such as as W- W- CDMA, DMB, etc, etc, and and Restricted Communication Expenses per per Head Effects on National Economy Induced Value-Added from 2006 to to 2010: around 3,900 billion won Possible Growth of of Contents Market by by the Advent of of High-quality Service and New Cable/Wireless Combined Service Source : ETRI
18 III-2. Implications for Existing Services [1] WiBro and Cable Internet Wireless LAN Cable Internet: Some Exchangeable Demand(centered on on one-person family), insignificant scale WiBro s Difficulty in in Transmission Speed Support per per Head to to a level of ofcable Internet (Cable internet in in 2006: over 10Mbps) Wireless LAN: Shadow Area Complemented, Re-Positioning with Complementary Goods to to Disperse Large Scale Traffic WiBro and DMB Expected Mutual Supplementation Built with Different Service Fields WiBro: Twoway Service, DMB: One-way Oriented Service Preference of of WiBro s TV/broadcasting streaming Service is is very low low :: 6% 6% (KISDI Demand Study) Possibility of of some WiBro s Demand Encroached upon due to to Restricted Communication Expenses, Carrying Issue of of Plural Terminal, etc
19 III-2. Implications for Existing Services [2] WiBro and IMT-2000 (W-CDMA/HSDPA) Considerable Competitive Power on on the Side of of Application Service and Mobility Competitive Relation Formed in in Mobile Phone-Typed Portable Internet Market(Target Market of of IMT-2000) Excellence of of WiBro on on Technology Side High Transmission Capacity, Low Investment Cost/Rate Possible Preoccupation of of Wireless Internet Market by by HSDPA Launching Mobile Phone Terminal at at least 1year earlier Competitive Development among International Vendors Difficult Judgment of the Superiority of a Certain Service Currently Variable as the Future W-CDMA W Revitalization Trend in the World and WiBro s Initial System/ Terminal Stabilization
20 III-3. Introduction Opportunity and Danger of Wibro Service Opportunity Factors Promoting Revitalized Wireless Internet Market and and Offering New Growth Opportunities in in Communication Market Fostering Equipment Industry, such as as System Terminal, accessories Opening New World Market and and Revitalizing Exports Prevents Paying Excessive Royalties Securing IPR IPR Preparation for for Leading 4G 4G Standardization Broadband OFDM Based Technology is is Leading Technology of of 4G 4G Danger Factors Uncertainty of of Initial Market for the Service Difficulty in in Creating Initial Demand Because of of the the Advent of of Similar Services(HSDPA, DMB, etc.) Main Current of of Overseas Fixed Wireless High-speed Internet Concerns over the the Rise in in Unit Cost and and Decline in in Competition, Originated from the the Limited Initial Market High Danger in in Developing Technology First Application of of New Technology to to Mobile Communication Single Vendor
21 IV. WiBro (Mobile WiMAX) Service Policies IV-1 Promotion Progress of WiBro IV-2 WiBro Frequency Allocation IV-3 WiBro Network-opening Policy IV-4 WiBro Promotion Policy
22 IV-1. Promotion Progress of WiBro Confirmed Policy Plan to to Approve WiBro Selected WiBro Provider Issued WiBro Warrant and Granted Warrant Conditions Canceled Selection of of Hanarotelecom as a WiBro Provider Demonstrated Service in in APEC Summit Meeting Reflected WiBro on e Standard of of IEEE Commenced Test Service by WiBro Provider for the Public Planned to to supply Commercial Service
23 IV-2. WiBro Frequency Allocation [1] Analysis Analysis of of guard guard band band Analysis Analysis of of needed needed bandwidth bandwidth Guard Guard band band among among vendors vendors 2.4GHz 2.4GHz Wireless Wireless LAN LAN And And guard guard band band Channel Channel bandwidth bandwidth The The number number of of subscribers subscribers (9.45million people) (9.45million people) Traffic per subscriber Traffic per subscriber Cell Cell Phone: Phone: 6kbps 6kbps Laptop: Laptop: 39kbps 39kbps Applying Applying MCL MCL and and SLS SLS Method Method Applying Applying MCL MCL Method Method Applying MCL Applying MCL and SLS Method and SLS Method Traffic Traffic per per cell cell / / system system capacity capacity (Simulation (Simulation of of research research group) group) 4.5MHz 4.5MHz range range Minimum Minimum 10MHz 10MHz range range 9MHz range 9MHz range 62.49MHz 62.49MHz range range Analysis of load factor depend on the number of vendors : 2 ~ 3 vendors (77.1%), 4 vendors (86.8%) Analysis of frequency efficiency depend on the number of vendors : 2 ~ 3 vendors (81%), 4 vendors (72%) considering the frequency efficiency, selecting under 3 vendors is optimum.
24 IV-2. WiBro Frequency Allocation [2] (MHz 2300MHz MHz Channel Channel Channel Channel Channel Channel Channel Channel Channel MHz MHz MHz SKT Frequency Band 2.3 Duplex Multiple Access TDD Channel Bandwidth 10 License Term KT 2.3GHz ~ 2.4GHz (100MHz) OFDMA 10MHz 7 years License Fee 1,17 Billion Won ~ Billion Won
25 IV-3. WiBro Network-opening Policy Equal Network Access Enable Contents Provider and Portal Service Provider to to access to to WiBro Network in in indiscriminate and fair method Introduction of MVNO (Mobile Virtual Network Operator) Introduction Time The Time to to Exceed 5 Million Subscribers 3 years before Commencement of of WiBro Commercial Service Supply Capacity Supply 30% of of Total Network Capacity to to MVNO (In (In Case of of Less Opening Capacity than Spare Capacity of of FA at at the point of of MVNO Introduction Time, Supply just as as much as as Spare Capacity)
26 IV-4. WiBro Promotion Policy Resolve the industry s difficulties to to provide high quality service Design specialized service fee system to to promote early market Examine Open Network implementation status regularly to to establish a firm foundation for WiBro service Promote overseas market through global cooperation such as international road shows
27
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