Your SlideShare is downloading. ×
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Korea Communication Review, July 2014
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Korea Communication Review, July 2014

3,124

Published on

Download a PDF file: http://www.netmanias.com/en/?m=view&id=reports&no=6459&vm=pdf …

Download a PDF file: http://www.netmanias.com/en/?m=view&id=reports&no=6459&vm=pdf
You can also find and download more materials from http://www.netmanias.com

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,124
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
64
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Korea Communication Review July 2014 KT Chairman envisions GiGAtopia Chairman Chang-gyu Hwang of KT, at a press conference held at KT Olleh Square in Gwanghwamun, Seoul on May 20, announced that "KT will open up a new age of GiGAtopia by investing KRW 4.5 trillion (USD 4.4 billion) in GiGA FTTH, GiGA Path (heterogeneous networks convergence technology that combines LTE and Wi-Fi networks), and GiGA Wire (copper wire-based transmission technology) for the next three years." Through this investment, Korean ICT News • page 1 LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014 • page 2-4 Broadband Access Network Architecture in Korea • page 5-6 Featured Article: What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? • page 7-11 Netmanias Vendor Interview: HFR’s optical fronthaul solution • page 12-14 LTE subscribers in Korea UPDATE • page 15-16 Broadband subscribers in Korea UPDATE • page 17-18 IPTV subscribers in Korea UPDATE • page 19 Research and Consulting Scope of Netmanias • page 20 © Netmanias Consulting • www.netmanias.com technology) for the next three years." Through this investment, the company first plans to provide Giga-class wired Internet services such as GiGA Wire (300 Mbps) and GiGA FTTH (1 Gbps), which are three times and ten times faster than the current 100Mbps, respectively. The company also plans on accelerating the wireless Internet access three folds by employing heterogeneous networks convergence technologies (e.g. IFOM) that combine LTE and Wi-Fi networks. With these new Giga-infrastructures, Chairman Hwang estimates that the company will aim to commercialize UHD TV services (15~20 Mbps) by the end of the year, and employ its video streaming technology, 'Olleh Power Live (eMBMS)', to cover more key service areas in Seoul by the end of June, allowing users to watch various contents in HD resolution (max. 4 Mbps), 10 times better than the current DMB TV. See page 7-11, What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? n Korea’s big 3 operators launched the world’s first 225 Mbps wideband LTE-A service in June In June 2014, Korea’s big three mobile operators, SK Telecom, LG U+ and KT, launched commercial wideband LTE-A services, supporting a maximum speed of 225 Mbps with 30 MHz using 2-band carrier aggregation that combines 20 MHz in the wideband LTE bands and 10 MHz in the existing bands. On June 19, 2014, SK Telecom began the service for the first time in the world, soon followed by LG U+ and KT who also launched the same service at the end of the Month. Specifically, the operators offer the wideband LTE-A services combining 20 MHz and 10 MHz in the following bands: - SK Telecom: 1.8 GHz (Band 3) and 850 MHz (Band 5) - LG U+: 2.6 GHz (Band 7) and 850 MHz (Band 5) - KT: 1.8 GHz (Band 3) and 900 MHz (Band 8) At 225 Mbps, we can download a 1 GB movie in just 35 seconds. The same task will take 53 seconds with wideband LTE (150 Mbps) and 1 minute and 46 seconds with LTE (75 Mbps). KT chairman envisions GiGAtopia Download speed measured on Samsung ‘Galaxy S5 Broadband LTE-A’ phone in SK Telecom’s wideband LTE-A network See page 2-4, LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014. n Korea Communication Review Publisher: Dr. Harrison J. Son | son@netmanias.com Associate Editor: Dr. Michelle M. Do | misun.do@netmanias.com Advertising Sales: Ho-Young Lee | hylee@netmanias.com | +82-2-3444-5747 Business Development: Steve Shin | cm.s.shin@netmanias.com | +82-10-2884-8870 IN THIS ISSUE
  • 2. 2 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014 | By Dr. Michelle M. Do l In June 2014, Korea’s big three mobile operators, SK Telecom, LG U+ and KT, launched commercial wideband LTE-A services, supporting a maximum speed of 225 Mbps with 30 MHz using 2-band carrier aggregation (CA) that combines 20 MHz in the wideband LTE bands and 10 MHz in the existing bands. On June 19, 2014, SK Telecom began the service for the first time in the world, soon followed by LG U+ and KT who also launched the same service at the end of the month. Specifically, the operators offer the wideband LTE-A services combining 20 MHz and 10 MHz in the following bands: - SK Telecom: 1.8 GHz (Band 3) and 850 MHz (Band 5) - LG U+: 2.6 GHz (Band 7) and 850 MHz (Band 5) - KT: 1.8 GHz (Band 3) and 900 MHz (Band 8) Korea launched LTE service back in July 2011. Soon, it also commercialized LTE-A service and wideband LTE-A service – in June 2013 and in June 2014 respectively – for the first time in the world. The speed of LTE network has accelerated three times faster from max. 75 Mbps in July 2011 to max. 225 Mbps in June 2014 in just 3 years. In Korea, LTE technology is advancing fast – faster than any other country in the world. At 225 Mbps, we can download a 1 GB movie in just 35 seconds. The same task will take 53 seconds with wideband LTE (150 Mbps) and 1 minute and 46 seconds with LTE (75 Mbps). Samsung released a new version of its Galaxy S5 smartphone, Galaxy S5 Broadband LTE-A, the world’s first commercially available LTE-A category 6 smartphone for the wideband LTE-A service. It supports a Quad HD (QHD) display, allowing for a resolution two times higher than the conventional Full-HD. SK Telecom upgraded the quality of its mobile IPTV (B tv Mobile) through commercialization of wideband LTE-A service. With the upgrade, now it offers 4K Ultra High Definition (UHD) VoD streaming, which supports a resolution four times higher than Full HD. LG U+ launched a new unlimited LTE data plan accompanying a video streaming service “Uflix Movie”. accompanying a video streaming service “Uflix Movie”. lKorea’s big three all secured their wideband LTE bands through the LTE frequency auction in August 2013. Since then they have been steadily expanding their wideband LTE networks. And now they all began to offer nationwide wideband LTE services starting from July 1, 2014 - SK Telecom and KT in 1.8 GHz band (Band 3) and LG U+ in 2.6 GHz (Band 7). l Now the operators are getting ready to launch another wideband LTE-A service at the end of the year. This service will support max. 300 Mbps, using 3-band CA that combines 40 MHz across 3 bands. LG U+ has already secured 40 MHz bandwidth across 3 bands (20 MHz in 2.6 GHz and two 10 MHz in 850 MHz and 2.1 GHz) through the frequency auction in 2013. It plans to begin the service as soon as the 3GPP standardization process for 3-band CA (B1+B5+B7) is completed. SK Telecom, having gained approval for using 10 MHz, out of 30 MHz originally allocated for 3G services in 2.1 GHz band, for LTE services earlier this year, already began building 2.1 GHZ base stations in May 2014. The company plans to boost its LTE speed up to 300 Mbps by the end of the year by using 3-band CA (B1+B3+B5) combining 20 MHz in 1.8 GHz and two 10 MHz in 850 MHz and 2.1 GHz. In the meantime, KT is waiting for approval for converting 10 MHz out of 20 MHz in 2.1 GHz band, from 3G purpose to LTE purpose. Once approved, KT will commercialize 3-band CA (B1+B3+B8) at the end of the year. l In the fourth quarter of 2014, category 6 smartphones supporting 3-band CA are scheduled to be launched, and a maximum speed of 300 Mbps is expected to be supported. If everything goes as planned, it would be time for the country to take the first step into the world of GiGA mobile communications. LTE services that have been provided since its launch in 2011 and those scheduled to be provided in Korea are as follows: Table. Korean operators’ current and planned LTE services Max. Rate Total BW (DL) SK Telecom 75 Mbps 10 MHz Jul. 2011 B5 150 Mbps 20 MHz Jun. 2013 B3+B5 CA - 2-band CA LG U+ Jul. 2011 B5 Jul. 2013 B1+B5 KT Jan. 2012 B3 Sep. 2013 B3+B8 150 Mbps 20 MHz Sep. 2013 B3 225 Mbps 30 MHz Jun 2014 B3+B5 - 2-band CA Sep. 2013 B7 Jun 2014 B5+B7 Sep. 2013 B3 Jun 2014 B3+B8 300 Mbps 40 MHz Q4 2014 B1+B3+B5 3-band CA Q4 2014 B1+B5+B7 Q4 2014 B1+B3+B8 Service LTE LTE-A Wideband LTE 2-band Wideband LTE-A 3-band Wideband LTE-A Launch date and service bands
  • 3. 3 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 • Launched Wideband LTE-A (225Mbps) (World’s second) • Launched LTE-A (150Mbps) (World’s first) 13 • VoLTE (World’s first) • World’s first full HD streaming • Launched Wideband LTE (150Mbps) • Launched LTE (75Mbps) service • LTE subscribers: 12.3 M (45.1%) • LTE subscribers: 7.5 M (27.9%) • LTE subscribers: 634 K (2.4%) 10MHz (850MHz) + 10MHz (1.8GHz) 10MHz (850MHz) SK Telecom LG U+ KT • Scheduled to offer Wideband LTE-A (300Mbps) • Scheduled to offer Wideband LTE-A (300Mbps) • Scheduled to offer Wideband LTE-A (300Mbps) • Launched unlimited LTE data plan • LTE subscribers: 13.5 M (49.3%) • Expanded Wideband LTE to metropolitan cities • MWC 2013 Demonstration - CA (10+10MHz, 150Mbps) LTE LTE-A Wideband LTE Wideband LTE-A 10MHz 10+10MHz 20MHz 20+10MHz Max 150Mbps Max 225Mbps Wideband LTE-A Wideband LTE-A 20+10+10MHz 20+20+20MHz Max 300Mbps Max 450Mbps x2 x3 x4 x6 • Wideband LTE-A (20+10MHz, 225Mbps) demonstration Commercialized (by all 3 in 2013) Commercialized (by all 3 in June) To be commercialized (by all 3 in Q4) To be commercialized (in 2015 or later) • LTE subscribers: 14.9 M (53.1%) • LTE subscribers: 1.8 M (6.7%) 20MHz (1.8GHz) • Launched LTE-A (150Mbps) (World’s second) • Multi-Carrier (World’s first) • World’s first 4 CH multi-view • Launched Wideband LTE (150Mbps) • LTE subscribers: 6.5 M (61.1%) • LTE subscribers: 4.1 M (43.1%) • LTE subscribers: 557 K (5.9%) 10MHz (850MHz) • Launched LTE (75Mbps) service • VoLTE (World’s first) • Launched unlimited LTE data plan • LTE subscribers: 7.1 M (65.2%) • Expanded Wideband LTE to metropolitan cities • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - Uplink CoMP - LTE + Giga Wi-Fi Femtocell • LTE subscribers: 7.5 M (68.6%) • LTE subscribers: 1.8 M (15.5%) 10MHz (850MHz) + 10MHz (2.1GHz) 20MHz (2.6GHz) • HD 4Mbps streaming • Multi-Carrier • Launched LTE-A (150Mbps) (World’s third) • LTE subscribers: 6.8 M (41.8%) • LTE subscribers: 3.9 M (23.6%) • Launched LTE (75Mbps) service • VoLTE • Launched Wideband LTE (150Mbps) • Launched eMBMS (World’s first) • Launched unlimited LTE data plan • LTE subscribers: 7.9 M (47.9%) • Expanded Wideband LTE to metropolitan cities • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA - LTE-A + Giga Wi-Fi • MWC 2013 Demonstration - eMBMS (KT+Samsung+Quacomm) • LTE subscribers: 8.6 M (52.4%) 10MHz (1.8GHz) • LTE subscribers: 351 K (2.1%) 10MHz (1.8GHz) + 10MHz (900MHz) 20MHz (1.8GHz) • Multi-Carrier (World’s first) Wideband LTE Spectrum Auction Q4 13 14 As of July 1, 2014 Max 75Mbps Max 150Mbps x1 x2 Commercialized (by SKT/LG U+ in 2011 and by KT in 2012) Commercialized (by all 3 in 2013) LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014 • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA • Launched Wideband LTE-A (225Mbps) (World’s second) • Launched Wideband LTE-A (225Mbps) (World’s first) 20MHz (1.8GHz) + 10MHz (850MHz) 20MHz (2.6GHz) + 10MHz (850MHz) 20MHz (1.8GHz) + 10MHz (900MHz) 10 11 12 1 2 3 4 5 6 6 8 7 9 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 11 12 12 117 12 12 11 1 2 1 2 3 4 5 6 7 8 9 10 11 12 7 12 3 4 5 6 8 10 11 12 7 9 14 1 Q4 5 3 4 2 6
  • 4. 4 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 850 MHz 900 MHz 1800 MHz 2600 MHz Band 5 Band 8 Band 3 Band 7 1745 1755 KT 1930 1725 17351715 SKT KT 2520 2530 2540 LG U+ MHz MHz MHz SKT 1840 1850 905 915 KT 950 960 KT 839 849 LG U+ 829 1810 1830 MHz 2110 MHz 2640 2650 2660 SKT Nation NationNation Major Major 884 894874 Wideband LTE Nationwide 100 150 Nation 2120 Downlink The Big 3: ㆍ Launched Wideband LTE-A service using 2-band CA in June 2014, offering max. 225 Mbps (20 + 10 MHz) ㆍ Expanded Wideband LTE service nationwide on July 1, 2014 ㆍ To launch Wideband LTE-A service using 3-band CA in Q4 2014, offering max. 300 Mbps (20 + 10 + 10 MHz) - SK Telecom has already been approved for using a portion (10 MHz) of 3G spectrum for LTE purpose, and KT is still waiting for approval UE LTE Frequency Commercialization Status (as of July 1, 2014) Carrier Aggregation (CA) Uplink 225 Mbps 225 Mbps LG U+ Nation 150 Nation: Nationwide Major: Major Cities LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014 n Wideband LTE-A services in Korea (2014. 06) 2130 SKT 3GàLTE 1940 LG U+ Nationwide SKT Nation SKT 3GàLTEMajor LG U+ Wideband LTE 100 150 150 Nationwide SKT KT 225 Mbps 150 Mbps 1820 Wideband LTE 100 150 150 2100 MHz Band 1 1920 LG U+ Major SK Telecom 2-band 30 (20 + 10) MHz 2014. 06 LG U+ 2-band 30 (20 + 10) MHz 2014. 06 KT 2-band 30 (20 + 10) MHz 2014. 06 1.8 GHz (B3) + 850 MHz (B5) 2.6 GHz (B7) + 850 MHz (B5) 1.8 GHz (B3) + 900 MHz (B8) 225 Mbps 225 Mbps 225 Mbps Operator # of band Bandwidth (DL) LaunchedCarriers Max. rate (DL) Category 3 Category 4 100 Mbps (Wideband LTE) 150 Mbps (Wideband LTE, 20 MHz) 150 Mbps (LTE-A, 2-band CA, 10+10 MHz) B1-B5 Categoty 6 300 Mbps (Wideband LTE-A, 3-band CA, 20+10+10 MHz) Planned (Q4 2014) Planned (Q4 2014) SKT B3-B8 B3-B5 B5-B7 225 Mbps (Wideband LTE-A, 2-band CA, 20+10 MHz)Categoty 6 LG U+ KT 30 MHz: [B3]20 + [B5]10 30 MHz: [B5]10 + [B7]20 30 MHz: [B3]20 + [B8]10 225 Mbps2-bandCategory 6 LG U+ 20 MHz: [B1]10 + [B5]10 150 Mbps2-bandCategory 4 SKT B1-B3-B5 LG U+ KT 40 MHz: [B1]10 + [B3]20 + [B5]10 40 MHz: [B1]10 + [B5]10 + [B7]20 40 MHz: [B1* ]10 + [B3]20 + [B8]10 300 Mbps 3-bandCategory 6B1-B5-B7 B1-B3-B8 UE Category Max. Speed Operator UE Categoty CA Type BW: CA Combination Max. Speed SKT Nationwide * waiting for approval
  • 5. 5 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 Broadband Access Network Architecture in Korea | By Chris Yoo OLT L3 SW Splitter (1:4) Splitter (1:8) ONT UTP FTTH Dimensioning • 32 ONTs per PON port • 20 PON ports per OLT • 640 ONTs per OLT (5,000 ONT per OLT ~ planned) 100M bps ONT Splitter (32 ONTs) Splitter (1:8) Pole Manhole BRAS Backbone Central Office Edge GE GE Gbps Gbps Gbps Gbps VDSL DSLAMs L3 SW Twisted pair 100M bps GE Central Office Central Office L2 SWs L3 SW UTP 100M bps GE Splitter (1:4) ONUs UTP 100M bps Gbps Gbps Splitter (1:4) ONUs (VDSL) Twisted pair 100M bps Gbps fiber fiber Gbps 100M bps Migration Migration E-PON ❶ Fiber to the home ❷ UTP to the home ❸ Twisted pair to the home Single Homes Apartment Home Fiber to the home nxGE South Korea is a crowded country, with 50.3 million people in 18.8 million households. 47% of the total households live in condominiums or apartment buildings while 40% live in single homes. Different types of housings require different types of Internet access network topologies as seen in the figure below. For a user living in a single home, an optical fiber cable from an OLT at the operator's CO (central office) is split once by a splitter installed under a manhole in the street, and then again by another splitter installed on a pole near tHe user's home. Next, one of the split cables is connected to an ONT in his home, and then on to his PC via a UTP LAN port (100 Mbps). E-PON: Ethernet Passive Optical Network G-PON: Gigabit Passive Optical Network OLT: Optical Line Terminal ONU: Optical Network Unit ONT: Optical Network Terminal L3 SW: Layer 3 Switch GE: Gigabit Ethernet
  • 6. 6 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 Broadband Access Network Architecture in Korea For a user living in a condominium or apartment building, the access network topology to be used slightly vary depending on the wiring system installed in the building: fiber, UTP and twisted pair. (1) Optic fiber: An optical fiber cable from the OLT is split by a splitter installed in MDF of the building. Then, one of the split cables is connected to an ONT in the PC. (2) UTP: Previously, each building had one L3 switch installed in its MDF, and multiple L2 switches installed floors away from one another (e.g. on 5th, 10th and 15th in a 20-story building). The L3 switch was connected to the L2 switches on different floors. This type of topology requires L3 switches be located outside of (and far away from) the operator's CO, leading to higher OPEX. Now, L3 Switches are replaced by splitters, and L2 switches are replaced by ONUs, allowing splitters to be connected to an OLT at CO. (3) Twisted pair: Previously, each building had one L3 switch in its MDF, and multiple VDSL DSLAMs installed floors away from one another. Again, this type of topology requires L3 switches be located outside of (and far away from) the operator's CO, leading to higher OPEX. Now, L3 switches are replaced by splitters, and L2 switches are replaced by ONUs (VDSLs), allowing splitters to be connected to an OLT at CO. KT’s broadband access network illustrated in the previous page is quite similar to that of SK Broadband and LG U+, except KT and LG U+ use E-PON while SK Broadband uses G-PON. All three operators support 100 Mbps in both UL and DL, and take care of the Internet, IPTV and VoIP traffic through this one single cable (Triple Play Service). n n Vendors selected by operators KT SK (SK Broadband) LG U+ FTTH (OLT) ▶ E-PON: Dasan, ubiQuoss ▶ G-PON: Dasan, HFR, Tellion ▶ E-PON: Dasan, ubiQuoss LAN (L2/L3 Switch) ▶ L3 switch: Dasan, ubiQuoss ▶ L2 switch: Dasan, ubiQuoss ▶ L3 switch: Dasan, ubiQuoss ▶ L2 switch: Dasan, HFR, Tellion ▶ L3 switch: Dasan, ubiQuoss ▶ L2 switch: Dasan, ubiQuoss XDSL ▶ VDSL DSLAM: ubiQuoss ▶ VDSL DSLAM: Dasan, Tellion ▶ VDSL DSLAM: Dasan, ubiQuoss OLTs deployed in big 3's networks ubiQuoss (U9500H) 10G E-PON OLT HFR (HT7000G) G-PON OLT Dasan (V8272) E-PON OLT ubiQuoss (U9024A) Dasan (V5724G) Tellion (GP 1140)
  • 7. 7 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? | By Dr. Harrison J. Son KT’s Vision: GiGAtopia hairman Chang-gyu Hwang of KT (with sales of KRW 23.8 trillion in 2013), at a press conference held at KT Olleh Square in gggggggggg Hwang estimates that the company will aim to commercialize UHD TV services (15~20 Mbps) by the end of the year, and employ its video streaming technology, 'Olleh Power Live (eMBMS)', to cover more key service areas in Seoul by the end of June, allowing users to watch various contents in HD resolution (max. 4 Mbps), 10 times better than the current DMB TV. In 2013, the company faced an 'annual deficit' for the first time due to sales declines in its wired service division combined with a near-stagnant subscriber growth in the wireless service division. To make matters worse, the constant disharmony and non-cooperation among members in the company have led to KT's worst year, both internally and externally. Chairman Hwang took office on January 27, 2014. With the company still recovering from its devastating year's poor performance, he, as a result, has been busy dealing with a series of non-stop issues and incidents ever since then. He had to make an apology for leakage of personal information of 1.2 million customers in his first official press conference. Gwanghwamun, Seoul on May 20, announced that "KT will open up a new age of GiGAtopia by investing KRW 4.5 trillion (USD 4.4 billion) in GiGA FTTH, GiGA Path (heterogeneous networks convergence technology that combines LTE and Wi-Fi networks), and GiGA Wire (copper wire- based transmission technology) for the next three years." Through this investment, the company first plans to provide Giga-class wired Internet services such as GiGA Wire (300 Mbps) and GiGA FTTH (1 Gbps), which are three times and ten times faster than the current 100 Mbps, respectively. The company also plans on accelerating the wireless Internet access three folds by employing heterogeneous networks convergence technologies (e.g. IP Flow Mobility) that combine LTE and Wi- Fi networks. With these new Giga-infrastructures, Chairman Hwang estimates that the company will aim to C Source: KT
  • 8. 8 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? On March 14, the company was even ordered to suspend marketing to a new customer base for 45 days. In addition to that, he had over 8,300 employees voluntarily resign to help the company overcome the management crisis that it was facing in April. Under such dire circumstances, KT desperately needed a solution that could have all of its members re-united, and eliminate the market's concern about the company. Thus, the idea of GiGAtopia was born. GiGAtopia is all about high speed. Just as he won a capacity battle while serving as a former head of Samsung Electronics' semiconductor business, by doubling flash memory capacity every year, Chairman Hwang is trying to win another battle - a high-speed Internet battle - now in the communication market. The company plans to provide Gbps-level, wired and wireless, Internet services. The company introduced the concept of GiGAtopia, which integrates the various technologies and services it has been developing for many years. KT said it would invest KRW 4.5 trillion over the next three years, and through the investment, would position itself as a leader in the mobile communication industry, domestically and globally. Later in a forum titled "the 20th anniversary of Korean Internet commercialization and the GiGA age" held at KT Olleh Square on June 19, Mr. Seong-mok Oh, head of the Network Business Division at KT, Seong-mok Oh, head of the Network Business Division at KT, announced the company would commercialize GiGA FTTH and GiGA Wire in the second half of this year. Finally, KT is about to make a long-delayed leap from 100 Mbps - which has remained unimproved for 9 long years since its launch of FTTH service back in 2005 - to 1 Gbps. ▶ GiGA Internet (GiGA FTTH) GiGA Internet service can boost the capacity of the ultra-high speed Internet to 1 Gbps, 10 times faster than the current speed of 100 Mbps. This service will be available for those who have UTP or fiber installed at home. (As of April, 2014, KT has 8.0 million broadband subscribers. 35.1% of them (2.82 million) are connected by UTP cables, and 47.7% (3.83 million) are connected by fiber cables.) FTTH 3.8M (47.7%)LAN/UTP 2.8M (35.1%) XDSL 1.4M (17.1%) GiGA Internet (GiGA FTTH) KT broadband subscribers 100Mbps FTTH GiGA FTTH 100Mbps VDSL GiGA WIRE 150Mbps LTE GiGA PATH 10X 3X 300Mbps 1 Gbps 3X 450Mbps 100Mbps 100Mbps 150Mbps Fixed: UTP or Fiber cable Fixed: Twisted pair Mobile LTE 150Mbps + Wi-Fi 300Mbps GiGAtopia is all about high speed.
  • 9. 9 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? All the FTTH services currently available from South Korea's big three operators can support only up to about 100 Mbps in UL/DL, at most. That's why GiGA Internet is Chairman Hwang's No. 1 priority in his speed battle. GiGA Internet is also an E-PON based network, much like current 100 Mbps FTTH networks. ONTs currently installed at customer homes must be replaced by new giga ONTs (ones with GE LAN ports). KT has been replacing ONTs in selected areas since last year, and has also started switching OLTs in COs to ones with higher-capacity (capable of covering 5,000 ONTs, and supporting 10G PON ports and 10 GE uplinks) this year. For this GiGA Internet service, network infrastructures required for provision of the service have been built; however, no specific product has been released yet. This is because there have been issues regarding the pricing policy of the service. Once KT begins the service, it will have to deal with increased costs of investment in access lines (Giga ONT, high-capacity OLT/10 GE PON). Not only that, costs of investment in backbone networks will also rise due to increased backbone traffic resulting from installation of Gbps-level access lines and more importantly because of fast-growing free- riding traffic like P2P. This has been the biggest concern for KT. To address these issues, various measures like partial volume-based charging, limited traffic for heavy users, etc. have been proposed. The company has already submitted a pricing plan that reflects the suggested measures to the Ministry of Science, ICT & Future Planning for approval. Negotiations between the two are taking place for finalization of the plan. If KT wants to begin GiGA Internet service in the second half of this year as it proudly announced, the pricing issues must be handled first. As noted earlier, KT has to make significant investment before launching the service. ONU ONT ONT 100Mbps OLT (E-PON) L3 SW BRAS Central OfficeHome 100Mbps 100Mbps GE 640 ONTs/OLT 10Gbps 1Gbps 1Gbps 1Gbps ONU Giga ONT Giga ONT 1Gbps High capacity OLT (10G E-PON) BRAS 1Gbps 1Gbps 10Gbps 5,000 ONTs/OLT Edge Core KT IP Backbone (KORNET) Splitter Migration Down:10Gbps Up: 10Gbps Down:10Gbps Up: 1Gbps 24 ports UTP UTP Replace ONT 1G è10G High capacity OLT Remove L3 switch: Network Simplification 100 Mbps to the Home GiGA Internet (1 Gbps to the Home) 100Mbps è1Gbps Replace ONU KT IP Backbone (KORNET) Migration to GiGA Internet (1 Gbps to the home)
  • 10. 10 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? before launching the service. Besides, most of South Korean network vendors have recently been struggling in a bad economy. Given that, the Ministry of Science, ICT & Future Planning is expected to approve the pricing plan suggested by KT, eventually. ▶ GiGA Wire 47% of households in South Korea live in condominiums or apartments. This results in lots of high-density residential areas, consequently allowing for very short last-mile distances. Thanks to this unique nature of housing in this nation and the abundant fiber-optic cables deployed nationwide, South Korea has been recognized as a global leader in ultra-high speed Internet services and technologies since the early 2000s. More than 60% of the nation's households have UTP or fiber cables installed in their homes. Despite South Korea's highly developed access infrastructure, 9.3% (1.8 million) of the households still use the existent twisted pairs to access the Internet. This may not sound like a big market in South Korea. But, operators still have to provide solutions that can cover and serve all households with that can cover and serve all households with different cabling environments. Because of this, the South Korean big three operators have been developing solutions that can support hundreds of Mbps for those who are still using the original, old twisted pair-based Internet service. For KT, GiGA Wire was the product of such efforts. GiGA Wire is for users who live in old houses or apartments where only a twisted pair of cables are installed. By employing G.hn (ITU-T) technology, the service will support 300 Mbps in DL (three times faster than the current VDSL's 100 Mbps) and 100Mbps in UL, DSLAM 100M bps GE (UTP or Fiber) Twisted pair VDSL Modem Splitter (1:4) GAM 300M bps Gbps Twisted pair GNT: G.hn Network Terminal GAM: G.hn Access Multiplexer with E-PON uplink Splitter (1:4) ONUs 100M bps Gbps Twisted pair VDSL Modem ONU: VDSL DSLAM with E-PON uplink Splitter (1:4) GAM 300M bps Gbps Twisted pair GNT: G.hn Network Terminal GAM: G.hn Access Multiplexer with E-PON uplink L3 SW 100 Mbps To the Home (VDSL) 300 Mbps To the Home (G.hn) FTTH 3.8M (47.7%)LAN/UTP 2.8M (35.1%) XDSL 1.4M (17.1%) GiGA Wire KT broadband subscribers Migration to GiGA Wire (300Mbps to the home)
  • 11. 11 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? and 100 Mbps in UL, or 200 Mbps in DL and UL. This service is scheduled to be available in the second half of the year. GiGA Wire is KT's proprietary technology, and not one of the standardized technologies. The technology was designed by KT, chips used were supplied by a chip vendor Marvell, and GNT and GAM that function as a modem and DSLAM in VDSL respectively were provided by ubiQuoss. ▶ GiGA Path GiGA Path is a heterogeneous network convergence technology that improves transmission rates of mobiles by combining LTE and Wi-Fi. It can be roughly divided into two types: app-based and network-based. In case of an app-based approach, there is no separate gateway in the network. Instead, it works as an "app" in a smartphone so that data can be sent or received through either LTE or Wi-Fi between the service app in the smartphone and KT's streaming server in KT's IP network. KT has named this technology as "Always Best Connected (ABC)", and has employed it in its Olleh TV mobile apps and Olleh TV streaming server since 2013. TV streaming server since 2013. Currently, this type can be used only for Streaming services that are directly developed and operated by KT, and not for video streaming services by OTTs (like YouTube). On the other hand, in case of a network- based approach, there is an anchoring point, like mobile IP HA (IFOM: IP Flow Mobility) or multi- TCP proxy server, to be used for diverging traffic. At the end of last year, KT succeeded in demonstrating the combination of LTE 150 Mbps and Wi-Fi 300 Mbps (802.11n) into 450 Mbps by using IFOM technology on the Galaxy Note 3. Now the company is considering furthering the employment of multi-Path TCP technology as well. This type of approach does not require interoperation with CSPs or OTTs, and as a result can be used in video streaming or file downloading by OTTs and CSPs. Thus, it would only be natural for KT to stick to both the app-based approach (for transmitting its own contents) and network-based approach (for transmitting contents from other CSP or OTT). Now that we are familiar with KT's GiGAtopia, we will find about evolution strategies of SK Telecom and LG U+ in August. n KT IP Backbone LTE Network IP Backhaul P-GW KT Olleh TV Mobile Streaming Server Wi-Fi APeNB KT IP Backbone LTE Network IP Backhaul P-GW CSP, OTT (e.g., File Box) Wi-Fi APeNB HA Public Internet GRE Tunnel App-based approach (ABC) Network-based approach (IFOM) DSMIPv6 Client DSMIPv6 Home Agent Olleh TV Mobile App 150 Mbps 300 Mbps 450 Mbps Movie file Interworking Interworking GiGA Path is a heterogeneous network convergence technology that improves transmission rates of mobiles by combining LTE and Wi-Fi.
  • 12. Small RRH Small BS with Wi-Fi CPRI GPON/GE GE Macro LTE RRH BBU Pool 8300 Ethernet Backhaul CPRI Fronthaul CPRI GE SAE-GW Macro Cell SiteSmall Cell 8500 8100 8300 Central Office SAE-GW EPC Site IP/MPLS Baseband I/Q stream Ethernet frame HSN 8300 HSN 8500 flexHaulTM Solution HSN 8100 ls : CPRI traffic ls : Ethernet traffic GE HSN 8300 Netmanias: Welcome! Thank you for being with us. Can you tell us a little bit about HFR first? HFR: HFR was founded in 2000. And we have been providing wired/ wireless operators and enterprises with various equipment such as WDM including Mobile Fronthaul, Carrier Ethernet, FTTx, Wi-Fi, Repeaters, etc. Netmanias: What are the concept and position of your flexiHaul? HFR: Our flexiHaul product line is a family of fronthaul units that connects BBUs and RRHs in the emerging next generation architecture, C-RAN. Our flexiHaul series are WDM solutions. What they do is to aggregate (fronthauling) macro/ micro/small RRH (CPRI) traffic, and aggregate (backhauling) legacy base station, compact base station (pico), and Wi-Fi traffic to a single aggregation network. Netmanias: These C-RAN and fronthaul may sound new to some of us. Can you tell us more about them? HFR: Sure. To handle soaring data traffic, operators have been making macro cells smaller, and this has apparently left the operators with more cells to build and operate. To save costs in building and operating cell sites, a new architecture called C- RAN was introduced. It is also known as “Centralized RAN” or “Cloud RAN”. With this C-RAN, operators can simply leave all RRHs in their cell sites, but move only BBUs to a centralized location at central offices or master cell sites. C-RAN has drastically lowered the cell site cost (Capex/ Opex), and has maximized the effects of CoMP and eICIC of LTE-A. This helps to improve not only service quality, but also network performance. Because of these benefits, many operators around the world have been conducting trial tests for C-RAN deployment. And two of the most advanced LTE operators in South Korea, and also in the world, SK Telecom and KT, already succeeded in commercializing it back in 2012. Now that RRHs and BBUs are remotely separated in C-RAN, a new network was required in order to deliver a huge volume of baseband Netmanias Vendor Interview with HFR I/Q streams between the two across CPRI or OBSAI link. Previously, both RRHs and BBUs were located in eNBs, and the transport network between eNBs and EPC was called backhaul. Now in C-RAN, these new CPRI and OBSAI networks are called fronthaul. Netmanias: I see. Then, fronthaul is a newly defined segment in a mobile operator’s access network. What are the technical requirements for the fronthaul then? HFR: The fronthaul network should be able to satisfy requirements under LTE layer protocol operation and under the CPRI specification. First of all, ultra-high transmission capacity (as high as 2.5 GMbps~10 Gbps) for delivering baseband I/Q data is required, and latency caused within equipment in the fronthaul network should be minimized to a few secs to maximize the distance between BBUs and RRHs. In-C-RAN, since RRH has no GPS antenna, it extracts clock from I/Q bit stream received from BBU. And then it removes jitter and generates the clocks (CPRI/sampling/carrier 12 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 HFR is probably most known as a vendor of wired/wireless network equipment like Mobile fronthaul, Carrier Ethernet, FTTx, etc. Today, we are going to talk about one of its most popular solutions, flexiHaulTM , a mobile optical access solution. HFR’s flexiHaulTM Fronthaul Solution
  • 13. frequency, etc.) to be used in the RRH system. So, the RRH system performance varies depending on the quality of the recovered clock. That’s why jitter has to be minimized in the fronthaul network, and the CPRI specification defines the maximum frequency accuracy budget as 0.002 ppm. Also, to guarantee the time/ phase synchronization required in LTE-A (eICIC, CoMP), the CPRI time/ phase synchronization should be strictly ensured in the fronthaul as well. So, we can say ensuring low latency and synchronization between BBU and RRH are the most important and demanding jobs for the fronthaul. Netmanias: You mean, transport capacity, low-latency and highly accurate synchronization are key factors, right? HFR: That’s right. Netmanias: I see. Then, what possible ways have been suggested to satisfy such demanding technical requirements? HFR: There have been several ways. First, in terms of technology, the best option would be using dark fiber. But the problem with this option is that it would only work for those who already have plenty of fiber, and others including most operators would have to lease it. And obviously this can cost a lot. For example, a network with LTE Carrier BW of 20MHz, 2x2 antenna, 3-sector, 2 bands would require 6 RRHs in each cell site, which means 6 leased fibers in each cell site. The second option would be OTN, which I would say has room for improvement. The problem with this option is that, latency and jitter are caused during OTN mapping/demapping/multiplexing. And this leads to longer latency in the fronthaul network, and degraded RRH system performance, respectively. So, the OTN standards and equipment development need to be improved in a way that can optimize CPRI transmission. The third option is WDM. With WDM, just a single or two fibers can cover tens of CPRI channels. So, fiber costs can be lowered, and high-volume transmission is possible. There are two types of WDM, passive and active. The best part of passive WDM is that it is inexpensive, and requires no power supply. Besides, little latency or jitter is caused, and so the distance between BBU and RRH can be maximized, without affecting LTE/ LTE-A performance much. Active WDM is bidirectional (single fiber). So, dark fiber costs can be lowered. And by using Muxponder, the number of required can be minimized, which can further lower the fiber costs. What’s even better, operators can even monitor the quality of the fronthaul network by running a self loopback test on active WDM units. But, one thing to note is that active WDM may cause latency and jitter, which should be kept under certain levels. Netmanias: I see. What kinds of technologies have been used in building the fronthaul network with the current commercial C-RAN? HFR: C-RAN was commercialized by Korean mobile operators for the first time in the world. They have adopted both passive and active WDM, and we also support both of them. But, today I will only talk about flexiHaul solution, which is an active WDM solution. Netmanias: Now, let’s talk about your fronthaul solution, flexiHaul. HFR: Our flexiHaul solution consists of the HSN series (HSN 8500/8300/ 8100/8110). HSN 8500 models are installed in BBU pool sites, and support 40 λs and 72 CPRI ports. These models support the three CPRI service cards, i) transponder card that supports three option 3/4/5/6 CPRI ports, ii) Muxponder card that supports four option 3/4 CPRI ports, and iii) Muxponder card that supports two option 3/4/5/6 CPRI ports. And all three CPRI cards have been deployed in SK Telecom’s commercial network. Muxponder cards use one per card. So, fewer are required. And that allows HSN 8500 to aggregate RRHs at the maximum level. HSN8300/8100/ 8110 models are RTs installed at cell sites. Netmanias: How many RRHs can one HSN 8500 unit cover? HFR: One HSN 8500 unit has up to 72 option 3/4 CPRI ports. So, each can aggregate up to 72 RRHs. By default, it can have two rings, and each ring has up to 36 CPRI ports. This means, operators can aggregate CPRI traffic from 36 RRHs with just a single fiber, and boost the transmission capacity of each ring up to 90 Gbps. Of course, they can create custom configuration that would fit best into their networks. Netmanias: Then, tens of RRHs are connected to centralized BBUs through the fronthaul rings. What if there is a fiber cut? Will that leave tens of devices disconnected? HFR: That’s right. But, fortunately, our flexiHaul solution offers instant protection switching within 50 msec in case of a fiber cut. So, CPRI traffic is detoured without delay, preventing any service interruption. Netmanias: Does the flexiHaul solution meet the fronthaul requirements you mentioned earlier? HFR: The flexiHaul solution is a fronthaul solution using WDM, so has no capacity issue. One HSN 8500 can deliver CPRI traffic up to 180 Gbps. It has many excellent technical features we have developed to minimize latency and jitter which can affect LTE/LTE-A. So, for example, in a ring with COT and RTs, a fronthaul end-to- end latency excluding fiber latency can be kept under 1μsec, and jitter can be kept under a few nsecs. More than 3,500 flexiHaulTM units are currently running in SK Telecom's commercial LTE/LTE-A network. And I guess that proves our solution has met all the strict technical requirements of fronthaul. Netmanias: I saw CPRI/OBSAI, and also GE and GPON cards plugged in a flexiHaul unit. What are those cards for? 13 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 NetmaniasVendorInterviewwithHFR
  • 14. HFR: When a legacy operator builds an LTE network, there are already legacy 3G base stations in its cell sites. Our flexiHaul RT units (HSN 8300/ 8100) accommodate 3G BSs through the GE interface, and connect LTE RRHs through the CPRI interface. That way, they can accommodate the two access networks in a single network. GE and GPON cards connect small cells (pico) or Wi-Fi APs. If no fiber is available in a small cell area, operators can connect small cells by accessing microwave devices through the GE interface. Netmanias: In case of wholesale, a fronthaul provider must monitor the quality of fronthaul and report to mobile operators. Then, the two demarcation points would be the one between RRH and RT (HSN 8300/ 8100), and the other one between BBU and COT (HSN 8500). What key performance indicators are provided? HFR: Our solution checks the transmission quality of each CPRI signal as well as optical fiber, through real-time monitoring of BER of optical and CPRI signals transmitted/received at CPRI ports. At each CPRI port transmission interval, a loopback test can be run for troubleshooting. Netmanias: What are the benefits that your flexiHaul solution can bring to operators? HFR: First of all, our solution can save them a lot in costs of building and operating networks. Because the flexiHaul solution features WDM, dark fiber costs will go down. If they use Muxponder cards that can connect four CPRI ports to one, the cost will go down even further. And because the flexiHaul solution keeps a one-way latency less than 1 sec, the fiber distance in the fronthaul network can be increased up to 25 km. If the distance between BBU and RRH increases, the fewer BBU Cos are required. This allows operators to centralize more BBUs, and lower down costs in maintaining sites. Netmanias: So, the No. 1 benefit is saving costs. I guess that would be the biggest benefit to operators especially when higher traffic doesn’t mean higher profits like these days. Any other benefits? HFR: HFR’s fronthaul solution offers extremely low latency and jitter. So, it can maximize the performance of LTE-Advanced features such as CoMP and eICIC, eventually improving the LTE-A service quality and network performance. These days operators are in fierce competition to attract customers. With our solution, operators can prevent customer churn and attract new subscribers by providing better service quality than other competitors. Our ring protection within 50 msecs feature ensures any link failure is recovered instantly to minimize LTE/ LTE-A service interruption. Not only that, operators can monitor the quality of the fronthaul link through BER and CV (Code Violation) of CPRI data that is being monitored in real time. Netmanias: C-RAN was initially proposed by China’s CM. But, it was Korean operators (e.g., SK Telecom) who actually commercialized it. And a fronthaul network, which made C- RAN work, was also commercialized by Korean operators for the first time in the world. Then there came your flexiHaul series. You have done a pretty impressive job of developing and introducing new solutions that the market has wanted right in time. But, now many vendors, stimulated by huge popularity of C-RAN, are working hard to develop new fronthaul products. What makes the flexiHaul solutions better and more competitive than that of your competitors? HFR: We have been stabilizing and optimizing systems in real commercial networks, and have accumulated technical know-how for many years. And those experiences and know-how are our biggest assets that can make us ready to work any time. Our solutions are not in the proof of concept (POC) step, but are fully proven, ready to use. That’s what really put us ahead of everyone else. We are the ONLY one who can achieve the best time-to-market with the least trial and error in building a fronthaul network. Netmanias: What are the examples of the large-scaled deployment of the flexiHaul solution? HFR: We have deployed the flexiHaul solution in SK Telecom’s network since 2012, helping the company to build its nation-wide fronthaul network, in 84 major cities. 80% of the fronthaul networks were built with active WDM, and 50% of the units deployed were our flexiHaul. Also, we went global. Since 2013, we have conducted many trial tests with operators in Europe and Asia. Netmanias: C-RAN sounds like a pretty good option for operators to manage cost and performance issues. It looks like fronthaul is the key that can make the option work. And I have to admit that I got an impression that you guys know exactly what to do when it comes to fronthaul. Well, I guess that’s it for today. Thank you so much for your time! HFR: Thank you for having me! n ...... About HFR (www.hfrnet.com) HFR has been actively responding to the Cloud RAN market under LTE environment. We expect that our front-haul solution will become representative product in global equipment market. Also, HFR has been leading the high-speed internet equipment with the development for Giga Internet service area. Based on its competitive solutions in the wire and wireless communications fields, HFR is determined to become Korea’s leading network equipment company. For more information, please visit www.hfrnet.com 14 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 NetmaniasVendorInterviewwithHFR
  • 15. 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 2012 2013 2014 4G(LTE) 3G(WCDMA) 77.2 [PB] 9.2 3 21 44.5 17.1 As of the end of May 2014, the LTE traffic reached 77.2 PB, which is 8.39 times higher than 3G traffic. Monthly LTE Traffic grew By 164% from 44.5 PB to 77.2 PB over the last one year. 4G smartphone, 3G smartphone and 2G/3G feature phone users generate 2.54 GB, 1.37 GB and 5 MB of traffic on average per month. As of the end of May 2014, 38.7M subscribers, which is 69.7% of the total 55.5M mobile subscribers, are smartphone users. 1 6 1 6 1 4 2012 2013 20142011 Smarthpone Feature Phone Smart Pad 52.5M 55.2M 38.7M (69.7%) 16.1M (29.1%) 0.65M (1.1%) 21.3M (40.8%) 30.5M (58.3%) 0.48M (0.9%) * Source: Ministry of Science, ICT and Future Planning 15 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 LTE Statistics in Korea As of May, 2015, the total number of mobile subscribers in Korea hit 55.5 million. This indicates that Korea has a penetration rate of 110.3%, considering its population, 50.3 million. Korea has 31.9 million LTE subscribers, which account for 57.5% of the total mobile subscribers. n LTE subscribers (November 2007 – May 2014) 0 10 20 30 40 50 60 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 2012 2013 2014 [Million] 0 5 10 15 20 25 30 35 40 45 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2007 2008 2009 2010 2011 2012 20132014 2G 3G 4G [Million] 2011 May 2014 31.9M (57.5%) 23.6M (42.5%) Launch LTE services (July, 2011) 55.5M 2G & 3G 4G LTE n Mobile data usage in Korea [PB/Month] n Mobile subscribers - Split per device type
  • 16. SK Telecom KT LG U+ 27.8M (50.1%) 16.7M (30.1%) 11.0M (19.8%) 55.2M Mobile subscribers in Korea May 2014 0 2 4 6 8 10 12 14 16 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 2011 2012 2013 2014 SK Telecom KT LG U+ [Million] 16 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 South Korea’s top 3 operators have LTE subscription rates that are higher than any of its global competitors who launched the same service before them, especially LG U+ with the seemingly unbeatable 68.8% as of the end of March 2014. 68.8% 53.2% 52.4% 49.3% 34.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 LG U+(Korea) SK Telecom (Korea) KT (Korea) Verizon (US) Docomo (Japan) As of the end of May 2014, SK Telecom has 15.0M LTE subscribers, which account for 47.1% of the total LTE subscribers in Korea. Mobile subscribers trace – Split per network (November 2011 – May 2014) 3. LG U+ 11.0M 9.3M 4G (LTE) 2G (CDMA) 3.4M (30.5%) 9.0M (96.6%) 0.3M (3.4%) 7.7M (69.5%) LTE Deployment Status by Operator in Korea (November 2007 – May 2014) 15.0M (47.1%) 9.2M (28.7%) 7.7M (24.1%) 1 6 1 6 1 2012 2013 20142011 5 n LTE subscribers growth by operator n LTE subscription rate 26.5M 27.8M 4G (LTE) 3G (WCDMA) 2G (CDMA) 8.96M (32.3%) 3.8M (13.7%) 0.4M (1.4%) 19.0M (71.8%) 7.1M (26.7%) 1. SK Telecom 15.0M (54.1%) 1 6 1 6 1 2012 2013 20142011 5 4G (LTE) 3G (WCDMA) 7.5M (45.2%)16.4M (99.1%) 16.5M 16.7M 2. KT 9.2M (54.8%) 1 6 1 6 1 2012 2013 20142011 5
  • 17. 0 1 2 3 4 5 6 7 8 9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8 10 12 14 16 18 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * Source 1: Ministry of Science, ICT and Future Planning * Source 2: KT, SK Broadband and LG U+ n Broadband subscription rate (Q1 2005 – Q1 2014) The broadband subscription rate in Korea has been steadily increasing, reaching 76.6% in Q1 2005, 100% in Q4 2010, and 103% in April 2014. KT Cable operators LG U+ Million n Broadband subscribers by operator (Q1 2005 – Q1 2014) KT SK (SK Broadband) LG U+ Cable Operators 8.0M (42.4%) 18.9M Broadband subscribers in Korea (May 31, 2014) 4.66M (24.6%) 2.98M (15.8%) 3.13M (16.6%) As of the end of May 2014, Korea has 18.9M broadband subscribers, and 42.4% of them (i.e. 8.0M) are KT users, which makes the company the unrivaled No. 1 in the country’s broadband market. Q4 2010: 100% Broadband subscribers # of Households 18,852,555 18,269,153 Million Click the link below to see statistics information on wired/wireless services and subscribers in Korea. http://www.netmanias.com/en/?m=view&id=statistics_ict&no=6041 SK (SK Broadband) 17 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 Broadband Subscribers in Korea
  • 18. 3.84 1.24 0.29 0.03 2.82 1.82 1.77 0.63 1.36 0.35 0.03 1.26 0.93 2.45 0 1 2 3 4 5 6 7 8 9 KT SK LG U+ MSO Million XDSL LAN (UTP) HFC (Cable) FTTH OLT ONT PON OLT L3 SW ONU Edge & Backbone Home CO UTP PON UTP L2 SW L3 SW UTP UTP FTTH LAN Last mile line • FTTH: Optical fiber (ONT at home) • LAN: UTP cable (from L2 switch or ONU) 18 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 Since its launch in 2006, FTTH service subscribers have continued to increase. As of the end of May 2014, 5.4M (28.6% of the total broadband subscribers) are subscribing to this service. Different FTTH technologies have been adopted by the big 3 operators – E-PON by KT, G-PON by SK, and E-PON by LG U+ – but they all support 100 Mbps in UL and DL. - 1 2 3 4 5 6 7 8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 LAN (UTP) FTTH HFC XDSL Million 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LAN (UTP)7.1M (37.5%) 4.7M (24.7%) HFC FTTH 5.4M (28.6%) XDSL 1.7M (9.2%) 18.9M Broadband subscribers in Korea (May 2014) Korea has 5.4M FTTH subscribers, and 71.1% of them (i.e. 3.84M) are KT users, making the company the No. 1 FTTH service provider in the country. Broadband Subscribers in Korea – Access Technologies 8.0M 4.66M 2.98M 3.14M n Broadband subscribers trace by access technology (Q1 2005 – Q1 2014) n Broadband subscribers by operator – per access technology (May 2014)
  • 19. 19 © Netmanias Consulting • www.netmanias.com Korea Communication Review • July 2014 Pay TV Subscribers in Korea n Pay TV subscribers trace 0 2 4 6 8 10 12 14 16 18 2006 2007 2008 2009 2010 2011 2012 2013 Million Cable IPTV Satellite The number of IPTV subscribers is increasing fast. It exceeded 9M in March 2014, and reached 9.2M a month later. This was an increase of 150,000 a month on average. With this growth rate, it is expected to exceed 10M this year. As the competition among IPTV, cable and satellite operators was getting tougher, they began UHD service in an effort to prevent subscriber churn and attract new subscribers. The service was launched by the cable operators and SK Broadband, in April. And KT and LG U+ are scheduled to begin the service by the end of this year. n IPTV subscribers trace by telco 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 2011 2012 2013 2014 KT SK Broadband LG U+ Million Growth in Korea’s IPTV market has been mostly driven by KT. As of April 2014, the company has 5.2M IPTV subscribers, which is 56.4% Of the country’s total. IPTV operators in the market are in fierce competition with each other as well as with cable operators. n UHD TV services Cable 14.8M (52.4%) 9.2M (32.7%) 4.2M (14.9%) IPTV Satellite 28.3M Pay TV subscribers in Korea (April 2014) SK Broadband KT LG U+ 5.2M (56.4%) 2.3M (25.0%) 1.7M (18.6%) 9.2M IPTV subscribers in Korea (April 2014) Frame rate 60 fps 30 fps 30 fps (60 fps planned) Resolution 4K (3840x2160) 4K (3840x2160) 4K (3840x2160) Encoding rate 32Mbps 15Mbps 30Mbps Codec HEVC (H.265) HEVC (H.265) HEVC (H.265) Launch 2014.04 2014.04 2014.06 Cable TV (CJ Hellovision, C&M, t-broad) IPTV (SK Broadband) Satellite TV (KT Skylife)
  • 20. Locations Headquarter 2F, Namyeong Building 730-13, Yeoksam-dong, Gangnam-gu, Seoul 135-921, Korea Branch Office 3832 NE 88th Street Seattle, WA 98115 USA Visit http://www.netmanias.com to view and download more technical documents. Research and Consulting Scope of Netmanias We design the Future We design the Future We design the Future About Netmanias (www.netmanias.com) NMC Consulting Group (Netmanias) is an advanced and professional network consulting company, specializing in IP network areas (e.g., FTTH, Metro Ethernet and IP/MPLS), service areas (e.g., IPTV, IMS and CDN), and wireless network areas (e.g., Mobile WiMAX, LTE and Wi-Fi) since 2002. Carrier WiFi Data Center Migration Wireline Network LTE/LTE Advanced Mobile Network Mobile WiMAX Carrier Ethernet FTTH Data Center Policy Control/PCRF IPTV/TPS Metro Ethernet MPLS IP Routing 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 eMBMS/Mobile IPTV Services CDN/Mobile CDN Transparent Caching BSS/OSS Cable TPS Voice/Video Quality IMS LTE Backhaul/Fronthaul 14 Consulting Future LTE IP/MPLS CarrierEthernet Networks POC Training Wi-Fi Infrastructure Services CDN Transparent Caching IMS eMBMS protocols Analyze trends, technologies and market Report Technical documents Blog One-Shot gallery Analysis Concept Design DRM

×