1. 2011 Malta Conference
The Keynote Speech
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The new keyword,
„Smart Communications‟
Yong-Kyung Lee, 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,
Yong-Kyung Lee 1
in whole or in part, without the permission of the writer. © 2011 copyrights reserved

2. ICT status in Korea

3. Korea‟s rankings in global ICT indices
UN E-government development index as of 2010
#1
☞Capacity & willingness in using e-government for ICT-based national development
UN e-participation index as of 2010
#1
☞ Online participation of citizens on national issues and policies
ITU ICT development index as of 2010
#3
☞ Development of information society including information divide
#1 Household internet penetration rate among OECD nations
as of 2009 (ITU)
3 Yong-Kyung Lee

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 2010 4 Yong-Kyung Lee

5. Key success factor
Government
Government Visionary leadership &
Visionary policies
policies
Key Risk-taking CEOs
Market Capable local vendors
factor Fierce market competition
Consumer Early-adopting & picky
5 Yong-Kyung Lee

6. Keywords of the Current Market
Stand-alone Networked
PC computing
Cloud service
Narrowband Broadband Mobile computing
Social networking
Fixed-line Mobile
6 Yong-Kyung Lee

7. Smart-phone
Tsunami
in Korea

8. November 2009 in Korea
Source : Yonhap News 8 Yong-Kyung Lee

9. Smart-phone wave
25,000
(unit:000 users)
7,000
1,420%
460
Nov 2009 Dec 2010 Dec 2011(E)
Source : KCC 2010 9 Yong-Kyung Lee

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 : www.digieco.org 10 Yong-Kyung Lee

11. No.1 in mobile data traffic
(/user/mo)
Korea Japan World
average
271
MB 199
MB
85
MB
Note : ATPU (average traffic per user/per month)
Source; Informa Telecoms & Media Nov. 2010 11 Yong-Kyung Lee

12. Korean smart phone apps
23.1 apps per user on average
7,475
215%
58.1% smart-phone users
2,367 have at least one paid-app
29.5% paid-app users
2009 2010 spend more than $ 10 per month
Source : www.digieco.org, KCC & KISA, July 2010 12 Yong-Kyung Lee

13. Spend 59.4 minutes accessing Internet
Smart-phone usage 41.6%, over 60 min.
Internet
Music 120~ min. ~5 min.
17.2% 14.2%
Moving picture
5~10 min.
LBS services 7.7%
60~120 min.
Camera 10-30 min.
24.4%
18.1%
App usage
email 30~60 min.
(%)
18.4%
Documentatio
n
Note : Only internet connection duration counted
Source : July 2010, KCC & KISA 13 Yong-Kyung Lee

14. Skyrocketing SNS visitors
facebook Twitter
7,380 8,654
650% 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 2011 14 Yong-Kyung Lee

15. Smart-phone widows?
Go to hell with your
smart phone!
Well, then, bury me
in a WiFi zone!
15 Yong-Kyung Lee

16. One of the success factors
Affordable package prices
i-slim i-light i-medium i-premium
Monthly
35 45 65 95
charge($)
Voice 150 min 200 min 400 min 800 min
SMS 200 300 300 300
Mobile
100MB 500MB 1GB 3GB
data
i-phone
$396 $264 $132 free
3GS
Note : $1=1,000(Korean won) assumed., 2year-subscription
Source : KT 2009 price table 16 Yong-Kyung Lee

17. Flat rate being a curse?
$50/mo
“unlimited data usage”
(21.6% of total subscribers*)
$50/mo – 75Mbytes
Daily limit $60/mo – 100Mbytes
$70/mo – 150Mbytes
$90/mo – 300Mbytes
Note : started from Aug. 2010
Source : July 2010, KCC & KISA 17 Yong-Kyung Lee

18. What does this
all mean?

19. Truly mobile
Always-on
Strictly personal
19 Yong-Kyung Lee

20. Mobile power in the US
Source : Bain Analysis 20 Yong-Kyung Lee

21. User diffusion speed
Time to reach 20 users from 5 users/100
(persons) 20
5yr
6yr 8yr
15
31yr
10
(1) fixed-line
(2) internet
(3) mobile phone
5 (4) smartphone
Note : How long it takes to reach 20 from 5 users among 100 people
Source : SERI, June 2010 21

22. Global mobile traffic forecast
131%
annual growth
Source : Bain Analysis 22 Yong-Kyung Lee

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 2010 23 Yong-Kyung Lee

24. Challenges

25. Challenges
Privacy,
strict guard or show off?
Security,
„always-on‟: hackers‟ playground
Smart-divide
Network,
who pays for it?
25 Yong-Kyung Lee

26. To cope with data traffic explosion
Short-term ; Upgrade & detouring
Upgrade network
4G
(LTE/Wibro Evolution)
Mobile
Core
Network
Internet
detouring
Femto-cell, Wi-Fi
Source : KISA 2011 26 Yong-Kyung Lee

27. Network evolution roadmap (Korea)
KT SKT LGU+
HSDPA 03.2007 03.2007 2006
384Kbps/14.4M (National coverage) (National coverage) CDMA2000 Rev.A
HSUPA 06.2010 05.2010
3.5G 5.7M/14.4M (84 cities) (59 cities)
HSPA+ 12.2010 10.2010
5.7~11M/21~42M (pilot, Seoul) (Seoul)
LTE pilot 2011 07.2011 07.2011
36~75M/73~150M (Seoul) (Seoul) (Seoul)
LTE 2012 (6major cities)
commercial service 2013 (nation-wide)
4G
2011 (modem type) 2012 (dual mode)
LTE Device
2012 (phone type) 2013 (single mode)
LTE Advanced
Commercial service in 2015
150M~/300M~
27 Yong-Kyung Lee

28. To cope with data traffic explosion
Long-term; Migration from CDN to CCN
Pre-Caching On-demand
CDNAPP APP
TCP/IP CCN
D/L D/L
PHY PHY
Add-on network Architecture integration
Note : CDN (Contents Delivery Network),
CCN (Contents Centric Network)
Source : KISA 2011 28 Yong-Kyung Lee

29. Smart-phone OS competition & Telco‟s strategy
OS competition Telco’s cross platform strategy
App Store
Cross Platform
IOS Android Windows Symbian Others
N-screen
Others
Global Telco Alliance (WAC)
29 Yong-Kyung Lee

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 Yong-Kyung Lee

32. PatientsLikeme.com
Free
community Commissions
service
Pharmaceutical
Personal PatientsLikeMe
feedback
companies
Data
collection Sell data
Similar
patients
Internet Mobile SNS
Cohesive group
Explosion of True ubiquitous formed by
information environment exchanging trust
flow & emotion
Source : SERI CEO, Jan. 2011 32 Yong-Kyung Lee

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 Yong-Kyung Lee

34. Power of social media
Knowing social media wins power
Market Government
Government
Customer Individual Citizen
power power
Network
power
Social networks Real-time
= =
Multiply influence
Χ Multiply information
34 Yong-Kyung Lee

35. Thank you
yklee@paran.com

36. IPTV(live/on demand)+internet+phone=$38
Subs- QOOK Modem QOOKTV STB Phone
Service Total
cription Base Rental Base Rental Additional
100M
internet
LiveTV 3 yrs $27 - $7 - $4.6 $38.6
32ch
on demand
Phone None $34 $8 $9.7 $7 $5 $64
100M
internet
Live TV 3 yrs $27 - $8.6 - $4.6 $40.2
50 Ch
On demand
Phone None $34 $8 $11 $7 $5 $65
100M
internet
Live TV 3 yrs $27 - $11 - $4.6 $42.6
70 Ch
on demand
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 59%
HSPA
35% HSDPA
13%
40% WCDMA WCDMA
Source; Ovum 2010 37 Yong-Kyung Lee

38. Media evolution
trans
media
cross
digital
printed
alphabets
speech
38

39. At dates: attracted more to smart phones
39 Yong-Kyung Lee