1. WiBro Service Policy 2006. 8. 28 Jik-Dong Kim, Ph.D. Industry Technology Division Information & Communication Policy Office, MIC

2. Dynamic u-KOREA 1 ContentsContents Introduction of WiBro II Market Projection IIII WiBro Korea IIIIII

3. I. Introduction of WiBro Why “WiBro”? I-1I-1 What is “WiBro”? I-2I-2 Service Features I-3I-3 Wireless Technology Roadmap I-4I-4

4. Dynamic u-KOREA 3 Limitations of Current Wireless internet Mobile Phone : Low Speed, High Rate Wireless LAN : No Mobility (within 100m) Need to Provide New Mobile Wireless Internet Service Cheaper than Mobile Phone I-1. Why “WiBro”? Telecom Market Snapshot FixedWireless CAGR = 4.77% CAGR = 20.20% 6.7 8.5 20042008 3.08 6.43 20042008 Data CAGR = -6.23% CAGR = -3.08% 5.0 6.5 20042008 13.1 11.6 20042008 Voice Source : KISDI (unit : billion $) Wireless Data Market Grows! Wireless Data Market Grows!

5. Dynamic u-KOREA 4 I-2. What is “WiBro”? Target market : Wireless Broadband Internet Add Mobility to Wireless LAN Lower cost, Higher speed than Mobile Phone Internet Target market : Wireless Broadband Internet Add Mobility to Wireless LAN Lower cost, Higher speed than Mobile Phone Internet Wireless Voice Wired Broadband Wireless Internet Fixed Telephone Mobile Phone Broadband Internet (ADSL, VDSL, HFC) Data WirelessLAN Wireless Broadband Internet : Anytime, Anywhere MobileInternet

6. Dynamic u-KOREA 5 Real Data Speed WiBro (IEEE802.16e) WLAN (IEEE802.11b) CDMA-1x Phone app. 1 Mbps 1 Mbps or Higher app. 140kbps Mobility Up to 120km/h Walk < 250km/h Rate System Measured+Flat Rate Flat Rate Measured Rate I-3. Service Features (WiBro, WLAN, CDMA-1x) WiBro 2G/3G AP Airport AP Hot Zone Hot Spot University Library WLAN 100m app. 1Km app. 1~3Km

7. Dynamic u-KOREA 6 I-4. Wireless Technology Roadmap 4G Broadband Multimedia Service Voice Data Audiovisual 1995 2000 2005 2010 2G/2.5G 3G Mobile Access Fixed Wireless Access Cellular/PCS WCDMA 2.4GHz WirelessLAN 5GHz WirelessLAN 1X/DO/DV Nomadic High-speed Technologies -OFDMA -MIMO -Smart Antenna Multimedia/3D VideoServices WiBro/WiBro Evol. 1X DO A, 1X DO B HSDPA/3G Evol. Mobility

8. II. Market Projection Relationship with Existing Services II-1II-1 WiBro Market Forecast II-2II-2 Overseas Trends II-3II-3

9. Dynamic u-KOREA 8 Demand may be replaced to some extent but not significantly WiBro may not reach the speed of fixed-line Internet (more than 10Mbps) WLAN is faster than WiBro but does not have Mobility Demand may be replaced to some extent but not significantly WiBro may not reach the speed of fixed-line Internet (more than 10Mbps) WLAN is faster than WiBro but does not have Mobility WiBro vs. Fixed-Line Internet/WLAN II-1. Relationship with Existing Services Similar in Service and Mobility more complementary than competing Similar in Service and Mobility more complementary than competing WiBro vs. W-CDMA/HSDPA IP-Based Open Network Higher Transmission Capacity IP-Based Open Network Higher Transmission Capacity WiBro WiBro Multi-Vendors (Terminal/System) Wider Network Coverage Multi-Vendors (Terminal/System) Wider Network Coverage W-CDMA/HSDPA W-CDMA/HSDPA

10. Dynamic u-KOREA 9 II-2. WiBro Market Forecast (Domestic) Source : ETRI (2005.2) (unit: 10 thousands) (unit: 100 million KRW) Subscriber : 8.5 million by 2010 Service Sales (from 2006 to 2010) : 7 trillion KRW (Added Value : 3.9 trillion KRW) Subscriber : 8.5 million by 2010 Service Sales (from 2006 to 2010) : 7 trillion KRW (Added Value : 3.9 trillion KRW)

11. Dynamic u-KOREA 10 II-3. Overseas Trends i-Burst (ArrayComm), Flash-OFDM (Flarion), Ripwave (Navini), TD-CDMA (IPWireless) commercialized as Fixed Wireless Internet Services where Broadband Internet infrastructure is poor i-Burst (ArrayComm), Flash-OFDM (Flarion), Ripwave (Navini), TD-CDMA (IPWireless) commercialized as Fixed Wireless Internet Services where Broadband Internet infrastructure is poor Similar Services to WiBro 2005.12 WiBro was reflected on the IEEE 802.16e (Mobile WiMAX) Standardization Standardization TI (Telecom Italia, 2007), TVA (Brazil, 2006.2H), Omnivision (Venezuela, 2006.3Q), PORTUS (Croatia, 2006), Arialink (Michigan, U.S.A., 2007.1H) TI (Telecom Italia, 2007), TVA (Brazil, 2006.2H), Omnivision (Venezuela, 2006.3Q), PORTUS (Croatia, 2006), Arialink (Michigan, U.S.A., 2007.1H) Overseas Commercialization WiMAX (IEEE 802.16d) Mobile WiMAX (IEEE 802.16e) WiBro

12. III. WiBro Korea WiBro Progress and Schedule III-1III-1 Spectrum Allocation III-2III-2 Governmsnt’s Focus WiBro Service in Korea III-4III-4 III-3III-3

13. Dynamic u-KOREA 12 III-1. WiBro Progress and Schedule 2002.10 Spectrum Allocation (2.3GHz) 2004.09 Licensing Policy confirmed (MIC) 2005.03 Licenses issued (KT/SKT) 2005.11 Demonstration in 2005 Busan APEC 2005.12 WiBro reflected on IEEE 802.16e Standards 2006.04 Pilot Service (KT) 2006.06 Commercial Service 2002.10 Spectrum Allocation (2.3GHz) 2004.09 Licensing Policy confirmed (MIC) 2005.03 Licenses issued (KT/SKT) 2005.11 Demonstration in 2005 Busan APEC 2005.12 WiBro reflected on IEEE 802.16e Standards 2006.04 Pilot Service (KT) 2006.06 Commercial Service

14. Dynamic u-KOREA 13 III-2. Spectrum Allocation Re-allocated the 2.3GHz spectrum, which was used for WLL (Wireless Local Loop) 1.92 1.98 2.11 2.17 2.30 2.33 2.37 2.40 2.4835 5.725 5.825 [ GHz] 40MHzHTI(20)2.4GHz(83.5)5.8GHz(100)A(20)BC 130MHzABCKTHTIKT IMT2000WLLISMISM KT (Up) KT 2.30 2.31 2.33 2.37 2.38 2.40 [ GHz] HTI (Up) HTI Guard band KT (Down) KT HTI HTI 10MHz 20MHz 40MHz 10MHz 20MHz WiBro FA ： 9MHz 2300MHz2400MHz Operator １ Operator ２ Operator ３ Guard band ： 4.5MHz Guard band ： 10MHz

15. Dynamic u-KOREA 14 World’s First Pilot Service (2006.4.3) to the Public - coverage : Seoul (Kangnam, Shinchon), Bundang, Subway Bundang Line PCM-CIA Card for Note PC and PDA Terminal - 3,000 Test Subscribers World’s First Pilot Service (2006.4.3) to the Public - coverage : Seoul (Kangnam, Shinchon), Bundang, Subway Bundang Line PCM-CIA Card for Note PC and PDA Terminal - 3,000 Test Subscribers KT Pilot Service III-3. WiBro Service in Korea 2006.4 : KT began Pilot Service to the Public 2006.5 : SKT began Pilot Service 2006.6 : World’s First Commercial Service 2006.4 : KT began Pilot Service to the Public 2006.5 : SKT began Pilot Service 2006.6 : World’s First Commercial Service ScheduleSchedule (2006~ ~2009)

16. Dynamic u-KOREA 15 III-4. Government’s Focus Enable Contents Providers and Portal Service Providers to have Equal Accesses to WiBro Network Introduce competition allowing resales (ex. MVNO) If the number of subscriber exceeds 5M within 3 years after service launch Introduce competition allowing resales (ex. MVNO) If the number of subscriber exceeds 5M within 3 years after service launch Competition Competition Equal Network Access Equal Network Access Early Service Diffusion through Reasonable Rate Diffusion of Service

17. Thank You!