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KTF all rights reserved 0 0 March, 2002 Broadband Mobile Services - Market Update and KTF Perspective - In-Soo Park Vice President Internet Business Division.

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Presentation on theme: "KTF all rights reserved 0 0 March, 2002 Broadband Mobile Services - Market Update and KTF Perspective - In-Soo Park Vice President Internet Business Division."— Presentation transcript:

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2 KTF all rights reserved 0 0 March, 2002 Broadband Mobile Services - Market Update and KTF Perspective - In-Soo Park Vice President Internet Business Division

3  Market Overview  Mobile Data Business ☞ KTF Overview  The Challenge ☞ Realizing the full potential of Mobile Data  Solution #1 ☞ Through Mobile Multimedia  Solution #2 ☞ Through Mobile Commerce

4 KTF all rights reserved The Korean IT Industry : Overview 30 20 10 10,00020,00030,00040,000 50,000 X X X X X X X X X X X X : Mobile Subscribers : Fixed-line Internet Users Korea ($, GDP per capita) ( 단위 :Mil.) OECD Comparison: Internet and Mobile Phone Users Fixed-Line Internet Users Over 50% of total households use the Internet (December, 2001) 3 millions (’98)  24 millions (December, 2001) Rise in Broadband Access (ADSL, CATV…) 0.9 millions (June, ’00)  7.8 millions (December, 2001) Market Size of E-Commerce KRW 10 trillion (1999)  KRW 18.6 trillion, Over USD 14 bill. (2000) Fixed-Line Internet Market 3/35

5 KTF all rights reserved Mobile Penetration & Projection in Korea The first nation in the world to launch the commercial CDMA mobile services in Jan. ’96 and the commercial CDMA2000 1x services in Oct. 2000. Korea’s Mobile Penetration * Source : KTF (January, 2002) Total Mobile Subscribers Mobile Internet Users Users (million) Usage Rate 5 20% 7 24% 11 34% 15 48% 27 79% 20 63% (Unit : million subs.) Mobile Internet User Projection * Source : KTF Leading Markets in Asia  Taiwan : 90.6 %  Hong Kong : 83.1 %  Singapore : 71.6 %  Korea : 61.4 %  Japan : 50.1 % Source : Global Mobile (End 2001) Leading Markets in Asia  Taiwan : 90.6 %  Hong Kong : 83.1 %  Singapore : 71.6 %  Korea : 61.4 %  Japan : 50.1 % Source : Global Mobile (End 2001) 4/35

6 KTF all rights reserved Browser Penetration in Korea Mobile penetration : 61.4% ( 29M out of 47.4M pop., Dec.2001 ) Browser standard & penetration (Dec 2001, MIC) Total Subs.ME / WAPBrowser M/SPen. Rate KTF9.6 mil6.8 mil37%71% SKT15.2 mil8.3 mil46%55% LGT4.3 mil3.1 mil17%72% Total29.1 mil18.2 mil100%63% mil 5/35

7  Market Overview  Mobile Data Business ☞ KTF Overview  The Challenge ☞ Realizing the full potential of Mobile Data  Solution #1 ☞ Through Mobile Multimedia  Solution #2 ☞ Through Mobile Commerce

8 KTF all rights reserved 1998.3~ 1999.10~ PersNet ®  Mobile Browser  ME1.0 2001.1~ HandyNet  Information Access  Interactive SMS Development of Mobile Internet Services 2001.11~ Toward Mobile Multimedia 6.8M ME Phones0.20M multipack Phones Advanced Mobile Browser  ME2.0 multipack Middleware Multimedia Platform 7/35

9 KTF all rights reserved Top Contents : magic ⓝ Ranking of Top 10 Contents * Source : KTF Internal Statistics (February11,2002 ~ February17, 2002 ) 1 Ringtone Downloading Character Downloading 2 Community ‘Daum’ 4 7 문자나라 Emoticon Blind date ‘Love ♡ Love Zone’ 8 6 Adult Information Chatting ‘Wagle Wagle’ 10 5 Photo World 3 MSN Mobile 9 Location Finding Services ‘Guardian Angel’ 8/35

10 KTF all rights reserved Top Applications : magic ⓝ multipack  Average No. of Users per Day  Average Volume of Packets per Day 1 2 3 4 5 Chatting ‘Skylove’ : Magic Stock : Theme Park : Mail : 1 2 3 4 5 Theme Park : Magic Book : Oro Baduk : VOD Community ‘Daum’ : VOD ‘Togabi’ : Game ‘Fortress’ : * Source : KTF Internal Statistics (February11,2002 ~ February17, 2002 )  1 Packet = 512 bytes = 512 letters  1 Character Download (4 pictures/graphics) = 20 Packets  1 Ringing Tone Download = 40 Packets 9/35

11 KTF all rights reserved Data Revenue Growth Wireless data generates increasing portion of total revenue - Value-Added Service Revenues have increased by 174% due to wireless data Data ARPU growth is faster than voice ARPU Data ARPU Total ARPU 536 420 462 378 589 62 107 357 18 6 0 200 400 600 800 1000 1200 1400 1600 1800 1H,20012H,2001 Other services Interconnection Revenue Value-Added Service Airtime Charge Monthly Fee (Unit: $ million) KTF Revenues +174% Data ARPU vs. Total ARPU 10/35

12  Market Overview  Mobile Data Business ☞ KTF Overview  The Challenge ☞ Realizing the full potential of Mobile Data  Solution #1 ☞ Through Mobile Multimedia  Solution #2 ☞ Through Mobile Commerce

13 KTF all rights reserved 4.2% 5.3%6.9% 8.2% 9.5% Global Market Revenue Forecast * Source : Ovum, Oct 2000 Data revenue over total revenue in 2005 is only 9.5%. Many efforts to increase data revenue will be needed by carriers. KTF: over 6% in 2001 12/35

14 KTF all rights reserved Data Revenue Targets Data Revenue in 2001 : $ 159 million (including SMS) Non-Voice Revenue Expectations Year 2005 SMS BIZ Solutions 415 159 Data Revenue 1,269 M (24%) Voice Revenue 4,100 M (76%) Total Revenue 5,369 M (100%) magic ⓝ M-Commerce 1,269 Million $ USD 13/35

15 KTF all rights reserved Data Revenue Expectations : Global vs. KTF 20012002200320042005 REVENUEREVENUE 20012002200320042005 REVENUEREVENUE DATA ARPU Global Trend KTF Target  Data Revenue over Total Revenue  9.5% (forecasted by OVUM) 9.5% 24%  Data Revenue over Total Revenue  24% (KTF estimate)  High Speed Networks  Multimedia Platforms  Color LCD Handsets  IC Equipped Handsets  Mobile Multimedia  Mobile Commerce 14/35

16  Market Overview  Mobile Data Business ☞ KTF Overview  The Challenge ☞ Realizing the full potential of Mobile Data  Solution #1 ☞ Through Mobile Multimedia  Solution #2 ☞ Through Mobile Commerce

17 KTF all rights reserved ▶ CDMA2000 1x Network ▶ Color LCD with MIDI ▶ Applications Downloadable ▶ Menu Board with Icons ▶ Custom Made Menu Board Consumer Commercial Trials : 5,000 units, 2001. 9. ~ 10 Commercial Services : 2001.11~ Download Site Application Download magic ⓝ multipack 16/35

18 KTF all rights reserved Consumer Trial Results Icon Based UI 26% Color LCD 22% Downloadable 19% Useful Contents 13% Wide LCD 9% Speed 7% Simple UI 4% Positive 31% Neutral 20% Negative 49%  Period : 2001.9~10,  Sample : 5,000 people Favorite Qualities of multipack Willingness to churn to KTF (non-KTF users) 17/35

19 KTF all rights reserved Trends to Watch in 2002 CDMA2000 1x 1x EV-DO From 4Gray to Color Display with MIDI MME3.0 / Java / BREW / Multimedia Platform Independent CP / SP VOD/AOD & Applications on Middleware 18/35

20 KTF all rights reserved ~2000~2000 2001 - 2002 2003~2003~ IS-95A/B 115.2Kbps 20Kbps 144Kbps 70Kbps (Max) (Avg) CDMA2000 1x1x EV-DO 1x EV-DV W-CDMA (2Mbps~) Over 2.4Mbps 2.4Mbps 384Kbps Network Evolution 1x EV-DO to seize the initiative in the data market Low Speed Data High Speed Data Multimedia Bluetooth Access Point 802.11x (Wireless LAN) W-CDMA GSM 19/35

21 KTF all rights reserved 3G 2G 1G Data Transmission Speed - Kbps 09.632641281443842,000 Still Imaging Video Streaming Voice Audio Streaming Text Messaging Telephone/Fax E-mail Mobile Radio Mobile Television Remote Medical Service High-Quality Video Conferencing E-Commerce Video On Demand Voice Mail Data Weather, traffic, news, sports, stock updates Audio Voice-driven Web, streaming audio Electronic Publishing Increasing Value …Enabling new applications From Text to Multimedia 20/35

22  Market Overview  Mobile Data Business ☞ KTF Overview  The Challenge ☞ Realizing the full potential of Mobile Data  Solution #1 ☞ Through Mobile Multimedia  Solution #2 ☞ Through Mobile Commerce

23 KTF all rights reserved North America East Europe AsiaOthers 200120032005 0 20 40 60 80 100 120 140 160 180 Subscribers(Mil.) 64.8 249.1 499.1 200120032005 Revenue ($ Bill.) 0 10 20 30 40 50 60 70 80 15.2 82.6 210.8 ※ Source : OVUM, 2000 M-Commerce Market Forecast : Global Users & Revenue 22/35

24 KTF all rights reserved Subscribers (Mill.) Revenue (USD Mill.) Mobile UsersMobile Internet Users M-Commerce Revenue ※ source : ebizgroup, 2001 10 15 20 25 30 35 200120032005 0 50 100 150 200 250 300 350 3.2 87.2 316.7 M-Commerce Market Forecast : Korea M-Commerce Information Entertainment M-Commerce Information Entertainment 23/35

25 KTF all rights reserved M-Commerce Applications Banking & Payment Brokerage Billing & Salary PFM (Personal Financial Management) PFM (Personal Financial Management) Basic Services Value-Added Services Financial Services Mobile Shopping Retailing Ticketing Auctions Reservations Mobile Advertising Customer Targeting Advertising Moving Customer Targeting Advertising Area Targeting Advertising Response Targeting Advertising 24/35

26 KTF all rights reserved 2. KTF Mobile Coupon Service 사업개요 KTF Mobile Coupon POS Terminal Card Reader  Customized  Location-Based  Easy to Carry RegistrationReceiving Usage Mobile Coupon Service 25/35

27 KTF all rights reserved  In 2001, online coupons (including fixed-line and mobile) exceeded off-line, paper coupons in Korea  In 2002, the use of mobile coupons is expected to explode 2. KTF Mobile Coupon Service 사업개요 Online Coupon Market in Korea 5,000,000 20,000,000 1,000,000 100,000,000 200,000,000 199719981999200120022003 No. of Coupons Off-line On-line Off-line No. of Outlets 1,000 Year 4,000 7,000 OfflineOff & Online 2000 40,000,000 230,000,000 15,000 20,000 30,000 2,000 On-line Off & Online (Mobile Included) Source : The Mobile, 2001 26/35

28 KTF all rights reserved Mobile Lottery Service  Convenient Access  Immediate Notification  Send as a Gift Online Lottery Market in Korea USD Thousand Year Revenue Profit Source : Cypro, 2001 27/35

29 KTF all rights reserved Off-Line Commerce e-Commerce Other Services … M-Commerce Network Low Speed High Speed Evolution of Media Old Media Bi-Color Text IS-95B Multi-Media Multimedia VOD/AOD 1x, 1x EV-DO, IMT-2000 Growth Stimulus: Multimedia 28/35

30 KTF all rights reserved ▶ User Information ▶ M-Commerce Current Handset ▶ User Information ㆍ Payment System ㆍ Traffic Services ㆍ Discount/Membership Services ㆍ ID Card Growth Stimulus: Payment Infrastructure IC Chip Equipped Handset New Handset September 2001March 2002June 2002 Alliance Credit CardNetwork WalletIC Chip Equipped Handset IC-Chipset ㆍ Cell Phone Number ㆍ Address Book ㆍ Value-added services ㆍ Pricing Information ㆍ Cell Phone Number ㆍ Address Book ㆍ Value-added services ㆍ Pricing Information 29/35

31 KTF all rights reserved Finance Gas Stations Department Stores Gas Stations Department Stores Automobiles Airlines Automobiles Airlines Expanding Alliances KTF M-Commerce Hub Internal Initiative Payment Agent Commerce Engine Shopping Engine Customer Filtering System Customer Filtering System Marketing Engine Membership Management System Membership Management System Security/ Authentication Security/ Authentication Individual Marketing Agent Individual Marketing Agent IC Card Handset (Cellular/PDA) Handset (Cellular/PDA) PC/Kiosk /Appliance PC/Kiosk /Appliance Handset Line-ups Consumer Outreach Aggressive Promotion of M-Commerce Services to New Customers Strategic Overview Internal Initiative Strategic Alliance 30/35

32 KTF all rights reserved Mobile Data Leadership - Mobile Multimedia ! - Mobile Commerce ! 3G Vision 31/35

33 Thank You Mobile Life Partner FIFA World Cup Official Partner


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