GSC-8076 SOURCE:TTA TITLE: Broadband Service Status and implementation issues on VDSL in Korea AGENDA ITEM:GTSC /04/2003GSC-8, OTTAWASlide 1 Broadband Service Status and implementation issues on VDSL in Korea Keun-ha Chin Korea Telecom

GSC-8, OTTAWASlide 229/04/ (Unit : thousand) 4,018 7,863 13, KT (4,742) Hanaro(3,077) Thrunet (1,306) Others (949) 10,000 CATV : 37% ISDN : 1% xDSL : 62% Oct Jan KT (5,053) Hanaro(2,896) Thrunet (1,300) Others (1324) 10,573 VDSL Started The Growth of Broadband Market in Korea

GSC-8, OTTAWASlide 329/04/2003 External Success Factors Huge Demand - Education fever - Cyber stock trading - IT start-up boom - Booming Internet cafe Government Policy - Steady policy for developing high speed network (10 year plan) Severe Competition - 5 majors and dozens of small players - Low tariffs Dense Housing Pattern - Cost effective deployment - 47% of households is apartment complex

GSC-8, OTTAWASlide 429/04/2003 VDSL Trends in Korea – Service Why VDSL? –Service saturation More than 10 million broadband users About 70% of houses are connected already –Very competitive environment Especially in apartment area between KT & Hanaro Hanaro provides FTTC-ADSL KT installs newly deployed DSLAMs at customer area – shortened loop length KT has deployed more than 800,000 VDSL lines and has a plan to deploy more –MIC has announced a plan to connect 13.5 million houses (84%) at 20 Mbps by 2005 (E-Korea) –Increasing high quality VOD services – Killer Application?

GSC-8, OTTAWASlide 529/04/2003 VDSL Trends in Korea – System QAM –Vendors: Telson, Mirinet, Dasan, Gigalink, Ilryung … –Many commercial products –More than 800,000 lines have been deployed by KT –Ethernet based systems only (end-to-end) DMT –Vendors: Samsung, Hyundai … –Not yet deployed –Supports ATM and ethernet –Partial ethernet ATM/ Ethernet conversion at DSLAM’s network interface Can use pre-installed ADSL DSLAMs

GSC-8, OTTAWASlide 629/04/2003 Implementation Issues Line Code –QAM or DMT Transport Method –ATM or Ethernet (IP) Band Plan –998 or 997 or Fx or Proprietary Other Issues –Rate adaptation –Backward compatibility with ADSL –Use of optional band –Interoperability

GSC-8, OTTAWASlide 729/04/2003 Implementation Issues – Current Status Line Code –Both QAM & DMT will be deployed Transport Method –Ethernet (IP) based system is mainstream Band Plan –998 for residential area and 997 for business area Other Issues –Rate adaptation function is essential –Backward compatibility with ADSL is not important