Expert View

March 20, 2004
Indian broadband market bound to thrive

Geetanjali Wadhwa & Pradeep Chakraborty

NEW DELHI AND KOREA -- Korea Telecom, a premier broadband service provider, aims to facilitate all users with high-speed data transmission without any restrictions to time or place. It delves in a diverse range of business areas including wired-wireless integration, home networking, and mobile Internet using its WLAN technology.

KT's products and services can be divided into the following categories: broadband infrastructure, broadband convergence business models, converged wired-wireless broadband, broadband management solutions, and home networking and convergence devices. KT continues to develop new convergence business models using its knowledge and experience of high-speed operations, in addition to global network in order to create more diverse business areas. Convergence plus meets Dr. Yong-Kyung Lee, CEO, Korea Telecom, to discuss more about the company, its products, and recent broadband initiatives. Excerpts from an interview:

Convergence plus: Please give us a company overview.

Dr. Yong-Kyung Lee: KT was established on 10 December 1981. In its initial stage, KT focused on supplying telephone facilities to the public. In 1994, it upgraded Korea's status to an advanced nation in the ICT industries by securing Internet and satellite communication networks. In 1997, it was converted into a government-invested corporation, restructuring its wired telephone-oriented business into a wireless, Internet-oriented communication system. KT introduced ADSL, demonstrating its capability of constructing high-speed national networks. It secured its position as a premier broadband service provider.

Within 18 months of beginning its broadband business, KT exceeded 1.5 million Internet subscribers. Following in March 2002, it set a world record in the Internet business with four million subscribers. In January 2003, by recording five million subscribers, KT confirmed its place as the global leader in providing broadband services.

KT's ongoing mission is to execute its vision of "The value networking company," by providing premium wireless and Internet services to customers. KT aims to be a global leader in the 21st century.

CP: What are the products and solutions that you will be demonstrating at the show?

YKL: At the 12th Convergence India 2004 exhibition, KT will utilise BcN (broadband convergence network) technologies and a converged networking infrastructure in its system. BcN is an advancement of NGN, and provides an easily accessible multimedia service that integrates telecom broadcasting and the Internet.

KT's products and services can be divided into the following categories: broadband infrastructure, broadband convergence business models, converged wired-wireless broadband, broadband management solutions, and home networking and convergence devices.

Broadband infrastructure

KT's broadband infrastructure is referred to as the service platform. Vast quantities of server groups are located within the service platform, and produce several hundred Gbps of traffic to provide the contents produced by BcN.

Service platform

The service platform is made up of access servers such as optical transmission devices and xDSL equipment that allow fast data transfer to homes and businesses. The service platform is the initial and final focus point of BcN.

MEGAPASS

Megapass refers to KT's broadband high-speed Internet access service that uses VDSL. VDSL is applicable to general subscribers using a telephone line.

Broadband convergence biz model "bizmeka"

bizmeka is an IT outsourcing service that provides approximately 43 solution types aimed at small and medium sized businesses. bizmeka aims to facilitate the flow of business operations management. An example of bizmeka is the 3D interior solution. It first translates architectural plans into 3D data then into 3D drawings.

Converged wired-wireless broadband "NESPOT"

NESPOT refers to KT's wireless broadband (IEEE802.11b/11Mbps) Internet services that combine xDSL and Wi-Fi equipment to enable easy Internet access through a mobile terminal such as a laptop or PDA, equipped with a WLAN card. NESPOT service can be used in the home via xDSL, or in hotspots installed with AP such as hotels, campuses, airports, etc.

NESPOT Swing

Using a PDA equipped with Wi-Fi and CDMA chips enables NESPOT service. This PDA is named NESPOT Swing. NESPOT Swing allows seamless data transmission, which, in turn, enables a connection to high-speed Internet with no restrictions to time or place.

Broadband management solution Dr. NESPOT

Dr. NESPOT is a tool of diagnosis and treatment for wireless broadband service. Installing AP allows direct control over hotspots enabling direct online treatment.

Cell-TREK

Cell-TREK is a revolutionary, cell-planning, program used in designing wireless operations bases (W-CDMA, 1xEVDO, GSM, satellite). It is an optimisation tool for 3G networks, and determines the scope of transmission reach by analysing data from the operations base and the digital topographic map of an area.

Home networking "Home N"

Home N is used in the residential home. It uses home gateway, a KT convergence device, to cater to a variety of contents services. Primary services of Home N include TV-based high-quality VoD service, IP-multicasting, and home viewer service.

Convergence device "Home Gateway"

The home gateway is easily installable within a home, and linked to Megapass. It connects information devices and household appliances through wired and wireless lines and provides various application services such as high-quality moving pictures.

One Phone

Bluetooth technology is installed into a mobile phone to activate dual mode. One Phone functions as a regular wired phone within the home, and as a regular mobile phone away from home.

.CP: Comment on your recent broadband initiatives in Korea

YKL: Currently in Korea, 12 million of the 15.3 million households are high-speed Internet subscribers. Of this Internet population, KT accounts for approximately 50 percent. KT's BcN operates nationally, providing an easily accessible multimedia service that integrates telecom, broadcasting, and the Internet. This service enables activities such as online banking, electronic transfer, entertainment, e-learning, and cyber communities. By providing this complete multimedia service, KT leads the way in playing a vital role in changing our everyday lives, thereby creating a new paradigm of modern life.

KT's aim is to facilitate all users with high-speed data transmission without any restrictions to time or place. It delves in a diverse range of business areas including wired-wireless integration, home networking, and mobile Internet using its WLAN technology.

CP: How do you estimate the broadband segment taking off in India? What role do you intend to play?

YKL: India's Internet network is currently at its preliminary stages, and must undergo dramatic BcN construction in order to advance head-on into today's information age. The resulting high-speed broadband network will support an unprecedented speed of transmission of immense quantities of data, previously unheard of in India.

According to estimates, the broadband segment in India will enthusiastically adopt KT's BcN technologies. KT will share its long-established experience and knowledge of BcN operations with the Indian industry to construct this broadband network. KT is currently implementing co-operation strategies with its Indian partners, and will establish a branch in Delhi in order to activate infrastructure progress. This will initiate content providing businesses such as games and Internet portals, as well as high-speed services of the highest quality, to create a new class of Internet culture in India.

CP: Why did you enter the gaming syndication business?

YKL: Content was mediocre during the initial years of high-speed Internet in Korea, with only 20 percent of content being developed locally. Despite these conditions, KT was the first to realise that Korean game developers possessed the technologies required to create a successful industry. KT then began the implementation of broadband infrastructure to support the growth of the games industry. This resulted in faster data transmission and local production of content. Currently, over 80 percent of the content traffic in the games industry is generated and distributed from Korea.

The Korean high-speed Internet market is now at its peak, and the fast-advancing online content business is a key source of revenue in this market. KT continues to develop new convergence business models using its knowledge and experience of high-speed operations and the global network in order to create more diverse business areas.

CP: How is the broadband gaming scenario in Korea?

YKL: In 2002, the broadband games market produced roughly US $2.8 billion. The major areas of this market are online and mobile games, and the video gaming industry is fast developing into a major player. It is likely that the broadband games market in Korea will continue to thrive for years to come.

CP: What can you do to popularise broadband gaming in India?

YKL: The Indian high-speed Internet market is an area of great potential. However, its current broadband infrastructure can only deliver low-speeds, and hence, limit its content to online board and casual games. In order to appeal to a wider audience, this market must provide a much wider range of online user services and contents.

Once the BcN construction is completed, India will experience dynamic and internationally popular online role-playing games. The Indian broadband market is bound to thrive through KT's revolutionary BcN.