From Network Service Provider To Solution Provider 2003

From Network Service Provider To Solution Provider 2003. 8. The Value Networking company

INTRODUCTION… n 2002 KOREA/JAPAN FIFA WORLD CUP 1

Key to Success n Power-based…. All round Player 2

Future Network n Powerful IP-based… All kinds of services will be on “IP Network” DATA Mobile, Line Broad. Band Access VOICE Vo. IP, Mobile Powerful IP NETWORK TELEMETICS HOME DIGITAL SERVICE 3 BUSINESS SOLUTION

Broadband Services in KOREA q The growth of Broadband Access in Korea q Composition of Market by Access Technology (Mar. 2003) (million) 12 Mil. x. DSL CATV 4 ISDN

KT Broadband Market. Share Leading Market Share Local 85% (1) DLD 71% (2) Leased Line 66% (2) ILD Broad. Band Internet Wireless Data Wireless 97% 22, 108, 582 subs 22, 110, 000 50% (3) 4, 076, 799 subs 5, 600, 000 39% (1) 10, 000 9, 628, 000 subs 9, 768, 909 subs 9, 800, 000 33% (1) 5 #1 #1 #2 #2 # Domestic Market Share Source : Company Data and MIC Note : (1) as of Jun Feb 28, 2002 (2) as of Dec 31, 2001 (3) as of Sep Mar 30, 2002 Rank #1 (1)

Telcos decline § Worldwide Telco’s Managing environments • The traditional telco’s stock charts are gradually sluggish - AT&T, NTT, BT • Korea is the Bench Marking model of the world in the field of Internet business which has more than 10 million Broadband Internet Access subscribers 6

New Engines for Value Network Broadband Access Capability IP N/W Infrastructure Fixed & Mobile Convergence e-Portal 7

New Engines for Value Network q Any Time, Anywhere, Any Device, Any Service 8

New Engines for Value Network q Elements of Value Networking ● 1: BROADBAND Access ? ü x. DSL ü FTTH ü Ethernet NETWORKING Value Creation ? ● 2: IP Network Infrastructure ü High Speed & Convergence ü NGN, IP-VPN, Vo. IP 9

New Engines for Value Network ● 2: IP Network Infrastructure - NGN Architecture 3 rd App. Server Media Server SCP API Signaling Gateway Softswitch SIGTRAN MEGACO SIP/H. 323 SS 7 Trunking Gateway Packet Network Kornet INAP PSTN Access Gateway Wireless Network Access Network q Pre NGN Decision : 2001 1 Q, Analog SW Access Gateway substitution q NGN Decision: 2002 1 Q, Softswitch Development q Worldwide 1 st Deployment: Risk and Opportunity 10

New Engines for Value Network q Elements of Value Networking ● 1: BROADBAND Access ● 3: Fixed & Mobile Convergence ü x. DSL ü FTTH ü Ethernet ü Adding Flexibility in Broadband Access ü Seamless Service between Any Device NETWORKING Value Creation ? ● 2: IP Network Infrastructure ü High Speed & Convergence ü NGN, IP-VPN, Vo. IP 11

New Engines for Value Network ● 3: Fixed & Mobile Convergence - Broadband Wireless LAN Ø Public Wireless LAN Service m High speed up to 11 Mbps with IEEE 802. 1 x security mechanisms m Nationwide Hotspots m Reasonable prices Ø Target Market m Hot spot areas - Business centers, Hotels, Universities, Airports, etc. m SOHO and Home - Café, Restaurant, SOHO, Home, etc. Ø Seamless Communication Service between any terminal m Mail, MMS, IM, SMS m 1 X phone, PDA, Notebook, Desktop 12

New Engines for Value Network q Elements of Value Networking ● 1: BROADBAND Access ● 3: Fixed & Mobile Convergence ü x. DSL ü FTTH ü Ethernet ü Adding Flexibility in Broadband Access ü Seamless Service between Any Device NETWORKING Value Creation ● 2: IP Network Infrastructure ● 4: e-Portal ü B 2 B Platform ü B 2 C Platform ü High Speed & Convergence ü NGN, IP-VPN, Vo. IP 13

New Engines for Value Network ● 4: e-PORTAL – SSO(single sign on) Customer Supplier 4 Private Solution G/W KT service PC PDA e-Directory PCS 2 Multi. Access G/W SSO (single sign on) Web Phone 5 1 Customer Service Gateway 3 Portal, Vo. IP e-shopping etc. Billing & Payment G/W Interface G/W On/ Off Line merge KT branch Wireless DATA, Community Affiliate Service MSN, Yahoo, Daum, Etc. KT e-Biz Data Center Service Gateway which is on the base of DB unification & e-Financing, supplies Personalized Solution…supports various Terminals 14

KT’s trial…. on Business Solution q Business Solution Portal(bizmeka) Packaging of internet access line, consulting and lots of solutions for 3 million small-medium enterprise and independent businesses www. bizmeka. com EDI ASP e-MP bizmeka Platform IP Network / KT-IDC q Business Models ØSolution rental service. ØEquipment solution rental service including server, network, IDC for Application service providers. ØCustomized Platform services to bank, credit card company and so on. 15

KT’s trial…. on Business Solution q ex) Hair-Shop 16

IT general Trading Company n Solution Distribution N/W : “solution 1” Company A - solution#1 BT KT Company B - solution#2 Solution Company B - solution#2 Distribution Network Company C - solution#n AT&T Ø . . Solution Organizer - Get the best Solution for each Service - Organize lots of Solution company Ø Solution Converter - Show standard fit for service - 1 Brand Marketing for overseas Ø Company A - solution#1 Information Feeder - Get Overseas information 17

Let’s KT Thank You 18