cdma data network & services of sk telecom 02 2q 02 3q 02 4q 02 1q 03 2003 (e) % of total...

CDMA Data Network & Servicesof SK Telecom

16 October 2003

Wonsuk Chung

Network R&D Center, SK Telecom

Introduction

CDMA2000 1X & 1xEV-DO Network

Wireless Internet Trends

Evolution Perspective

Conclusion

Table of Contents

EstablishedWorld’s first commercial CDMA cellular service launchedHandset-based wireless Internet service (n.Top) launchedWorld’s first commercial CDMA2000 1X service launched3G (W-CDMA) license awarded as the top winnerIntegrated multi-access Internet portal (NATE) launchedWorld’s first CDMA2000 1xEV-DO service launched

PioneeringHistory

Mar 1984

Jan 1996

Oct 1999

Oct 2000

Dec 2000

Oct 2001

Feb 2002

Rapid Subscriber Growth Strong Market Leadership

5922,299 3,008

1,5625,400

566

10,11011,270

15,179

17,743

-

3,000

6,000

9,000

12,000

15,000

18,000

`96 `97 `98 `99 `00 `01 `03 2QCDMA AMPS

Subs (thousand)

CDMALaunch AMPS

Termination

STIAcquisition

53.65352.552.3

51.050.649.7

Jun`01

Aug`01

Oct`01

Dec`01

Jan`02

Jun`02

Jun`03

Unit : %

[SKT’s M/S in Korea cellular market]

IntroductionSK Telecom,

Pioneering CDMA Leader

3G1G 2G

9.6

64

0

128

144

384

2,000Video StreamingVideo Streaming

Dat

a Tr

ansm

issi

on S

peed

-kb

ps

VoiceVoice

Text MessagingText Messaging

E-Newspaper

Video Telephony

VoiceMail

Fax

Video Mail

Telephone(Voice)

WCDMAWCDMA11xEVxEV--DODOCDMA ISCDMA IS--9595 CDMA2000 1X

Jan`96 : 95AAug`99 : 95B October `00 February `02 `03 onward

AMPSAMPS

May `84

Network & Service Evolution

Mobile Research

VOD

Mobile Advertising

Digital Image

Mobile TV

M-Coupon M-Commerce

E-Mail

E-Book

SKT offers a variety of multimedia services through the most advanced network and plans to enhance service offerings in line with further network evolution

Audio StreamingAudio StreamingStill ImageStill Image

Location-Based

Introduction


MSC/VLRMSC/VLR CGSCGS

IP PhoneIP PhoneInternetInternet

IP Fax IP Fax

PDSNPDSN

HAHA

RADIUSRADIUSServerServer

Gateway Gateway RouterRouter

IWFIWF

ANAN--AAAAAA

GW KeeperGW KeeperSCNSCN

1xEV1xEV1xEV1xEV1xEV1xEV1xEV1xEV--------DO + 1X DO + 1X DO + 1X DO + 1X DO + 1X DO + 1X DO + 1X DO + 1X Data NetworkData NetworkData NetworkData NetworkData NetworkData NetworkData NetworkData Network

BTS/ANTSBTS/ANTS

IPIPSS7SS7

PSTNPSTN

BSC/ANCBSC/ANC

ATATNotebookNotebook

BSC/ANCBSC/ANC

SMCSMCSMCHLRHLRHLR

SCPSCPSCP

Video PhoneVideo Phone

PDAPDA

CDMA2000 1X CDMA2000 1X CDMA2000 1X CDMA2000 1X CDMA2000 1X CDMA2000 1X CDMA2000 1X CDMA2000 1X Voice NetworkVoice NetworkVoice NetworkVoice NetworkVoice NetworkVoice NetworkVoice NetworkVoice Network

VMSVMS

BTS/ANTSBTS/ANTS

BTS/ANTSBTS/ANTS

Network Configuration

Type ServiceLaunching

No. of Subs(’03.2Q)

Max Data Rate (bps)

Coverage(’03.2Q)

1X Oct ’00 12.4 mil.153.6K 81 Cities

1xEV-DO Feb ’02 1.43 mil.2.4M 26 Cities

’01 1X’02 1X

인천공항인천공항인천공항인천공항

영월영월영월영월

서울서울서울서울인천인천인천인천

수도권수도권수도권수도권

대전대전대전대전

광주광주광주광주 부산부산부산부산김해김해김해김해

울산울산울산울산

대구대구대구대구경산경산경산경산

포항포항포항포항

경주경주경주경주

영천영천영천영천

구미구미구미구미김천김천김천김천

상주상주상주상주

문경문경문경문경

영주영주영주영주

안동안동안동안동

양산양산양산양산밀양밀양밀양밀양

창원창원창원창원

진해진해진해진해

마산마산마산마산

거제거제거제거제

통영통영통영통영

사천사천사천사천

진주진주진주진주광양광양광양광양

여수여수여수여수

순천순천순천순천나주나주나주나주

목포목포목포목포

제주제주제주제주

서귀포서귀포서귀포서귀포

정읍정읍정읍정읍

남원남원남원남원

김제김제김제김제 전주전주전주전주

익산익산익산익산군산군산군산군산

논산논산논산논산

보령보령보령보령

서산서산서산서산 아산아산아산아산천안천안천안천안

공주공주공주공주청주청주청주청주

충주충주충주충주

제천제천제천제천 태백태백태백태백

삼척삼척삼척삼척동해동해동해동해

강릉강릉강릉강릉

속초속초속초속초

춘천춘천춘천춘천

원주원주원주원주

평택평택평택평택

용인용인용인용인

안성안성안성안성

이천이천이천이천오산오산오산오산

화성화성화성화성광주광주광주광주

남양주남양주남양주남양주

동두천동두천동두천동두천파주파주파주파주

김포김포김포김포인천공항인천공항인천공항인천공항

영월영월영월영월

서울서울서울서울인천인천인천인천

수도권수도권수도권수도권

대전대전대전대전

광주광주광주광주 부산부산부산부산김해김해김해김해

울산울산울산울산

대구대구대구대구경산경산경산경산

포항포항포항포항

경주경주경주경주

영천영천영천영천

구미구미구미구미김천김천김천김천

상주상주상주상주

문경문경문경문경

영주영주영주영주

안동안동안동안동

양산양산양산양산밀양밀양밀양밀양

창원창원창원창원

진해진해진해진해

마산마산마산마산

거제거제거제거제

통영통영통영통영

사천사천사천사천

진주진주진주진주광양광양광양광양

여수여수여수여수

순천순천순천순천나주나주나주나주

목포목포목포목포

제주제주제주제주

서귀포서귀포서귀포서귀포

정읍정읍정읍정읍

남원남원남원남원

김제김제김제김제 전주전주전주전주

익산익산익산익산군산군산군산군산

논산논산논산논산

보령보령보령보령

서산서산서산서산 아산아산아산아산천안천안천안천안

공주공주공주공주청주청주청주청주

충주충주충주충주

제천제천제천제천 태백태백태백태백

삼척삼척삼척삼척동해동해동해동해

강릉강릉강릉강릉

속초속초속초속초

춘천춘천춘천춘천

원주원주원주원주

평택평택평택평택

용인용인용인용인

안성안성안성안성

이천이천이천이천오산오산오산오산

화성화성화성화성광주광주광주광주

남양주남양주남양주남양주

동두천동두천동두천동두천파주파주파주파주

김포김포김포김포

’02 1xEV-DO

PopCoverage

85%

50%


Network Coverage


CategoryCategory

1 UserMax

Speed

Physical

Application

DataApplicationThroughput

Fixed Point

Moving

CDMA2000 1XCDMA2000 1X

153 kbps

105 kbps

280 kbps

200 kbps

1xEV1xEV--DO DO

2457 kbps

1859 kbps

700 kbps

340 kbps

Performance of 1X & 1xEV-DO


Jan ’02 PCMCIA Card

• 1xEV-DO wireless modem for Internet access• Standard PCMCIA Type II Form Factor and Interface• Supporting Windows 98, ME, 2000, XP, CE • Backward compatibility with CDMA2000 1X

Aug ’02 VOD handset

Camera

• Real time video streaming & downloading MPEG files• Recording still images & video clips• 265,000 Color LCD / 40 Poly Sound / 350,000 Pixel Camera

June ’02 Dual-mode handset

• High speed WAP services using 1xEV-DO network• Receiving Voice Call during WAP services • 65,000 Color LCD / 40 Poly Sound / 350,000 Pixel Camera

Camera

1xEV-DO User Devices


Connect the 1xEV-DO handsetto PC using a USB cable

Insert into the PCMCIA card slot of the expansion pack of a PDA

Insert directly into the PCMCIAcard slot of a notebook PC

Enhanced speed Internet access has been possible at anytime, anywhere

Internet Access using 1xEV-DO

CDMA2000 1X Market of Korea SKT’s CDMA2000 1X Subscriber

( ‘000 Handsets)

! CDMA2000 1X Subscriber base is rapidly growing in Korea

! SKT is the dominant player in CDMA2000 1X market in Korea with 60% market share

CDMA2000 1X Penetration

1X Proportionto Total Subs : 63 %

as of June 2003

1,2871,903

2,692

3,4874,181

5,108

10,318

20,792

1,000

2,000

3,000

4,000

5,000

10,000

Aug`

01Se

p`01

Oct̀01

Nov`

01Dec̀

01Ja

n`02

Jun`

02Ju

n.̀03

0.0%

5.0%

10.0%

15.0%

20.0%

30.0%

60.0%

Total 1X Subs 1X Proportion to total Cellular Subs

Aug`

01Se

p`01

Oct̀01

Nov`

01Dec̀

01Ja

n`02

Feb`

02

Jun`

02

Jun ̀

03

1,096

2,1341,563

2,7373,268

3,8434,412

6,669

SKT’s M/S in 1X Market : 60%as of June 2003

( ‘000 Handsets)12,375


Content Usage PatternWireless Internet User Breakdown(1)

75%

19%19%19%19%

6%

26%

31%31%31%31%

43%

0%0%0%0%

20%20%20%20%

40%40%40%40%

60%60%60%60%

80%80%80%80%

100%100%100%100%

UserUserUserUser RevenueRevenueRevenueRevenueTrial Active Heavy

Source: SKT, as of July 2002(1) User classification defined as the following:

Trial Users: Access wireless Internet 1 - 9x per monthActive Users: Access wireless Internet 10 - 29x per monthHeavy Users: Access wireless Internet over 30x per month


Wireless Internet Usage Patterns

Others

Broadcasting

Stocks & Banking

Cartoon/Humor

Adult

E-Lottery

Game

Mail & Chatting

RingTones andCharacters

Location/Traffic

(News, Photo, etc.) 7777

3333

3333

4444

4444

5555

9999

12121212

14141414

39393939

0000 10101010 20202020 30303030 40404040

Celebrity moving images

Animated moving images

Do-it-yourself images

" Based on SIS*(Simple Image Service) compression technology

" Moving images(3-5 frame/sec)" Features

- Picture downloads for screen saver (e.g., celebrity images, character images,graphical jokes, luck charms, etc.)

- Picture messaging service - Archive for storing previously downloaded content

- Drawing tool and bulletin board to makeand upload self-made images

- Available from both NATE.com andNATE on handset menu

" Fee- US$0.50 ~ $2.00 per download

" Number of content providers - 26 providers

Major Contents : Picture Downloads/Messaging

SIS * : Encoding & decoding solution that enables moving images


Most Frequently Downloaded Songs (top 5)

" Features- Download ring tones from either NATE.com or NATE on handset portal - Send ring tones to other people’s handsets as a present with message- Diverse types of ring tones (songs, recorded voice, etc.) - Supports Single, 4, 16, 32 and 40 poly (sounds)

" Fee- USD $0.50 ~ $1.50

" Number of content providers - 24 providers

Major Contents : Ring Tones



MPEG4 Solution “June”

Mobile MovieMobile Movie

Video MailVideo Mail

Music VideoMusic Video

Real Time NewsReal Time News

서울 ▲98Km

부산 ▼96Km

Traffic InformationTraffic Information

Hot Key Hot Key

11111111xEVxEVxEVxEVxEVxEVxEVxEV--------DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4DO High Quality Video using MPEG4

! CDMA2000 1X delivers superior Internet usage and ARPU performance ! Color handsets are one of the key ARPU drivers in 3G environment

Data ARPU by handset

1,351

2,916

5,462

9,726

SMS-based

2G WAP 1X WAP Color(1X)

(As of Jun. 2003)

* Wireless Internet Revenue by handset /# of active users (access Internet more than once per month)

Data usage by handset

US$ 8.1

US$ 1.2

Data ARPU


* % of Total Revenues excludinginterconnection revenues

8%9%

10%

12%13%

15%

4,893 5,063

3,847

3,2902,736

1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 2003 (E)

% of Total Revenues* WI ARPU

(WI ARPU in Won)

NorthAmerica

.Korea

Europe

Japan

All-IP- IP Protocol System

19951995 19991999 20002000 20012001 20022002 2003 +2003 +

• Voice Capa (x 2)• 384k ~ 2Mbps Data• IS-95A/B Compatible

IS-95-AIS-95-A IS-95-BIS-95-BCDMA2000 1X

(Korea, US, Japan)

CDMA2000 1X(Korea, US,

Japan)

1xEV-DO(Phase 1)1xEV-DO(Phase 1)

• Voice• 14.4 kbps circuit

• Voice• 64 kbps Data• IS-95ACompatible

• Voice Capa (x1.5)• 153 kbps Data• IS-95A/B Compatible

CDMA2000 3XCDMA2000 3X

1xEV-DV(Phase 2)1xEV-DV(Phase 2)

• Higher Cap Voice/ Data• 2.4 Mbps Data• IS-95A/B Compatible

• Voice• 28.8 kbps• PDC Compatible

PDCPDC

• Voice• 9.6 kbps

PDC+PDC+ W-CDMA(Japan)

W-CDMA(Japan)

IS-136IS-136 EDGE(Europe, US)

EDGE(Europe, US)

GSMGSM GSM GPRSGSM GPRS

• Voice• 9.6 kbps

W-CDMA(Europe, Korea)

W-CDMA(Europe, Korea)

• 30-40 kbps Packet• GSM Compatible

• 384 kbps Packet

• High Capacity Voice• 384+ kbps Packet

* EDGE: Enhanced Data for GSM EvolutionGPRS: General Packet Radio Service

! Operators are adopting different migration paths by region and country for 3G deployment

! Considering All-IP network as the final migration path

Technology Evolution PathEvolution Perspective

#### Transparent migration path from 2G to 3G#### Network evolution with the Phase of next generation technology#### Transparent migration path from 2G to 3G#### Network evolution with the Phase of next generation technology

Phase 1 (2002~2003)Phase 1 (2002~2003)

Circuit & Packet Network Circuit & Packet Network

Phase 2 (2004~2005)Phase 2 (2004~2005) Phase 3 (2006~) Phase 3 (2006~)

Voice over IP NetworkVoice over IP Network All-IP Network Integration All-IP Network Integration

Circuit NetworkCircuit Network

Packet NetworkPacket Network

AllAll--IP NetworkIP NetworkIP Network IP Network

AllAll--IP integrationIP integration

IP IntegrationIP Integration

Single node integrationSingle node integration

Location Location RegisterRegister MediaMedia

G/WG/WMSCMSC

CallCallServerServer

G/WG/WMSCMSC

RadioRadioNetworkNetwork

ControllerController

RNCRNC

DataDataProcessProcess

nodenode

DataDataG/WG/Wnodenode Internet G/W nodeInternet G/W node

HomeHomeSubsSubs

ServerServer

MediaMediaG/WG/W

RNCRNCServerServer

Internet G/W nodeInternet G/W node

CallCallserverserver

HomeHomeSubsSubs

ServerServer


Network Evolution

2G2G

▶▶▶▶ B/W and small LCD

▶▶▶▶ Low speed data

▶▶▶▶ Browser installed

▶▶▶▶ B/W and small LCD

▶▶▶▶ Low speed data

▶▶▶▶ Browser installed

▶▶▶▶ Wide-color LCD▶▶▶▶ GPS equipped▶▶▶▶ Bluetooth installed▶▶▶▶ Digital camera equipped▶▶▶▶ Java installed terminal

▶▶▶▶ Wide-color LCD▶▶▶▶ GPS equipped▶▶▶▶ Bluetooth installed▶▶▶▶ Digital camera equipped▶▶▶▶ Java installed terminal

2.5G2.5G 3G3G

▶▶▶▶ USIM Module / TFT LCD▶▶▶▶ OS installed terminal

(WinCE, Linux)▶▶▶▶ High capacity CPU/

larger storage

▶▶▶▶ USIM Module / TFT LCD▶▶▶▶ OS installed terminal

(WinCE, Linux)▶▶▶▶ High capacity CPU/

larger storage

4G4G

▶▶▶▶ Virtual Reality▶▶▶▶ Natural Language

Recognition▶▶▶▶ Handwriting

Recognition

▶▶▶▶ Virtual Reality▶▶▶▶ Natural Language

Recognition▶▶▶▶ Handwriting

Recognition

Terminal improvement by development of peripheral device and related technology Terminal improvement by development of peripheral device and related technology

$$$$ Digital camera/GPS/Smart card module/video communication/M-Commerce security solution/LBS$$$$ Semiconductor: higher CPU capacity, larger storage$$$$ Display: Wide LCD %%%% Color LCD %%%% TFT LCD$$$$ Battery: Durable, lighter battery (next generation battery)

$$$$ Digital camera/GPS/Smart card module/video communication/M-Commerce security solution/LBS$$$$ Semiconductor: higher CPU capacity, larger storage$$$$ Display: Wide LCD %%%% Color LCD %%%% TFT LCD$$$$ Battery: Durable, lighter battery (next generation battery)


Terminal Evolution

#### Cooperation

Partnership with related Mobile Operator,

Terminal Manufacturer, Enabler Tech,

to develop Killer Application and Services

#### New Revenue Sharpening Model

#### Open Access

#### Cooperation

Partnership with related Mobile Operator,

Terminal Manufacturer, Enabler Tech,

to develop Killer Application and Services

#### New Revenue Sharpening Model

#### Open Access

#### Need to know customer needs for developing new services

#### Focusing on Customer Segmentation, Targeting and Positioning

#### Service Mixing, Customizing & Personalizing will be the key factors for success

Successful Service &&&& Develop High Tech and Secure Contents!

Successful Service &&&& Develop High Tech and Secure Contents!

Variation /Differentiationof Contents

Advancementof Contents

Personalizing/ Packagingof Contents


Contents Diversification

Conclusion

Global Leader in Wireless Technology & Product

Innovation

Leading Position in Wireless Internet Market

Technology Evolution to 3G and next ...

Service Evolution to Multimedia

Thank you

cdma data network & services of sk telecom 02 2q 02 3q 02 4q 02 1q 03 2003 (e) % of total...

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