korea communication review, july 2014

Korea Communication ReviewJuly 2014

KT Chairman envisions GiGAtopiaChairman Chang-gyu Hwang of KT, at a press

conference held at KT Olleh Square in

Gwanghwamun, Seoul on May 20, announced that

"KT will open up a new age of GiGAtopia by investing

KRW 4.5 trillion (USD 4.4 billion) in GiGA FTTH,

GiGA Path (heterogeneous networks convergence

technology that combines LTE and Wi-Fi networks),

and GiGA Wire (copper wire-based transmission

technology) for the next three years." Through this

investment,

Korean ICT News • page 1

LTE/LTE-A Commercialization

by South Korea’s Big 3

Operators as of July 1, 2014

• page 2-4

Broadband Access Network

Architecture in Korea

• page 5-6

Featured Article:

What's GiGAtopia envisioned

by Chairman Chang-gyu

Hwang of KT?

• page 7-11

Netmanias Vendor Interview:

HFR’s optical fronthaul

solution

• page 12-14

LTE subscribers in Korea

UPDATE

• page 15-16

Broadband subscribers in

Korea UPDATE

• page 17-18

IPTV subscribers in Korea

UPDATE

• page 19

Research and Consulting

Scope of Netmanias

• page 20

© Netmanias Consulting • www.netmanias.com

technology) for the next three years." Through this investment, the company first plans to

provide Giga-class wired Internet services such as GiGA Wire (300 Mbps) and GiGA FTTH

(1 Gbps), which are three times and ten times faster than the current 100Mbps,

respectively. The company also plans on accelerating the wireless Internet access three

folds by employing heterogeneous networks convergence technologies (e.g. IFOM) that

combine LTE and Wi-Fi networks. With these new Giga-infrastructures, Chairman Hwang

estimates that the company will aim to commercialize UHD TV services (15~20 Mbps) by

the end of the year, and employ its video streaming technology, 'Olleh Power Live

(eMBMS)', to cover more key service areas in Seoul by the end of June, allowing users to

watch various contents in HD resolution (max. 4 Mbps), 10 times better than the current

DMB TV.

See page 7-11, What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? n

Korea’s big 3 operators launched the world’s first 225 Mbps wideband

LTE-A service in June

In June 2014, Korea’s big three mobile operators, SK Telecom,

LG U+ and KT, launched commercial wideband LTE-A

services, supporting a maximum speed of 225 Mbps with 30

MHz using 2-band carrier aggregation that combines 20 MHz

in the wideband LTE bands and 10 MHz in the existing bands.

On June 19, 2014, SK Telecom began the service for the first

time in the world, soon followed by LG U+ and KT who also

launched the same service at the end of the Month. Specifically,

the operators offer the wideband LTE-A services combining 20

MHz and 10 MHz in the following bands:

- SK Telecom: 1.8 GHz (Band 3) and 850 MHz (Band 5)

- LG U+: 2.6 GHz (Band 7) and 850 MHz (Band 5)

- KT: 1.8 GHz (Band 3) and 900 MHz (Band 8)

At 225 Mbps, we can download a 1 GB movie in just 35 seconds.

The same task will take 53 seconds with wideband LTE (150

Mbps) and 1 minute and 46 seconds with LTE (75 Mbps).

KT chairman envisions GiGAtopia

Download speed

measured on Samsung

‘Galaxy S5 Broadband

LTE-A’ phone in SK

Telecom’s wideband

LTE-A network

See page 2-4, LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of

July 1, 2014. n

Korea Communication Review Publisher: Dr. Harrison J. Son | [email protected] Associate Editor: Dr. Michelle M. Do | [email protected] Advertising Sales: Ho-Young Lee | [email protected] | +82-2-3444-5747 Business Development: Steve Shin | [email protected] | +82-10-2884-8870

IN THIS ISSUE

2


Korea Communication Review • July 2014

LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014 | By Dr. Michelle M. Do

l In June 2014, Korea’s big three mobile operators, SK

Telecom, LG U+ and KT, launched commercial wideband

LTE-A services, supporting a maximum speed of 225 Mbps

with 30 MHz using 2-band carrier aggregation (CA) that

combines 20 MHz in the wideband LTE bands and 10 MHz

in the existing bands. On June 19, 2014, SK Telecom began

the service for the first time in the world, soon followed by

LG U+ and KT who also launched the same service at the

end of the month. Specifically, the operators offer the

wideband LTE-A services combining 20 MHz and 10 MHz

in the following bands:

- SK Telecom: 1.8 GHz (Band 3) and 850 MHz (Band 5)

- LG U+: 2.6 GHz (Band 7) and 850 MHz (Band 5)

- KT: 1.8 GHz (Band 3) and 900 MHz (Band 8)

Korea launched LTE service back in July 2011. Soon, it

also commercialized LTE-A service and wideband LTE-A

service – in June 2013 and in June 2014 respectively – for

the first time in the world. The speed of LTE network has

accelerated three times faster from max. 75 Mbps in July

2011 to max. 225 Mbps in June 2014 in just 3 years. In

Korea, LTE technology is advancing fast – faster than any

other country in the world.

At 225 Mbps, we can download a 1 GB movie in just 35

seconds. The same task will take 53 seconds with wideband

LTE (150 Mbps) and 1 minute and 46 seconds with LTE (75

Mbps). Samsung released a new version of its Galaxy S5

smartphone, Galaxy S5 Broadband LTE-A, the world’s first

commercially available LTE-A category 6 smartphone for

the wideband LTE-A service. It supports a Quad HD (QHD)

display, allowing for a resolution two times higher than the

conventional Full-HD.

SK Telecom upgraded the quality of its mobile IPTV (B tv

Mobile) through commercialization of wideband LTE-A

service. With the upgrade, now it offers 4K Ultra High

Definition (UHD) VoD streaming, which supports a

resolution four times higher than Full HD.

LG U+ launched a new unlimited LTE data plan

accompanying a video streaming service “Uflix Movie”.

accompanying a video streaming service “Uflix Movie”.

lKorea’s big three all secured their wideband LTE bands

through the LTE frequency auction in August 2013. Since

then they have been steadily expanding their wideband LTE

networks. And now they all began to offer nationwide

wideband LTE services starting from July 1, 2014 - SK

Telecom and KT in 1.8 GHz band (Band 3) and LG U+ in

2.6 GHz (Band 7).

lNow the operators are getting ready to launch another

wideband LTE-A service at the end of the year. This service

will support max. 300 Mbps, using 3-band CA that

combines 40 MHz across 3 bands.

LG U+ has already secured 40 MHz bandwidth across 3

bands (20 MHz in 2.6 GHz and two 10 MHz in 850 MHz

and 2.1 GHz) through the frequency auction in 2013. It

plans to begin the service as soon as the 3GPP

standardization process for 3-band CA (B1+B5+B7) is

completed.

SK Telecom, having gained approval for using 10 MHz,

out of 30 MHz originally allocated for 3G services in 2.1

GHz band, for LTE services earlier this year, already began

building 2.1 GHZ base stations in May 2014. The company

plans to boost its LTE speed up to 300 Mbps by the end of

the year by using 3-band CA (B1+B3+B5) combining 20

MHz in 1.8 GHz and two 10 MHz in 850 MHz and 2.1 GHz.

In the meantime, KT is waiting for approval for

converting 10 MHz out of 20 MHz in 2.1 GHz band, from

3G purpose to LTE purpose. Once approved, KT will

commercialize 3-band CA (B1+B3+B8) at the end of the

year.

l In the fourth quarter of 2014, category 6 smartphones

supporting 3-band CA are scheduled to be launched, and a

maximum speed of 300 Mbps is expected to be supported.

If everything goes as planned, it would be time for the

country to take the first step into the world of GiGA mobile

communications. LTE services that have been provided

since its launch in 2011 and those scheduled to be provided

in Korea are as follows:

Table. Korean operators’ current and planned LTE services

Max. RateTotal BW

(DL) SK Telecom

75 Mbps 10 MHzJul. 2011

B5

150 Mbps 20 MHzJun. 2013

B3+B5

CA

-

2-band CA

LG U+

Jul. 2011

B5

Jul. 2013

B1+B5

KT

Jan. 2012

B3

Sep. 2013

B3+B8

150 Mbps 20 MHzSep. 2013

B3

225 Mbps 30 MHzJun 2014

B3+B5

-

2-band CA

Sep. 2013

B7

Jun 2014

B5+B7

Sep. 2013

B3

Jun 2014

B3+B8

300 Mbps 40 MHzQ4 2014

B1+B3+B53-band CA

Q4 2014

B1+B5+B7

Q4 2014

B1+B3+B8

Service

LTE

LTE-A

Wideband LTE

2-band Wideband LTE-A

3-band Wideband LTE-A

Launch date and service bands

3



• Launched Wideband LTE-A (225Mbps) (World’s second)

• Launched LTE-A (150Mbps) (World’s first)

13

• VoLTE (World’s first)

• World’s first full HD streaming

• Launched Wideband LTE (150Mbps)

• Launched LTE (75Mbps) service

• LTE subscribers: 12.3 M (45.1%)


• LTE subscribers: 634 K (2.4%)

10MHz (850MHz) + 10MHz (1.8GHz)

10MHz (850MHz)

SK Telecom LG U+ KT

• Scheduled to offer Wideband LTE-A (300Mbps)



• Launched unlimited LTE data plan


• Expanded Wideband LTE to metropolitan cities

• MWC 2013 Demonstration - CA (10+10MHz, 150Mbps)

LTELTE-AWideband LTEWideband LTE-A

10MHz10+10MHz20MHz20+10MHz

Max 150MbpsMax 225Mbps

Wideband LTE-AWideband LTE-A

20+10+10MHz20+20+20MHz


x2x3

x4x6

• Wideband LTE-A (20+10MHz, 225Mbps) demonstration

Commercialized (by all 3 in 2013)

Commercialized (by all 3 in June)

To be commercialized (by all 3 in Q4)

To be commercialized (in 2015 or later)



20MHz (1.8GHz)

• Launched LTE-A (150Mbps) (World’s second)

• Multi-Carrier (World’s first)

• World’s first 4 CH multi-view




• LTE subscribers: 557 K (5.9%)10MHz (850MHz)


• VoLTE (World’s first)




• MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - Uplink CoMP - LTE + Giga Wi-Fi Femtocell



10MHz (850MHz) + 10MHz (2.1GHz)

20MHz (2.6GHz)

• HD 4Mbps streaming

• Multi-Carrier

• Launched LTE-A (150Mbps) (World’s third)




• VoLTE


• Launched eMBMS (World’s first)




• MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA - LTE-A + Giga Wi-Fi

• MWC 2013 Demonstration - eMBMS (KT+Samsung+Quacomm)


10MHz (1.8GHz)

• LTE subscribers: 351 K (2.1%)

10MHz (1.8GHz) + 10MHz (900MHz)

20MHz (1.8GHz)

• Multi-Carrier (World’s first)

Wideband LTE Spectrum Auction

Q4

13

14

As of July 1, 2014


x1x2

Commercialized (by SKT/LG U+ in 2011 and by KT in 2012)

Commercialized (by all 3 in 2013)

LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014

• MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA

• Launched Wideband LTE-A (225Mbps) (World’s second)

• Launched Wideband LTE-A (225Mbps) (World’s first)

20MHz (1.8GHz) + 10MHz (850MHz) 20MHz (2.6GHz) + 10MHz (850MHz) 20MHz (1.8GHz) + 10MHz (900MHz)

10

11

12

1

2

3

4

5

6

6

8

7

9

1

2

3

4

5

1

2

3

4

5

6

7

8

9

10

11

12

12

117

12

12

11

1

2

1

2

3

4

5

6

7

8

9

10

11

12

7

12

3

4

5

6

8

10

11

12

7

9

14

1

Q4

5

3

4

2

6

4



850 MHz

900 MHz

1800 MHz

2600 MHz

Band 5

Band 8

Band 3

Band 7

1745 1755

KT

1930

1725 17351715

SKT KT

2520 2530 2540

LG U+

MHz

MHz

MHz

SKT

1840 1850

905 915

KT

950 960

KT

839 849

LG U+

829

1810 1830

MHz2110

MHz2640 2650 2660

SKT

Nation

NationNation

Major Major

884 894874

Wideband LTE

Nationwide

100 150

Nation

2120

Downlink

The Big 3:

ㆍ Launched Wideband LTE-A service using 2-band CA in June 2014, offering max. 225 Mbps (20 + 10 MHz)

ㆍ Expanded Wideband LTE service nationwide on July 1, 2014

ㆍ To launch Wideband LTE-A service using 3-band CA in Q4 2014, offering max. 300 Mbps (20 + 10 + 10 MHz)

- SK Telecom has already been approved for using a portion (10 MHz) of 3G spectrum for LTE purpose, and KT is still waiting for approval

UE

LTE Frequency Commercialization Status (as of July 1, 2014)

Carrier Aggregation (CA)

Uplink

225 Mbps

225 Mbps

LG U+

Nation

150

Nation: NationwideMajor: Major Cities

LTE/LTE-A Commercialization by South Korea’s Big 3 Operators as of July 1, 2014

n Wideband LTE-A services in Korea (2014. 06)

2130

SKT

3GàLTE

1940

LG U+

Nationwide

SKT

Nation

SKT

3GàLTEMajor

LG U+

Wideband LTE

100 150 150

Nationwide

SKT KT

225 Mbps

150 Mbps

1820

Wideband LTE

100 150 150

2100 MHzBand 1

1920

LG U+

Major

SK Telecom 2-band 30 (20 + 10) MHz 2014. 06

LG U+ 2-band 30 (20 + 10) MHz 2014. 06

KT 2-band 30 (20 + 10) MHz 2014. 06

1.8 GHz (B3) + 850 MHz (B5)

2.6 GHz (B7) + 850 MHz (B5)

1.8 GHz (B3) + 900 MHz (B8)

225 Mbps

225 Mbps

225 Mbps

Operator # of band Bandwidth (DL) LaunchedCarriers Max. rate (DL)

Category 3

Category 4

100 Mbps (Wideband LTE)

150 Mbps (Wideband LTE, 20 MHz)

150 Mbps (LTE-A, 2-band CA, 10+10 MHz)

B1-B5

Categoty 6 300 Mbps (Wideband LTE-A, 3-band CA, 20+10+10

MHz)

Planned (Q4 2014) Planned (Q4 2014)

SKT

B3-B8

B3-B5

B5-B7225 Mbps (Wideband LTE-A, 2-band CA, 20+10 MHz) Categoty 6

LG U+

KT

30 MHz: [B3]20 + [B5]10

30 MHz: [B5]10 + [B7]20

30 MHz: [B3]20 + [B8]10

225 Mbps2-bandCategory 6

LG U+ 20 MHz: [B1]10 + [B5]10 150 Mbps2-bandCategory 4

SKT B1-B3-B5

LG U+

KT

40 MHz: [B1]10 + [B3]20 + [B5]10

40 MHz: [B1]10 + [B5]10 + [B7]20

40 MHz: [B1*]10 + [B3]20 + [B8]10

300

Mbps3-bandCategory 6B1-B5-B7

B1-B3-B8

UE Category Max. Speed Operator UE Categoty CA Type BW: CA Combination Max. Speed

SKT

Nationwide

* waiting for approval

5



Broadband Access Network Architecture in Korea | By Chris Yoo

OLTL3 SW

Splitter (1:4)

Splitter (1:8)ONT

UTP

FTTH Dimensioning

• 32 ONTs per PON port

• 20 PON ports per OLT

• 640 ONTs per OLT

(5,000 ONT per OLT ~ planned)100Mbps

ONT

Splitter(32 ONTs)

Splitter (1:8)

Pole

Manhole

BRAS

Backbone

Central Office Edge

GE

GE

Gbps

Gbps

Gbps

Gbps

VDSL DSLAMs

L3 SW

Twisted pair

100Mbps

GE

Central Office

Central Office

L2 SWs

L3 SW

UTP

100Mbps

GESplitter

(1:4)

ONUsUTP

100Mbps

Gbps

Gbps

Splitter(1:4)

ONUs(VDSL)

Twisted pair

100Mbps

Gbps

fiber

fiber

Gbps

100Mbps

Migration

Migration

E-PON

❶ Fiber to the home

❷ UTP to the home

❸ Twisted pair to the home

Single Homes

Apartment Home

Fiber to the home

nxGE

South Korea is a crowded country, with 50.3 million people in 18.8 million households. 47% of the total households

live in condominiums or apartment buildings while 40% live in single homes. Different types of housings require

different types of Internet access network topologies as seen in the figure below.

For a user living in a single home, an optical fiber cable from an OLT at the operator's CO (central office) is split once

by a splitter installed under a manhole in the street, and then again by another splitter installed on a pole near tHe

user's home. Next, one of the split cables is connected to an ONT in his home, and then on to his PC via a UTP LAN

port (100 Mbps).

E-PON: Ethernet Passive Optical Network

G-PON: Gigabit Passive Optical Network

OLT: Optical Line Terminal

ONU: Optical Network Unit

ONT: Optical Network Terminal

L3 SW: Layer 3 Switch

GE: Gigabit Ethernet

6



Broadband Access Network Architecture in Korea

For a user living in a condominium or apartment building, the access network topology to be used slightly vary

depending on the wiring system installed in the building: fiber, UTP and twisted pair.

(1) Optic fiber: An optical fiber cable from the OLT is split by a splitter installed in MDF of the building. Then, one of

the split cables is connected to an ONT in the PC.

(2) UTP: Previously, each building had one L3 switch installed in its MDF, and multiple L2 switches installed floors

away from one another (e.g. on 5th, 10th and 15th in a 20-story building). The L3 switch was connected to the L2

switches on different floors. This type of topology requires L3 switches be located outside of (and far away from) the

operator's CO, leading to higher OPEX. Now, L3 Switches are replaced by splitters, and L2 switches are replaced by

ONUs, allowing splitters to be connected to an OLT at CO.

(3) Twisted pair: Previously, each building had one L3 switch in its MDF, and multiple VDSL DSLAMs installed floors

away from one another. Again, this type of topology requires L3 switches be located outside of (and far away from)

the operator's CO, leading to higher OPEX. Now, L3 switches are replaced by splitters, and L2 switches are replaced

by ONUs (VDSLs), allowing splitters to be connected to an OLT at CO.

KT’s broadband access network illustrated in the previous page is quite similar to that of SK Broadband and LG U+,

except KT and LG U+ use E-PON while SK Broadband uses G-PON.

All three operators support 100 Mbps in both UL and DL, and take care of the Internet, IPTV and VoIP traffic through

this one single cable (Triple Play Service). n

n Vendors selected by operators

KT SK (SK Broadband) LG U+

FTTH (OLT) ▶ E-PON: Dasan, ubiQuoss ▶ G-PON: Dasan, HFR, Tellion ▶ E-PON: Dasan, ubiQuoss

LAN

(L2/L3 Switch)▶ L3 switch: Dasan, ubiQuoss

▶ L2 switch: Dasan, ubiQuoss


▶ L2 switch: Dasan, HFR, Tellion



XDSL ▶ VDSL DSLAM: ubiQuoss ▶ VDSL DSLAM: Dasan, Tellion ▶ VDSL DSLAM: Dasan, ubiQuoss

OLTs deployed

in big 3's networks

ubiQuoss (U9500H)

10G E-PON OLT

HFR (HT7000G)

G-PON OLT

Dasan (V8272)

E-PON OLT

ubiQuoss (U9024A)

Dasan (V5724G)

Tellion (GP 1140)

http://www.ubiquoss.com/

http://www.hfrnet.com/

http://www.dasannetworks.com/

http://www.ubiquoss.com/

http://www.dasannetworks.com/

http://www.tellion.com/

7



What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT? | By Dr. Harrison J. Son

KT’s Vision: GiGAtopia

hairman Chang-gyu Hwang of KT (with sales

of KRW 23.8 trillion in 2013), at a press

conference held at KT Olleh Square in

gggggggggg

Hwang estimates that the company will aim to

commercialize UHD TV services (15~20 Mbps) by

the end of the year, and employ its video streaming

technology, 'Olleh Power Live (eMBMS)', to cover

more key service areas in Seoul by the end of June,

allowing users to watch various contents in HD

resolution (max. 4 Mbps), 10 times better than the

current DMB TV.

In 2013, the company faced an 'annual deficit' for

the first time due to sales declines in its wired

service division combined with a near-stagnant

subscriber growth in the wireless service division.

To make matters worse, the constant disharmony

and non-cooperation among members in the

company have led to KT's worst year, both

internally and externally. Chairman Hwang took

office on January 27, 2014. With the company still

recovering from its devastating year's poor

performance, he, as a result, has been busy dealing

with a series of non-stop issues and incidents ever

since then. He had to make an apology for leakage

of personal information of 1.2 million customers in

his first official press conference.

Gwanghwamun, Seoul on May 20, announced that

"KT will open up a new age of GiGAtopia by

investing KRW 4.5 trillion (USD 4.4 billion) in

GiGA FTTH, GiGA Path (heterogeneous networks

convergence technology that combines LTE and

Wi-Fi networks), and GiGA Wire (copper wire-

based transmission technology) for the next three

years."

Through this investment, the company first plans

to provide Giga-class wired Internet services such

as GiGA Wire (300 Mbps) and GiGA FTTH (1

Gbps), which are three times and ten times faster

than the current 100 Mbps, respectively. The

company also plans on accelerating the wireless

Internet access three folds by employing

heterogeneous networks convergence technologies

(e.g. IP Flow Mobility) that combine LTE and Wi-

Fi networks.

With these new Giga-infrastructures, Chairman

Hwang estimates that the company will aim to

C

Source: KT

8



What's GiGAtopia envisioned by Chairman Chang-gyu Hwang of KT?

On March 14, the company was even ordered to

suspend marketing to a new customer base for 45

days. In addition to that, he had over 8,300

employees voluntarily resign to help the company

overcome the management crisis that it was facing

in April.

Under such dire circumstances, KT desperately

needed a solution that could have all of its

members re-united, and eliminate the market's

concern about the company. Thus, the idea of

GiGAtopia was born. GiGAtopia is all about high

speed. Just as he won a capacity battle while

serving as a former head of Samsung Electronics'

semiconductor business, by doubling flash memory

capacity every year, Chairman Hwang is trying to

win another battle - a high-speed Internet battle -

now in the communication market. The company

plans to provide Gbps-level, wired and wireless,

Internet services.

The company introduced the concept of GiGAtopia,

which integrates the various technologies and

services it has been developing for many years. KT

said it would invest KRW 4.5 trillion over the next

three years, and through the investment, would

position itself as a leader in the mobile

communication industry, domestically and

globally.

Later in a forum titled "the 20th anniversary of

Korean Internet commercialization and the GiGA

age" held at KT Olleh Square on June 19, Mr.

Seong-mok Oh, head of the Network Business

Division at KT,

Seong-mok Oh, head of the Network Business

Division at KT, announced the company would

commercialize GiGA FTTH and GiGA Wire in the

second half of this year.

Finally, KT is about to make a long-delayed leap

from 100 Mbps - which has remained unimproved

for 9 long years since its launch of FTTH service

back in 2005 - to 1 Gbps.

▶ GiGA Internet (GiGA FTTH)

GiGA Internet service can boost the capacity of the

ultra-high speed Internet to 1 Gbps, 10 times faster

than the current speed of 100 Mbps. This service

will be available for those who have UTP or fiber

installed at home.

(As of April, 2014, KT has 8.0 million broadband

subscribers. 35.1% of them (2.82 million) are

connected by UTP cables, and 47.7% (3.83 million)

are connected by fiber cables.)

FTTH3.8M

(47.7%)LAN/UTP2.8M

(35.1%)

XDSL1.4M

(17.1%)

GiGA Internet (GiGA FTTH)

KT broadband subscribers

100Mbps FTTH GiGA FTTH 100Mbps VDSL GiGA WIRE 150Mbps LTE GiGA PATH

10X

3X

300Mbps

1 Gbps

3X

450Mbps

100Mbps 100Mbps150Mbps

Fixed: UTP or Fiber cable Fixed: Twisted pair Mobile

LTE 150Mbps + Wi-Fi 300Mbps

GiGAtopia is all about high speed.

9




All the FTTH services currently available from

South Korea's big three operators can support only

up to about 100 Mbps in UL/DL, at most. That's

why GiGA Internet is Chairman Hwang's No. 1

priority in his speed battle.

GiGA Internet is also an E-PON based network,

much like current 100 Mbps FTTH networks.

ONTs currently installed at customer homes must

be replaced by new giga ONTs (ones with GE LAN

ports). KT has been replacing ONTs in selected

areas since last year, and has also started switching

OLTs in COs to ones with higher-capacity (capable

of covering 5,000 ONTs, and supporting 10G PON

ports and 10 GE uplinks) this year.

For this GiGA Internet service, network

infrastructures required for provision of the service

have been built; however, no specific product has

been released yet. This is because there have been

issues regarding the pricing policy of the service.

Once KT begins the service, it will have to deal with

increased costs of investment in access lines (Giga

ONT, high-capacity OLT/10 GE PON). Not only

that, costs of investment in backbone networks will

also rise due to increased backbone traffic resulting

from installation of Gbps-level access lines and

more importantly because of fast-growing free-

riding traffic like P2P. This has been the biggest

concern for KT. To address these issues, various

measures like partial volume-based charging,

limited traffic for heavy users, etc. have been

proposed. The company has already submitted a

pricing plan that reflects the suggested measures to

the Ministry of Science, ICT & Future Planning for

approval. Negotiations between the two are taking

place for finalization of the plan.

If KT wants to begin GiGA Internet service in the

second half of this year as it proudly announced,

the pricing issues must be handled first. As noted

earlier, KT has to make significant investment

before launching the service.

ONU

ONT

ONT

100Mbps OLT

(E-PON) L3 SW BRAS

Central OfficeHome

100Mbps

100Mbps

GE

640 ONTs/OLT

10Gbps

1Gbps

1Gbps

1Gbp

s

ONU

Giga ONT

Giga ONT

1Gbps High capacity OLT

(10G E-PON) BRAS

1Gbps

1Gbps

10Gbps

5,000 ONTs/OLT

Edge Core

KT IP Backbone

(KORNET)

Splitter

Migration

Down:10Gbps

Up: 10Gbps

Down:10Gbps

Up: 1Gbps

24 ports

UTP

UTP

Replace

ONT1G è10G

High capacity

OLT

Remove L3 switch:

Network Simplification

100 Mbps

to the Home

GiGA Internet

(1 Gbps to the

Home)

100Mbps

è1Gbps

Replace

ONU

KT IP Backbone

(KORNET)

Migration to GiGA Internet (1 Gbps to the home)

10




before launching the service. Besides, most of

South Korean network vendors have recently been

struggling in a bad economy. Given that, the

Ministry of Science, ICT & Future Planning is

expected to approve the pricing plan suggested by

KT, eventually.

▶ GiGA Wire

47% of households in South Korea live in

condominiums or apartments. This results in lots

of high-density residential areas, consequently

allowing for very short last-mile distances. Thanks

to this unique nature of housing in this nation and

the abundant fiber-optic cables deployed

nationwide, South Korea has been recognized as a

global leader in ultra-high speed Internet services

and technologies since the early 2000s. More than

60% of the nation's households have UTP or fiber

cables installed in their homes. Despite South

Korea's highly developed access infrastructure,

9.3% (1.8 million) of the households still use the

existent twisted pairs to access the Internet.

This may not sound like a big market in South

Korea. But, operators still have to provide solutions

that can cover and serve all households with

that can cover and serve all households with

different cabling environments. Because of this, the

South Korean big three operators have been

developing solutions that can support hundreds of

Mbps for those who are still using the original, old

twisted pair-based Internet service. For KT, GiGA

Wire was the product of such efforts.

GiGA Wire is for users who live in old houses or

apartments where only a twisted pair of cables are

installed. By employing G.hn (ITU-T) technology,

the service will support 300 Mbps in DL (three

times faster than the current VDSL's 100 Mbps)

and 100Mbps in UL,

DSLAM100Mbps

GE (UTP

or Fiber)

Twisted pair

VDSL Modem

Splitter(1:4)

GAM300M

bps

Gbps

Twisted pair

GNT: G.hn Network Terminal

GAM: G.hn Access Multiplexer with E-PON uplink

Splitter(1:4)

ONUs 100Mbps

Gbps

Twisted pair

VDSL Modem

ONU: VDSL DSLAM with E-PON uplink

Splitter(1:4)

GAM300M

bps

Gbps

Twisted pair

GNT: G.hn Network Terminal

GAM: G.hn Access Multiplexer with E-PON uplink

L3 SW

100 Mbps

To the Home

(VDSL)

300 Mbps

To the Home

(G.hn)

FTTH3.8M

(47.7%)LAN/UTP2.8M

(35.1%)

XDSL1.4M

(17.1%)

GiGA Wire

KT broadband subscribers

Migration to GiGA Wire (300Mbps to the home)

11




and 100 Mbps in UL, or 200 Mbps in DL and UL.

This service is scheduled to be available in the

second half of the year. GiGA Wire is KT's

proprietary technology, and not one of the

standardized technologies. The technology was

designed by KT, chips used were supplied by a chip

vendor Marvell, and GNT and GAM that function

as a modem and DSLAM in VDSL respectively were

provided by ubiQuoss.

▶ GiGA Path

GiGA Path is a heterogeneous network convergence

technology that improves transmission rates of

mobiles by combining LTE and Wi-Fi. It can be

roughly divided into two types: app-based and

network-based. In case of an app-based approach,

there is no separate gateway in the network.

Instead, it works as an "app" in a smartphone so

that data can be sent or received through either

LTE or Wi-Fi between the service app in the

smartphone and KT's streaming server in KT's IP

network. KT has named this technology as "Always

Best Connected (ABC)", and has employed it in its

Olleh TV mobile apps and Olleh TV streaming

server since 2013.

TV streaming server since 2013. Currently, this

type can be used only for Streaming services that

are directly developed and operated by KT, and not

for video streaming services by OTTs (like

YouTube). On the other hand, in case of a network-

based approach, there is an anchoring point, like

mobile IP HA (IFOM: IP Flow Mobility) or multi-

TCP proxy server, to be used for diverging traffic.

At the end of last year, KT succeeded in

demonstrating the combination of LTE 150 Mbps

and Wi-Fi 300 Mbps (802.11n) into 450 Mbps by

using IFOM technology on the Galaxy Note 3. Now

the company is considering furthering the

employment of multi-Path TCP technology as well.

This type of approach does not require

interoperation with CSPs or OTTs, and as a result

can be used in video streaming or file downloading

by OTTs and CSPs. Thus, it would only be natural

for KT to stick to both the app-based approach (for

transmitting its own contents) and network-based

approach (for transmitting contents from other

CSP or OTT). Now that we are familiar with KT's

GiGAtopia, we will find about evolution strategies

of SK Telecom and LG U+ in August. n

KT IP Backbone

LTE Network IP Backhaul

P-GW

KT Olleh TV Mobile

Streaming Server

Wi-Fi APeNB

KT IP Backbone

LTE Network IP Backhaul

P-GW

CSP, OTT

(e.g., File Box)

Wi-Fi APeNB

HA

Public Internet

GRE Tunnel

App-based approach (ABC) Network-based approach (IFOM)

DSMIPv6 Client

DSMIPv6 Home Agent

Olleh TV Mobile App

150 Mbps 300 Mbps

450 Mbps

Movie file

Inte

rwo

rkin

g

Inte

rwo

rkin

g

GiGA Path is a heterogeneous network convergence technology that improves transmission rates of mobiles by combining LTE and Wi-Fi.

Small RRH

Small BSwith Wi-Fi

CPRI

GPON/GE

GE

Macro LTE RRH

BBU Pool

8300

Ethernet Backhaul

CPRI Fronthaul

CPRI

GE

SAE-GW

Macro Cell SiteSmall Cell

8500

8100

8300

Central Office

SAE-GW

EPC Site

IP/MPLS

Baseband I/Q stream

Ethernet frame

HSN 8300

HSN 8500flexHaulTM Solution

HSN 8100

ls : CPRI trafficls : Ethernet traffic

GE

HSN 8300

Netmanias: Welcome! Thank you for being with us. Can you tell us a little bit about HFR first? HFR: HFR was founded in 2000. And we have been providing wired/wireless operators and enterprises with various equipment such as WDM including Mobile Fronthaul, Carrier Ethernet, FTTx, Wi-Fi, Repeaters, etc.

Netmanias: What are the concept and position of your flexiHaul?HFR: Our flexiHaul product line is a family of fronthaul units that connects BBUs and RRHs in the emerging next generation architecture, C-RAN.

Our flexiHaul series are WDM solutions. What they do is to aggregate (fronthauling) macro/micro/small RRH (CPRI) traffic, and aggregate (backhauling) legacy base station, compact base station (pico), and Wi-Fi traffic to a single aggregation network.

Netmanias: These C-RAN and fronthaul may sound new to some of us. Can you tell us more about them?HFR: Sure. To handle soaring data

traffic, operators have been making macro cells smaller, and this has apparently left the operators with more cells to build and operate. To save costs in building and operating cell sites, a new architecture called C-RAN was introduced. It is also known as “Centralized RAN” or “Cloud RAN”. With this C-RAN, operators can simply leave all RRHs in their cell sites, but move only BBUs to a centralized location at central offices or master cell sites. C-RAN has drastically lowered the cell site cost (Capex/Opex), and has maximized the effects of CoMP and eICIC of LTE-A. This helps to improve not only service quality, but also network performance. Because of these benefits, many operators around the world have been conducting trial tests for C-RAN deployment. And two of the most advanced LTE operators in South Korea, and also in the world, SK Telecom and KT, already succeeded in commercializing it back in 2012.

Now that RRHs and BBUs are remotely separated in C-RAN, a new network was required in order to deliver a huge volume of baseband

Netmanias Vendor Interview with HFR

I/Q streams between the two across CPRI or OBSAI link. Previously, both RRHs and BBUs were located in eNBs, and the transport network between eNBs and EPC was called backhaul. Now in C-RAN, these new CPRI and OBSAI networks are called fronthaul.

Netmanias: I see. Then, fronthaul is a newly defined segment in a mobile operator’s access network. What are the technical requirements for the fronthaul then? HFR: The fronthaul network should be able to satisfy requirements under LTE layer protocol operation and under the CPRI specification. First of all, ultra-high transmission capacity (as high as 2.5 GMbps~10 Gbps) for delivering baseband I/Q data is required, and latency caused within equipment in the fronthaul network should be minimized to a few secs to maximize the distance between BBUs and RRHs.

In-C-RAN, since RRH has no GPS antenna, it extracts clock from I/Q bit stream received from BBU. And then it removes jitter and generates the clocks (CPRI/sampling/carrier

12



HFR is probably most known as a vendor of wired/wireless network equipment like Mobile fronthaul, Carrier Ethernet, FTTx, etc. Today, we are going to talk about one of its most popular solutions, flexiHaulTM, a mobile optical access solution.

HFR’s flexiHaulTM Fronthaul Solution

frequency, etc.) to be used in the RRH system. So, the RRH system performance varies depending on the quality of the recovered clock. That’s why jitter has to be minimized in the fronthaul network, and the CPRI specification defines the maximum frequency accuracy budget as 0.002 ppm. Also, to guarantee the time/phase synchronization required in LTE-A (eICIC, CoMP), the CPRI time/phase synchronization should be strictly ensured in the fronthaul as well. So, we can say ensuring low latency and synchronization between BBU and RRH are the most important and demanding jobs for the fronthaul. Netmanias: You mean, transport capacity, low-latency and highly accurate synchronization are key factors, right? HFR: That’s right.

Netmanias: I see. Then, what possible ways have been suggested to satisfy such demanding technical requirements?HFR: There have been several ways. First, in terms of technology, the best option would be using dark fiber. But the problem with this option is that it would only work for those who already have plenty of fiber, and others including most operators would have to lease it. And obviously this can cost a lot. For example, a network with LTE Carrier BW of 20MHz, 2x2 antenna, 3-sector, 2 bands would require 6 RRHs in each cell site, which means 6 leased fibers in each cell site. The second option would be OTN, which I would say has room for improvement. The problem with this option is that, latency and jitter are caused during OTN mapping/demapping/multiplexing. And this leads to longer latency in the fronthaul network, and degraded RRH system performance, respectively. So, the OTN standards and equipment development need to be improved in a way that can optimize CPRI transmission. The third option is WDM. With WDM, just a single or two fibers can cover tens of CPRI channels. So, fiber costs

can be lowered, and high-volume transmission is possible. There are two types of WDM, passive and active. The best part of passive WDM is that it is inexpensive, and requires no power supply. Besides, little latency or jitter is caused, and so the distance between BBU and RRH can be maximized, without affecting LTE/LTE-A performance much. Active WDM is bidirectional (single fiber). So, dark fiber costs can be lowered. And by using Muxponder, the number of required can be minimized, which can further lower the fiber costs. What’s even better, operators can even monitor the quality of the fronthaul network by running a self loopback test on active WDM units. But, one thing to note is that active WDM may cause latency and jitter, which should be kept under certain levels.

Netmanias: I see. What kinds of technologies have been used in building the fronthaul network with the current commercial C-RAN?HFR: C-RAN was commercialized by Korean mobile operators for the first time in the world. They have adopted both passive and active WDM, and we also support both of them. But, today I will only talk about flexiHaul solution, which is an active WDM solution.

Netmanias: Now, let’s talk about your fronthaul solution, flexiHaul. HFR: Our flexiHaul solution consists of the HSN series (HSN 8500/8300/8100/8110). HSN 8500 models are installed in BBU pool sites, and

support 40 λs and 72 CPRI ports. These models support the three CPRI service cards, i) transponder card that supports three option 3/4/5/6 CPRI ports, ii) Muxponder card that supports four option 3/4 CPRI ports, and iii) Muxponder card that supports two option 3/4/5/6 CPRI ports. And all three CPRI cards have been deployed in SK Telecom’s commercial network. Muxponder cards use one per card. So, fewer are required. And that allows HSN 8500 to aggregate RRHs at the maximum level. HSN8300/8100/

8110 models are RTs installed at cell sites.

Netmanias: How many RRHs can one HSN 8500 unit cover?HFR: One HSN 8500 unit has up to 72 option 3/4 CPRI ports. So, each can aggregate up to 72 RRHs. By default, it can have two rings, and each ring has up to 36 CPRI ports. This means, operators can aggregate CPRI traffic from 36 RRHs with just a single fiber, and boost the transmission capacity of each ring up to 90 Gbps. Of course, they can create custom configuration that would fit best into their networks.

Netmanias: Then, tens of RRHs are connected to centralized BBUs through the fronthaul rings. What if there is a fiber cut? Will that leave tens of devices disconnected? HFR: That’s right. But, fortunately, our flexiHaul solution offers instant protection switching within 50 msec in case of a fiber cut. So, CPRI traffic is detoured without delay, preventing any service interruption.

Netmanias: Does the flexiHaul solution meet the fronthaul requirements you mentioned earlier?HFR: The flexiHaul solution is a fronthaul solution using WDM, so has no capacity issue. One HSN 8500 can deliver CPRI traffic up to 180 Gbps. It has many excellent technical features we have developed to minimize latency and jitter which can affect LTE/LTE-A. So, for example, in a ring with COT and RTs, a fronthaul end-to-end latency excluding fiber latency

can be kept under 1μsec, and jitter can be kept under a few nsecs.More than 3,500 flexiHaulTM units are currently running in SK Telecom's commercial LTE/LTE-A network. And I guess that proves our solution has met all the strict technical requirements of fronthaul.

Netmanias: I saw CPRI/OBSAI, and also GE and GPON cards plugged in a flexiHaul unit. What are those cards for?

13



Net

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h H

FR

HFR: When a legacy operator builds an LTE network, there are already legacy 3G base stations in its cell sites. Our flexiHaul RT units (HSN 8300/8100) accommodate 3G BSs through the GE interface, and connect LTE RRHs through the CPRI interface. That way, they can accommodate the two access networks in a single network. GE and GPON cards connect small cells (pico) or Wi-Fi APs. If no fiber is available in a small cell area, operators can connect small cells by accessing microwave devices through the GE interface.

Netmanias: In case of wholesale, a fronthaul provider must monitor the quality of fronthaul and report to mobile operators. Then, the two demarcation points would be the one between RRH and RT (HSN 8300/8100), and the other one between BBU and COT (HSN 8500). What key performance indicators are provided? HFR: Our solution checks the transmission quality of each CPRI signal as well as optical fiber, through real-time monitoring of BER of optical and CPRI signals transmitted/received at CPRI ports. At each CPRI port transmission interval, a loopback test can be run for troubleshooting.

Netmanias: What are the benefits that your flexiHaul solution can bring to operators?HFR: First of all, our solution can save them a lot in costs of building and operating networks. Because the flexiHaul solution features WDM, dark fiber costs will go down. If they use Muxponder cards that can connect four CPRI ports to one, the cost will go down even further.And because the flexiHaul solution keeps a one-way latency less than 1 sec, the fiber distance in the fronthaul network can be increased up to 25 km. If the distance between BBU and RRH increases, the fewer BBU Cos are required. This allows operators to centralize more BBUs, and lower down costs in maintaining sites.

Netmanias: So, the No. 1 benefit is

saving costs. I guess that would be the biggest benefit to operators especially when higher traffic doesn’t mean higher profits like these days. Any other benefits? HFR: HFR’s fronthaul solution offers extremely low latency and jitter. So, it can maximize the performance of LTE-Advanced features such as CoMP and eICIC, eventually improving the LTE-A service quality and network performance. These days operators are in fierce competition to attract customers. With our solution, operators can prevent customer churn and attract new subscribers by providing better service quality than other competitors. Our ring protection within 50 msecs feature ensures any link failure is recovered instantly to minimize LTE/LTE-A service interruption. Not only that, operators can monitor the quality of the fronthaul link through BER and CV (Code Violation) of CPRI data that is being monitored in real time.

Netmanias: C-RAN was initially proposed by China’s CM. But, it was Korean operators (e.g., SK Telecom) who actually commercialized it. And a fronthaul network, which made C-RAN work, was also commercialized by Korean operators for the first time in the world. Then there came your flexiHaul series. You have done a pretty impressive job of developing and introducing new solutions that the market has wanted right in time. But, now many vendors, stimulated by huge popularity of C-RAN, are working hard to develop new fronthaul products. What makes the flexiHaul solutions better and more competitive than that of your competitors? HFR: We have been stabilizing and optimizing systems in real commercial networks, and have accumulated technical know-how for many years. And those experiences and know-how are our biggest assets that can make us ready to work any time. Our solutions are not in the proof of concept (POC) step, but are fully proven, ready to use. That’s what

really put us ahead of everyone else. We are the ONLY one who can achieve the best time-to-market with the least trial and error in building a fronthaul network.

Netmanias: What are the examples of the large-scaled deployment of the flexiHaul solution?HFR: We have deployed the flexiHaul solution in SK Telecom’s network since 2012, helping the company to build its nation-wide fronthaul network, in 84 major cities. 80% of the fronthaul networks were built with active WDM, and 50% of the units deployed were our flexiHaul. Also, we went global. Since 2013, we have conducted many trial tests with operators in Europe and Asia.

Netmanias: C-RAN sounds like a pretty good option for operators to manage cost and performance issues. It looks like fronthaul is the key that can make the option work. And I have to admit that I got an impression that you guys know exactly what to do when it comes to fronthaul. Well, I guess that’s it for today. Thank you so much for your time!HFR: Thank you for having me! n

......About HFR (www.hfrnet.com)HFR has been actively responding to the Cloud RAN market under LTE environment. We expect that our front-haul solution will become representative product in global equipment market. Also, HFR has been leading the high-speed internet equipment with the development for Giga Internet service area. Basedon its competitive solutions in the wire and wireless communications fields, HFR is determined to becomeKorea’s leading network equipment company.

For more information, please visit www.hfrnet.com

14



Net

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FR

1 3 5 7 9 11 1 3 5 7 9 11 1 3 5

2012 2013 2014

4G (LTE)

3G (WCDMA)

77.2

[PB]

9.2

3

21

44.5

17.1

As of the end of May 2014, the LTE traffic reached

77.2 PB, which is 8.39 times higher than 3G traffic.

Monthly LTE Traffic grew By 164% from 44.5 PB

to 77.2 PB over the last one year.

4G smartphone, 3G smartphone and 2G/3G

feature phone users generate 2.54 GB, 1.37 GB and

5 MB of traffic on average per month.

As of the end of May 2014, 38.7M subscribers,

which is 69.7% of the total 55.5M mobile

subscribers, are smartphone users.

1 6 1 6 1 4

2012 2013 20142011

Smarthpone

Feature Phone

Smart Pad

52.5M55.2M

38.7M(69.7%)

16.1M(29.1%)

0.65M(1.1%)

21.3M(40.8%)

30.5M(58.3%)

0.48M(0.9%)

* Source: Ministry of Science, ICT and Future Planning

15



LTE Statistics in Korea

As of May, 2015, the total number of mobile subscribers in Korea hit 55.5 million.

This indicates that Korea has a penetration rate of 110.3%, considering its population, 50.3 million.

Korea has 31.9 million LTE subscribers, which account for 57.5% of the total mobile subscribers.

n LTE subscribers (November 2007 – May 2014)

0

10

20

30

40

50

60

7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5

2012 2013 2014

[Million]

0

5

10

15

20

25

30

35

40

45

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1

2007 2008 2009 2010 2011 2012 20132014

2G

3G

4G

[Million]

2011

May 2014

31.9M(57.5%)

23.6M

(42.5%)

Launch LTE services (July,

2011)

55.5M

2G & 3G

4G LTE

n Mobile data usage in Korea [PB/Month] n Mobile subscribers - Split per device type

SK Telecom

KT

LG U+

27.8M

(50.1%)

16.7M

(30.1%)

11.0M

(19.8%)

55.2M Mobile

subscribersin Korea

May 2014

0

2

4

6

8

10

12

14

16

8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4

2011 2012 2013 2014

SK Telecom

KT

LG U+

[Million]

16



South Korea’s top 3 operators have LTE

subscription rates that are higher than any of its

global competitors who launched the same service

before them, especially LG U+ with the seemingly

unbeatable 68.8% as of the end of March 2014.

68.8%

53.2%

52.4%49.3%

34.8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011 2012 2013 2014

LG U+ (Korea)

SK Telecom (Korea)

KT (Korea)

Verizon (US)

Docomo (Japan)

As of the end of May 2014, SK Telecom has 15.0M

LTE subscribers, which account for 47.1% of the

total LTE subscribers in Korea.

Mobile subscribers trace – Split per network (November 2011 – May 2014)

3. LG U+11.0M

9.3M

4G (LTE)

2G (CDMA)

3.4M(30.5%)

9.0M(96.6%)

0.3M(3.4%)

7.7M(69.5%)

LTE Deployment Status by Operator in Korea (November 2007 – May 2014)

15.0M(47.1%)

9.2M(28.7%)

7.7M(24.1%)

1 6 1 6 1

2012 2013 20142011

5

n LTE subscribers growth by operator n LTE subscription rate

26.5M

27.8M

4G (LTE)

3G (WCDMA)

2G (CDMA)

8.96M(32.3%)

3.8M(13.7%)

0.4M(1.4%)

19.0M(71.8%)

7.1M(26.7%)

1. SK Telecom

15.0M(54.1%)

1 6 1 6 1

2012 2013 20142011

5

4G (LTE)

3G (WCDMA)

7.5M(45.2%)16.4M

(99.1%)

16.5M 16.7M

2. KT

9.2M(54.8%)

1 6 1 6 1

2012 2013 20142011

5

0

1

2

3

4

5

6

7

8

9

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

8

10

12

14

16

18

20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

* Source 1: Ministry of Science, ICT and Future Planning* Source 2: KT, SK Broadband and LG U+

n Broadband subscription rate (Q1 2005 – Q1 2014)

The broadband subscription rate in Korea has been steadily increasing, reaching 76.6% in Q1 2005, 100% in

Q4 2010, and 103% in April 2014.

KT

Cable operators

LG U+

Million

n Broadband subscribers by operator (Q1 2005 – Q1 2014)

KT

SK (SK Broadband)

LG U+

Cable Operators

8.0M

(42.4%)

18.9M Broadband subscribers

in Korea(May 31, 2014)

4.66M

(24.6%)

2.98M

(15.8%)

3.13M

(16.6%)

As of the end of May 2014, Korea has 18.9M broadband subscribers, and 42.4% of them (i.e. 8.0M) are KT

users, which makes the company the unrivaled No. 1 in the country’s broadband market.

Q4 2010: 100%

Broadband subscribers

# of Households

18,852,55518,269,153

Million

Click the link below to see statistics information on wired/wireless services and subscribers in Korea.

http://www.netmanias.com/en/?m=view&id=statistics_ict&no=6041

SK (SK Broadband)

17



Broadband Subscribers in Korea

http://www.netmanias.com/en/?m=view&id=statistics_ict&no=6041

3.84

1.24

0.29 0.03

2.82

1.82

1.77

0.63

1.36

0.35

0.03

1.26

0.93

2.45

0

1

2

3

4

5

6

7

8

9

KT SK LG U+ MSO

Million

XDSL

LAN (UTP)

HFC (Cable)

FTTH OLTONT

PON

OLT

L3 SW

ONU

Edge &

Backbone

Home CO

UTP PON

UTP

L2 SW

L3 SW

UTP

UTP

FTTH

LAN

Last mile line

• FTTH: Optical fiber (ONT at home)

• LAN: UTP cable (from L2 switch or ONU)

18



Since its launch in 2006, FTTH service subscribers have continued to increase. As of the end of May 2014, 5.4M

(28.6% of the total broadband subscribers) are subscribing to this service. Different FTTH technologies have been

adopted by the big 3 operators – E-PON by KT, G-PON by SK, and E-PON by LG U+ – but they all support 100

Mbps in UL and DL.

-

1

2

3

4

5

6

7

8

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2006 2007 2008 2009 2010 2011 2012 2013 2014

LAN (UTP)

FTTH

HFC

XDSL

Million

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

LAN (UTP)7.1M

(37.5%)

4.7M

(24.7%)

HFC

FTTH5.4M

(28.6%)

XDSL

1.7M

(9.2%)

18.9MBroadband subscribers

in Korea(May 2014)

Korea has 5.4M FTTH subscribers, and 71.1% of them (i.e. 3.84M) are KT users, making the company the

No. 1 FTTH service provider in the country.

Broadband Subscribers in Korea – Access Technologies

8.0M

4.66M

2.98M 3.14M

n Broadband subscribers trace by access technology (Q1 2005 – Q1 2014)

n Broadband subscribers by operator – per access technology (May 2014)

19



Pay TV Subscribers in Korea

n Pay TV subscribers trace

0

2

4

6

8

10

12

14

16

18

2006 2007 2008 2009 2010 2011 2012 2013

Million

Cable

IPTV

Satellite

The number of IPTV subscribers is increasing fast. It exceeded 9M in March 2014, and reached 9.2M a month

later. This was an increase of 150,000 a month on average. With this growth rate, it is expected to exceed 10M

this year. As the competition among IPTV, cable and satellite operators was getting tougher, they began UHD

service in an effort to prevent subscriber churn and attract new subscribers. The service was launched by the

cable operators and SK Broadband, in April. And KT and LG U+ are scheduled to begin the service by the end of

this year.

n IPTV subscribers trace by telco

0

1

2

3

4

5

6

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2006 2007 2008 2009 2010 2011 2012 2013 2014

KT

SK Broadband

LG U+

Million

Growth in Korea’s IPTV market has been mostly driven by KT. As of April 2014, the company has 5.2M IPTV

subscribers, which is 56.4% Of the country’s total. IPTV operators in the market are in fierce competition with

each other as well as with cable operators.

n UHD TV services

Cable14.8M

(52.4%)9.2M

(32.7%)

4.2M

(14.9%)

IPTV

Satellite

28.3MPay TV

subscribersin Korea

(April 2014)

SK Broadband

KT

LG U+

5.2M

(56.4%)2.3M

(25.0%)

1.7M

(18.6%)

9.2MIPTV subscribers

in Korea(April 2014)

Frame rate 60 fps 30 fps 30 fps (60 fps planned)

Resolution 4K (3840x2160) 4K (3840x2160) 4K (3840x2160)

Encoding rate 32Mbps 15Mbps 30Mbps

Codec HEVC (H.265) HEVC (H.265) HEVC (H.265)

Launch 2014.04 2014.04 2014.06

Cable TV (CJ Hellovision, C&M, t-broad)

IPTV (SK Broadband)

Satellite TV (KT Skylife)

Locations

Headquarter2F, Namyeong Building730-13, Yeoksam-dong, Gangnam-gu, Seoul 135-921,Korea

Branch Office3832 NE 88th StreetSeattle, WA 98115USA

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About Netmanias (www.netmanias.com)NMC Consulting Group (Netmanias) is an advanced and professional network consulting company, specializing in IP network areas (e.g., FTTH, Metro Ethernet and IP/MPLS), service areas (e.g., IPTV, IMS and CDN), and wireless network areas (e.g., Mobile WiMAX, LTE and Wi-Fi) since 2002.

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99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

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