Policy, Regulation & Infrastructure Exploiting the broadband opportunity: lessons from South Korea and Japan Policy, Regulation & Infrastructure Mike Short Vice President 02 Chairman Mobile Data Association Prof. Rahim Tafazoli University of Surrey Global Watch is a DTI service managed by Pera

Market Background

Korea Fixed Broadband Fixed Broadband Operators Market Share KT 52% Hanaro 23% Thrunet 7.8% Others (incl Powercom, Diacom, etc) 17%

Korea Product Portfolio Brand Service Technology Speed Price Place Megapass Lite XDSL, Satellite, BWLL, LAN 4Mbps (Up/Down) $25 Households Premium XDSL 4Mbps UP 13 Mbps Down $34 Special VDSL 20/50 Mbps Down $38 Large apartments Ntopia Ethernet 100 Mbps (Up/Down) $30 New buildings & apartments Nespot Nespot Family WLAN 11-54 Mbps (Up/Down) Megapass + $10 SOHO, SME, Hotspot

Japan Product Portfolio Brand Service Technology Speed Price Place Yahoo! BB ADSL 8M ADSL 8Mbps Down 1 Mbps Up $26 Household 12M 12 Mbps Down 1Mbps Up $30 26M 26 Mbps Down $33 50M 50 Mbps Down 3 Mbps Up $34 50M Revo 50.3 Mbps Down 12.5 Mbps Up $36 Yahoo! BB Hikari Hikari Home Fibre to the Home 100 Mbps (UP/ Down) Access line 1Gbps Backbone 60Gbps $58 Individual house Hikari Mansion Fibre to the apartment block then Ethernet 100Mbps Down 50Mbps up $25 Apartment within an apartment block

Next Generation Network Create network integration architecture with a long-term perspective into future (2015) Respond to rapid increases in traffic Allow autonomous connection Optimum network resource allocation Independent of the current Internet architecture (post-IP) Research on going for 100Tbps optical routers, new address space, routing and signalling technologies, enhanced functionalities and survivability through all-optic network

Roadmap to NGN NICT launched JGN, 1999, High speed communication infrastructure 5Gbps JGN-II capable of 20Gbps, in 2004 Available for use by public sector, national research institutes and Universities

NGN-2015 targets Network Architecture Flexible management/Control Enhanced functionalties in Addressing, routing and ignalling High reliability & survivability Autonomous/distributed operation and control for support of systems such as RFID & various sensors for Ubiquitous network environments Flexible management/Control Peta bit level TX processing/capacity Interserver TX at Tera bit level, U.H.S storage access and distribution Advanced photonic node technology Integrated router supporting all-optical packet processing, Near Shannon limit optical communications

Application/ Management NGN Basic Concept Application/ Management Secure independent Service development by a variety of service players Support of dynamic network control responding to customer and service needs Service Control Support of communication reliability and end-to-end quality of service Core Control Support a diversity of access technologies Access

NGN Core Network Optical wavelength multiplex Mesh architecture Edge Relay Optical wavelength multiplex Mesh architecture to achieve large bandwidth, survivability and simplification

NGN Broadband Access Technologies Category System Standard Freq. Cellular Mobile 4G 0.8, 1.7, 2, 5 GHz MAN Fixed WiMAX IEEE 802.16, 16a, 16d Under 3.5GHz WiMAX IEEE 802.16e, WiBro 2 to 6 GHz Transportation Cars ITS 5.8, 60, 76 GHz Railway IEEE 802.11a 5GHz WLAN Nomadic IEEE 802.11 Satellite Disaster Prevention - 45/40GHz Marine 5.7 & Ku: 12~18GHz DMB Digital Broadcast 2.6GHz Terrestrial ???

U-Korea IT 8-3-9 Strategy Services Name of Project Near-term Goal Mid-to-Long Term Goal WiBro Service Standardisation, establish Licensing Framework Service Launch (’06) DMB Service License Broadcasting Station, Service Launch Interactive Service (‘06) Services Home Network Service Provide the service to 0.5M Homes(VoD/Electronic Control) 10M Home Network Services Houses (’07) Telematics Service Establish Information Centre, Pilot Project Launch 10M Service Users(‘07) RFID-based Service Allocate freq., develop core technologies 5% Global Market Share (’07) W-CDMA Service Allow subsidies, support Tech. Development Nationwide Net. Across Cities (’06) Terrestrial D-TV End Standard Dispute, Expand coverage Nationwide network (’05) Internet Telephony (VoIP) Establish Service Framework, Allocate Numbers 4M Users (’06)

U-Korea IT 8-3-9 Strategy Infrastructures Name of Project Near-term Goal Mid-to-Long Term Goal BcN Develop Tech., Establish Network for R&D Use 20M Users (’10) U-Sensor Network Establish Framework, Pilot Project Launch Realize U-Life (’10) IPv6 Support Pilot project, Develop Equipment Switch Over to All-IPv6 (’10)

U-Korea IT 8-3-9 Strategy New Growth Engines Name of Project Near-term Goal Mid-to-Long Term Goal NGMC Develop Portable Internet Prototype Develop 4G Mobile Comms. Prototype (’07) Digital TV Develop Terrestrial DMB Trans-Receiver Telecom & Broadcast Convergent Service Server/Devices (’07) Home Network Develop Wired & Wireless Convergent Home Server Telecom & Broadcast & Games Convergent Home Server (’07) IT SoC Develop Korean-made Multimedia Chipset for Mobile Phone Develop as one of the three Major Countries in IT SoC (’07) Next Generation PC Introduce Watch-type PC Wearable PC (’07) Embedded SW Build Embedded SW in 100 kinds of Domestic Products 50% Domestic market Share of Korea-made Embedded SW(’07) Digital Contents Develop Multi-Platform Game Engines One of the Three Major Open Source SW producers (’07) Telematics Establish Test-bed for Tech. Verification In-Vehicle Mobile Office (’07) Intelligent Service Robot Develop Humanoid that Recognises its Master 20% Global Market share (’07)

U-Japan E-Japan (2001-2005) Ubiquitous Japan U-Japan (2010) Network infrastructure Ubiquitous Japan Ubiquitous network infrastructure Easy access to the network Anytime, by anything and anyone U-Japan (2010) Ubiquitous: Connects everyone and everything Universal: People friendly-contacts from heart to heart User-oriented: Integration of user viewpoints Unique: Generation of individual vitality More user-centric than U-Korea

U-Japan Three pillars Seamless ubiquitous network Use of ICT to resolve 21st Century issues Upgrading of ICT usage environment

U-Japan Seamless Ubiquitous Network By 2010 100% of Citizen to have High or Ultra high-speed Internet Access Seamless access both fibre and wireless Nets Open freq. Policy Convergence of Fixed & Mobile Convergence of Telecom & Broadcast Upgrade IP infrastructure to IPv6 Nationwide establishment of Broadband Infrastructure Alleviation of Broadband Divide Promoting ICT in local communities Promoting Digital Broadcast Promoting competition policy Network Real Objects Developing IC tags, sensor Net and network of robots Network of Consumer electronics Creating applications of ITS & GIS Developing Ubiquitous Terminal Developing Infrastructure for Network collaboration Ubiquitous platform Secure interoperability among different networks High network reliability Infrastructure for e-commerce

U-Japan Enhancing ICT Usage By 2010 80% of Citizen to appreciate the role of ICT in resolving issues Social system reform by ICT Enlightening social and business reform by ICT usage Administrative reform fostering ICT Usage Reform of product distribution system Promoting e-government and local e-government Promoting creation, trading and use of contents Transactions such as trading of digital contents Creation and use of digital archives Attractive contents Establishing Japan brand as Soft Power Promoting Universal design Advanced agent technology User interface Ensure information accessibility Support systems of ICT usage for the aged and disabled ICT human resource development Nurturing human resources with high ICT skill Support incubation of ICT venture business Literacy and education reform Encouraging civil participation

U-Japan Usage Environment By 2010 80% of Citizen to feel comfortable with ICT Identify issues related to negative impacts Identify 100 negative aspects of the ubiquitous network society in 10 categories Promoting ICT safety and security 21strategy Identify 21 priority issues with significant social impact and develop strategies for addressing them Establish a Ubiquitous Network Society Charter Comprehensive charter for worldwide release setting out the basic principles and shared understanding of ubiquitous network society

U-Japan Key Characteristics Visionary Holistic Pragmatic Paradigm shift in thinking

Trust, authentication, safety & Security Both U-(Korea & Japan) recognise the risks of Ubiquitous world Plans in place to address problems Safety & security Digital inclusion Overcoming Urban/Rural divides Age & Disability Identity and authentication E.g. use of social security number (in Korea)

Safety & security