The Value Networking company From Network Service Provider To Solution Provider

1 INTRODUCTION… 2002 KOREA/JAPAN FIFA WORLD CUP

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

3 Future Network Powerful IP-based… All kinds of services will be on “IP Network” Powerful IP NETWORK DATA Mobile, Line BroadBandAccess TELEMETICS BUSINESSSOLUTION HOMEDIGITALSERVICE VOICE VoIP, Mobile

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

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

6 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

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

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

9 ● 1: BROADBAND Access xDSL FTTH Ethernet ● 2: IP Network Infrastructure High Speed & Convergence NGN, IP-VPN, VoIP ? NETWORKING Value Creation  Elements of Value Networking New Engines for Value Network ?

10 ● 2: IP Network Infrastructure ● 2: IP Network Infrastructure - NGN Architecture Trunking Gateway SCP App. Server 3 rd App. Server SS7 Signaling Gateway Softswitch Access Network Access Network Access Gateway Packet Network Packet Network PSTN Wireless Network Wireless Network INAP API MEGACO SIGTRAN Media Server SIP/H.323 Kornet  Pre NGN Decision : Q, Analog SW  Access Gateway substitution  NGN Decision: Q, Softswitch Development  Worldwide 1 st Deployment: Risk and Opportunity New Engines for Value Network

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

12 New Engines for Value Network ● 3: Fixed & Mobile Convergence - Broadband Wireless LAN  Public Wireless LAN Service  High speed up to 11Mbps with IEEE 802.1x security mechanisms  Nationwide Hotspots  Reasonable prices  Target Market  Hot spot areas  Business centers, Hotels, Universities, Airports, etc.  SOHO and Home  Café, Restaurant, SOHO, Home, etc.  Seamless Communication Service between any terminal  Mail, MMS, IM, SMS  1X phone, PDA, Notebook, Desktop

13 ● 1: BROADBAND Access xDSL FTTH Ethernet ● 2: IP Network Infrastructure High Speed & Convergence NGN, IP-VPN, VoIP ● 4: e-Portal B2B Platform B2C Platform ● 3: Fixed & Mobile Convergence Convergence Adding Flexibility in Broadband Access Seamless Service between Any Device NETWORKING Value Creation  Elements of Value Networking New Engines for Value Network

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

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

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

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

18 Let’s KT Thank You