Mobile Broadband Market Trends and Insight ITU Workshop on “Bridging the Standardization Gap” (Vientiane, Lao People’s Democratic Republic, 30-31 July 2012) Mobile Broadband Market Trends and Insight Osang Kweon Chief Korea Communications Agency osang.kweon@kca.kr Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Contents Intro Current Status Trends Challenges Lessons Conclusion Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Mobile Broadband Definition Intro Mobile Broadband Definition Mobile Broadband is a general term used to describe high-speed Internet access from mobile provider for portable devices. Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Intro Types of devices Smartphone, Mobile Phone Tablet PC PDA USB Flash drive(dongle) Compact Flash Pc Card, etc. Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Current Status Service Provider (Asia) nation providers Korea Japan KT, SKT, LGU+ Japan NTT docomo, au, SoftBank, EMOBILE, Willcom China CMCC, China Unicom, China Telecom India MTNL, BSNL, VSNL, Airtel, Aircel, Idea Cellular, Loop Mobile, MTS India, Vodafone Essar, Tata, Virgin Mobile India, Tata docomo, S tel… Singapore SingTel, StarHub, M1 Malaysia Celcom, DiGi Telecommunication, Maxis communication Philippine Globe Telecom, Smart communication, Sun Cellular Sri Lanka Dialog, Mobitel, Etisalat, Hutch, Airtel Indonesian Indosat, XL, Telkomsel, Axis, 3 Pakistan Ufone, PTCL, Telenor, Warid, Zong Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Current Status Number of Smart Phone & Tablet Users number of Smart tablets(Worldwide) million 10 thousand Source : ROA Consulting. 2011 Source : Morgan Stanley. 2011 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Current Status OECD mobile broadband subscriptions per 100 inhabitants (by technology, December 2011) a. Standard mobile subscriptions (only included with active use): Includes mobile subscriptions which advertise data speeds of 256 kbit/s or greater and which have been used to make an Internet data connection via IP in the previous 3 months. To be counted, the subscription must allow access to the greater Internet via HTTP and must have been used to make a data connection using the Internet Protocol in the previous three months. Standard SMS and MMS messaging do not count as an active Internet data connection even if they are delivered via IP. b. Mobile: Dedicated data subscriptions: Subscriptions to dedicated data services over a mobile network which are purchased separately from voice services either as a stand-alone service (modem/dongle) or as an add-on data package to voice services which requires an additional subscription. All dedicated mobile data subscriptions with recurring subscription fees are included as “active data subscriptions” regardless of actual use. Pre-paid mobile broadband plans require active use if there is no monthly subscription. Source : OECD. 2011 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Trends (technology) The evolution of wireless communication technology Source : ROA Consulting. 2011 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Trends (technology) Status of mobile communications technology commercialization (Korea) Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Trends (Service: SNS) Facebook Users (Worldwide) 28.88% 5.92% 42.29% 31.30% 4.63% 39.78% Source : Socialbakers. 2012 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Trends (Service: mVoIP) Kakao Talk Users (Korea) million 6,000 5,000 4,000 3,000 2,000 1,000 Source : Kakao. 2012 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Trends (Service: Smart TV) Smart TV growth rate 2010 2011 2012 2013 Worldwide Market (Million) All TV 220 245 270 300 Smart TV 38 56 72 100 Market Share 17.2% 22.9% 26.7% 33.3% Korea (10thousand) 226 238 250 262 29 54 80 131 12.8% 22.7% 32.0% 50.0% Source : Display Search&isuppli2010, KT 2011 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Challenges (Mobile Devices) Ⅰ. Mobile Data & Spectrum Bigbang Challenges (Mobile Devices) Smart mobile device floods all over the world Innovative service is generalized; Wireless network becomes complex cultural service platform Mobile subscribers worldwide Cellular connected devices worldwide Source : Cisco VNI Mobile (2011.2) With5.9 Billion mobile-cellular subscriptions, global penetration reaches 87% Connected devices(M2M, tablets, e-readers, etc) will grow to more than 800Million units by 2015 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Mobile Traffic Forecast (Worldwide) Challenges (Traffic) Ⅰ. Mobile Data & Spectrum Bigbang Mobile data traffic is expected to continuously increase as wireless network technology, smart device, and mobile contents develop Mobile Traffic Forecast (Korea) Mobile Traffic Forecast (Worldwide) Source : KIEES (Korean Institute of Electromagnetic Engineering and Science, 2011 Source : Cisco VNI Mobile (2011.2) By 2015, 25 times more than in 2010 After that, again over doubled By 2020 By 2015, 26 times more than in 2010 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Challenges (Spectrum Demand) Ⅰ. Mobile Data & Spectrum Bigbang Challenges (Spectrum Demand) Spectrum demand rapidly grows the society at large Particularly in priority, specific bands which has high socio-economical value 3G LMDS FM Radio Cordless Long Wave Radio Medium Wave Radio WiFi TRS 2G Microwave TV Bluetooth Radio Links LF MF HF VHF UHF SHF EHF Sweet Spot 300 3 30 300 3 30 300 KHz MHz GHz Coverage Decrease Bandwidth Decrease Coverage Increase Bandwidth Increase Growth of spectrum demand for mobile communications Necessary to stir up efficient spectrum use 15

Lessons (Case Study - Worldwide) Broadband plan nation Plan Current Add USA National Broadband Plan 545MHz 500MHz 2015” 300MHz 2020” 500MHz U.K Superfast broadband 350MHz 750MHz 2012” 250MHz 2020” 750MHz Japan path of light 370MHz 340MHz 2015” 340MHz Australia Mobile Spectrum Plan 380MHz 696MHz 2014” 369MHz 2020” 696MHz India National Communication Plan 200MHz 2017” 300MHz average 557MHz - Source : KCC. 2011 Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Lessons (Case Study - Korea) Mobile Gwanggaeto Plan Vientiane, Lao People’s Democratic Republic, 30-31 July 2012

Conclusion Evolution of Radio Spectrum Policy Market-based Post 2000s commons / Open access End of year 2000 Market-based in the early 1990s Command & Control Vientiane, Lao People’s Democratic Republic, 30-31 July 2012