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2. Contents Status of ICT Korea Broadcasting and Telecommunications
Convergence
Lessons from ICT Development 2

3. Broadband Subscribers
I. Status of ICT Korea
Key Success Factors
34 M.
14.7 M.
(90.8%)
(76.3%)
Ideal Test-bed
26 M.
10.4 M.
(69%)
(59.4%)
Densely populated residential areas
Large IT consumer Base
- Technology savvy consumers
Active technical innovation
’02
’07
’02
’07
Broadband Subscribers
(% of household)
Internet User
Government
Strategic investment for infrastructures
Education on Internet usage
Policy to promote competition
43.4M.
( 89.8 %)
40.1M.
32.34M.
(67.9 %)
5,699T.
(13.1%)
116T.
(0.4%)
Private Sector
Aggressive marketing for more subscribers
Low and flat subscription tariffs
Many online content and game providers
’02
’06
’07
Mobile Subscribers
( 3G subscriber ) 3

4. Broadband Access on the Move fast, seamless and affordable
I. Cutting-edge Service (1) : WiBro
Broadband Access on the Move
fast, seamless and affordable
Overseas Deployment
Low Price
High Speed
Mobility
KT/SKT
KDDI
Sprint Nextel
Arialink
Neupara
TVA
Omnivision
Etisalat
Bayana
Middle East
Africa
Altech BT
Telecom Italia
Portus FT
Europe
North America
South America
Asia Pacific
Flat+Measured
Rate
30 Mbps
120 km/h
Adopted Int. Standard (IEEE802.16e) (’05.12)
KT, SKT launched commercial Service (’ )
WiBro Speed improvement: 50~80Mbps (’07)
Adopted as the international standard(itu) (’07.10)
Wibro VoIP demonstration
(’08. 6 OECD ICT Ministerial Meeting)
WiBro Service
Country
Provided
Korea ( KT/SKT)ㆍ Venezuela
To be Provided
Indonesia, Malaysia, Croatia, Italy, Brazil, Japan, Taiwan, USA
Uzbekistan
To be considered
New Zealand, Norway, Great Britain, Singapore 4 4

5. Current status of Overseas deployment
I. Cutting-edge Service (2) : DMB
World’s smallest TV
- TV in my hand -
T-DMB can be a very efficient disaster warning system against typhoon and tsunami
S- DMB Commercial Service (’05. 5)
T- DMB Commercial Service (’05.12)
Radio/TV Studio
Disaster related information collecting center
Wireless Mobile Network
T- DMB Broadcasting Station
Warning Control System
Receiver
DMB Transmitter
Growth of DMB users
(10,000)
1,369
1,000
T - DMB
560.8
500
S - DMB
200
140
Current status of Overseas deployment
96.9
120
48.9
DMB Service
Country 80 40
7.6
service
KOREA, CHINA(Beijing), GERMANY
France, Germany, China, Italy, Canada, Ghana, Indonesia, Netherland, Vatican, U.K, South Africa
Pilot service
05.6
05.12
06.3
07.4
08.6 5 5

6. I. Broadband Applications : e-Government/e-Commerce
Korea ranked 6th out of 192 countries
- UN e-Government Readiness Index 2008
Total transaction volume of
e-Commerce : trillion Won (’07e)
cf. world: US $7Trillion(’07, OECD)
517 billion dollar
online civil affairs services(G4C), home tax
service
single window service (G4B) for business
support
online citizen participation portal
Portals for disclosing public administrative
information
1,809 trillion
Total transaction
volume
1,555 trillion
1,308 trillion
E-Commerce
358 trillion (19.8%)
235 trillion
119 trillion
’01
’03
’06
Share of Internet Banking
transaction : 24.4%(Q1, ’08) 6

7. Information and Communication
I I. Broadcasting and Telecommunications Convergence
Establishment of Korea Communications Commission
Korean Government promotes regulatory reform and
market-friendly policies to create a dynamic market economy.
New paradigm called for as digital technology advancement and wider network bandwidth have stimulated convergence in network, service, equipment and content
Integrated policy-making and regulatory functions between broadcasting and telecommunications to proactively respond to the digital convergence environment (Feb ’08)
Ministry of
Information and Communication
Korean
Broadcasting
Commission
Korea
Communications
Commission
Korea Communications
Commission
Korea Internet Safety
Commission
Korea Communications
Standards Commission
(Deliberation) 7

8. I I. 방송과 통신의 융합 I I. Broadcasting and Telecommunications Convergence
IPTV launch
2006.7
Pre IPTV in Korea
IPTV around the world
Hana TV
Mega TV
My LG TV
# of countries
# of service providers
Service
provider
Hanaro
Telecom KT
LG Dacom
Asia 6 38
Service
launch
Europe 19 57
2006.7
2006.9
North American 2
173
858 thousand
482 thousand
5 thousand
No. of
subscribers
(end of Feb ’06)
Others 6 14
Total : 1.35 million
Total 33
282 (MRG 2005)
Household
14 million
Source: Korea SW Industry Promotion Agency 2005
Prospect of subscribers
~12
Real-time IPTV pilot service
IPTV subscriber outlook
Passed the ‘Internet Multimedia Broadcasting Business Act’
6 (million) 5
Completed the legal framework for IPTV service - Real-time transmission, account separation, equal access to network content 4
2008.7 3 2
2008.9
Award license to service provider and launch commercial service
2008
’09
’10
’11
’12
Source: Media & Future Institute 8

9. Digital transition schedule in major countries
I I. Broadcasting and Telecommunications Convergence
Promote digital transition of terrestrial broadcasting
Enacted Special Act (Dec’07), Complete digital transition by 2012
Establish national promotion agency, Organize joint promotional activity between government-broadcaster-manufacturer
Improve digital reception environment by assisting the building of community reception facilities
Draw up measures to utilize unused frequency after digital transition
Digital transition schedule in major countries
2006.7
2009.2
Start HDTV
broadcasting
(Metropolitan area)
Termination of
analog broadcasting
the US
Termination of
analog broadcasting
in France
Start nationwide HDTV broadcasting
Termination of
analog broadcasting
in Japan
Termination of
analog broadcasting
in Korea
Settlement of DTV Transmission mode
DTV Special Act Passed
2004.7
2008.3
2011.7 9

10. Financial damages due to cyber incidents
Ⅲ. Information Security Policies
Actively address adverse effects of the Internet
Upgrade security incident response mechanism
by developing early response system
Implement customized countermeasures
Introduce security servers for 30,000
websites that handle personal information
Financial damages due to cyber incidents
World (’06)
Korea(’06)
4450
billion
(KRW)
14.2
trillion “ “
The Internet should be a space of trust. Otherwise, the force of the Internet could turn out to be venomous rather than beneficial. In a nutshell, what is being menaced is the trust in transactions, a linchpin for the continued development of the Internet economy.
In order to promote confidence in the Internet, all individuals and nations basically have to equip themselves with a systematic response system.
More than anything else, cooperation between countries is urgently required. ” ”
President Myungbak Lee 10

11. Safe and Sound Digital Society
Ⅲ. Information Security Policies
Response to Hacking/Virus
Protection of Privacy
Public-Private Joint TFT
Global Cooperation against Cyber Terrorism
Act on Protection of Personal Data
Strict Punishment on Privacy Infringement
Clean Cyber Environment
Spam Mail Control
Obscene Material Control
e-Clean Korea Campaign
Safe and Sound Digital Society 11

12. Digital Divide between Income-levelsㆍAges ㆍ Regions ㆍCountries
Ⅲ. Bridging Digital Divide
Digital Divide between Income-levelsㆍAges ㆍ Regions ㆍCountries
Internet Usage Gap
Global Internet Penetraition
Source: Internet World Stats
10%
20%
30%
40%
50%
60%
70%
80%
90%
North America
Oceania/Australia
Europe
Latin America/
Caribbean
World Avg.
Middle East
Asia
Africa
73.6%
59.5%
48.1%
24.1%
21.9%
21.3%
15.3%
5.3%
26.4%
65.2%
76.3
99.3
49.9
34.1
Non-disabled
Disabled
20s
Over 50s
Digital Divide (Digital Opportunity Index)
34.6%
42.9%
87.4
76.3
52.8
33.4
Monthly Income over $3400
Low-
income
General
Population
Rural
Source: ITU, World Information Society Review 12

13. Mid-to-Long Term Project for Bridging Digital Divide
Full Broadband Nationwide Coverage
Optical Access Point to Households in Rural Areas
Satellite NW to Households in Isolated Areas
PC Penetration in Digital Have-nots
IT Training to Digital Have-nots
- Practical IT Training to the Disabled, Senior Citizens, etc. 13

14. Prevention of the malicious use of ICT
Ⅲ. Some Lessons from ICT Development Experience
Importance of
Broadband Infra
Consideration for
the digital have-nots
Prevention of the malicious use of ICT
Essential for a successful
e-Government/e-business
environment
Development and testing
of new technologies
Digital divide could be
a serious problem in
development process
Need ICT-education ,
policy, budget to bridge
digital divide
Malicious use of ICT
increase with the
informatization
Preventive measures
against hacking, virus,
unsolicited mails and
other negative uses 14

15. Thank you
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