1. Vision for NGMC in KOREA NGMC Forum (Next Generation Mobile Communications) June, 2005

2. NGMC Forum 2 Contents 1. Outline of NGMC Forum 2. Activity Plans of NGMC Forum 3. Wireless Internet in KOREA 4. Visions of NGMC in KOREA

3. NGMC Forum 3 1. Outline of NGMC Forum

4. NGMC Forum 4 1.1 Backgrounds Name  Next Generation Mobile Communications Forum (NGMC Forum) Backgrounds  Increasing interest about next generation mobile communication technologies and services  Needs of an industrial organization for next generation mobile communication research like WWRF, mITF, and FuTURE Objectives  Technical and Social Trends Analysis and Vision Establishment  International Cooperation  Advanced R&D Strategies Steering  Study on Spectrum use

5. NGMC Forum 5 1.2 Organizations General Assembly Steering Committee Secretariats System & Technology Working Group System & Technology Working Group Spectrum Working Group Spectrum Working Group Market & Service Working Group Market & Service Working Group

6. NGMC Forum 6 2. Activity Plans of NGMC Forum

7. NGMC Forum 7 2.1 Activity Plans Market & Service Working Group  Analyze trends of mobile communication markets and services  Propose policies for the activation of mobile Internet markets  Develop new services in FMC environments  Analyze broadband services trends and practical possibilities in wireless environments  Forecast NGMC demands from 3G and mobile Internet markets analysis System & Technology Working Group  Considerate and recommend NGMC technologies  Evaluate NGMC technologies and set up technical goals  Propose technical standardizations in NGMC to TTA and ITU  Cooperate with International forums for technical developments

8. NGMC Forum 8 2.1 Activity Plans Spectrum Working Group  Analyze trends of spectrum utilizations in mobile communications  Propose spectrum utilization plans for the activation of mobile communications  Discuss about NGMC spectrum

9. NGMC Forum 9 2.2 Roadmap of Market & Service WG 1st Answer ITU 2011201020092008200720062005200420032002Year Vision DefinitionRequirement DefinitionStandard Definition System Development Spectrum Allocation (WRC-07) Task 1 Vision Book Vision Book Draft Vision Book Ver. 1.0 2005 2004 2006 1Q2Q3Q4Q 1Q2Q3Q4Q1Q2Q3Q4Q updating Vision Book Ver. 2.0 Task 2 ITU-R WP 8F Activity 2 nd Final Answer 6/8~152/1~8 WP8F CJK #7 1 st Answer Due Date : 1/24 CJK #6 TBD (According to the Phase 2 Collaboration Plan) Final Ans. Due Date : 5/E ITU #16 - Market Survey - #15 #17 NGMC-WWRF MOU

10. NGMC Forum 10 3. Wireless Internet in KOREA

11. NGMC Forum 11 3.1 Market Size Total Market Subscribers are 36.6million and Penetration Ratio is 75.9% (End of 2004) SK Telecom Subscribers are 18.8 million and Market Share is 51.3% (End of 2004) (Source: SK Telecom IR Report)

12. NGMC Forum 12 3.2 Penetration of 3G After launching 3G (CDMA2000 1x) on October 2001, distribution of 3G handset has reached 92.5% as of March 2005. Distribution of high-end Multimedia Device handsets has reached over 20% (Source: SK Telecom IR Report) Subscribers (UNIT: Thousands) 1Q,2005 100% 19,007 92.5% 36.9% 21.3% 17,580(CDMA2000 1X) 7,022(EV-DO) 4,055(June) 17,048(CDMA2000 1X) 2004 100% 18,783 90.8% 34.5% 19.3% 6,484(EV-DO) 3,622(June) 14,424(CDMA2000 1X) 2003 100% 18,313 78.8% 19.5% 9.2% 3,562(EV-DO) 1,678(June)

13. NGMC Forum 13 3.3 Growth of Wireless Internet Usage The ration of WI revenue to the total revenue has increased continuously. It has amounted to 25% of total revenue in SK Telecom. (1Q, 2005) (Source: SK Telecom IR Report) WI % of Total Revenue IS95B Data Service -Oct.’99 2.9% 5.2% 9.7% 15.5% 20.6% 25.0% CDMA2000 1X Data Service -Oct.’01 CDMA2000 1x EV-DO Multimedia Data Service -Nov.’02 20012000200320021Q,20052004 (Source: SK Telecom Annual Report) WI % of Total Revenue 1Q,2002 3.3% 4.7% 2003 5.3% 10.2% 2004 6.8% 13.8% 15.5% 20.6% 8.0% Non-SMS Data Service SMS

14. NGMC Forum 14 3.4 Mobile Service June is the brand name for SK Telecom VOD service June is operating under MPEG4 or H.264, and EV-DO Network Main menu Music video  Charge : $ 0.75  Content size : 4 ~ 6 Mb TV Traffic info Adult contents  Charge : $1.25  Content size : 40 ~ 60 Mb  Charge : $0.25  Content size : 50 ~ 60 Kb  Charge : $0.40  Content size : 1 ~ 4 Mb June

15. NGMC Forum 15 3.4 Mobile Service M-Commerce is Convergence Service of Telecommunication and Finance M-Commerce provides bridge to credit card and bank M-Commerce Handset IC Chip MONETA 4 모네타세상 ** Bank Mobile ATM Using IrFM Specialized Chip for each Bank Acceptable when Banks want Banks pay for the expense of chip issuing Prioritizing Bank’s Menu MONETA chip with M Bank SKT pays for the expense of chip issuing M Bank is Number 4 Menu of MONETA Mutual Permission For Use of Chip Memory M-Commerce

16. NGMC Forum 16 3.4 Mobile Service Cyworld is a Wired-Wireless integrated Blog Service of SK Telecom Decorating Cyworld Mini Homepage is the trend of Korean youths Cyworld Reader comment s Owner photo and posting Posting Category Reader rating

17. NGMC Forum 17 3.4 Mobile Service SK Telecom converged different services to create new contents and services Cyworld Enables users to send photos taken by Camera Phone with touch of a button Enables users to access and update their Mini Homepage anywhere, anytime http://www.cyworld.com & Mini-homepage Mobile Cyworld Main page Access Mini-homepage with mobile phone 아궁 귀여워 !!!! 메뉴

18. NGMC Forum 18 3.4 Mobile Service MelOn goes lets subscribers to download & play unlimited number of DRM-coated music files in mobile handset, PC, and MP3 player, with monthly flat rate. MelOn MP3 PlayerMobile Phone PC Music Video, Photo Album Multimedia Music Service Monthly Flat Rate for unlimited services “Rental-based” Flat Rate 2 mi. subscribers (Jun. 2005) Launched in Nov. 2004

19. NGMC Forum 19 4. Vision of NGMC in KOREA

20. NGMC Forum 20 4.1 Vision Statements Like a Rainbow that brings hope to people’s mind after rain, we would like to pursuit the happiness of mankind by increasing quality of life and achieving happiness of future. In doing so, we would like to build up a human-oriented and information-discrimination-free society where everyone can enjoy easy and safe information to prevent social problems in the future.

21. NGMC Forum 21 4.2 Vision Image Red : More Secure/Safe Life Orange: More Bounteous Contents Yellow: More Intelligent Environment Green: More Healthy Life Blue: More Intimate Relationship Indigo: More Convenient Commerce Violet: More Enjoyable Cultural Life

22. NGMC Forum 22 4.3 Characteristics of NGMC Service by User Expectation Low cost data service High-speed data service Context-aware service Converged service Always-best connect service Personalized service Seamless service Adaptability Virtual reality service Security/Privacy

23. NGMC Forum 23 4.4 Driving forces of the future Market Ubiquitous  Preparing infrastructure for users to be able to connect to the network regardless of time, location, and transportation Broadband  Quality and speed should be as good as wired broadband network Convergence  Convergence of Wired and Wireless Access Network  Convergence of All-IP Network Low-cost  Even if technology and equipments for broadband wireless network are developed, activation service should be difficult if devices require high-price. Therefore, ideal solution should have low implementation and usage cost while maintaining broadband wireless throughput Diversity of information and infrastructure usage  A broad system must be prepared to enable information to be stored and distributed on diver media

24. NGMC Forum 24 Thank you !! Q / A