Realization of GiGAtopiaAccelerating the Gigabit Era

1 Broadband in Korea and KT

2 Delivering Gigabit Broadband

3 Advantages of GiGA Wire

4 Deployment & Performance of GiGA Wire

5 GiGA Wire Future Plans

Driving Integrated ICT service with advanced fixed & wireless broadband network in Korea

LTE Penetration

Smartphone Penetration

Fixed Average Speed

FTTH/FTTB Penetration

World-first UHD IPTV

World-first NationwideGigabit Internet

Korea ICT Overview

Value added of the ICT sector

Source: OECD Digital Economy Outlook 2017

… By next year, Korea's Ministry of Information and Communications wants to upgrade the nation's high-speed backbone to 50 megabits, and by 2012, the ministry says, Koreans will be luxuriating in 100-megabit cascades of data. …

.

.

.

.

.

.

Sep. 2004

ICT Development Index

Source: Measuring the Information Society (2016, ITU), Rank#1: 2010~2012, 2014~2016

CountryRank 2016

Rank 2010

Korea 1 1

Iceland 2 3

Denmark 3 4

Switzerland 4 12

UK 5 10Korea OECD

IT and other IS

Telecommunications

Software publishing

Computer, electronic

and optical products

Global No.1

10.7%

5.5%

Accelerating the Gigabit era with a continuous leadership in the broadband market by providing GiGA internet service since 2014

Broadband Market in Korea

Source : KT IR Report and Internal Data

Source: Ministry of Science and ICT(2016.12)

117 261 448 654 1,000

1,330 1,728

2,044 2,424

2,829 3,235

3,610

14.4Q 15.1Q 15.2Q 15.3Q 15.4Q 16.1Q 16.2Q 16.3Q 16.4Q 17.1Q 17.2Q 17.3Q

[Unit: 1,000]

41%

25%

19%

15%

KT Corp

SK Broadband

LG U+

Other

Broadband market share, 2017

Source: Ministry of Science and ICT

8,516K

5,207K

3,611K3,165K

Company Information

Source: kt, Ministry of Science ICT , Korea Communications Commission

Number of Subscribers (As of 3Q 2017)

• Revenue : USD 20.7bn (2016)

• No. of Employees : 23,600 (As of Sep 2016, kt only)

• Stock Exchange Listings : Korea, New York

• Credit Rating : A3 (Moody’s) / A- (S&P, Fitch)Korea Telecom

Fixed Broadband

8.7M(M/S 41.3%)

Mobile

19.8M(M/S 31.0%)

LTE: 15.1M3G: 4.7M

GiGA : 3.6M(41.4%)

Fixed Phone

PSTN: 12.4MVoIP: 3.4M

Pay TV

7.4M(M/S 49.1%)

IPTV: 5.4MIPTV+SatTV: 2.0M

15.8M(M/S 57%)

Transforming to intelligent network through innovative GiGA Infrastructure and providing ICT and various convergence services to realize GiGAtopia

KT’s GiGAtopia Vision

Intelligent Network Infrastructure(GiGA FTTH, GiGA Wire, GiGA WiFi, GiGA LTE, 5G)

GiGA Platform(Media, Big Data, IoT, Cloud)

GiGAtopia

Convergence Services

Media(IPTV)

SmartEnergy

Enterprise/Public ValueEnhancement

FinancialTransaction

Safety

People & things connected through GiGA Infra

"In 2020, the speed of network services will be 10 times faster than today and the level of network services will be improved by 10 times. Future networks will even be able to map out the spread of diseases to effectively contain the spread of viruses(...) I am most definite that this future will bring a broader and greater change to our world than the mobile era.”

- Dr. Chang-Gyu Hwang, Chairman & CEO of KT

from the Special Lecture at Harvard University

KT

Network

Evolution

Always staying ahead of data explosion era by developing and launching the latest technologies and services in the Korea market and expanding to global market

KT’s Network Evolution in the era of data explosion

Providing the world first gigabit mobile broadband service with GiGA LTE combining LTE & WiFi network and enhancing user’s WiFi experience with GiGA WiFi Wave 2

Delivering Gigabit Wireless Broadband

GiGA LTE GiGA WiFi

MAX Speed:

980.8 Mbps

Turkey Turk Telekom (’16.3) Thailand AIS (’16.3)

Service Concept

1 Broadband in Korea and KT

2 Delivering Gigabit Broadband

3 Advantages of GiGA Wire

4 Deployment & Performance of GiGA Wire

5 GiGA Wire Future Plans

FTTH

34%

FTTB+LA

N

39%

xDSL

6%

HFC

21%

Real environment (Korea, 2016 3Q)Policy

Korea’s policy also focused mainly on fiber infra, but we

faced a challenge of upgrading the copper-based network

FTTP

Lots of countries…

FTTH oriented policy vs. real environmentNeed to overcome the issue of installing fiber in real environment, specially at the old building with existing copper/coaxial lines

VS.

In-building Line Type

Residential Type How to deploy Solution

Apartment/Building

House

Fiber

Fiber

UTP4

Fiber ONT replacement

Copper

UTP(4P)

ONT replacement

Fiber installation thorough internal telephone/internet/CATV duct, external wall, etc.

xDSL GiGA Wire(G.hn), G.Fast GNT deployment

Y

N

Y FES GES replacement GES Speed profile changing

N

Fiber

Fiber OK

No Fiber

How to achieve Gigabit internet?Considered various technologies including GiGA Wire and G.fast in order to achieve gigabit broadband service though existing copper cable in the building

G.hn ?

G.fast ?

17 MHz

Enhancing frequencybandwidth

Vplus(VDSL2 35b)

35 MHz 100MHz

~ 400Mbps ~ 700Mbps

G.hn1.0

200MHz

~ 1.7Gbps

G.hn2.0

VDSL2 (17a)

~ 150Mbps

VDSL

~ 80Mbps

Commercial Service

2016 2014

Why KT chose GiGA Wire(G.hn) for Gigabit internet with copper?

Enhanced copper-based technologies are emerging to fill the gap between VDSL and FTTH

(Down 500Mbps) (Down 1Gbps)

G.hnField Trial

2013 2017

Deploying

Perform

ance

Maximum speed and throughput

Coexistence with existing xDSL(Solving Interference problem)

Scalability for physical ports(Expansion of Vectoring)

Standardization and Supply ChainCommercial deployment references

Field performance and stability

Flexible interface and deployment

Service coverage over distance

Com

mer

cial

Evaluated key factors on performance, commercial and expandability(home) sides in selection of Gigabit technology with copper cable in early 2013

Expandability(home)Possibility extending broadband coverage in various

home environment [copper(1:N), UTP(1:N), coaxial, power line and etc.)

1 Broadband in Korea and KT

2 Delivering Gigabit Broadband

3 Advantages of GiGA Wire

4 Deployment & Performance of GiGA Wire

5 GiGA Wire Future Plans

Advantages of GiGA Wire

Quick installation

Scalability

Low cost for deploying

Coexistence with others

Only 15minutes

for each premises

Max 256 subs. in a bundle (copper)

Max 64 subs.

with 1 GAM (coaxial)

FTTH

GiGA Wire

Re-cabling

No-cabling

Proven advantages of GiGA Wire in the environment: Cost, Time, Coexistence, Scalability and expandability(home)

Improvement of TCO (near 50%) compared to FTTH with significant reduction of re-wiring within premise

Cost and Time

GAM #1

GAM #2

GAM #3

GAM #4

GAM #5

1F MDF

TerminalBox

TerminalBox

TerminalBox

RN

CPEV(Max 55m)

UTP

(15m)

TIV(Max 30m)

OLT(KT branch)

GNT#1-1

GNT#1-2

FTTH GiGA Wire

Apartment in Seoul (Built in 1996, 216 households)

50%

67

850

VDSL2 GiGA Wire

Average Speed Improvement

TCO Saving

12X

4 hours

FTTH GiGA Wire

?

Time Saving

※ GAM : G.hn Access Multiplexer / GNT : G.hn Network Terminal

With ADSL

• No frequency overlapped with G.hn (No interference)

With VDSL

• A few frequency overlapped with G.hn (3.5 ~ 30MHz)• G.hn uses the lowest power, interference to VDSL is low

G.fast uses higher power level so interference to VDSL is high • G.hn supports PSD shaping for VDSL frequency (Power level of

VDSL frequency is configurable)

Deployed GiGA Wire in the building with existing VDSL equipment provided by three Korean operators without any impact to legacy services via the use of low transmission power

Coexistence with other technologies

Gangnam, Seoul, Korea

Only KT’s GiGA Wirecan provide

GiGA internet servicewith VDSL

in the same bundle

KT VDSL &

GiGA Wire

LGU+

VDSL

SKBB

VDSL

MDF Room

MDF Room

MDF

Cascade multiple GAM with only clock sharing Up to 256 subscribers

Multiple operators with clock sharing function

Coexistent with different technologies

Scalable to total connection of up to 256 subscribers by simple addition of GiGA Wire switch and multi-vendor equipment synchronization with sharing of the clock signal

Scalability & Coexistence with other vendors

KT LGU+

Clock Sharing

Dongdaemun, Seoul

Seongnam-si

Clock Sharing

KT LGU+

Expand 1Gpbs broadband service everywhere in the home by using various cables in home

- Twisted pairs (phone & UTP), Coaxial Cables and Power Lines(PLC) with 1:N connection

Expandability at Home

MDF Room / IT Room

Vector Boost

• FEXT mitigation by reducing crosstalk source- Enable boosting mode to expand frequency

band for heavy traffic ports

- Crosstalk avoidance technology

Line #1

Line #2

Line #3

Line #4

Line #5

Heavy traffic

Heavy traffic

• Simple and cost effective for implementation

21 Subscribers with GAM 1EA

Avg. Distance: 97m

Avg. Download Speed: 120Mbps

Max Download Speed with Vector Boost

1Gbps

Maximum 1Gpbs speed with “Vector Boost” feature by dynamic allocation of more bandwidth to heavy traffic users

Crosstalk avoidance

Changshin-dong, Seoul

Built in April, 1999

1 Broadband in Korea and KT

2 Delivering Gigabit Broadband

3 Advantages of GiGA Wire

4 Deployment & Performance of GiGA Wire

5 GiGA Wire Future Plans

Customer Site

Mobile coverage(Femto)

WiFi Hotspot

FTTBFiber Network

Central Office

Utilize existing infrastructure

Minimize wiring and engineering for deployment

※ GAM : G.hn Access Multiplexer

※ GNT : G.hn Network Terminal

GAM

GNT

GNT

GNT

GNTwith WiFiVoIP GW

Phone

E-PON,G-PON,Ethernet

Fiber-optic cable

Copper

CCTV

CCTV

Providing gigabit broadband service to customer premises with 1:1 connection between GAM’s port and GNT through existing copper cable in the building

GiGA Wire (Copper)

1:1

Upgrading around 12% of KT’s DSL customers to GiGA internet service by applying GiGA Wire throughout the whole country

GiGA Wire Deployment Status in Korea

Seoul39.9%

Gyeonggi-do31.8%

Gyeongsangbuk-do5.3%

Daejeon5.0%

Incheon3.6%

Busan3.5%

Chungcheongnam-do2.0%

Jeollabuk-do1.8%

Gwangju1.5%

Gyeongsangnam-do1.1%

Gangwon-do1.1%

Ulsan0.9%

Daegu0.9%

Chungcheongbuk-do0.8%

Jeju0.5%

Sejong0.2%

Jeollanam-do0.1%

No. People per ㎢

5,000~1,000~5,000500~1,000200~500100~200~100

Korea Population Density Ratio of GiGA Wire Ports in Each Region

(from the total number of GiGA Wire Ports)

* Average distance: 100~150m

Enhancing customer broadband experience from average 78 Mbps with VDSL up to around 1Gbps with GiGA Wire in many premises

GiGA Wire Real Performance (Korea)

922Mbps 926Mbps 860Mbps

822Mbps 849Mbps 875Mbps

Avg. Speed

78Mbps

10X

※ Each test results were measured under the different network condition

xDSL GiGA Wire

Boston in U.S.A Botswana

xDSL GiGA Wire

15 x

Avg. 36Mbps

Avg.540Mbps

Avg.2Mbps

Avg. 294Mbps

147 xHSI

POTS

WiFi

HSI

POTS

Commercialized GiGA Wire in Boston, USA and Gaborone, Botswana

GiGA Wire Real Performance in Global Market

WiFi

* Backhaul: 580Mbps * Backhaul: 300Mbps

* Tested by GiGA Wire 2.0 * Tested by GiGA Wire 2.0

KT Provides High-speed Internet to US

… a GiGA Wire Internet launch ceremony at Hibernian Hall in Boston and started providing the service to the city. The ceremony was attended by KT Chairman Hwang Chang-gyuand Boston CIO Jascha Franklin…

By Business Korea - September 18, 2017

KT to Provide 1 Giga Solutions to Botswana

…an agreement with BoFiNet in southern Africa to supply GiGA Wire Solution to Botswana. BoFiNet is a state-run communications company under the Ministry of Communications of Botswana…

By Business Korea – August 29, 2017

+ Customer Interview in Boston

※ Each test result was measured under the different network condition

Malaysia

Proven with field tests achieving equal performances in various environments in many countries

KT GiGA Wire Test Results in Global Market

xDSL GiGA Wire

34x

Avg.20Mbps

Avg. 680Mbps

* Backhaul: 700Mbps

HSI

POTS

WiFi

Italy

VDSL2 17a GiGA Wire

Avg.105Mbps

Avg. 500Mbps

4.8 x

HSI

POTS

IPTV

WiFi

* Tested by GiGA Wire 2.0 * Tested by GiGA Wire 1.0

VDSL2 17a GiGA Wire

Philippines

104Mbps

Avg. 523Mbps

5 x

HSI

POTS

IPTV

* Tested by GiGA Wire 1.0

Turkey

xDSL GiGA Wire

9.4 xAvg.

41Mbps

Avg.387Mbps

HSI

VoIP

IPTV

WiFi

* Tested by GiGA Wire 1.0

Customer Site

Mobile coverage(Femto)

WiFi Hotspot

FTTBFiber Network

Central Office

Utilize existing infrastructure

Minimize wiring and engineering for deployment

※ GAM : G.hn Access Multiplexer

※ GNT : G.hn Network Terminal

GAM

GNT

GNT

GNT

GNTwith WiFiVoIP GW

Phone

E-PON,G-PON,Ethernet

Fiber-optic cable

Coaxial

CCTV

CCTV

Providing gigabit broadband service to customer premises with 1:N connection between GAM’s port and GNT through existing coaxial cable in the building

KT GiGA Wire (Coaxial)

GNT

1:N(Max 1:16)

xDSL GiGA Wire

6.7Mbps

990Mbps

147 x

HSI

IPTV

WiFi

Successful on-site trial for IPTV (multicasting & VoD) and Gigabit broadband service on existing coaxial cable at the hotel

GiGA Wire (Coaxial) Hotel Trial

1 Broadband in Korea and KT

2 Delivering Gigabit Broadband

3 Advantages of GiGA Wire

4 Deployment & Performance of GiGA Wire

5 GiGA Wire Future Plans

KT’s GiGA Wire strategyContinuous expansion of GiGA Wire(G.hn) eco-system and global references

TechnologyDevelopment

ImprovementCooperation

StandardCooperation

Product LineVariation

KT GiGA Wire

Continuous Development

and Expanding Global References

G.hn 1.0 (2013)

G.hn 2.0 (2016)

G.hn 3.0 (2018)

Low Crosstalk

Vector Boost

1 to 1K subscribers

1:N with Copper

Flexible Deployment

Copper Cable

Coaxial Cable

ITU-T Rec.

G.9960/G.9961/

G.9962/G.9963/

G.9964

Copper & Coaxial[ GiGA Wire Global References ]

Wave 1

2015

Wave 2

2016

Wave 3

2018

• 100MHz SISO

• Phone/Coax/UTP

• Vector boost feature

• Up to 700Mbps

• 200MHz SISO

Phone/Coax/UTP

• 100MHz MIMO

Phone/UTP

• Single chipset based solution

• Vector boost feature

• Up to 1.7Gbps

• 250MHz SISO

2Gbps @ UTP 100m

• 200MHz 3X3 MIMO

5Gbps @ UTP 100m

• 200MHz 7X7 MIMO

10Gbps @ UTP 100m

• 1200MHz SISO Coax

10Gbps @ 200m

• Cloud Vector Boost

GiGA Wire roadmapContinuous technology development roadmap to further strengthen GiGA Wire speed and features