Korean Broadband Policies and Recommendations for the Asian InformationSuper Highway

Dec, 2. 2013

Dr. Kang, Sun-mooExecutive Director

Smart Network Division

National Information Society Agency

A Success Factor for ISP

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- Information Super Highway is important matter for networking global connectivity

- But, Internal matter is more important than the outside/international connectivity

- Also, demand for the high speed network connectivityis essential -> Demand / Supply chain

- We have to create a virtuous cycle between them

- For this, my talk - one is a fact and the other is an idea

A Fact Part

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Brief History of Broadband PolicyBrief History of Broadband Policy

· · · ·· · · 1998 · · · · · · · ·· · 2003 · · · · · · · 2007 · · · ··· 2010 · · · · 2015

1995 1999 2001 2002 2009

KII Project (~ a few Mbps)1995

2004

2005* KII : Korea Information Infrastructure

* Korea Population : 50m

KII

Program

KII

ProgramPCs : 10M

Internet :10M

PCs : 10M

Internet :10M

e-Banking

10M

e-Banking

10Mm-phone

30M

m-phone

30M

Internet: 36M

m-phone: 48M

e-banking: 59M

IPTV: 2.6M

Internet: 36M

m-phone: 48M

e-banking: 59M

IPTV: 2.6M

UBcN Project (up to 1Gbps)

2009

BcN Project (50~100Mbps) 2010

* UBcN : Ultra Broadband Convergence Network

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• Gigabit Internet Commercialization(2011~)

• Rural Broadband Expansion(2010~)

• Future Network R&D

2012

* BcN : Broadband Convergence Network

Broadband in Korea Today

Fibre/LAN Broadband subscribers

Rank Country Speed (Mb/s)

1 South Korea 14

2 Japan 10.8

3 Hong Kong 9.3

4 Latvia 8.9

5 Switzerland 8.7

Rank Country Subscribers(per 100 inhabitants)

1 South Korea 21.62 Japan 17.7

3 Sweden 10.3

4 Estonia 7.4

5 Norway 7.3

Avg. Measured Connection Speed of Broadband

(OECD Feb. 2013)

(Akamai, Apr., 2013)

Broadband Leadership

Rank Country Score

1 South Korea 157

2 Hong Kong 118

3 Japan 116

4 Iceland 115

5 Luxembourg 111

Rank Country Percentage of all households

1 South Korea 97.52 Iceland 87.0

3 Norway 82.6

3 Sweden 82.6

5 Denmark 80.1

(Univ. of Oxford, Oct. 2010)

v In the number of FTTH subscribers, download speed, broadband quality and the number of households with broadband access

Households with Broadband access

(OECD Nov. 2011)The World’s

Best IcT

Infrastructure

The World’s

Best IcT

Infrastructure

Success Factors of Korea’s Broadband

Implementing Consistent &

Strong Policies

The government took part in all processes of developing national ICT infrastructure as a control tower from planning to implementation.The government took a leading role in implementing the policies consistently and strongly, as it set up goals directions, implementation frameworks and financing methods critical to the development of national ICT infrastructure

Promoting Market

Competitions

The government encouraged market competition among service providers so that the users can enjoy high quality services in low price.The government supervised the time and the place of players’ competition, and even guaranteed a certain amount of revenues for service providers. As a result, the market could grow quickly, the players could gain strong competitiveness that enabled them to survive after the market-opening

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Success Factors of Korea’s Broadband

Narrowing Gap between ICT

Infrastructures and Services

A variety of ICT services utilizing the network were emerged continuously, improving the quality of people’s lives.The government consistently built national ICT infrastructure with a long-term perspective, and based on this infrastructure, diverse ICT services developed and popularized, again driving the advancement of the infrastructure. Many government ICT projects including e-government, u-health, and national ICT education were implemented in line with the development of ICT infrastructure

Virtuous Investment Cycle

The government actively supports the businesses building the network by creating the regulatory framework and making a lead investment. The government bore the risk and reduced the uncertainty of building new infrastructure and adopting new technologies by making a lead investment. Such government leadership attracted the businesses to quickly adopt and diffuse new technologies and infrastructure by the businesses

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Current and coming Trends

Mobile Devices – Clouding, P-to-P, Mobile Offices, M2M/IoT/IoE, Big data

The Brief History of Network Projects

Forecast of Worldwide mobile data traffic increase by service type

Sky Rocketing Traffic

Current Implementing Broadband Policy

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Policy ObjectivesPolicy Objectives ProjectsProjects

Provide high-quality & effective network service to meet the

future demand including ever-increasing data traffics

Provide high-quality & effective network service to meet the

future demand including ever-increasing data traffics

Bridge the digital divide in network infrastructure between

rural and urban areas

Bridge the digital divide in network infrastructure between

rural and urban areas

Provide a testbed for R&D of network technologies

Provide a testbed for R&D of network technologies

Gigabit Internet Project(GTTH : Gbps To The Home)

90% Coverage in 2017

Gigabit Internet Project(GTTH : Gbps To The Home)

90% Coverage in 2017

Rural Broadband Project(Rural village)

100% go to BB ready

Rural Broadband Project(Rural village)

100% go to BB ready

KOREN Project(KOrea advanced REsearch

Network)100G backbone

KOREN Project(KOrea advanced REsearch

Network)100G backbone

Revenue Dramatically Jumping-down

Global Status KT Status

Source: OVUM, 2010

(PB = 1000 X TB) (PB)(USD/MB) (USD/MB)

25000

20000

15000

10000

5000

0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

2010 2011 2012 2013 2014 2015

800

600

400

200

0

3.0

2.5

2.0

1.5

1.0

0.5

0.0

2010 2011 2012 2013 2014 2015

Traffic Revenue

(2010) Traffic 924PB à USD 9.8/MB(2015) Traffic 20,454PB à USD 0.5/MB

(2010) Traffic 68PB à USD 2.8/MB(2015) Traffic 614PB à USD 0.3/MB

What should be the right Policy ?

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- Which Network Infrastructure ?

-> Common Infrastructure – NasS businessPossible ?

- A Big Issue to be tackled !!

- Same issue for Information Super Highway !!

An Idea Part - Infrasture and Contents -

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Background of DKB

Resolving urgent

social issues

Accelerating convergence

between different

technology and

industry fields

Greater integration

of cutting-edge technology

More compact & multi-function Convergence Intelligent devices

and systemsInfo.

Technology

Industry

Employment

Environment

Energy

Social welfare

Education

Hyperspace design

Real-time diagnostics and

control

Sensory interface

Dynamic information security

systems

Nano robotsu-Life

Sensory communicatio

ns/bodily media

IT Demand

What is the DKB ?

Singapore

Cambodia

Malaysia

Brunei

Philippines

Vietnam

LaosKorea

Myanmar

Thailand

Indonesia

The country that IAC’s built in

A cyber knowledge community enabling the sharing of knowledge assets of ASEAN countries

1. Build a DKB organically linking its three main components

- Digital Knowledge Center (DKC)- Digital Knowledge Library( (DKL)- Digital Knowledge Infrastructure (DKI)

2. Build active and close cooperation among participating Asian nationsand organizations

3. Build a sustainable knowledge sharingnetwork

4. Build a DKB with minimum cost

Component of DKB – Digital Knowledge Center

A strategic ICT cooperation center in each member countries, in which enhanced online applications such as distance learning or Tele conference are provided through an advanced research network installed in the Information Access Center

TEIN

- General informatization education & provision of information access opportunities

- I nformatization education targeting the general public

- Establishment of DKCs in key ASEANcountries

- Active use of video conferencing and seminars

- Provision of e-learning

- Serving as full-fledged hubs ofnational informatization consultingand support

- Broader range of support for ICT business cooperation

-- Serving as the focal points of the ICT human network

- Contributing toward the creation of a sustainable ICT-based cultural community

Transforming IACs into DKCs as Main hubs of the Global Digital Knowledge Belt

Advancement of IACs,Initiation of DKCs

Enhancement of DKCs

Full Operation of DKCs

Component of DKB- Digital Knowledge Infra

A high-speed R&D network called Trans-Eurasia Information Network that links developing countries in Asian region, allowing 155M~10G platform for advanced ICT applications.

TEIN3 그림

1. Asian countries that have DKCs and organizations that already have TEIN will extend their networks to DKCs- Vietnam, Indonesia, Laos Philippines

2. Asian countries that have DKCs, but are not yet connected to TEIN will be connected- Cambodia, BangladeshSri Lanka

3. DKCs in worldwide locations will be linked together

Component of DKB: Digital Knowledge Library A knowledge base located in DKC that contains knowledge resources created by digitizing ASEAN countries’ history, culture and technologies, and allows sharing and exchange of these knowledge contents through websites

1. DKL will be built in an individual country by digitizing and designing knowledge contents- facilitating use and sharing of digital resources

2. DKLs in Asian countries will be linked for knowledge sharing and joint R&E activities

3. DKLs will be further developed into DKB allowing creation of regional knowledge & economic community in Asia

v DKB enables sharing of digital knowledge resources and ICT infrastructure among ASEAN countries to create new values, and bring a new chance for social and economic growth in the region

Benefits of DKB

v By..Ø DKC providing advanced ICT applications for intensive communication

& cooperationØ DKI providing a high speed network as a base for transfer of

knowledge resources including ICT policies, technologies, and R&D Ø DKL providing a DB of digital contents made of each country’s unique

knowledge assets

v DKB also assists in resolving impending issues such as economic challenges, social conflicts, and environmental problems in Asia through a regional knowledge community

v Catch two rabbits at once by combining them together !!- National and International Infrastructure together -- Infrastructure and Contents(Service) together -

Conclusions

• Close Networking among ICT Ministries in ASEAN region- As governments are directly and indirectly involved in ICT development in

ASEAN countries, their collaboration (ex. in setting the common goals, making a master plan, doing global pilot services) is the key for the success of the project

• Government Intervention for the Market Development- As the success of the project largely depend on the creation of the demand

on broadband service, all players need to work together to share knowledge and analyze the markets to make relevant strategies to create the demand

• Government should take the lead in planning and implementing the project- Since many issues needs to be discussed and decided among countries, the government who represents the interest of the people, not the private company, should play a main role in planning and implementing the project. - In addition, only government can reorganize the laws/regulations so that the project can be carried out without problems.

- We are ready to share experiences and support -