Deployment and Return of Experience in Asia Pacific and Korea · 2013-01-24 · Deployment and...

Deployment and Return of Experience in Asia Pacific and Korea – Sang Hong Lee – page 152

Deployment and Return of Experience in Asia Pacific and Korea

Deployment and Return of Experience in Asia Pacific and Korea

Dr. Sang Hong LeeSenior Vice President

KT, Korea

Mr. Yosuke Yamazaki, Session Chairman:Our forth speaker is Dr. Sang Hong Lee from Korea Telecom.He received his Ph.D. in information science from SungkyunkwanUniversity, Seoul, Korea in 1997. From 1980 to 1983, he worked as a research engineer at ETRI. He joined Korean Telecom R&D group in 1984 and worked as the head of Service Development Laboratory and Convergence Service Laboratory. Dr. Lee is currently the head of Infra Laboratory, KT. He leads WiBro system, FTTH, BcN service and terminal development. Dr. Lee is also serving as the chair for Digital Home Forum and DRM Forum in Korea. Please welcome Dr. Lee.

Dr. Sang Hong Lee:Good afternoon,I am Sang Hong Lee, Senior Vice-President in KT. It is an honor to have this opportunity to present Fiber-To-The-Home market in Asia Pacific and Korea.I was requested to cover FTTH deployment trend of Asia Pacific, but I added “Korea” in the title. I think it’s more meaningful to focus on the status & challenge in Korea. There are 2 reasons: Because the E-PON is just deployed massively to cope with limitless market competition and Korea is the 1st country to try the WDM-based PON as FTTH solution. I want to share with you our experiences we had during the trial and commercial service.


Outline

1. Broadband status of APAC

3. FTTH business environment and challenges

2. FTTH Deployment strategy in Korea

4. Fiber industry prospects

5. Concluding remarks

This is the outline of my presentation.First, I will give an overview of the broadband penetration and fiber deployment status in the Asian Pacific (APAC) countries.In the next 2 sections, I will more closely review Korea’s broadband strategy, business environment and challenges we meet.Finally, I will give a rough outlook for the fiber cable industry.


0

5

10

15

20

25

30

35

Denmark

Netherl

ands

Icelan

d

Korea

Switzer

land

Norway

Finlan

d

Sweden

Canad

a

Belgium

United

Kingdo

m

Luxe

mbour

g

Franc

eJa

pan

United

Stat

es

Austra

lia

Austria

German

ySpa

inIta

ly

New Z

ealan

d

Portug

al

Irelan

d

Hunga

ry

Czech

Rep

ublic

Poland

Slovak R

epub

lic

Greece

Turke

y

Mexico

Source: OECD

DSL Cable Fibre/LAN Other

OECD Broadband subscribers per 100 inhabitants, by technology, Dec. 2006

OECD average

Position of APAC in Broadband Market

0

200

400

600

800

1,000

1,200

1,400

2005 2006 2007 2008 2009 2010Year

Sale

s [M

USD

] APAC

North America

EMEA

PON sales market in worldwide (IDC 2007)

This slide explains the position of the APAC broadband market.We can see that APAC countries like Korea and Japan acquired a very high position in the number of broadband subscribers. Especially the fiber connected subscriber ratio is higher than in other countries.In case of PON sales market status and prospect, APAC countries are much higher than most of the North American and European countries.


APAC Leads FTTH Table (FTTH council, July ’07)

World’s Three FTTH Councils Joined together to Issue First Official Global Ranking of FTTH Market Penetration

> Hong Kong, South Korea, Japan is leading the world in FTTH and building market penetration

World’s 3 FTTH Councils (Asia-Pacific, Europe and North America) jointly issue a global ranking of the FTTH market penetration.According to this first official survey table in July 2007, Hong Kong, Korea and Japan is leading the world in fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) market penetration. Other countries, like Taiwan and China, also ranked within the first 10.Next I will review the broadband status of Korea, Japan and other APAC countries.


> The penetration rate has reached 90% in 2006> The broadband market has become more severe with the new players, like CATV

company and Powercomm> Very encouraging fact that the subscriber increase rate has been recovering in the

recent years

Broadband Market Trend in Korea

Source MIC (Ministry of Information and Communication) 2007.6

3,9433,943

12,77112,77198%98%

00

2,0002,000

4,0004,000

6,0006,000

SubscribersSubscribers(thousands)(thousands)

20002000 20012001 20022002 20032003 20042004 20052005 20062006

00%00%

20%20%

40%40%

60%60%

80%80%

Num of Subscriber CAGR

8,0008,000

10,00010,000

12,00012,000

100%100%

33%33%

7%7% 7%7% 5%5%2%2%

CAGRCAGR

14,00014,000

14,44114,441

13%13%

2007.72007.7

This graph shows the broadband market trend in Korea from 2000 to 2007.The broadband market has increased rapidly since the beginning of the year 2000 and the penetration rate has reached 90% in 2006. Then, almost every household in Korea has access to the broadband network.Due to market saturation, the increase rate has slowed down, and the competition in the broadband market has become more severe with the new players. In spite of the broadband market saturation, we have observed a very encouraging fact that the growth rate of the number of subscribers has been recovering in the recent years. In my opinion, it is a good signal for FTTH market growth.


Broadband deployment status in Korea

> KT has started to massively replace the aged xDSL with FTTH

Increase of fiber-based access network by competition

Composition of access network

FTTH 3.7%

HFC 35.3%

xDSL 33.8%LAN 27.2%

Source MIC (Ministry of Information and Communication) 2007.6

Market Share Ratio

HanaroTelecom25.5%

KT45.2% CableTV(SO)

16.8%

LG Powercom10.3%

etc2.4%

This is the market share of the Korean broadband service providers.KT shares 45% of the Korean broadband market, Hanaro Telecomm 25%, and Cable TV16%, Powercomm 10%. CableTV and LG Powercomm has increased its portion with massive and aggressive marketing.Considering the composition of the access network, we can see that HFC has 35%, xDSL 33.8%, LAN 27% and FTTH has just 3.7% as new entry. KT has started to massively replace the aged xDSL with FTTH, so I expect that the portion of FTTH will increase while xDSL will bedecreasing continuously.


Broadband deployment status in JapanTotal Population: 127,050,000; No. of households: 51,713,000 as of March 2007

- 100,000

0

100,000

200,000

300,000

400,000

500,000

01/ 1- 3 02/ 1- 3 03/ 1- 3 04/ 1- 3 05/ 1- 3 06/ 1- 3

FTTH

DSL

CATV

07/ 1- 3

Unit: thousand 【Monthly Increase in Number of Subscribers】【Number of Subscribers】

0

5,000

10,000

15,000

20,000

25,000

30,000

01/ 3 02/ 3 03/ 3 04/ 3 05/ 3 06/ 3

FTTH

DSL

CATV

07/ 3

Total:26.44 million(as of March 2007)

Total:26.44 million(as of March 2007)

14,00014,000

288,000288,000

--74,00074,000

FTTHFTTH

DSLDSL14.0 million14.0 million

CATVCATV

FTTHFTTH8.88.8 millionmillion

DSLDSL

CATVCATV33.6million.6million

Unit: subscriber

Source: Mr. S. Suzuki, Ministry of Internal Affairs and Communications, JapanAs of March 2007

01/3 02/3 03/3 04/3 05/3 06/3 07/30

5,000

10,000

15,000

20,000

25,000

30,000

01/1-3 02/1-3 03/1-3 04/1-3 05/1-3 06/1-3 07/1-3-100,000

0

100,000

200,000

300,000

400,000

500,000

The total number of broadband subscribers is more than 26 millions. Among them, more than 8 million subscribers are connected to a FTTH network. Japan is leading FTTH deployment worldwide.In the graph on the right side, we can see the decrease of DSL subscribers. But the number of FTTH subscribers is steeply increasing. The driving force for this growth is the u-Japan policy led by the Japanese government. More than 30 million subscribers are planned to be connected with FTTH by the end of 2010.


SMP’s market share in the broadband of Japan

NTT38%

Otehrs,62%

Others31%

NTT69%

NTT72%

Others28%

NTT57%

Others43%

DSL MarketDSL Market14million subscribers14million subscribers

FTTH Market (Total)FTTH Market (Total)8.8million subscribers8.8million subscribers

FTTH MarketFTTH Market(Houses)(Houses)

FTTH MarketFTTH Market(Apartment)(Apartment)

Source: Ministry of Internal Affairs and Communications, Japan As of March 2007

As KT is leading the FTTH market in Korea, NTT is leading FTTH market in Japan. NTT has a market share of 38% of DSL lines and 69% of FTTH lines.The share of NTT East/West in the FTTH market is increasing, especially in the single family unit environment.I can find some implications from Korea & Japan’s broadband market survey:• Aged DSL lines are gradually being replaced by FTTH lines.• Early and fast deployment of FTTH will drive the broadband market growth in limitless market competition.• Active deployment of FTTH in Korea and Japan that is happening now gives us a very bright future in the fiber cable market.


Broadband status in APACHong Kong

> Highest BB penetration ratio (more than 80% ) (2007/06, PointTopic )> Ethernet, VDSL techniques are deployed in the form of FTTH/FTTB> FTTH commercial service example : BB100 (100 Mbit/s), BB1000 (1 Gbit/s) by HKBN

Taiwan> 4.5 million BB users and penetration ratio is 62.4% (2006/12, total household is 7.3

million) > 87% of BB users are using xDSL of 2 Mbit/s, 8 Mbit/s, Transition into high rate (10,

50,100 Mbit/s)> Considering to deploy FTTx using Ethernet and PON technique (CHT)

China> 56.2 million BB users (2007/06), which is second largest in the world (2007/06,

PointTopic)> Optical access is mainly in the FTTB and FTTC form (90% of buildings have fiber drops)> Considering to deploy FTTH using E-PON and AON

Singapore> 768,000 BB users and penetration ratio is 62.8% (2006/12, IDA Singapore)> Few FTTH trials, offering 80 Mbit/s to each user (by SingTel) using G-PON (Alcatel)

Other APAC countries are also contributing to the leading position of the broadband market in the world.As we have already verified in the previous slide, Hong Kong has the greatest FTTH/FTTB penetration in the world. Ethernet, VDSL are deployed in the form of FTTH/FTTB.For Taiwan, BB the penetration ratio is 62.4% and 87% of broadband subscribers are using DSL with line rates of 2 Mbit/s to 8Mbit/s. Service is now transitioning into higher bandwidth, like 10 Mbit/s, 50 Mbit/s or 100 Mbit/s. Chungwha Telecomm is considering to deploy FTTX using Ethernet and PON technique.China has the second largest number of broadband subscribers in the world after United States. Optical access is mainly in the FTTB and FTTC form (90% of business buildings have fiber drops). Many Telcos are considering E-PON and AON as FTTH solution. Singapore has more than 62% of BB households. Few FTTH trials, offering 80 Mbit/s to each user (by SingTel) using G-PON.


FTTH deployment trends in APAC

Korea E-PONGW-PON(trial)G-PON(trial) Japan

E-PON

ChinaE-PON(trial)AON

TaiwanE-PON(trial)

SingaporeG-PON(trial)

Mainly concentrated on PON Technology

Most of the APAC countries are using or considering E-PON for FTTH deployment

This slide shows the system technology of FTTH in APAC. Technology trend is mainly concentrated on the PON technology.In China, AON is still popular because this technology is the most cost effective solution in CAPEX point of view (so this solution will be found in the highly populated residential environment). And G-PON is also considered and tested during the field trials in Singapore. And in Korea, KT develop GW-PON and is actually preparing field trial service. G-PON is also being deployed as a field trial service by Hanaro Telecom.But for now, most of the APAC leading countries are using or considering E-PON.

In the next few slides, I will present 4 kinds of key strategies for FTTH deployment in Korea.


First 1-mile Project

Satisfying Customer’s Needs and bringing New

Value to customer

FTTH : user centric network solution

Last 1-mile

Central Office customer

First 1-mile

Access Network

Paradigm shift from Provider’s view to Customer’s view

The first strategy is the service paradigm shift from a provider’s view to a customer’s view.In the past, the access network was considered as the last mile, because the location was far from the central office. But from now on, the access network is called ‘First 1-mile’, because it is most closely located from the customer’s residential environment. First 1-mile project means not only to speed up the access network with FTTH solution, but also to emphasize on satisfying the customer’s needs and bringing new value to the customer.


FTTH deployment strategy of KTKT defines FTTH as :

Optical Access Network suitable for Triple Play Services (TPS) that support 50 -100 Mbit/s QoS guaranteed bandwidth.

Optical Access Network suitable for Triple Play Services (TPS) that support 50 -100 Mbit/s QoS guaranteed bandwidth.

FTTH-R

FTTH-R or FTTH-E/VVDSLSFU

>0.5 km

0.5 kmCOCO

Network Coverage

MDU FTTH-R or FTTH-E/V

FTTH-E/VTP

UTP

ONU-F

ONU-V

ONU-T

ONT

ONT

Modem

OLT FiberRN

MDU : Multi Dwelling Unit (Apartment,townhome)

SFU : Single Family dwelling Unit (House)

In this slide, I would like to explain the deployment strategy of KT, as second strategy.KT defines FTTH as an Optical Access Network suitable for TPS that supports 50 to 100 Mbit/s QoS guaranteed bandwidth.There are 2 main criteria for the field deployment of broadband service. The first one is the distance between the CO and residential premises. The second one is the customer’s housing styles, like MDU or SFU.KT provides various FTTH solutions according to the residential wiring environment. FTTH-R (R means ‘Real’) directly connects to each household with fiber core. FTTH-E or FTTH-V provide fiber connection to the apartment communication room and reusing UTP or TP infrastructure to provide FTTH service to each household.


TO-BEAS-IS

Transitioning the Access into Passive Network

Upgrade network by deploying PON technology> To minimize outside active nodes OPEX savings …> To minimizing the number of fiber core in the feeder loop CAPEX savings …

ONT

L2

MD xDSL L3

L3

L2 L3RN

MD VDSL2

L2ONT

OLT

100M

100M

1Gbps

1Gbps

MDMD

1Gbps

ONT ONT

OLT

1:32 1:64/1281Gbps1Gbps

NtopiaS/W

Feeder core saving

Active node Passive node

Transitioning the access network into passive using the PON technology is the third strategy.We can save OPEX by deploying PON technology in the outside field. Replacing the active node lying outside field into passive, one reduces a lot of operational cost and also improves the reliability of the network. PON technique also helps to minimize the number of fiber core in the feeder loop for CAPEX saving


KT’s FTTH solution

AWG

CO

ONUλ1· · · λ16

MDU solution GW-PON

GW-PON is the result of collaboration between Korean FTTH-related component and system vendors

SFU solution E-PON, WDM-PON

OLT AWGλ1· · · λ32

100Mbps×32 ch

100Mbps

ONUUTP

OLT ONTSP

1.2 Gbps

Max.100MbpsFTTH-R

ONTFTTH-R

FTTP

……

OLT

1.25Gbps×16 ch

1.25Gbps

Building Distribution Box

FTTH-R/E/VFiber/UTP/TP

Hybrid FTTH

Considering FTTH solutions, there are three types of PON technologies.First solution is the E-PON technique, deployed by many APAC countries. Second solution is WDM-PON technique that is providing 100 Mbit/s to subscribers in the form of FTTH-R or Fiber To The Pole (FTTP). Third solution is GW-PON, which means Giga WDM-PON. This technique is actually in field trial service. GW-PON guarantees 40 Mbit/s to each subscriber in the form of FTTH-R, FTTH-E and FTTH-V. This solution is especially suited for MDU environment.


FTTH Deployment Status and Plan in KT

E-PON

GW-PON (plan)

• SFU

• MDU (all area)• >300 Central Offices1.35 million

2008

(plan)

E-PON

GW-PON (trial)

• SFU

• MDU (Newly built)• 300 Central Offices1.14 million

2007

(plan)

E-PON• SFU• Metropolitain area

- 78 Central Offices153,0002006

E-PON

WDM-PON

• SFU

• Newly built MDU

• Metropolitain area

• City of Gwangju24,0002005

Applied techResidential typeDeployed areaNumber of linesYear

GW-PON : Giga Wdm-PON

32%

53%

67%

81%92% 97%

0%10%20%30%40%50%60%70%80%90%

100%

`06 `07 `08 `09 `10 `11 `12 `13 `14 `15

100% FTTH deployment in 2015

KT is planning to provide FTTH nationwide by investing KT is planning to provide FTTH nationwide by investing $400 million in this year and increase its investment up $400 million in this year and increase its investment up to $1.2 billion until the end of 2010 (4.2 million number to $1.2 billion until the end of 2010 (4.2 million number

of lines)of lines)

This slide shows the deployment status and plan of KT’s FTTH .In 2005, 24,000 lines were deployed, more than 1 million lines will be installed in this year and by the end of 2008, almost 3 million subscribers will be connected to FTTH. By the end of 2015, 100% of broadbandsubscribers are scheduled to be connected using FTTH. This active investment plan can be the fourth strategy of our FTTH deployment.


Main Screen

EPG, IPTV

N-PVR

VOD

IP STB for FTTH Service

FTTH servicesCommercial services

> Bandwidth service : • Lite (10Mbps) / Premium (50Mbps) / Special (100Mbps)

> iCoD service (called ‘MegaTV’)• VoD streaming service (SD: 2Mbps, HD:10Mbps)• Transition into real-time broadcasting TV service

>FTTH network will play crucial role in deploying TPS• guaranteeing the proper QoS

Trial services> The goal is to check the feasibility for TPS using FTTH

infrastructure> Title of the trial service : FTTH Pilot Project in Gwangju City

• Period : Y2005 ~ Y2009 (5 years)• Deploying FTTH infra to 20 thousand subscribers in 5 years• Providing Convergence Services through 100Mb/s Optical Pipe• Evaluate the technical aspects of FTTH based service

In this section, I will review the business environment and effects obtained by deploying FTTH in Korea. Also, challenges we met will be reviewed. The FTTH services are divided in two ways. First type of service is the bandwidth service. KT is providing Lite, Premium and Special service according to the allowed maximum speed to the customer. Second type is the video streaming service. This is called iCoD (Internet Content on Demand) type service and it has a brand name as ‘MegaTV’. You can access to the latest movies or TV broadcasting contents,Education on Demand service etc…The service will transition into a triple play service type including real time broadcasting TV service in the near future. Then the FTTH network will play a crucial role in deploying TPS by guaranteeing the proper quality of service.


FTTH related Korean Industry

PON components vendors

PON system vendors

PON OSP vendors

Service Provider

E-PON GW-PON

This slide shows the FTTH related Korean Industry.There are 4 groups of companies.First, Korean fiber cable companies (like LS cable, Gaon, Taihan ) are providing FTTH infrastructures. Next group are the PON related optical component companies. System vendor group is sub-divided into E-PON and GW-PON companies. Finally, there are service providers who deploy PON system and provide broadband service. Now, LS Cable is also preparing to become a system vendor with a G-PON system.


FTTH settled as the main brand among broadband services> Higher subscription ratio than xDSL> Improvement in the Network quality (Bandwidth and reliability)

Economic effects>CAPEX improvement :

• Dramatic cost cutting of the line cost (at the VDSL level)>OPEX improvement : improve the reliability of network

• Decrease of the VOC(Voice of Customers)• 61% Improvement in the System failure ratio• 44% OPEX reduction using PON (compared to BBx)

FTTH effects in Korea

During two years of FTTH commercial deployment, we have got manyeffects and lessons.Most of all, the name of FTTH is settled as the main brand name among broadband service products. Higher subscription ratio, improvement of network quality are the main effects that we have observed as expected. Also, FTTH deployment has brought economical effects in the CAPEX and OPEX area. Dramatic cost cutting of the line cost, especially in lowering the system cost has brought with it an early adaptation in the commercial field and improved reliability of the network, decreasing the number of VOC, failure ratio, and overall OPEX reduction by using PON technique.


Regulation Challenge

Asymmetric regulations exist between telcos and broadcast companies

> The law and regime of Telecom/broadcasting convergence services are not yet fixed in Korea

• Internet/VoIP of SO/MSO is permitted by law• IPTV of Telco is prohibited by law

Significant Market Player regulation> Permission of price & agreement of services by government

LLU (Local Loop Unbundling)> Backbone network basic infrastructure (Since 2001)

• Underground duct, Pole, Cable infrastructure are included• Recently deployed fiber infrastructures (post 2004) are not included in LLU

> Actually, FTTH access network infrastructure is not included in LLU

During the trials and commercial deployment, we have verified its technical feasibility and economic effects. Nevertheless, we have met several challenges we should overcome for the mass deployment.First challenge is to deal with the regulation issues imposed on the telcos.Asymmetric regulations exist between telcos and broadcast companies. Significant Market Player regulation and the Local Loop Unbundling are the barriers to solve for massive growth of the FTTH market.


Deployment ChallengeCO, OSP :• Limited infrastructure resource (ex: available space of the fiber cable conduit) • Dramatic increase of fiber distribution and connection points could act as heavy burden

> Requires minimization of the fiber cable usage while providing higher bandwidthSubscriber Environment :

The majority of the Multi Dwelling Unit environment does not guarantee space> Requires cost effective FTTH deployment solution

splitter

conduit M/H Connectionbox

ONU-V

FTTH-RFTTH-R

FTTH-VFTTH-V

SFUSFU

feeder

distributionFiber

MDUMDU

Copper

ONT

ONT

FTTH-EFTTH-E

copper

UTPONU-T

78%Duct58%Copper61%Fiber

In useType

MD

Phone

Phone

MD

※ Fiber distance (2.5 km) : feeder (2 km, 80%) + distribution (0.5 km, 20%)

RN

ONU-TCO OSP Subscriber

Second challenge is related to the deployment of the fiber infrastructure.Limited infrastructure resources, like available space of the fiber cable conduit is considered, the dramatic increase of fiber connection points at the central office could act as a heavy burden for the network management. So, the minimization of the fiber cable usage whileproviding higher bandwidth is required.Another issue is concerned with the customer’s environment. The majority of the Multi Dwelling Unit environment does not guarantee sufficient space. Cost efficient FTTH deployment solution is needed.


Business Challenge

To find the killer application of the FTTH network that needs big bandwidth pipe

> There are several candidates :

• IPTV

• To compete with MSO by providing.

• iCOD service, Real time broadcasting service

• TPS

• Data (Internet Access), Voice (VoIP), Broadcating (TV)

• Bundled service

• To improve the ARPU and to enforce the locking effect

> Affects the market share and enable telcos to create new service for improving the ARPU

The last challenge, I think, is to find the killer application of the FTTH network, that needs a big bandwidth pipe. IPTV, TPS and other bundled services are actually considered as the candidates to solve this challenge.This challenge is very important because it affects to keep the market share and will enable telcos to acquire new markets that would improve the ARPU.


1)The amount of NTT E/W’s investment in optical fiber has been increasing continuously even after fiber local loops were unbundled in FY 2001.

2）The transition of the coverage of feeder points shows fiber deployment of local loops has progressed steadily on a nationwide scale.

1)The amount of NTT E/W’s investment in optical fiber has been increasing continuously even after fiber local loops were unbundled in FY 2001.

2）The transition of the coverage of feeder points shows fiber deployment of local loops has progressed steadily on a nationwide scale.

【NTT’s investment in fiber local loops & total investment in equipment】

【Optising local loops】

FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006(planned)

16% 19% 27% 35% 43% 58% 72% 81% 84% 86% about

88%coverage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

96 97 98 99 00 01 02 03 04 05 06

（coverage）

（planned）

【Regional coverage as of March, 2006】・National average ・・・・・・・・・・・・・・・・・・・・・・ 86%　・All prefectural capitals (Including equivalent cities) ・・・・・・・・・・・・・・・ 95%　・Cities of 100,000 people or more ・・・・・・・・ 90%　・Other cities ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 65%

NTT local companies’ investment in fiber local loops

766.2

696.6

775.4 796.9

885.1848.3 855.0

164.0

237.0

333.0283.0

349.0 356.0 370.0

0

100

200

300

400

500

600

700

800

900

1000

FY01 FY02 FY03 FY04 FY05 FY06 FY07

Total InvestmentTotal Investment

Investment for fiber local loopInvestment for fiber local loop

planned

Unitbillion

All copyrights reserved by MIC

In this chapter, I will give some rough outlook about the fiber cable industry with 2 slides coming from Japan and Korea. In Japan, NTT East/West has continuously increased the amount of its investment in the optical fiber since 2001. Along with the increase of the investment, the usage of fiber in the feeder loop has also been increasing.


0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1,800.00

2,000.00

2006 2007 2008 2009 2010 2011

[M U

SD]

Optimistic view Conservative view

Fiber industry prospect in KoreaFiber market trend in Korea, predicted by ETRI in 2007

> The era of copper is definitely transitioning to fiber> According to KT, the deployment of fiber-based infrastructure will happen more

quickly during the next 2 years

Fiber Cable Marketpredicted by ETRI, 2007

384496 504 472 482

464

FTTH OSP investment plan by KT, 2007

This slide shows the fiber market trend in Korea, predicted by ETRI in 2007. We can observe a steadily growing market. It reflects the general fact that the era of copper is definitely transitioning to fiber. But by overlapping the FTTH OSP investment plan by KT(2007), we can see that the deployment of fiber-based infrastructure will happen more quickly during the next 2 years.I believe that once the challenges mentioned in the previous slides get overcome, then the fiber market will boom up to a huge market.


Concluding remarksBroadband network has become the main network infrastructure in APAC

> Highest fiber penetration worldwide in FTTx topology> Race for evolving into FTTH network has started

KT has started mass deployment of FTTH > Using E-PON as FTTH-R solution> Beginning from SFU and newly built MDU and extending to the existing MDU

• Hybrid-FTTH solution scheduled to be deployed in MDUMany challenges in regulation, deployment and business area

> We should overcome these challenges for mass deployment.Very bright outlook for the fiber industry

> Massive deployment of FTTH will accompany massive investments on the fiber infrastructure, especially in PON related industries

Cost effectiveness is the key that affects the speed of the market growth of the fiber industry

These are my concluding remarks.It is certain that the broadband network has become the main network infrastructure in APAC. The race for evolving into FTTH network has started.KT is actually deploying FTTH in mass volume using the PON technique such as E-PON and WDM-PON.During many trials and commercialization of FTTH, we have encountered many challenges in the regulation, deployment and business area.But in the long term, the outlook for the fiber industry is very bright regarding the market volume that is expected to happen.Also, constant efforts for cost effectiveness in the CAPEX are needed to enlarge the usage of the fiber infrastructure.Thank you very much for your attention!

Deployment and Return of Experience in Asia Pacific and Korea · 2013-01-24 · Deployment and...

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