Digital Convergence Business in Korea 2010

Copyright © 2010 VEYOND PARTNERS

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —electronic, mechanical, photocopying, recording, or otherwise — without the permission of VEYOND PARTNERS

This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

Digital Convergence in Korea

Yunho Chung (Veyond Partners)

www.veyond.comwww.koreaninsight.com

déjà vuDéjà vu is the feeling that you have already experienced the things that are

happening to you now.

1© 2010Veyond Partners. Strictly confidential

Providing the Insights, Connecting the Industrywww.veyond.com

Table of Contents

- About Me and My Company

- TMT and Korea

- Broadband and Business Opportunity

- Mobile and Business Opportunity

- My Advice


Providing the Insights, Connecting the Industrywww.veyond.com2

Yunho Chung is Managing Partner of VEYOND PARTNERS which he founded in 2006. VEYOND PARTNERS’ main business model is to provide valuable research/insights/trends, professional knowledge services of Korean TMT (Telecom, Media & Technology) industry to the World.

He started VEYOND PARTNERS to response to the Global TMT community’s strong need to know more on Korean TMT industry as he found that there were insufficient services available to serve that needs. VEYOND PARTNERS is consisted with seasoned professionals having extensive knowledge and experiences on TMT Sector gained from global companies such as Accenture, Arthur D Little, AT Kearney, Hyundai and KTF.

Prior to VEYOND PARTNERS, Yunho worked as a Management Consultant in Accenture focusing on Communication & High Tech Industry and during his time in Accenture he has done numerous projects serving clients in Wireless, Fixed, Online Company and more. He holds Master Degree in Management from LSE (London School of Economics).

Recently He appeared in several conferences/seminar/media including iMobicon, BCWW, Mobile Entertainment Market, Wireless World Forum, Radio Television Hong Kong, Norwegian Institute of Journalism, SK Telecom delivering the speech on mobile related topics such as Mobile TV, UGC, SNS, WiBro, Web 2.0 and Blogging.

Yunho Chung, Managing Partner of Veyond Partners



Veyond Partners



Veyond Partners WEB & BLOG

www.veyond.com www.koreaninsight.com



Table of Contents


- TMT and Korea



- My Advice



What is TMT?



How Competitive is Korean TMT Sector?

Korean TMT



Internet – Naver, SK Communications, Daum

Broadband – KT, SK BB, LG Telecom

Wireless – SK Telecom, KT, LG Telecom

Devices and Equipments – Samsung Electronics , LG Electronics

Korea’s Major TMT Players



The future is South Korea

Tech firms try out latest in world's

most wired societyMarch 13, 2005"It's still much more popular in Korea," said

Brooke Richardson, MSN lead product

manager. "It's not only that the U.S. is not so

advanced in broadband. Mobile phone usage

is not so high here either. MSN is bridging the

two worlds of PCs and mobile phones, and

Korea has that connectivity. We have

incubated some of our stuff in Korea, like

mobile instant messaging and mobile e-mail.

We have also launched services there that the

rest of the world was not ready for."

Lessons from South Korea:When Broadband Meets the Mass Market

Indeed, some operators are struggling to generate net

revenue growth from the switch to broadband, and

almost all countries still have a long way to go before

broadband becomes a mass-market phenomenon.

The lone exception is South Korea.

Korea’s experience has important implications for

other countries. We will focus here on three critical

questions: What has caused the rapid penetration in

Korea? How has broadband changed consumer

behavior? And which players are likely to make

money from broadband?

Broadband's future: Lessons from South KoreaFor years, the telecom industry has scrutinized developments

in South Korea, where a combination of public support and strong demand has created the world's most ubiquitous broadband network. Now that the market is saturated, there are new lessons to be learned from the South Korean experience. South Korea's broadband providers can no longer rely on higher subscriptions to fuel profitability. Instead, they must look for new growth engines, such as home networking and faster broadband, and develop skills beyond building and running a vast network. Their triumphs and failures will continue to provide lessons for the industry in other countries.

USTR Foreign Trade Barriers – Korea

2004STANDARDS, TESTING, LABELING AND

CERTIFICATIONThe U.S. government is seriously concerned

that a pattern of exclusionary practices is

starting to emerge

in the setting of standards for new

technologies in the field of next generation

mobile communications.

Telecommunication

As one of the world's most advanced

telecommunications markets, Korea is actively

commercializing a

variety of cutting-edge wireless technologies,

such as IMT 2000, cdma2000 1ev-do, and W-

CDMA, as well as introducing terrestrial and

satellite-based digital TV broadcasting.

South Korea leads the wayJuly 28, 2004"I didn't realize how much the Web had to offer until I got to Korea," said Renck, a programmer by training. "I couldn't appreciate it until I got here and saw what true high-speed access does to change your perception of how fast information truly moves.“…Cumulative revenue from online content has similarly exploded. Companies that provide online games and services like the Cyworld blogging site have penetrated all segments of society and become a national obsession. Corporate executives chronicle their daily lives through blogs.

Korea, the Digital Laboratory of the Globe

CEO of Google, Eric Schmidt



http://www.cnn.com/2010/TECH/02/24/mobile.tv/index.html



Some views from global audiences

http://kr.youtube.com/watch?v=bTfZemMDk7A



déjà vuDéjà vu is the feeling that you have

already experienced the things that arehappening to you now.



2006 will be a landmark year in the development of mobile TV, with the first commercial broadcast overlay networks outside Korea set to deliver live TV to mobile devices.



déjà vu ?



Table of Contents


- TMT and Korea



- My Advice



Competitiveness of Korea’s Broadband

According to a research by Oxford University and Cisco Systems in 2009…

* BQS=Broadband Quality Score



Competitiveness of Korea’s Broadband

Broadband Penetration(% of households)

BroadbandQuality

Score 2009

BroadbandLeadership

20091 South Korea 97% 66 1392 Japan 64% 64 1153 Hong Kong 99% 33 1114 Sweden 69% 57 1105 Switzerland 90% 40 1086 Netherlands 83% 46 1087 Singapore 96% 32 1078 Luxembourg 99% 27 1079 Denmark 82% 45 106

10 Norway 84% 38 102



Business Opportunity Overview

• Content providers• Online games

– Massively Multi-player Online Role Play Games (MMORPG)– Strong competition has driven innovations in both products and

business models. – The world leader in this new area

• Some companies now exporting their products, skills and expertise overseas

• Dominating Asian markets, trying to enter European and North American markets




• Online games http://fifaonline.pmang.com/fifaonline_home.nwz?ssn=321




• Mobile Internet

– Broadband: a firm basis for mobile Internet– WiBro (Mobile WiMax)

– DMB (digital multimedia broadcasting): mobile TV

• Convergence– IPTV

• Jumped in standards wars for international standards in ICT– WiBro: approved as the sixth standard for 3G mobile communication in

October 2007 (ITU)

• Foundation or a springboard for future infrastructure development



Business Opportunity Cases

Broadband

VIDEO

TELECOM

Broadcasting

Media

NEWS

Education E-Government

Game




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

IPTV




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

Internet TV




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

MMORPG




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

PMP (Personal Media Player)




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

VoIP Phone




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

e-democracy




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game




Video

Telecom

Broadcasting

Media

News

Education

E-Government

Game

Online-Learning



Table of Contents


- TMT and Korea



- My Advice



Korea’s mobile business Overview

Telemetics

Payment

Game

Music

Gifting

Internet Banking

TV



Korea’s mobile business Cases - Gifting



Korea’s mobile business Cases – Banking



Korea’s mobile business Cases – Mobile TV

Satellite DMB

Terrestrial DMB

http://kr.youtube.com/watch?v=kY31o4PINoo



Korea’s mobile business Cases – Music

http://www.youtube.com/watch?v=0hZ9baNbxsY



Korea’s mobile business Cases – Mobile Payment

Pay by mobile for music, game and other digital goods!



Korea’s mobile business Cases – Mobile Payment

Silicon Valley is following the exact the same path as Korea!

Based in San Francisco with offices in Europe, Asia and Latin America, BOKU reaches over 1.6 billion consumers worldwide, and is funded by leading Silicon Valley entrepreneurs and venture capitalists Benchmark Capital, Index Ventures and KhoslaVentures.



Korea’s mobile business Cases – Mobile Internet

WiBro as a global standard

International Telecommunication Union Approves WiMAX Technology as New IMT-2000 Standard

Portland October 19, 2007 The WiMAX Forum is pleased to recognize the decision of the RadiocommunicationSector of the International Telecommunication Union (ITU-R) to include WiMAX technology in the IMT-2000 set of standards. This decision is of global importance to operators who look to ITU to endorse technologies before they invest in new infrastructure. The decision to approve the WiMAX Forum's version of IEEE Standard 802.16 as an IMT-2000 technology significantly escalates opportunities for global deployment, especially within the 2.5-2.69 GHz band, to deliver Mobile Internet to satisfy both rural and urban market demand.



Korea’s mobile business Cases – Mobile Internet

WiBro’s going global

Signed Contract (2008.03)Omni VisionVenezuela

Commercialised (2008.03)QmaxSingaporePosData

Signed Contract (2008.02)AltechSouth Africa

Test Service (2008.09)ScartelRussia

Signed Contract (2008.04)UQ CommunicationsJapan

Signed Contract (2008.09)LRTCLithuania

Commercialised (2008.10)Sprint NextelU.S.Samsung Electronics

Signed Contract (2009.09)N/ARwanda

Commercialised (2008.09)Super iMaxUzbekistanKT

ProgressPartnerCountryCompany



Table of Contents


- TMT and Korea



- My Advice



[email protected]

Digital Convergence Business in Korea 2010

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