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SK telecom Introduction and Wi MAX Service. June 15, 2010. Table of Contents. I. II. III. SK Group overview. SKT introduction. SKT WiMAX service. SK Group overview.

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slide1

SK telecom Introduction and

  • WiMAX Service

June 15, 2010

slide2

Table of Contents

I

II

III

SK Group overview

SKT introduction

SKT WiMAX service

slide4

SK Group overview

SK is the 3rd largest conglomerate in Korea with combined revenue of USD 79 billion in 2009. Its business covers Information Technology and Telecommunications, Energy and chemicals, Trading and Service industries.

●Group Financials

Energy &

Chemicals

51.4%

Telecommunications

17.7%

Trading &

Services

30.8%

Unit : Bn. $

●Group companies : 82

slide6

Wireless market overview of Korea

Wireless market penetration rate has reached 98% and WCDMA subscriber base has also been increasing rapidly. Wireless market has experienced steady growth along with the increase in wireless data market.

Wireless market trend

Wireless market ‘s total revenue and data revenue

Units : Million, %

Units : Korean Won Bn.(1$=1,200 Won)

18.5 Bn.$

3.5 Bn.$

Note : (1) SMS tariff cut

Source : Company data

slide7

Competitive landscape

SKT continues to demonstrate undisputed market leadership

Market share by subscribers

Service revenue

Units : 000s, %

Units : Korean Won Bn.(1$=1,200 Won)

10.1 Bn $

9.7 Bn $

Note : (1) KTF’s revenue before the KT-KTF merger in June ‘09

Source : Company data, as of December 31, 2009

slide8

Multi-network architecture

MGW

HLR

Packet Core Network

RNC

MSC

Mainly SKT has two networks; Circuit core network for voice and Packet core network for data service, including S-DMB service. Various Access network is optimized to provide various multi-media services and satisfy user’s needs for convergence service.

Message(SMS)

IS-95A/B

CDMA2000 1X 1x EV-DO

Video Telephony

Mobile TV

(Nate Air)

GPS

MSC Server

BSC/PCF

Circuit Core Network

  • WCDMA
  • HSDPA
  • HSUPA
  • HSPA+(Ready)

S-DMB

SCP

Roaming

SGSN

Ku-Band

Gap Filler

S-Band

WiMAX

ACR

RAS

S-DMB Broadcast

Center

HLR

AC

Billing

VAS

NMS

Packet NetworkGateway

RAS

Home Office

Cluster

Home Theater

Cluster

GGSN

Internet

Portal

WPAN

Remote

Control

PDSN

Packet

Interface

Home

Network

Contents

Provider

Nate

Platform

Multimedia Messaging

(MMC)

LBS

Family PC

Cluster

Packet

Video Telephony

Video Cluster

Mobile

IM

MSC (Mobile Switching Center), RNC(Radio N/W Controller), SGSN(Serving GPRS Supporting Node), BSC (Base Station Controller), PCF (Packet Control Function), PDSN (Packet Data Core N/W), GGSN (Gateway GPRS Supporting Node), LBS (Location-based Service), MGW (Media Gate Way), SCP (Service Control Point), TIIS (Telephone Information Integration System), WPAN (Wireless Personal Access Network: Bluetooth/RFID etc.)

slide9

Convergence services

The World’s FirstSegmentation Culture Marketing (Telecom Field)

CDMA2000 1x

HSUPA

HSDPA

WiMAX

EVDO

SKT has been leading the market by developing new mobile technologies and rolling out innovative mobile multimedia services.

Total Mobile Brand

Ubiquitous Community Service

Movie Portal

Telematics

Mobile Financing

3G Multimedia Portal

Number Portability

SatelliteDMB

World First Value-addedRing-Back Tone

3 D Game Portal

Wired & Wireless Portal

WiMAXServicel

Entry of 3 New Service Providers

OperatingIncome

Music Portal

NetworkEvolution

CDMA

WCDMA

’06

’95

’96

’97

’98

’99

’00

’01

’02

’03

’04

’05

’10

slide10

Diverse global business experience

With the technology, innovative services and advanced operational skills, SKT has cooperated with many mobile operators around the world

  • Platform Licensing
    • Taiwan (APBW)
    • Thailand (TA Orange)
    • Singapore (SingTel, M1)
    • Indonesia (TelkomSel)
    • Philippine (SMART)
    • I-Kids (Mobiles2go, 7 countries)
  • Network Consulting
    • India (Reliance Communications)
    • China (China Telecom & Unicom)
    • Australia (Telstra)
    • Japan (KDDI)
    • Brazil (TeleSP)
    • Thailand (BFKT)
    • Taiwan (APBW)
  • Managed Service
    • Bahrain (Kulacom)
    • Jordan

England

German

Mongolia

  • MVNO
    • USA (Helio)

China

USA

Jordan

Bahrain

Japan

Spain

India

Taiwan

Vietnam

Philippines

  • Portal
    • UNISK and Viatech in China - UNISK: JV with China Unicom- Viatech: Community Portal

Thailand

Singapore

Brazil

Indonesia

Australia

slide11

Diverse global business experience

SKT has diverse global consulting experience based on know-how accumulated across all areas through our experience in technology evolution

  • 3G License proposal consulting
  • Vietnam
  • 3G & WiMAX evolution strategy consulting
  • India

B4G

Broadband Multimedia Service

1995

2000

2005

2010

Mobility

HSDPA

HSUPA

HSPA+

IS-95A/B

CDMA1x

EV-DO

WCDMA

LTE

Satellite

DMB

WiMAX

Wireless LAN

(2.4GHz)

Data Rate

  • WiMAX network managed service
  • Jordan (3.5GHz WiMAX Service)
  • - Network Design, Planning, Deployment
  • Bahrain (5.8GHz WiMAX/WiFi Service )
  • - NGN Evolution Strategy, Deployment
  • 1X EV-DO Rev.A optimization consulting
  • China
  • - Access & Core Network optimization
slide12

Growth strategy – B2C business

Quantum jump in wireless data market

Achieve a quantum jump in the wireless data market by leading the market’s transformation into a “open” data business model

Target

Service

(Number of Subscriber)

Data flat rate price plan

T-Store

Contents

  • Contents : 40,000
  • [As of April,2009]
slide13

Growth strategy – B2C business

Quantum jump in wireless data market

Lead the expansion of smartphone user base who generate high level of data ARPU by strengthening smartphone line-up and reinforcing network efficiency

Device plans in 2010

  • Strengthen smartphone line-up by introducing devices embedded with various operating systems, i.e. Android, Windows mobile, Symbian etc.
  • - 15 smartphones out of 50 new models
  • - 12 Android-embedded handsets
  • Embed Wi-Fi function on 25 handsets
  • Launch Non-DRM MP3 playable handsets

Target

Smartphone user

(Number of Subscriber)

Network plans in 2010

  • Expand 3G capacity through WCDMA
  • reinforcement and HSPA+ commercialization
  • Establish Wi-Fi zones by utilizing broadband
  • and WiMAX networks
  • Construct open Wi-Fi zones in public areas
  • and partner companies
  • The data ARPU of the recent popular smartphone users was approximately twice as high as that of feature phone users
slide14

Growth strategy – B2B business

IPE concept

Promote a business model in which SKT supports the enhancement of other industries’ productivity, based on “Smart & Green” information and communication technology(ICT)

Business Model

  • SK telecom
  • Pursue ‘win-win’ strategies by collaborating with major players in other industries
  • Support growth of not only the corporations but also the industry/public field as a whole, and share the increased
  • benefits together
slide15

Growth strategy – B2B business

IPE strategy

Implement IPE business in both domestic and overseas B2B markets by leveraging SKT’s ICT assets

Introduce IPE service to the global market by utilizing SK group’s worldwide network

SKT’s cutting-edge ICT

Vision

(SKT’s B2B revenue)

16.7 Bn.$

0.83 Bn.$

Become Leading global ICT company with B2B revenue of $ 16.7 Bn.

Target Market

slide17

Data traffic trend and Solutions

Data traffic of major global carriers is increasing exponentially due to a rise in smartphone sales and flat-rate plan subscribers, and data traffic of those carriers has already surpassed voice traffic.

Solution for network capacity

Global Telco data traffic

North Europe

5 times increase

in 2008

North America

18 times increase

between ’07~’09

Japan

4 times increase

between ’06~’08

Data Traffic

Vodafone Europe

3 times increase

over the past 2 years

Orange Europe

5.5 times increase

in ’08

Web Browsing & Video Contents ↑

Spread of

3G

Smart Phone

Data Flat

Rate Charge

slide18

SKT Mobile WiMAX business

  • 802.16/D3
  • Wave 1 System Profile
  • 802.16/D12
  • 802.16/Cor2
  • 802.16/Cor2
  • Wave 2 System Profile
  • 6 Hot Zones in Seoul
  • (Wave 1)
  • 17 Hot Zones in Seoul Seoul
  • 5 Metro areas(Wave 1) (Wave 2/Wave 1)

SKT has been continuously upgrading its systems following the evolution of WiBro technologies,

and expanded service coverage from 6 hot zone areas to whole Seoul areas and major cities.

Commercialization

WiMAX Coverage

Seoul

Seoul

Busan

Jeju

slide19

Network portfolio plan

SKT has a plan to hand over an optimal and seamless technology portfolio for the efficient data service delivery as a multi-network operator.

Multi Access Technologies

Optimal Network Portfolio

Improve Data Rate & Mobility

High-speed

Data Demand

Mobility

HSDPA

HSUPA

HSPA+

95A/B1X

EV-DO

WCDMA

WiMAX

Main Cities

WCDMA

Nationwide Coverage

WiMAX

2G/

1X/DO

Nationwide Coverage

Data Rate

Combination of networks

Seamless handover(2G↔3G)

Optimal Network Portfolio

High-Speed data service

slide21

WiMAX solution – tripple mode repeater

Reverse Frequency

824 ~ 849MHz(2G)

1940 ~ 1960MHz(3G)

2300 ~ 2327MHz(WiMAX)

Forward Frequency

869 ~ 894MHz(2G)

2130 ~ 2150MHz(3G)

2300 ~ 2327MHz(WiMAX)

SKT developed the Trple mode repeater which can repeat CDMA, WCDMA and WiMAX signals simula-taneously to remote areas, which expands the coverage and provides quality of service to shadow areas.

Triple mode Repeater

Architecture

  • Integrated Optic Repeater
  • Supporting CDMA, WCDMA and
  • WiMAX single platform

CDMA

BTS

WCDMA

  • Cost-Effective Deployment

WiMAX

10MHz,Tsync

  • Trpple mode in one repeater
  • Easy installation
  • Flexible PAU Change
  • (CDMA, WCDMA, WiMAX)

Remote3

Remote2

Remote1

  • Increased Reliability

Donor Capacity

  • Branch: Max 3ea
  • FA:2G(20FA),3G(4FA),WiMAX(3FA)
  • Maximum Remote: 3 site

Remote Capacity

  • FA:2G(20FA),3G(4FA),WiMAX(3FA)
  • Sector: 1 Sector
  • Reverse Diversity Support
  • Divided remote system and PAU
  • Minimize system failure with quick
  • recovery
slide22

WiMAX solution - Bridge

Creation of convergence Internet service through connection of a service provider’s

Mobile WiMAX infrastructure customer’s Wi-Fi

Diagram

  • Internet service available anytime and anywhere by extending the existing Wi-Fi’s
  • limited coverage
  • with Mobile WiMAX network
  • SKT WiMAX Bridge is a terminal with built-in Wi-Fi and WiBro
  • Continuous operation for 4 hours and complete charge in 2.5hours
  • Mobile device : laptop, netbook, smarphone, nintendo, PMP, etc.
slide23

WiMAX systems for fast data service

  • Network establishment optimal for data service at a minimum cost
  • Network organization by coordinating various devices depending on system
  • installation environment and target capacity

WiMAX Repeater

WiMAX RAS

WiMAX Bridge

  • Macro base station-based WiMAX service produces coverage holes for signal dilution from high
  • transmission frequency
  • • WiMAX systems – IBCell, ODCell, Femtocell, Repeater – can resolve the problems above and meet
  • economic efficiency.
slide24

Overview

WiMAX global business - Jordan

To implement WiMAX network based on the IEEE 802.16e of Kulacom Jordan, SKT performed NW

design, vendor evaluation, progress management, optimization and system inspection etc.

Project overview

Project : KJ WiMAX Network Deployment

Terms

● Contract : May 21, 2008

● Project performance : June 1st,2008 ~ Jan 31st, 2009

Coverage : Amman Coverage area, which represents

30% of Amman geographic area

Outline history of project

2008

Jun. 04

Project kickoff meeting(KJ/SKT)

RF design

Jul. 08

FAT(Redline, Purewave,SK telesys)

Aug. 06

Final WiMAX vendor evaluation

Aug. 12

WiMAXdemonstration

Dec. 17

2009

Jan. 25

43 sites of Phase I were on-air

slide25

Opening ceremony

WiMAX global business - Jordan

Bassem Al Rousan, Jordan's Minister of Information and Communications and Chairman of Korea

Communications Commission celebrated the launching of Kulacom Jordan WiMAX service

WiMAX demonstration – Video call

Kulacom Jordan CEO

Opening ceremony in Jordan

Switching center

slide26

Coverage & Performance

WiMAX global business - Jordan

In May 2009, Kulacom Jordan launched commercial services in Amman

In 2010, expand the service coverage to neighboring cities including rural areas.

Performance

Service coverage in Amman

Items

Result

Maximum sector throughput with

SM MIMO

@ 5Mhz BW

DL : 13.0 Mbps (Lab)

UL : 4.3 Mbps

Maximum data rate

of users

@ 5Mhz BW

DL : 8.0 Mbps

UL : 2.2 Mbps

MIMO QoS coverage

- DL : 512K

- UL : 128K

RSSI: -82,-82 dBm (DL)

RSSI: -83,-81 dBm (UL)

slide27

3G/WiMAX - India

SKT suggested feasible strategy for 3G and WiMAX. And also, reports suggested various cost saving solutions in lnfra-structure sharing, repeater etc. for RCOM’s efficient NW operation

Work packages

Project overview

  • Project : Reliance Communications 3G/WiMAX strategy
  • Terms
  • - Contract : Oct.21,’09
  • - Project period : Oct. 26th,’09 ~ Feb. 5th,’10

Phase 1

3G Services and Call Model

1

3G N/W migration

7

WiMAXN/W solution

8

Background

Backhaul N/W

Phase 2

2

  • Validate RCOM’s NW plan and architecture for 3G & WiMAX
  • Based on the rich experience of SKT on multi-technology &
  • multi-vendor scenario suggest various recommendations on …

- CapEx/OpEx Optimization

- Quality & Performance Management

- N/W Efficiency

- Quality of Experience Management

- Customer Care Management

- Infra-sharing with legacy NW

- Operational Principles Improvement

PS Core N/W

5

FemtoCell Deployment

6

VoIP on UMTS/WiMAX

10

Infra Sharing Strategy

11

IP/MPLS Backbone N/W

Phase 3

3

CS Core N/W

4

Repeater Solutions

9

slide28

3G/WiMAX - India

SKT has contributed in improving operation efficiency of Reliance's multi-network including

2G CDMA/GSM 3G and WiMAX networks through providing various solutions before deploying

3G/WiMAX networks based on SKT's long network operation experience.

slide29

Thank you very much

Liyong.lee@sktelecom.com

+82-10-3869-3344