Activation Policies for Korean Mobile Internet

1
Activation Policies for Korean Mobile Internet
2002. 11.
Lee Sang Moo Deputy Director of MIC
Saint7_at_mic.go.kr
2
Contents

• Introduction
• Status Prospect of Korean Mobile Internet
  Market
• Activation Policies for Mobile Internet
• Conclusions

3
Introduction
Definition of Mobile Internet

• Mobile Communication Internet Mobile
  Internet Service

Mobile Comm. (Mobility)
Internet (Information)
Mobile Internet

• Mobility Exchange of various Information
• Anytime, Anywhere, Anydevice, Anymedia
  Ubiquitous Internet
• Variety of Portable Intelligence ( Blue Tooth,
  IR, Wireless LAN)

4
Introduction
Features of Wireless Internet Service
Wired Internet
Wireless Internet
Network
- High-Speed Network - Variety of application -
Fixed Network
- Relatively Low-Speed Network - Limited
application - Mobile Network
- Wide screen, High-speed - Large Storage
Memory - Convenience various Input device -
PC based

• - Narrow screen, Low-speed
• - Small Storage Memory
• Inconvenience and Limited
• Input device
• - Personal Portability

Device
Feature
- Common utilization - Electric power supply
is needed
- Personalized - LBS - Fast access Simple
handling
5
Introduction
History of Korean Mobile Internet

• Korea is the first country in the world

- to commercialize CDMA technologies in 1996. -
to introduce CDMA-PCS service in 1998. - to
launch cdma2000-1x service in October 2000. - to
provide cdma2000-1x EVDO commercial service in
May 2002.
1996
1997
1998
1999
2000
2001
2002
Commercialization of CDMA-cellular Technologies
CDMA-PCS Service
cdma2000-1x Service
cdma2000-1x EVDO Service
Source MIC, ETRI Wireless Communication
Industry Research Team
6
Status Prospect
Mobile Internet Market in Korea

• Commercial Service launching in 1999
• Mobile Internet Subs. (in Sep. 2002) 29
  million, 89 of Cellular Subs.

(Sep. 2002)
32 mil.
33
89
29 mil.
67
46
13 mil.
Cellular, PCS Subs.
Mobile Internet Subs
Mobile Internet Users
Population 48 mil.
Source MIC, ETRI Wireless Communication Industry
Research Team
7
Status Prospect
Mobile Internet Market In Korea

• Mobile Internet Subs.

)

• Cellular Phone Subs.

()
Germany
Finland
Korea
Netherlands
US
Germany
Finland
Korea
Netherlands
US
Italy
France
Japan
UK
France
Italy
Japan
UK
(2002. 1/4)
Source global mobile, 3G mobile, MIC, ETRI
Wireless Communication Industry Research Team
) of Subs. of other countries is the one of
market leader company.
8
Status Prospect
Mobile Internet Market in Korea

• Mobile Internet Traffic (2002. 6)

Mobile Internet -Packet
SMS
Mobile Internet -Circuit
Circuit Traffic
Packet traffic
Source MIC, ETRI Wireless Communication
Industry Research Team
9
Status Prospect
Mobile Internet Market in Korea

• Information charge

• Top-10 Content (2002. 6)

Source MIC, ETRI Wireless Communication
Industry Research Team
10
Status Prospect
Mobile Internet Market in Korea

• Total sales of Mobile Internet

• Mobile Internet Sales 42.2billion
• - Air time Charge 31.6billion,
• - Information charge 10.5billion
• - 5 of Voice Sales)
• - Including SMS Charge, 82.5billion
• (8 of Voice Sales)
• Rate of Growth is
• Rapidly Increase
• - 2001. 3 vs 2002.3
• - Information charge
• 351 Increase
• - Communication Charge
• 159 Increase
• - Decreased voice Sales

(unit billion won)
919.4
31.6
910.2
159
12.2
10.5
351
2.3
2001.3
2002.3
)
910
919
Air Time Charge
Information Charge
Voice Sales
Source MIC, ETRI Wireless Communication Industry
Research Team
) Voice Sales Basic Charge Voice Air time
Charge
11
Status Prospect
Mobile Internet Market in Korea

• Prospect of Mobile Internet total sales

• Assumption Same monthly growth rate of 2001
• 1,315 billion won (inclusive of SMS)

Total 1,315.2
Info. Charge 218.1
(unit billion won)
146
Comm. Charge 580.3
Total 535.2
Info. Charge 48.1
Comm. Charge 224.8
SMS 516.8
SMS 262.3
Total. 2002
Total. 2001
Source MIC, ETRI Wireless Communication Industry
Research Team
12
Status Prospect
Mobile Internet Market in Korea

• Comparison of Mobile Internet sales

Share ratio of Data Sales
Share ratio of Total Sales
(2001.)
14.3.
12.3.
10.1.
8.2.
4.3.
Mobile Internet
SMS
Source 3G Mobile, 2002.2. ETRI Wireless
Communication Industry Research Team
13
Activation Policies for Mobile Internet
Principles of Policies

Supply Expansion
O Enhancing the Mobile Internet Network O Opening
the Mobile Internet Network O Technology
development Standardization O Improvement of
Legal/ Educational bases O Settlement of
Authentication/Payment system
Mobile Internet Activation

Demand Promotion
O Encouraging Content Industry O Modification of
Mobile Internet statistic system O Propulsion of
M-Government O Globalization of Mobile Internet
Service
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Activation Policies for Mobile Internet
Enhancing the Mobile Internet Network

• Settlement of High-speed Mobile Internet
  Infrastructure
• IMT-2000 on 2G Spectrum
• cdma2000 1x(144Kbps), cdma EVDO(2.4Mbps)
• - Multi-Media variable application
• Reduction of Cellular Phone Charges
• Investment of Network Enhancement
• Mobile Internet Quality Monitoring
• Encouraging Quality improvement

15
Activation Policies for Mobile Internet
Enhancing the Mobile Internet Network

• CDMA 2000 1x Services

(2002. 8)
16
Activation Policies for Mobile Internet
Opening Mobile Internet Network

• Open Mobile Network to other carriers, CP, ISPs

• For Guaranteeing Faire competition
• - Improve of static Menu System,
• - Open the procedures of CP Registration
  Examination
• - Specification of prohibitive action

• For opening Mobile Internet Network,
• IWF open Revision of Interconnection Rules
  Adhibition Contract
• G/W open Making for using G/W Billing system

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Activation Policies for Mobile Internet
Type Of Opening Mobile Internet Network
?
C
P
Portal
CP
Mobile Network Operator
Internet
Formal Sites
G/W
CP
CP
Mobile Internet Network
CP
G/W
Portal
CP
IWF
?
Access equipment
Informal Sites
CP
CP
Portal

• ? Formal CP of carriers portal
• ? Informal CP by improvement static
• ? Portals using carriers G/W
• ? MISPs using carriers IWF
• ? portals using MISPs G/W
• ? IWF(Inter-Working Function),G/W(Gateway),
  MISP(Mobile Internet Service Provider)

18
Activation Policies for Mobile Internet
Technology Development Standardization

• Supporting the Private Areas with Little Demands
  on Early Market
• and Difficulties of Technology Development
• Supporting New Ideas of Private Areas by Joint
  Research
• Research Development Projects of Info. Comm.
• - Core Tech. Development and Standardization
• Mobile Internet Standardization Forum
• - Standardize of Platform, LBS, Keypad etc.
• Investment on Technology Development
• - LAN, PDA, LBS, Security, Authentication, etc.
  including

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Activation Policies for Mobile Internet
Improvement of Legal/Educational Bases

• Improvement of Laws/Systems
• Revision of Current Laws
• - Supply and Logistics, Electronic
  Signatures
• Establishment New Laws
• - Protection and Usage of Location Information
• System Improvement by New Service Launching
  (cdma 1x, EVDO)
• - Reduction of Mobile Internet Charges ( maximum
  80 )
• Supporting Education Projects about M-Commerce
• - Training of Mobile Internet Human Resources
• ( In 2001 280 persons, In 2002 more than
  600 persons )

20
Activation Policies for Mobile Internet
Authentication and Payment System

• Establishing Safety Transaction System on Mobile
  Internet
• Technology Development Standardize
• - Mobile PKI, Security on Smart card, 3G
  Cryptograph System
• Standardization of Wireless PKI
• - Completed in Nov. 2001, Now under discussion
  with Carriers
• Payment System on E-commerce/ M-Commerce
• - Electronic Payment Forum
• Standardization of Payment System Using HandSets
  (InfraRed)
• Under Discussion with Carriers and Developer,
  etc.

21
Activation Policies for Mobile Internet
Encouraging Content Industry

• Charge of Content Billing System improvement
• Open Billing System of Carriers
• Bringing Up Billing Agency
• Level Distribution ratio of charges
• - Encouraging 91 distribution ratio
• Common Use of User information on Handset
  Platform
• Separating from Carriers Customer Information,
  Including G/W
• Usage Contracts
• Bringing Up Contents Aggregator Alternative
  to Master CP system

22
Activation Policies for Mobile Internet
Mobile Government - Concepts

• Next Generation Public Information Model
• Sharing the Vision with e-Government
• Developing Specialized Service and Bringing Up
  New Enterprises

M-Govern.
Mobile Internet
Next Generation Electronic Government
Convenience
Timely
Personally
Multi-Media
23
Globalization of Mobile Internet Services
Activation Policies for Mobile Internet

• Building Worldwide CDMA belt
• ASIAN CDMA BELT will grow to alias
• Next Step Worldwide CDMA BELT including US,
  South America and other nations
• Constructing CDMA Test-bed
• Constructing CDMA Test-bed for the development of
  new CDMA application services
• Utilization of the Highly advanced Mobile
  Infrastructure in Korea
• Any operators in the World can take Field Test
  for new service and new equipment.

24
Conclusions
Conclusions

• Promising Mobile Internet

• Until 2005, Mobile Internet Market will be
  Bloomed
• Paradigm on Information communication will be
  changed

Now Under Constructions of Systems on Pricing,
Laws, Technology, etc. by Government Everyone
Should Prepare for New Era

• Importance of New Biz Model

• Consideration of Technology development and
  Market
• Satisfaction of Customer Demand
• Forward investment, First mover advantage

Open Chance for Participation
25
Thanks for your attention !
Lee Sang Moo saint7_at_mic.go.kr