VDSL,

1
VDSL, Successful Deployment in Korea
TELSON Information Communications Co., Ltd.
2
Broadband Service Growth in Korea
67
64
51
(thousand)
Number of subscribers
Penetration rate
11,104
10,405
28
7,806
3
4,017
419
2001
2000
2003.06
1999
2002
Source Arthur D. Little, 2003
3
Broadband Service in Korea
2001
2003 2005

• Apartment
• Mansion
• Apartment
• Mansion
• New Apartment
• New Apartment
• Mansion

• xDSL
• ADSL
• VDSL
• Cable
• LAN
• FTTH

Market Share
30
30
30
10
Cyber Apart Solution
4
Broadband Subscribers in Korea
Satellite, B-WLL
LAN
Other
Thrunet
KT
xDSL
Cable
Hanaro
end of Jun,2003
Source KRNIC
5
Time Spent on the web
average hours per month per user
Source NetValue
affordable broadband triggers a positive
reinforcement cycle broadband delivers
multimedia traffic faster, greater reliance on
the Internet for information and entertainment
content.
6
Internet Applications in Korea

• Services

• Traffics

e-Mail
25
Web
72
News/Stock
20
FTP,Telnet
6
Game
14
Streaming Data
5
Chatting
P2P
12
4
10
Education
Others
13
19
Others

• Internet Café more than 20K, nationwide
• Cyber Stock Trading 60 of total stock trading
  amount
• Internet Broadcasting more than 800 companies
• Mobile Internet multi-million users

Wireless LAN Subscriber KT- 260K / Hanaro 16K
Source KRNIC
7
xDSL Deployment Migration
8
VDSL Subscriber Forecast in Korea
8.5 Million (100Mbps)
Unit 000 (thousand)
4.8 Million (50Mbps)
1.8 Million (20Mbps)
0.15 Million (13Mbps)
9
VDSL Vendors in Korea
Market Share (2003.June)
Total VDSL Shipment (ports)
Others
1.2 Million
8
48
44
Milinet
Telson IC
0.8 Million
2002
2003
KT KT
Hanaro
Dacom Onse
Others Dasan Networks
Gigalink Gisan
10
Key Drivers of VDSL growth

• Similar price as ADSL but higher speed
• Strategic market initiative by KT
• Relatively cheap cost. (us25 per month)
• The faster, the better
• Popularity of online contents (stock trading
  games)
• Competition of service quality between Telcos

11
VDSL standard issue in Korea

• Dual Line code (QAM / DMT)
• Biggest Market Share by Infineons QAM
  chipset
• - Early advanced to Korean Market
• - Its competitiveness in Stability,
  Performance and Price
• issues is proven from commercial service
• Regardless of QAM or DMT, higher performance and
  
• lower price product is preferred by Service
  Provider
• KT adapted Dual Line code