Docstoc

Algerie-Status and Perspective of VoIP in korea-Choon Kyu Kim

Document Sample
Algerie-Status and Perspective of VoIP in korea-Choon Kyu Kim Powered By Docstoc
					                          Status and Perspective of
                                IP Telephony
                                  in Korea


                                         2007. 3. 19~20

                                        Choon Kyu Kim
                                       (cgkim@kt.co.kr)
                                            BcN, KT


Telephony over IP, Algeria, 19 - 20 March 2007.   1
                                              Contents
      Background

      VoIP market – Worldwide/Japan

      PSTN/VoIP Market in Korea

      VoIP impact on PSTN/Broadband in KT

      IP-PBX in SME

      Regulation

      The incumbent’s challenges



Telephony over IP, Algeria, 19 - 20 March 2007.   2
                                          Background

      “Dialpad” Service
       Dialpad
            by Serome Technology Co. (end of 1990s)
            Free IP Telephony Service
            PC-to-PC, PC-to-Phone
      Since “Dialpad” service, IP Telephony market has
      grown as a differentiated niche market
      Lots of IP Telephony Service Providers(ITSPs)
      emerged
      ITSPs don’t make Profit enough
      Teleco Networks evolve to IP-based Networks rapidly
      in Korea due to BcN(Broadband Convergence
      Network) Project



Telephony over IP, Algeria, 19 - 20 March 2007.   3
                                 Background (Cont.)
      Slow Deployment of IP Telephony Service in Korea
            Unstable Voice Quality
            No E.164 Number for receiving Call from PTSN and Mobile
               Unauthorized use of other E.164 Numbers such as 030, 050,
               and Private Numbers

      Number Allocation for receiving Call is Fundamental
      Requirement to promote IP Telephony Service
            Identification Number 050 for IP Telephony in Japan
            Regulation is required to allocate E.164 Number to IP
            Telephony Service




Telephony over IP, Algeria, 19 - 20 March 2007.   4
                                  Background (Cont.)

                                        Internet                   PC to PC VoIP
Phase 1                                                           − Free
                                                                  − Advertising
( ~ 2002 )                                                         Toll Bypassing
                          PSTN        IP Network   PSTN
                                                                  − Cheap international call



                        GW/GK                          GW/GK       Phone to Phone VoIP
                                      IP Network                  − New category of IP telephony
Phase 2                                                           − Gateway necessary
                        GW/GK
 ( 2002                               IP Network   PSTN
~ 2010 )                                               GW/GK
                                                                   VoIP + PSTN
                          PSTN        IP Network                  − By network connection
                                                                  − Assign VoIP number




                                                                   MoIP (Multimedia over IP)
Phase 3
                                      IP Network                  − Mainly multimedia traffic
( 2010 ~ )                                                        − BcN based ALL IP Network
                                                                  − video related revenue

                       IP Phone                        IP Phone


 Telephony over IP, Algeria, 19 - 20 March 2007.   5
         Communications global value migration


           100%

                                                                        Wireless
           80%
Share of
 overall 60%
                                                                         Wireline
   value                                                                 Traditional Carriers
  (in %)
           40%                                                          Wireline
                                                                        Non-Traditional Carriers

           20%                                                          ISPs

                                                                        Cable / Satellite

            0%
             1990               1995               2000       2005   * Source: Mercer Value Migration Database




    Exponential value in-flow in Wireless, Cable/Satellite and ISP industry
    More 50% value out-flow in Wireline-traditional Carriers during recent 5 years

 Telephony over IP, Algeria, 19 - 20 March 2007.          6
                           VoIP market - Worldwide

          VoIP subscribers in Korea : 4.4% of Broadband subscribers
          VoIP subscribers in Korea : 4.4% of Broadband subscribers
          Market size : 1.1% of PSTN (2005)
          Market size : 1.1% of PSTN (2005)
          Worldwide VoIP forecast : annual 40 % growth until 2008
          Worldwide VoIP forecast : annual 40 % growth until 2008


 Worldwide Broadband/VoIP market                                      Worldwide VoIP Market forecast

   BB Subscribers                  VoIP subscribers                                                              VoIP
3,000 2,000 1,000     10,000    200     400    600
                                                                                                    250M     revinue(m$)
                                                                                                  $60,800M
                                                                                                               100,000
  3,170                  USA          110(3.5%)                                  BB
                                                                             subscribers
                                                                                                                75,000
            1,763         JAP          530(30.1%)
                                                                    130M
                1,192    KOR      52(4.4%)                        $16,000M                                      50,000

               570        FR    22(3.9%)                                                                        25,000
                                                                                             VoIP
                510       UK    5(1.0%)                                                    Revenues

                450      GER 11(2.4%)                              2004      2005   2006   2007    2008

                                ( ITFACTS, Bitkom (2004,4Q)                                               ( IDC 2004)


Telephony over IP, Algeria, 19 - 20 March 2007.               7
                               VoIP market - Japan
              Active VoIP Market
              Active VoIP Market
                 2004 : sales $1.7 billion (7% of overall PSTN sales), subscribers 5.3 M
                 2004 : sales $1.7 billion (7% of overall PSTN sales), subscribers 5.3 M
                 2007 : sales $7.2 billion (30% of overall PSTN sales), subscribers 23 M
                 2007 : sales $7.2 billion (30% of overall PSTN sales), subscribers 23 M
                    (IDC Japan, 2004)
                    (IDC Japan, 2004)
              Supporting Factors
              Supporting Factors
                 Market : VoIP bundling with Broadband
                 Market : VoIP bundling with Broadband
                 Rate : Cheaper VoIP rate without city limit
                 Rate : Cheaper VoIP rate without city limit
                 Policy : Early decision of the game of the rule
                 Policy : Early decision of the game of the rule
                         2002 : VoIP introduction/assigned the receiving number
                          2002 : VoIP introduction/assigned the receiving number
                         2003 : VoIP-PSTN interconnection and rate
                          2003 : VoIP-PSTN interconnection and rate

              Broadband/VoIP growth                            VoIP growth after 050
          Subscribers
           (10,000)
                                                                 (Receiving number)
      2,000                             1,763
                                BB                                                     5.3M
      1,500
                               1,364
      1,000             780
                                         530                        1.52M
        500                     398
                284
                        142              VoIP

                2001    2002    2003    2004                           ’02.09         ’04.12

Telephony over IP, Algeria, 19 - 20 March 2007.   8
                                    PSTN market in Korea


Subscribers(unit: 1,000)
                                                        23,099
23,000 21,930

21,000
                                                                     Hanaro Telecom(6.6%)
                                                                                     LG Dacom(0.2%)
15,000




10,000

                  3.62    3.37
                                                 0.22    0.74
 5,000


                                 -2.61 -0.03                                         KT(93.2%)
    0
          2000    2001    2002   2003    2004    2005   2006.11
                         Num of Subscriber      CAGR (Percentage)

   Source : MIC (Ministry of Information and Communication) 2006.11
         Source : MIC (Ministry of Information and Communication) 2006.11




 Telephony over IP, Algeria, 19 - 20 March 2007.                 9
      Market Forecast of IP Telephony in Korea
      IP Telephony : expected to grow 60% per year and
      reach $767 mil. in 2008
      PSTN Market : expected to decrease 5% per year and
      reach $5,400 mil. in 2008


                                                                  (Unit: Million dollor)


         Type            2004           2005      2006    2007     2008           CAGR

        IP Tel.           103            188      349     561       767           66.3%

        PSTN             6,595          6,369     6,092   5,744    5,382          -4.9%

     (DATA: IDC, 2004)




Telephony over IP, Algeria, 19 - 20 March 2007.   10
                Impact on PSTN Market in Korea
      Price Reduction followed by added competition will
      increase Consumer Surplus
      Substitution for existing PSTN Market
            IP Telephony Revenue is expected to take up 12.5% of the
            Fixed-Voice Market in 2008




          9 8 .5 %           9 7 .1 %             9 4 .6 %     9 1 .1 %    8 7 .5 %




                                                                  8 .9 %      1 2 .5 %
                                   2 .9 %             5 .4 %
               1 .5 %
             2004              2005                2006         2007        2008
                                                   PS T N        Vo I P
      (DATA: IDC, 2004)

Telephony over IP, Algeria, 19 - 20 March 2007.        11
                                   VoIP Market - Korea
 Annual growth rate of 2001~2004 : 77% (Wholesale : 33%, retail: 154%)
 Wholesale market
  led by Hanaro Telecom
  KT and Hanaro share 1/3 each in 2004
 Retail market
  major incumbents lead the market instead start-ups
  enterprise : samsung networks, anyuser.net
  household : Hanaro telecom



                                            VoIP wholesale/retail market trends

                                      business
                                                           789                       Samsung Networks
                                                                         etc            1 36.5%
                                                                                        1
                                   retail                               42.0%
                                              430            463
                                                     386
             wholesale                                                                     Anyuser.net
                                204     250
                          182                                                              2 11.6%
                                                                                           2
              164 48                                         326
                                                                                3
                                                                                3    KT
                                                                                    9.9%
                2001        2002            2003      2004
                                                                                    Enterprise
                                               residential
               (≈ \100 Million )

Telephony over IP, Algeria, 19 - 20 March 2007.                    12
                           VoIP impact on PSTN in KT

          VoIP will be the major factor of PSTN sales decrease after 2006
          VoIP will be the major factor of PSTN sales decrease after 2006
          Share of VoIP revenue in terms of the PSTN revenue : 12% in 2008
          Share of VoIP revenue in terms of the PSTN revenue : 12% in 2008

              PSTN revenue (KT)                                                VoIP transitions

 58,881
                                        (≈ \100 Million )
           224
          3,053 55.604                                           1    Major business customer
                          408                                        Enterprises with heavy telephone traffic
                         5,021 50,177
                                                                     VoIP ARPU > PSTN ARPU (Business part)
                                                                         \ 31,000   \ 28,459
                                              VoIP
                                           ■ Others


                                                                      Bundling service by Hanaro
 2002(E)       2003(E)         2004(E)                           2    Telecom

  Total             Residential              Business                  Hanaro takes most residential subscribers
 2003 2004            2003 2004               2003   2004              Prepaid cards
                                                                       In this case, ARPU
                         68                                            \ 10,836 (VoIP) vs. \ 18,319 (PSTN)
                                              156
                                                     194
 224                          212

       408



Telephony over IP, Algeria, 19 - 20 March 2007.             13
                        VoIP impact on Broadband in KT

                        Broadband market share forecast in 2008 is 46~48 %

                                                                                                   Market
(Million subscribers)                                                        2006.10 Subscribers
                                    Without VoIP                                                   share
                                                            Market             KT        6.3       45.5%
                                     2008     Subscribers
                                                            share
                                                                             Hanaro      3.6       26%
                                       KT        6.7           52%
                                                                               SO        2.2       16%
                                    Hanaro       3.6           28%
                                                                              LGP        0.7       7.4%
           Subscriber   Market         SO        1.75          14%
  2004         s        share
                                      LGP        0.7           6%                   Assumptions / Impact
    KT       6.08       51%
 Hanaro      4.03       34%          With VoIP                               Assume 1 million new
    SO       0.86        7%                                         Market
                                                                             broadband subscribers until
                                      2008       Subscribers
                                                                    share    2008
   LGP         -          -
                                       KT        6.1~6.3        48~50%       New subscribers transition to
                                                                             cheaper VoIP bundle market
                                     Hanaro      3.3~3.5        26~28%
                                                                             Subscribers transition : 0.5M
                                       SO         2~2.2         15~17%
                                                                             Transition rate : 7 ~ 8 %
                                       LGP     0.95~1.15            7~9%




   Telephony over IP, Algeria, 19 - 20 March 2007.             14
                                       IP-PBX in SME
         PBX replacement forecast

        Within 6 m onths         4%


     Within 6~12 m onths                          18%

         Within1-2 years                   12%

         Within 2-3 years             8%


            After 3 years    1%

                  No plan                                                    58%


                                                             ( Cisco Analysis, 2003)


                 Legacy PBX replacement : 10 ~ 20% / year
                 Coexist IP enabled PBX
                 Expect rapid IP-PBX market transition

Telephony over IP, Algeria, 19 - 20 March 2007.         15
                                           IP-PBX in SME


    IP-PBX sales decrease revenue by 30%
    PBX/IP-PBX sales cross in 2005
    Need new application services




             PBX sales drop from 2004                              PBX/IP-PBX sales cross in 2005
                                                                                           IP-
100%                                                                               200%
                                                                                          PBX
 PBX                                                                                      sales
sales
                                                           100%                                  new revenue
                                           ?                PBX                         70%
                          ?                                sales


                                    Year                                                  Year
     06

     07




                                                               06

                                                               07
     01

     02




     10
    03

    04

    05




                                                               01




                                                               10
                                                               02

                                                              03

                                                              04

                                                              05
                                             Ovum )
                                      ( 2002šù
  20

  20




                                                            20

                                                            20
  20

  20




  20
  20

  20

  20




                                                            20




                                                            20
                                                            20

                                                            20

                                                            20

                                                            20
                                                                                            ( 2002   Ovum )




  Telephony over IP, Algeria, 19 - 20 March 2007.     16
                                              IP-PBX in SME
                       IP-PBX Market trends

     high                                                                              ASP
                                                                                 IP         Hosted
                                          Centrex                                Centrex    IPCC

                                                                     VPN
                                                                                                Managed
                                                                                                IP-PBX
    Carriers control




                                     Toll Bypass

                                                                                ACD        IPCC
                         Tie
                         Line                                              PBX             IP-PBX
                                Key           IP Key
                                System        System

                                                                                                            high
     low                                               Added services
                            ~ 2002(PBX)             2003~2005(IP enabled PBX)              2006 ~(IP-PBX)




Telephony over IP, Algeria, 19 - 20 March 2007.              17
                                           Regulation
      Purpose of the Regulation

            Prepare IP Telephony Regulation for Smooth Transition to IP-
            based Networks
            Avoid ambiguous interpretations
            Create New Opportunities for the Telecommunications Industry
               Encouraging Incumbents to provide Innovative Services and
               Upgrade Networks
            Induce Fair Competition and provision of Enhanced Services
            (QoS, Innovation)
               Prepare Pro-Competitive Environment by improving related
               Regulations (e.g. Entry regulation, Number allocation,
               Minimum QoS, etc.)
            Create Positive Effects on related Industries
               e.g. Equipment, S/W, Digital contents, etc.

Telephony over IP, Algeria, 19 - 20 March 2007.   18
             Regulation – Definition & Licensing
      Clarify Legal Definition of IP Telephony
            a Telecommunication Service which transmits (send or receive)
            Voice through IP Networks using Telecommunications
            Equipment, without dividing Call Areas (Local, Long distance)
            Except for PC-to-PC Call
               Classified as a Value-Added Service


      Entry Regulation (Licensing Conditions)
                                  Conditions
            A Facility-based ITSP needs to obtain License
               Required to own IP Network (National Backbone Network,
               Subscriber Line) and Equipment (Server, G/W, G/K, etc.)
            A Service-based ITSP dose not need a License
               Registration required



Telephony over IP, Algeria, 19 - 20 March 2007.   19
                           Status of ITSP Licensing
      9 Facility-based ITSPs (nationwide) Licensed (12.
      2006)
            KT
            Hanaro Telecom.
            LG DACOM …
      8 Service-based ITSPs (nationwide) registered
      More than 100 service-based IPSPs (reginal
      providers)




Telephony over IP, Algeria, 19 - 20 March 2007.   20
                 Regulation – Number Allocation
      Allocate 070 Prefix and Eight-digit numbers for IP
      Telephony
            070-XXXX-YYYY

      Minimum QoS Requirements for 070 Number
            R-Value ≥70 (ITU-T E.107 E-model)
            End-to-end delay ≤150ms
            Call success ratio ≥95%

      Different numbers
            Facility-based ITSP : ABxx-yyyy
            Service-based ITSP : ABCx-yyyy

      Service-based ITSP who owns VoIP Network Equipments
      such as G/W and G/K, has two options
            Numbers from MIC (ABCx-yyyy) / Own POIs (Point of
            Interconnections)
            Request connection to Facility-based ITSP and resell numbers (ABxx-
            yyyy)

Telephony over IP, Algeria, 19 - 20 March 2007.   21
                    Regulation – Interconnection
      Direct Interconnection Principle
            Facility-based ITSP should directly interconnect with PSTN and
            Mobile Networks
      Construction of POI(Point of Interconnection)
            Min. Number of POI with PSTN and Mobile Networks are
            required
      Facility-based ITSP
            40-60 POIs with PSTN & Mobile Networks
      Service-based ITSP who received 070 Numbers
      directly from MIC
            12 POIs with PSTN and 1 POI with Mobile Networks
      Service-based ITSP who received 070 Numbers from
      Facility-based ITSP
            No POI is required

Telephony over IP, Algeria, 19 - 20 March 2007.   22
           Regulation – Interconnection (Cont.)
      Payment Settlement for Call Interconnection between
      Facility-based Service Providers
            IP Phone-to-PSTN (or Mobile)
               ITSP pays for the Interconnection Charge to the Called
               Network Operator
               ≒¢1.7/min for PSTN and ¢3.9/min for Mobile
            X-to-IP Phone
               The Caller (PSTN, Mobile) pays for the IP Telephony
               Equipment Interconnection Charge to the called ITSP
               ≒ ¢0.44/min for G/K and ¢0.08/min for G/W
      Interconnection Charge for IP Telephony Equipment
      (Between Facility-based Service Providers)
            G/K≒ US ¢0.44/min (\4.65/min)
               80% of local switch interconnection charge
            G/W≒ US ¢0.08/min (\0.84/min)
               80% of toll switch interconnection charge

Telephony over IP, Algeria, 19 - 20 March 2007.   23
           Regulation – Interconnection (Cont.)
      Payment Settlement for Internet Access between
      Facility-based Service Providers
      IP-Network Access Fee
            An ITSP who does not own IP-network has to pay Access Fee
            for the use of Subscriber Line and Backbone Network to
            the IP-Network Owner
               ≒ US $1.42/Month (\1,500/Month)
               ≒ 5% of Average Broadband Internet Service Charge


      Interconnection Charge for Service-based ITSP is
      determined by Private Agreement between
      Telecommunications Service Providers
      No Regulation on Retail Charge
      ITSPs determine their Retail Charges

Telephony over IP, Algeria, 19 - 20 March 2007.   24
                                  Status in summary
      KT participated in market transition aggressively
            Wholesale / enterprise mainly
            Major in residential market
      Secondary many (Hanaro, Dacom)
            Expand wire line market with bundling
      Cable TV Service Providers are preparing 070 IP
      Telephony Service – Cable Phone
            TPS : Cable TV, Internet, IP Telephony
      Major Portal Sites based Messenger Service
            Daum Communications Corp. : Skype Messenger
            NHN Corp. : Naver Phone (with DACOM)
            Yahoo Korea : Yahoo Voice Messenger 7.0




Telephony over IP, Algeria, 19 - 20 March 2007.   25
           The incumbent’s challenges

       retaining of subscribers

        maintaining profitability and retaining customer loyalty
        Segmentation, Branding, & service bundles


      making rich services for ARPU increase
         Voice applications
         VoIP enabled IT applications
         Integrated service of voice and the internet (web)




Telephony over IP, Algeria, 19 - 20 March 2007.   26
           The incumbent’s challenges

        WiFi + VoIP = Powerful Wireless VoIP Solution
          A Killer App. Of VoIP
          VoIP over Wireless Ethernet
          Wireless VoIP for Local Area : Residential, Enterprise, Hot Spot
          A Key Technology for Voice/Data/Wired/Wireless convergence
          (QPS)




Telephony over IP, Algeria, 19 - 20 March 2007.   27
             The incumbent’s challenges


Personalized &
Differentiated
   Services

                                 Convergence services with multi-Windows


  Managed                                                   Broad
                    Personalization                  QoS            Security
  Function                                                   BW
  /Platform




  Manged           HomeNetwork
  Network                                           FTTH    WiBro       BcN
                      RGW


  Telephony over IP, Algeria, 19 - 20 March 2007.      28
                                   Work in progress

      NGN as the next generation IT infrastructure (BcN)
      Enable converged multimedia services at any time, any places.
      Aim 50 ~ 100 Mbps broadband access to 20 m. subscribers by
      2010
      Replace PSTN voice Telephone with S/W and access gateway
      Decided to adapt IMS in parallel
      Accommodate both PSTN and IP Subscribers
      Provide voice /video telephony as default and other application
      services
      Standdard-based terminal equipment
      Business model for BcN
      Enhancement of the platform to fulfill the service requirement



Telephony over IP, Algeria, 19 - 20 March 2007.   29
                      Thank you for your attention
                            cgkim@kt.co.kr
                            82-2-526-5760




Telephony over IP, Algeria, 19 - 20 March 2007.   30

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:10
posted:6/19/2011
language:English
pages:30