OSGi World Congress 2003

1. SangSang--Moo LeeMoo Lee
Deputy DirectorDeputy Director
Telecommunications Policy BureauTelecommunications Policy Bureau
“Next Generation Growth Engine : Telematics”
24 Oct. 2003
Korea Telematics Market & Policy

2. Broadband IT Korea1
Vision and StrategyVision and StrategyIIIIII
ContentsContents
Market Trends In Korea
(Including Mobile Internet Status)
Market Trends In Korea
(Including Mobile Internet Status)III
Action PlanAction PlanIIIIIIIII

3. Broadband IT Korea2
II--1. The Status of Mobiles in Korea1. The Status of Mobiles in Korea

4. Broadband IT Korea3
The Leader of Mobile CommunicationThe Leader of Mobile CommunicationThe Leader of Mobile Communication
• to commercialize CDMA technologies in 1996.
• to introduce CDMA-PCS service in 1998.
• to launch cdma2000-1x service in October 2000.
• to launch cdma2000-1x EVDO commercial service in May 2002.
! Korea is the first country in the world …

5. Broadband IT Korea4
3G Market in Korea3G Market in Korea3G Market in Korea
(2003.6)
11,410
(35%)
2G(IS-95A/B)
69 %
(33,066)
31 %
3G [cdma2000
1x -EVDO]
3G
[cdma2000 1x]
1,314
(4%)
20,332
(61%)
Mobile Comm. Subs.
Total Population
47,640 thousand persons *)
Source : MIC
(thousand persons)
• Successful take-up of 3G services
• After Dec. 2002, the number of 3G subs is greater than 2G subs.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
4Q. 2001 1Q. 2002 2Q. 2002 3Q. 2002 4Q. 2002 1Q. 2003 2Q. 2003

6. Broadband IT Korea5
World Leader of Mobile Comm. IndustryWorld Leader of Mobile Comm. IndustryWorld Leader of Mobile Comm. Industry
0
2
4
6
8
10
12
1998 1999 2000 2001 2002
GSM terminal CDMA terminal CDMA system TDMA terminal
• The exports of CDMA systems and terminals have been steadily growing
since the successful commercialization in 1996.
• The development of GSM and TDMA technologies is a valuable by-product
created from the successful commercialization of CDMA technologies.
Yearly Exports by Technology ( billion US$ )

7. Broadband IT Korea6
II--2. Policies for better Mobile Business2. Policies for better Mobile Business

8. Broadband IT Korea7
Major Policies for Mobile LifeMajor Policies for Mobile LifeMajor Policies for Mobile Life
Supply ExpansionSupply ExpansionSupply Expansion
O Technology Development & Standardization
O Opening Mobile Internet Network
O R&D for 4G Mobile Communications
O Technology Development & StandardizationO Technology Development & Standardization
O Opening Mobile Internet NetworkO Opening Mobile Internet Network
O R&D for 4G Mobile CommunicationsO R&D for 4G Mobile Communications
Demand PromotionDemand PromotionDemand Promotion
O Promotion of M-Commerce & M-Payment
O Creating New Service Areas : M-Government
O Promotion of MO Promotion of M--Commerce & MCommerce & M--PaymentPayment
O Creating New Service Areas : MO Creating New Service Areas : M--GovernmentGovernment
Booming-Up
of Mobile
Services
BoomingBooming--UpUp
of Mobileof Mobile
ServicesServices
+

9. Broadband IT Korea8
II--3.3. TelematicsTelematics Market in KoreaMarket in Korea

10. Broadband IT Korea9
(Mil USD)
* Source : Softbank Research 2002
Telematics Devices Services Total
0
80
160
240
320
400
480
560
640
720
2002 2003 2004 2005
[ Telematics Market Size in Korea ]
Market Trends in Korea(1/5)Market Trends in Korea(1/5)
"" 200 Million USD in 2003200 Million USD in 2003 ## 700 Million USD in 2005700 Million USD in 2005
"" Focused on navigation, traffic information, safety, etc.Focused on navigation, traffic information, safety, etc.
[ Average Driving Time/year ]
0
100
200
300
400
500
600
700
800
USA Europe Korea
(Hours)

11. Broadband IT Korea10
Many Early
Adopters
World Greatest
Network Infra
Strong Big
“Guy”
Supports
WIPI (Wireless
Internet Platform
for
Interoperability)
StrengthStrength
Market Trends in Korea(2/5)Market Trends in Korea(2/5)
Technology is not
enough
Late Start
Chasm of
mgt.
Weak Experience
of corporate
Business Models
WeaknessWeakness
Strength/ Weakness ofStrength/ Weakness of TelematicsTelematics Services and Business in KoreaServices and Business in Korea

12. Broadband IT Korea11
Market Trends in Korea(3/5)Market Trends in Korea(3/5)
CDMA2000CDMA2000--1X1XCDMA2000CDMA2000--1X1XCDMA2000CDMA2000--1X1X
CommunicationCommunication
onon
NetworkNetwork
•• Customer ManagementCustomer Management
•• Emergency ServiceEmergency Service
•• Traffic InformationTraffic Information
•• NavigationNavigation
•• Traffic InformationTraffic Information
•• NavigationNavigation
•• Emergency ServiceEmergency Service
ServiceService
US$15US$15 +Air Time Fee+Air Time FeeUS$17 + Air Time FeeUS$17 + Air Time FeeUS$15 + Air Time FeeUS$15 + Air Time FeeService ChargeService Charge
US$170US$170
Apr. 2002Apr. 2002
NateNate DriveDrive
SK Corp.SK Corp.
SK TelecomSK Telecom
After MarketAfter Market
Oct. 2002Oct. 2002Nov. 2003Nov. 2003Service InitiativeService Initiative
DateDate
US$295US$295US$1,000US$1,000Price of TerminalPrice of Terminal
AnyNetAnyNetMOZENMOZENBrand NameBrand Name
Samsung Fire Ins.Samsung Fire Ins.LG TelecomLG TelecomAlliance CompanyAlliance Company
KTFKTFHyundai MotorsHyundai MotorsMain CompanyMain Company
Before MarketBefore Market

13. Broadband IT Korea12
! Focused on traffic information, car navigation, and
emergency services, but …
Characteristics of Telematics Business in Korea
Lifestyle
&
Convenience
Safety
&
Emergency
service
Traffic
Information
&
Car
Navigation
User
Needs
Market Trends in Korea(4/5)Market Trends in Korea(4/5)

14. Broadband IT Korea13
! Drives After Market
" Mobile teleco
" Advanced Network infra and
well-trained subscribers
" Low-end terminals and easy
penentrations
! Drives Before Market
" Automakers
" New car equipped IT solutions
" High-end terminals and
differetiations
Market Trends in Korea(5/5)Market Trends in Korea(5/5)
Characteristics of Telematics Business in Korea

15. Broadband IT Korea14
II. Vision and StrategyII. Vision and Strategy

16. Broadband IT Korea15
“Automobiles as 3rd Internet Space“
Convenience to Driver, Enjoyment and Safety to Passengers
““Automobiles as 3rd Internet SpaceAutomobiles as 3rd Internet Space““
Convenience to Driver, Enjoyment and Safety to PassengersConvenience to Driver, Enjoyment and Safety to Passengers
VisionVisionVision
! Year 2005: Ensure to obtain 3 core tech. (Terminal, Server, Wireless Access)
! Year 2006: Domestic telematics unit spread up to 30 % of the entire cars
!! Year 2005: Ensure to obtain 3 core tech. (Terminal, Server, WirYear 2005: Ensure to obtain 3 core tech. (Terminal, Server, Wireless Access)eless Access)
!! Year 2006: DomesticYear 2006: Domestic telematicstelematics unit spread up to 30 % of the entire carsunit spread up to 30 % of the entire cars
GoalsGoalsGoals
Obtaining Core Tech.Obtaining Core Tech.Obtaining Core Tech. Constructing Industry BasisConstructing Industry BasisConstructing Industry Basis
• Telematics Terminal Platform
• Open Telematics server
• Wireless Access & Protocol
• Telematics Terminal Platform
• Open Telematics server
• Wireless Access & Protocol
• Build Telematics Information Center
• Establish Telematics test bed
• Build an education system to
produce Telematics experts
• Build Telematics Information Center
• Establish Telematics test bed
• Build an education system to
produce Telematics experts
• Provide real-time traffic information
• Support low-price terminals
• Realize V-Commerce (T- portal)
- supporting downstream industries
• Provide real-time traffic information
• Support low-price terminals
• Realize V-Commerce (T- portal)
- supporting downstream industries
Diffusing ProductsDiffusing ProductsDiffusing Products
Vision and StrategyVision and Strategy

17. Broadband IT Korea16
III. Action PlanIII. Action Plan

18. Broadband IT Korea17
Action Plan(1/3)Action Plan(1/3) –– BuildingBuilding InfrastructureInfrastructure
! Constructing Telematics Test-bed
" To provide a place where the Telematics industry can meet to
develop, evaluate and test their products
" To support standardizing company technologies as a
industry standard
! Constructing Telematics information center to provide
traffic information, POI, etc.
" Early market activation through providing map and traffic
information
" Minimizing investment of Telematics service providers

19. Broadband IT Korea18
Wireless
Access
Tech.
Server
Tech.
Network
Tech.
Terminal
Platform
Tech.
Position
-Ing
Tech.
Terminal
Platform
Embedded
SW Platform
2005
High Speed
Handover
Authentication,
Security
LBS/GIS/ Real time
Traffic Info. Integration
HPi/Wireless LAN
Integration
GPS + Network
Determination supporting
Tech.
Adhoc Network
Hibrid of heterogeneous
Acess and Broadcastin
2007
Hybrid Navigation
Situation Optimal
CNS &
Connected
Entertainment
Vehicle
Commerce
Platform
Advanced Telematics
Network
2006
Realization of UWB
Internal vehicle
Wireless
Multiple Precision
Determination
Tech.
Open Contents
Providing Tech.
Platform
Integration
2G Cellular Wireless
Integration
Open LBS Connection
Structure Tech.
GPS Advanced Tech.
2003
Terminal
Embedded
OS Tech.
Telematics Network
Establishment
2G/1x Ev Do
Cellular
Integration
2004
Mobile Router
Tech.
Development
Open Map
info.
Providing
Tech.
RFID
Emergency
rescue by
using
Location-
Determination
DMB
Integration
Tech.
Vehicle
Voice
Recognition
Traffic Info.
Center
Network
Construction
1xEvDo
/WLAN
Terminal
Action Plan(2/3)Action Plan(2/3) –– DevelopingDeveloping Core Tech.Core Tech.

20. Broadband IT Korea19
Action Plan(3/3)Action Plan(3/3) –– Promoting OrganizationPromoting Organization
-Suggestion requirements to
other NGGE
- coperating in R&D each other
Next Generation Growth Engine
Committee
• Ministry of Commerce, Industry &
Energy
• Ministry of Construction &
Transportation
- Center for Telematics
business & services
- Program for standard
and project
KoTBA
- National research Lab(ETRI)
- Standardization agency(TTA)
Research Centers
MOCIE – Advanced Car
MOCT – Advanced Road &
Traffic Information
Cooperation of
Relating Gov’t Bodies
- Program for cooperation
- Planning and supporting
- Promoting Pilot Project
MIC(Ministry of Information
& Communication)
※ Next Generation Growth Engine
Industry
- Embeded S/W, Next Generation
Mobile Comm., Digital TV, Digital
Contents, Intelligent Robot
Korea Telematics Business Association

21. Broadband IT Korea20
Thanks for your attention !Thanks for your attention !Thanks for your attention !
Sang-Moo Lee (saint7@mic.go.kr)
MOSTeMOSTe
VICSVICS
OSGiOSGi
IDBIDB--ForumForum
AMIAMI--CC
KOTBAKOTBAKOTBA
Korea is the best companion for journey to the
Telematics World !
Korea isKorea is the best companionthe best companion for journey to thefor journey to the
TelematicsTelematics World !World !