1. KT SK Telecom LG U+ Samsung HFR MODACOM Dasan Contela Publisher/Editor Dr. Harrison J. Son | son@netmanias.com Associate Editor Dr. Michelle M. Do | misun.do@netmanias.com Advertising Sales Ho-Young Lee | hylee@netmanias.com +82-2-3444-5747 Business Development Steve Shin | cm.s.shin@netmanias.com +82-10-2884-8870 Giga LTE LTE-H LTE-U IPTV UHD IoT Giga Internet Netmanias.comTechnologies Macro Femto WiFi DAS In-Building Korea Communication Review Q3 2015 © Netmanias Consulting • www.netmanias.com FEATURED: UHD IPTV Services of Korea’s Telcos Leaders
2. © Netmanias Consulting • www.netmanias.com Table of Contents | Q3 2015 (July – September) Articles 41-44 | LG U+ achieved 600 Mbps in its second LTE-U demonstration 46-51 | Evolution of SK Telecom's in-building solutions 57-63 | LTE success story in Korea 04-06 | LTE/LTE-A commercialization by South Korea’s big 3 operators 4K UHD IPTV services in Korea 28 | IPTV commercialization history 29 | Live TV services 30 | UHD VoD contents 31 | 4K UHD VoD streaming technologies 32-37 | KT 4K UHD IPTV Services: Live TV, Most Popular Channels Now, 4-Channel View and VoD Korea ICT News | 10-27 • Hear from CTOs of Korean Telcos: SK Telecom, KT and LG U+ • SK Telecom, gearing up to enhance bundled plans marketing and integrated media business through 100% acquisition of SK Broadband • KT’s GiGA LTE, world’s first commercial wireless 1 Giga (3-band CA + GiGA WiFi) • DASAN Networks unveils next-generation Gigabit Internet Solutions in APAC and Europe • Emergency status in 3 mobile carriers as permission to use 2.6 GHz is given to 4th mobile carrier...will broadband frequency end up to 1? • LG U+'s new services: 'LTE Video Portal' and 'Home IoT' • Samsung Electronics and SK Telecom to jointly develop SDN PoC for LTE core network • Samsung succeeds in demonstrating world’s first public safety communication net based on ‘PS-LTE’ standard • With the national emergency communication network pilot project impending, under-the-table negotiations now begin • MODACOM launched smart IoT Gateway, opening a new IoT era • SK Telecom opens ThingPlug, an integrated IoT platform based on oneM2M standards • SK Telecom unveils Smart Home to realize perfect home environment IoT services available from Korean operators 38-39 | B2C IoT services available from Korean operators 40-40 | B2B IoT services available from Korean operators Korea ICT Statistics 07-07 | Korean Telco Market
3. x1 x2 x2 x3 x4 x6 • Launched 3-band LTE-A (300Mbps) (available for all subscribers) 14 Tri-band LTE-A Tri-band LTE-A Wideband LTE-A Wideband LTE 20+20+20MHz 20+10+10MHz 20+10MHz 20MHz Max 225Mbps Max 150Mbps LTE-A LTE 10+10MHz 10MHz Max 150Mbps Max 75Mbps Commercialized (by all 3 in June 2014) Commercialized (by all 3 in 2013) Commercialized (by all 3 in 2013) Commercialized (by SK TELECOM/LG U+ in 2011 and by KT in 2012) • Launched unlimited LTE data plan • Expanded Wideband LTE to metropolitan cities • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - Uplink CoMP - LTE + Giga Wi-Fi Femtocell • LTE subscribers: 7.5 M (68.6%) • Launched eMBMS (World’s first) • Launched unlimited LTE data plan • Expanded Wideband LTE to metropolitan cities • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA - LTE-A + Giga Wi-Fi • LTE subscribers: 8.6 M (52.4%) As of July 1, 2015 Max 450Mbps Max 300Mbps To be commercialized (2015 later) Commercialized (by all 3 in January 2015) 20MHz (2.6GHz) + 10MHz (850MHz) 20MHz (1.8GHz) + 10MHz (900MHz) 20MHz (1.8GHz) + 10MHz (900MHz) + 10MHz (2.1GHz) • Launched 3-band LTE-A (300Mbps) (available for all subscribers) • Launched Wideband LTE-A (225Mbps) • Launched Wideband LTE-A (225Mbps) 20MHz (1.8GHz) + 10MHz (850MHz) + 10MHz (2.1GHz) • Launched 3-band LTE-A (300Mbps) (available for 100 subscribers only) 2 2 1 20MHz (2.6GHz) + 10MHz (850MHz) + 10MHz (2.1GHz) • Launched 3-band LTE-A (300Mbps) (available for all subscribers) • Launched eICIC • MWC 2015 Demonstration - DL CoMP (Dynamic Point Selection) - DL 256QAM (400Mbps) • MWC 2015 Demonstration - mmWave System (28GHz, 7.5Gbps) - NFV/SDN Orchestration - Fast Data Flatform - Quantum Cryptography System • MWC 2015 Demonstration - mmWave System (28GHz, 7.5Gbps) - LTE-HetNet (LTE+WiFi, 600Mbps) - LTE-Unlicensed (450Mbps) - Triple Mode Femto 11 2 1 3 1 1 2 4 5 7 8 9 10 11 12 • Expanded Wideband LTE to metropolitan cities • MWC 2014 Demonstration - 3-Band CA (20+20+20MHz, 450Mbps) - LTE-A CA Femtocell - FDD-TDD LTE CA • LTE subscribers: 14.9 M (53.1%) 3 • Launched unlimited LTE data plan • Launched Wideband LTE-A (225Mbps) 20MHz (1.8GHz) + 10MHz (850MHz) 1 6 2 4 5 6 H2 H116 1 • GiGA LTE: Integration of LTE and WiFi using MP-TCP GW - 3-band CA + GiGA WiFi 15 LTE Spectrum Auctions Scheduled for 700MHz, 2.1GHz (Refarmed) and 2.6GHz LTE/LTE-A commercialization by South Korea’s big 3 operators as of July 1, 2015 LG U+ KTSK Telecom 1 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 4
4. LG U+ KTSK Telecom 2 • Launched LTE-A (150Mbps) • VoLTE (World’s first) • World’s first full HD streaming • Launched Wideband LTE (150Mbps) • Launched LTE (75Mbps) service • LTE subscribers: 12.3 M (45.1%) • LTE subscribers: 7.5 M (27.9%) • LTE subscribers: 634 K (2.4%) 10MHz (850MHz) + 10MHz (1.8GHz) 10MHz (850MHz) • LTE subscribers: 13.5 M (49.3%) • MWC 2013 Demonstration - CA (10+10MHz, 150Mbps) • Wideband LTE-A (20+10MHz, 225Mbps) demonstration • LTE subscribers: 1.8 M (6.7%) 20MHz (1.8GHz) • Launched LTE-A (150Mbps) • Multi-Carrier (World’s first) • World’s first 4 CH multi-view • Launched Wideband LTE (150Mbps) • LTE subscribers: 6.5 M (61.1%) • LTE subscribers: 4.1 M (43.1%) • LTE subscribers: 557 K (5.9%) 10MHz (850MHz) • Launched LTE (75Mbps) service • VoLTE (World’s first) • LTE subscribers: 7.1 M (65.2%) • LTE subscribers: 1.8 M (15.5%) 10MHz (850MHz) + 10MHz (2.1GHz) 20MHz (2.6GHz) • HD 4Mbps streaming • Multi-Carrier • LTE subscribers: 6.8 M (41.8%) • LTE subscribers: 3.9 M (23.6%) • Launched LTE (75Mbps) service • VoLTE • Launched Wideband LTE (150Mbps) • LTE subscribers: 7.9 M (47.9%) • MWC 2013 Demonstration - eMBMS (KT+Samsung+Qualcomm) • LTE subscribers: 351 K (2.1%) 10MHz (1.8GHz) + 10MHz (900MHz) 20MHz (1.8GHz) • Multi-Carrier (World’s first) Wideband LTE Spectrum Auction 1 1 2 1 1 1 10MHz (1.8GHz) 1 2 3 4 5 6 7 8 9 10 11 12 7 8 9 10 11 12 1 2 3 4 5 6 7 8 10 11 12 11 12 • Launched LTE-A (150Mbps) 3 9 13 1 World’s first 2 World’s second World’s third3 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 5
5. 850 MHz 900 MHz 1800 MHz 2600 MHz Band 5 Band 8 Band 3 Band 7 1745 1755 KT 1725 17351715 SK TELECOM KT 2520 2530 2540 LG U+ MHz SK T 905 915 KT 839 849 LG U+ 829 SK TELECOM NationNation Major 884 894 Nationwide Nation Downlink ㆍ The Big 3 launched ‘Wideband LTE-A’ service using 2-band CA in June 2014, offering max. 225 Mbps (20 + 10 MHz) ㆍ The Big 3 launched ‘Tri-band LTE-A’ service using 3-band CA in January 2015, offering max. 300 Mbps (20 + 10 + 10 MHz) UE LTE Frequency Commercialization Status (as of July 1, 2015) Carrier Aggregation (CA) Uplink 225 Mbps 225 Mbps Metro: Metropolitan areas Major: Major cities Nation: Nationwide n Carrier aggregation services in Korea (July 1, 2015) MajorMajor 2-band 3-band 30 (20 + 10) MHz 40 (20 + 10 + 10) MHz 2014. 06 2015. 01 2-band 3-band 30 (20 + 10) MHz 40 (20 + 10 + 10) MHz 2014. 06 2015. 01 2-band 3-band 30 (20 + 10) MHz 40 (20 + 10 + 10) MHz 2014. 06 2015. 01 1.8 GHz (B3) + 850 MHz (B5) 1.8 GHz (B3) + 850 MHz (B5) + 2.1 GHz (B1) 2.6 GHz (B7) + 850 MHz (B5) 2.6 GHz (B7) + 850 MHz (B5) + 2.1 GHz (B1) 1.8 GHz (B3) + 900 MHz (B8) 1.8 GHz (B3) + 900 MHz (B8) + 2.1 GHz (B1) 225 Mbps 300 Mbps 225 Mbps 300 Mbps 225 Mbps 300 Mbps Operator # of band Bandwidth (DL) LaunchedCarriers Max. rate (DL) Category 3 Category 4 100 Mbps (Wideband LTE, 20 MHz) 150 Mbps (Wideband LTE, 20 MHz) 150 Mbps (LTE-A, 2-band CA, 10+10 MHz) SK TELECOM 225 Mbps (Wideband LTE-A, 2-band CA, 20+10 MHz)Category 6 LG U+ KT 30 MHz: [B3]20 + [B5]10 30 MHz: [B5]10 + [B7]20 30 MHz: [B3]20 + [B8]10 225 Mbps2-bandCategory 6 LG U+ 20 MHz: [B1]10 + [B5]10 150 Mbps2-bandCategory 4 SK TELECOM LG U+ KT 40 MHz: [B1]10 + [B3]20 + [B5]10 40 MHz: [B1]10 + [B5]10 + [B7]20 40 MHz: [B1]10 + [B3]20 + [B8]10 300 Mbps 3-bandCategory 9 UE Category Max. Speed Operator UE Category CA Type BW: CA Combination Max. Speed Major SK Telecom 300 Mbps (Tri-band LTE-A, 3-band CA, 20+10+10 MHz)Category 9 300 Mbps 1930 SK TELECOM 1940 2100 MHz Band 1 1920 LG U+ KT 1960 1970 LG U+ KT 150 Mbps MHz MHz 1840 950 1810 225 Mbps 150 Mbps MHz 2640 2650 2660 LG U+ Nationwide KT Major 2150 2160 300 Mbps 225 Mbps 225 Mbps 225 Mbps 150 Mbps 1830 960 1850 874 1820 SK TELECOM LG U+ Nation 2110 2120 2130 SK TELECOM MajorMajor LG U+ Nationwide KTSK TELECOM Nationwide KT Major 300 Mbps Nation Nation B1-B3-B8 B1-B5-B7 B1-B3-B5 B3-B8 B5-B7 B3-B5 B1-B5 LTE/LTE-A commercialization by South Korea’s big 3 operators as of July 1, 2015 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 6
6. Broadband - Mobile - Pay TV Data: MSIP, KTCA Telco Satellite Cable SK (SK Telecom & SK Broadband) KT LG U+ KT Skylife 5 MSOs + 10 SOs » 1 MVNO 4.2 3.3 2.4 1.5 1.4 CJ Hellovision T-broad C&M CMB HCN 0.90.86 28.4 4.9 3.0 17.5 8.2 6.0 11.4 3.1 2.3 4.3 3.2 14.6 Korea Telco Market n Subscribers [million] (Q1 2015) Mobile 4G LTE 1G 300M 225M 150M 75M 3G 2G Internet 1G 500M 100M IPTV UHD Live TV VoD FHD Live TV VoD SK KT LG U+ X O O OX O O OO O O O O O O O O OO O O OO O X O O O X O O OX O O XO O O O O O SK KT LG U+ 1,762 1,331 384.5 674.2 860.6 476.8Mobile Revenue: 13,013 Mobile Service Revenue: 6,309 Mobile Revenue: 7,315 Mobile Service Revenue: 11,179 Mobile Service Revenue: 4,675 Mobile Revenue: 5,212 Services n Revenue [KRW Billion] (2014) PRIVATE COMPANY PRIVATE COMPANY PRIVATE COMPANY PRIVATE COMPANY Data: SK, KT and LG U+ © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 7
7. LTE-WiFi • MWC 2015 Demonstration - mmWave System (28GHz, 7.5Gbps) - LTE-HetNet (LTE+WiFi, 600Mbps) - LTE-Unlicensed (450Mbps) - Triple Mode Femto SK Telecom LTE-LTE • GiGA LTE: Integration of LTE and WiFi using MP-TCP GW - 3-band LTE-A + GiGA WiFi LicensedLicensed+UnlicensedLicensed+UnlicensedLicensed+Unlicensed LTE-WiFiLTE-LTE LinkLevelLinkLevelLinkLevelNetworkLevel LTE-Advanced: CA LTE-Unlicensed LTE-HetNet: Link Aggregation LTE-HetNet: Path Aggregation LTE–LTE / LTE-WiFi Carrier Aggregation (June 30, 2015) Small Cell SCell PCell SCell LTE LTE LTE modem LTE modem BBU LTE Macro Cell PCell LTE LTE Network Licensed band Macro Cell Small Cell BBU LTE LTE SCell 5 GHz PCell LTE LTE Network LTE modem LTE modem Licensed band Unlicensed band (5GHz) Wi-Fi APMacro Cell LTE LTE modem Wi-Fi modem BBU 802.11 5 GHz SCell PCell LTE Network WiFi Network Licensed band Unlicensed band (5GHz) Licensed band Unlicensed band (5GHz) Wi-Fi APMacro Cell LTE LTE modem Wi-Fi modem 802.11 5 GHz LTE Network WiFi Network MPTCP GW TCPSession1 TCPSession2 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Types of Carrier Aggregation LTE (3-band CA): 300 Mbps Giga WiFi: 866 Mbps 1.17 Gbps bandLTEWiFi LTE: 150 Mbps WiFi: 450 Mbps 600 Mbps LTE band: 20 MHz WiFi band: 40 MHz 450 Mbps 40 MHz 300 Mbps 3-band 30 MHz60 MHz 225 Mbps 450 Mbps 2-band 3-band 150 Mbps 20 MHz20 MHz 150 Mbps 2-band2-band • Applicable to all plans • Limited to SK TELECOM services only (first to VoD service like T- Sports and T-LOL, and then to Btv Mobile) • Charge for LTE data usage 1G bps LTE (2-band CA): 225 Mbps Giga WiFi: 866 Mbps © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 8
8. • HD 4Mbps streaming LG U+KT LTE-WiFiLTE-LTE LinkLevelLinkLevelLinkLevelNetworkLevel LTE-WiFiLTE-LTE LicensedLicensed+UnlicensedLicensed+UnlicensedLicensed+Unlicensed 2013 2014 2015 2016 150 Mbps 30 MHz 40 MHz 300 Mbps 20 MHz 225 Mbps 2013 2014 2015 2016 150 Mbps 30 MHz 40 MHz 300 Mbps 20 MHz 225 Mbps 2016 2013 2014 2015 2016 LTE band: 20 MHz WiFi band: 20 MHz 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 450 Mbps 2013 2014 2015 LTE band: 20 MHz WiFi band: 40 MHz LTE: 20 MHz WiFi: 60 MHz LTE: 150 Mbps WiFi: 450 Mbps 600 Mbps 1.17 Gbps LTE (3-band CA): 300 Mbps GiGA WiFi: 866 Mbps 1.17 Gbps GiGALTE • Applicable to unlimited plans • Limited to LG U+'s streaming services only (U+ HDTV, U flix Movie) • No charge for LTE data usage • Applicable to some plans • Can be applied to KT services and all mobile apps even from others • Charge for LTE data usage (but free until the end of the year) ? To be commercializedCommercializedDemonstrated LTE (3-band CA): 300 Mbps Giga WiFi: 866 Mbps 450 Mbps450 Mbps 600 Mbps 300 Mbps GigaMulti-Path 60 MHz 60 MHz © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 9
9. SK Telecom, gearing up to enhance bundled plans marketing and integrated media business through 100% acquisition of SK Broadband 05/06 | By NETMANIAS (tech@netmanias.com) Hear from CTO’s of Korean Telcos 05/13 | By Y.J.Kim (kyj@etnews.com) In May 2015, CTOs from the Korea's big 3 operators gathered to share their 5G strategies and investment plans. SK Telecom: SK Telecom's 5G evolution strategies Dr. Jinsung Choi, CTO of SK Telecom said 5G will bring Korea a golden opportunity to reassure its leadership in the global mobile market. He also mentioned the company will enhance its focus on improvement in LTE service quality and development of 3 key platforms this year. He stressed, for success of the Internet of Things (IoT), building 'vertical platforms' is essential to achieve economies of scale. Read the full article (page 11-12). KT: Leading 5G through wired/ wireless integration Dr. Dongmyun Lee, Executive Vice President at KT's Institute of Convergence Technology shared his stance on development of 5G communication technology to be presented during Pyeongchang Winter Olympic to be held in Korea in 2018. Read the full article (page 12-14). LG U+: LG U+'s mobile network evolution strategies According to Mr. Changwoo Lee, Vice President of LG U+ Network Business, expansion of 3-band CA coverage, Giga Internet, LTE, and VoLTE are key areas for LG U+‟s investment this year. For LTE-A, the company is focusing on LTE-U and uplink CA. Read the full article (page 14-15). CTO of SK Telecom Jinsung Choi CTO of KT Dongmyun Lee CTO of LG U+ Changwoo Lee SK Broadband, a Korean ultra-high speed Internet and IPTV (Internet TV) service provider, held an extraordinary general shareholders meeting on May 6th, and resolved to return to its original plan to become a 100% subsidiary of SK Telecom. Back in March, SK Telecom offered to swap its shares with SK Broadband's at a rate specified, or to buy out SK Broadband shareholders for KRW 4,645 per share. The company currently owns 50.56% of SK Broadband, which will voluntarily delist itself once the acquisition is completed. SK Telecom is spending over KRW 700 billion (USD 640 million) to make the company its wholly-owned subsidiary, to boost the competitiveness of its triple-play bundles of mobile, ultra-high speed Internet and IPTV services. For example, to sell more monthly mobile plans (ranging KRW to sell more monthly mobile plans (ranging KRW 50,000~60,000), the prices of ultra-high speed Internet or IPTV service included in the bundle should be low. However, for SK Broadband, a listed company, profits take priority over anything else, which leaves little room to be flexible in pricing. Mr. Yong-Hwan Lee, CFO of SK Telecom, noted that, "So far, SK Telecom and SK Broadband have been working, not as one corporate or two, but as one and half corporate, as in a three-legged race. And this has put quite a lot of restrictions on their growth in the competitive market." He also highlighted that, "This acquisition can especially help to reduce resources required for each company's contents sourcing, and build more buying power. contents sourcing, and build more buying power. We expect the acquisition will accelerate SK Telecom's media business growth and improve its wired/wireless marketing efficiency." For SK Broadband, the long-time runner up to market leader KT in the Korean wired communication (ultra-high speed Internet) market, being able to leverage the nationwide distribution network established by SK Telecom, No. 1 in the Korean wireless market, must have been essential to beat KT. KT and LG U+, both with their own wired AND wireless business divisions, have been at a greater advantage in promoting bundles of wired/ wireless service. A director at KT noted "If SK Telecom uses aggressive marketing strategies in promoting their ultra-high speed Internet and IPTV, taking advantage of its nearly- unbeatable competitiveness in the wireless communication market, the entire communication market will be overheated." n Korea ICT News & Articles © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 10
10. SK Telecom | Dr. Jinsung Choi 'SK Telecom's 5G evolution strategies' 05/13 | By Y.J.Kim (kyj@etnews.com) Dr. Jinsung Choi, CTO of SK Telecom said 5G will bring Korea a golden opportunity to reassure its leadership in the global mobile market. He also mentioned the company will enhance its focus on improvement in LTE service quality and development of 3 key platforms this year. He stressed, for success of the Internet of Things (IoT), building 'vertical platforms' is essential to achieve economies of scale. Below are the summary of the interview for you. What are your key investment areas this year? Our top investment priority will be LTE quality improvement, for example securing more 3-band CA coverage. Also massive investment will be made in development of 3 key platforms - lifestyle enhancement, advanced media, and IoT service. Especially, for IoT, a platform called Mobius will be released in June, and is expected to be a success. Introducing more IoT success cases is very critical. There are some criticisms that the term ‘platform' is too abstract. A platform can be seen as a foundation for buildings. It is like an ecosystem. For example, if Operating Systems (OS) like Android, iOS, etc. are platforms, app stores are the ecosystem that should be built on them. I call them 'horizontal platforms'. There are vertical platforms, intended for business, as well. A vertical platform is an integrated platform that comes with everything necessary, from hardware to applications. This type of platform can be easily adopted in many different markets. Let's take Smart Farm as an example. From sensor, to software, application and network, everything comes as a package. It can also be applied to other similar industry, with no or little modification. Vertical platforms are important because they give economies of scale. If economies of scale are not achieved, the IoT cannot go beyond the bounds of long tail markets, and the IoT industry will end up having only one option in competing, labor costs competition. What are current development status and strategies of 5G? 5G can be a golden opportunity for Korea to win the leadership in the global mobile market. Others are not as desperate as Korea for 5G. For instance, the US is one of the largest countries in the world, and people are happy with what LTE is offering. But, it is a different story in Korea. Korea has a big sports event coming, to be hosted by the Korean government. This event can serve as a great chance for the country to show its leadership in the mobile market. In 5G, the ecosystem are more open, compared to 4G and earlier networks where the ecosystems were built by only 4 parties - equipment, device and chipset manufacturers and an operator. In 5G, conventional IT vendors like HP and IBM, NFV software developers, and software ventures will also be involved in the process. So, we have to work on building an open ecosystem. This is why SK Telecom installed a 5G testbed in Bundang, and made the facility open to its mid-sized partners. From 5G on, what matters will be whether there can be many practical cases of 5G application or not. Until LTE, speed was the key factor, and others like service and contents followed. But, now with LTE speed user experience easily exceeding 100 Mbps, there is barely a noticeable difference in speeds that users can actually feel. So, offering merely higher speeds without providing 5G-specific application cases is not enough to satisfy customers. Developing solutions that can give users new experience is a prerequisite now. Virtual Reality (VR) can be a good example of them. Regardless of Pyeongchang Winter Olympic, we are planning to showcase 5G technologies by then - independently or in cooperation with the government. There are some skepticism about 5G as well. LTE and 5G will co-exist for quite a long period of time, but with their own market values. From a customer's perspective, this means more services to enjoy. Once 5G hits the market, probably between 2020 and 2025, there will be no turning back. Soon, we will not be able to live without it. From a service provider's perspective, of course 5G means 'efficiency' - more data delivered using the same amount of frequency. Being far more efficient than LTE, 5G is suitable for mission-critical service, like in robots or automobiles. For example, a 5G technology can be built in an anti - collision system of an automobile because of its excellent real- time capabilities. Korea ICT News & Articles CTO of SK Telecom Jinsung Choi Hear from CTOs of Korean Telcos ❶ © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 11
11. KT | Dr. Dongmyun Lee 'Leading 5G through wired/wireless integration' 05/13 | By Y.J.Kim (kyj@etnews.com) Dr. Dongmyun Lee, Executive Vice President at KT's Institute of Convergence Technology shared his stance on development of 5G communication technology to be presented during Pyeongchang Winter Olympic to be held in Korea in 2018. First he revealed his ambitious goal of bringing the world‟s first prototype of 5G, which won‟t be commercialized until 2020, at the earliest. Media and Internet of Things (IoT) 5G technologies are also under development. KT also plans to make a major investment in developing more advanced GiGA Internet and LTE, and a proactive investment in wired/wireless network integration technology. using 10 ~ 30 MHz in each channel. On the other hand, with 5G, the same OFDM has communications made in ultra-high frequency channels, like 28 GHz, 29 GHz, or even 60 GHz. Whatever has been working under 3.5 GHz will not work in such ultra-high frequencies. Besides, so far in LTE, bandwidths up to 30 MHz have been used in each channel. But, with such ultra-high frequencies, at least 500 MHz (and even 1 GHz) is expected to be used. So, if LTE is a merely 5-lane highway, 5G is like a whopping 500-lane highway. They both may be able to use the same operating principle, but completely different operating technologies. Is there any LTE-A technology under development? We are currently working on improvement of inter-cell interference control. To give better call quality and faster speeds, unwanted noise signals faster speeds, unwanted noise signals except for user signals to receive have to be eliminated. And for that, interference has to be controlled. Overlapping coverage between base stations are called 'cell edge areas', and these areas usually have the poorest quality. 70 Mbps can be enhanced to 120 Mbps, if interference is managed properly. So, these areas are the ones with the greatest room for improvement in LTE- A. Another important technology in LTE- A is Carrier Aggregation (CA). CA combines multiple frequency bands. The more bands are combined, the more complicated the implementation gets. To ease this issue, new lanes have to be added, or the existing lanes have to be widened. So far, 4-band CA proved pretty plausible. But 5-band CA has some problems in signal reception, so is not ready yet. n Korea ICT News & Articles 5G era is to be shaped by vendors and operators. As noted above, the ecosystem pool will get wider, and that will make small-sized network operators play even more important role than anyone else. What do you think about the doubt that OFDM technologies, which have been very effective until in LTE, will no longer be effective in 5G? I think that makes sense. In 4G LTE, OFDM has long been believed to be most optimized for high-speed transmission. But, now another high- speed transmission technology iS being sought after. So, people might think 'why do we need another super computer when we already have one perfectly working?‟ Different bandwidths require different technologies. With LTE, OFDM has all communications made in 1.8 GHz, 2.1 GHz, 2.6 GHz, etc. (all under 3.5 GHz), using What’s the No. 1 priority in the company’s investment this year? When it comes to business, our investment priorities would be Giga Internet in the wired sector, and making LTE more advanced in the wireless sector. For R&D, investment will be mostly made in LTE-A and 5G. Usually, what comes in mind when we say 5G is just mobile network. But, we should be able to see that actually it is a lot more than that. In the coming 5G era, there will be no clear line of demarcation between wired and wireless networks. KT will evolve into an infra operator, providing integrated wired and wireless services. So, our plan is to develop new technologies that can serve such purpose. For example, the underlying infra of 5G will be software. Even network equipment will be software-based, primarily. So, we are working on development of SW-based infra technologies now. CTO of KT Dongmyun Lee Hear from CTOs of Korean Telcos ❷ © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 12
12. What about preparation for Pyeongchang Winter Olympic? How is it going? We are taking it very seriously. We are trying to get everything ready, from network to application services to devices, and more. We are also working hard to develop items that can show off Korea‟s unbeatable technologies and services. The event will be a good chance to present our 5G prototype. 5G is expected to be commercialized in 2020 at the earliest. We are planning to give the world an idea of how 5G will be like in its initial stage, and to present a new 5G-based service that has been improbable before. I can‟t give you further detail, but it will be something related to media and IoT. There are some concerns about 5G. What are your thoughts about that? When you think of 5G, if you use today‟s service patterns, then of course you can be skeptical about 5G. But, 5G is a network for „future service‟. The first big thing in 5G is IoT. Now what‟s connected to networks are smartphones and PCs, at the most. So, sending data once every hour should be enough. But once numerous IoT devices get connected and smarter, tremendous amount of data will be exchanged. Think of a highway full of autonomous vehicles (self-driving cars), which are often called 'smartphones on wheels'. To serve them properly, you definitely need a massive-scale network. And even more so when billions of IoT devices are connected. The second thing in 5G is cloud. We used to and still like to own things. But, now with Internet access getting 10 times faster, and even 100 times faster eventually, it's time to connect. There will be no need to carry or own information-related services or goods any more. We can simply connect to 5G through cloud any time anywhere. It will be a totally different world. What do you thing is the role of an operator in the coming 5G era? Network equipment is supplied by its manufacturers, but it's operators who provide features that are optimized for the network. In 5G era, it will be even more so. There will be more network devices introduced, and it will be all operators' job to manage and integrate them. Besides, features that used to be hardware-based will become more software-based. To get a piece of hardware and to install a software are obviously not the same. What's the current status and future of NFV technology development? Features that used to be implemented by hardware only are now sufficiently supported by software installed on CPU. With drastically upgraded CPU capacity of general servers, NFV environment has been well generated. KT has already been applying an NFV solution that it developed to its service called 'Giga Office'. This solution enables an organization to relocate its computing equipment to its operator's Central Office (CO), and connect to it through Giga Internet. We are planning to launch multifarious NFV-related services this year. One of the benefits that NFV can give is of course reduced investment burden. Costs of purchasing and operating equipment can be lowered. But the most appealing advantage is short lead times, which can be reduced from the current two months to a week . To be able to handle lots of new services introduced in 5G quick and fast, transition to SW-based network construction and operation is inevitable. How Korean communication industry should survive? The communication network industry and also the ICT convergence industry that lies on it are facing unavoidable drastic change. For 5G, SW-based network, IoT integration, or whatever you call, this can be a big o Korea ICT News & Articles What’s the concept of integrated wired and wireless networks? All wired networks have already become all-IP networks by now, and wireless networks are transforming to all-IP networks as well. Now all the key conditions required to effectively integrate them have been satisfied, and thus there is no reason to demarcate them. In the 5G era, there will be increasing need for Giga-class Internet access, wired or wireless. So, integration of the two is an excellent, unavoidable choice. If you see 5G just as wireless technology, you need to widen your view. KT sees it as a comprehensive concept that covers not only wired/wireless networks themselves, but also the services provided through them. KT will probably be the world's first to realize 5G technologies that allow for integrated operation of wired and wireless networks. Any 5G technology that you are currently developing? Last month, KT successfully conducted the world‟s first outdoor demonstration of Massive MIMO. This new technology allows for MORE users to be served with BETTER user experience even when using the same amount of frequency. Also, we are working on LTE-H (HETNET), which combines LTE and WiFi. In 5G, macro and small base stations will be installed together. And this requires new technology that can efficiently control both base stations at once. Instead of carrier aggregation (CA) that combines multiple carriers, link aggregation (LA) will be applied to link different networks, achieving up to 600 Mbps – LTE (150 Mbps) and Giga WiFi (450 Mbps). For IoT, new network technologies are essential. New 5G-related develop- ments, ranging from IoT devices, to platforms, and even to application services, are under way. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 13
13. life cycle of such changes, which used to be tens of years, is getting a lot shorter, more changes of such kind are expected sooner or later. All network-based business will also experience the resulting fast transition. During this global transition, Korea should be able to remain as a leader in the network industry. And KT is willing to contribute for the continuing leadership of Korea in the industry. n the network industry. And KT is willing to contribute for the continuing leadership of Korea in the industry. n Korea ICT News & Articles LG U+ | Mr. Changwoo Lee 'LG U+'s mobile network evolution strategies' 05/13 | By Y.J.Kim (kyj@etnews.com) you call, this can be a big opportunity, but also a threat. In order for Korea to take advantage of this opportunity, aggressive R&D and business plans are needed more than ever. And that's what KT intends to do. What is coming now is not a change in technologies only, but rather one that affects the entire industry. Besides, as the life cycle of such changes, which What is your strategy for 5G? 5G can have more than one concept and definition. To me, what matters most in 5G would be ultra-high capacity, mass connection (for IoT era), and ultra-low latency. In fact, many solutions designed to meet these three requirements have been available. There are two key factors to consider when developing new 5G technologies: technological value and customer value. A new technology is not hard to realize. What's more important eventually is how you make the technology work as a 'new life creator'. A good 5G technology should be able to satisfy at least one of the five core customer values: cost efficiency, time efficiency, emotional satisfaction, safety, and sharing information. The question that we are trying to answer is, if Internet speeds are improved from 100 Mbps to 110 Mbps, what value it would bring to customers. For example, for remote surgery, video transmission in high- quality resolution with no latency is a must. 5G, capable of satisfying two of the technical values (ultra-high capacity and ultra-low latency), can create a new customer value, remote surgery. OFDM has become one of the hottest issues in 5G. What is your thoughts about this? As 5G will have frequency efficiency that is different from that of 4G, the conventional ways used in 4G will not work anymore. 5G should satisfy three conditions: mass connection, ultra-high speed, and ultra-low latency, which would not be met with the current OFDM technologies. For instance, with NOMA, a non-OFDM technology, strength of a frequency spectrum is adjustable. So, two devices can use the same frequency spectrum at the same time, consequently achieving twice the efficiency. Frequency specialists at LG U+ are also working hard on this technology, and we have been in close According to Mr. Changwoo Lee, Vice President of LG U+ Network Business, expansion of 3-band carrier aggregation (CA) coverage, Giga Internet, LTE, and VoLTE are key areas for the company's investment this year. He went on to say, for 5G mobile communication, LG U+ has already began development of a new non-OFDM technology which would be totally different from the current technologies. For LTE-A, the company is enhancing the focus on development of LTE-U and uplink CA technology, he added. What is your plan for investment this year? It will be less than last year. First, 3-band CA coverage will be expanded. We have already had a nationwide 3-band CA LTE-A network, but plan to further enhance small cell deployment in shadowed areas and rural areas. Also, investment in Giga Internet will be made, especially in 'U+ Optical Giga’, our wired Giga Internet service. Of course this will include Giga WiFi as well. In addition, investment in VoLTE will continue, with its subscription growing steadily. CTO of LG U+ Changwoo Lee Hear from CTOs of Korean Telcos ❸ © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 14
14. and we have been in close cooperation with the relevant leading developers in the world. What we have to keep in mind is that a new technology should not be too expensive, or unreliable. How is your LTE-A development going? 3-band CA is an LTE-A solution as well. More solutions are under development, and they will have to be launched sooner or later. Launching a new solution itself does not mean much. It has to bring some new values to customers. Another new LTE-A solution ready to launch is LTE-U. It uses unlicensed spectrums, which has been traditionally used for WiFi only, for LTE. Technological development is completed, but LTE-U enabled devices are not available yet. LTE-U is designed to improve Internet connection speeds by combining LTE and unlicensed frequency bands. In fact, it can achieve up to 600 Mbps, 8 times faster than the conventional LTE (75 Mbps). For uplink CA, equipment is ready, and compatible devices are on the way. Uplink is one of our strengths. Our uplink BW in all frequency bands is twice as wide as our competitors'. Today, everything is uploaded, including selfies, video clips, live broadcasting, etc. As individual users play a larger role in mobile communication, uplinks speeds are becoming more important. For instance, live broadcasting can play a critical part during disaster response. The competition in development of NFV solutions is fierce these days. So far, when a new technology is released, there has been always advice optimized for the particular technology. But, it is practically not possible to buy a new device for every technology being released. For features remotely located in different devices/units to work properly, software-based implementation is needed. This is why NFV technology has become a sought-after technology. has become a sought-after technology. NFV enables resources to be dynamically allocated according to communication loads so that users can be served uninterruptedly even in highly-crowded areas. We are currently building an NFV system and it will be ready for test operation by the end of this year. One of the benefits of NFV is fast response. With NFV, every time customer demand grows, operators can provide fast platform-based response any time, without having to get additional equipment. For example, if you need an LTE core unit, then it can easily take 3 months. But, with NFV, you can start offering service within 1~2 weeks. If you have an overloaded area, you can virtually connect to a base station in an underloaded area and have equipment there to handle it. When do you think VoLTE interworking will be ready? LG U+ is the world leader in VoLTE. Out of total mobile service subscription, we have the world's highest LTE subscription rate. We have already begun VoLTE interworking with Japan's KDDI, and plan to expand the service in May. Currently, just G Flex 2 phones are VoLTE-compatible, but we will have more models available soon. Once VoLTE service is launched, a variety of services, including live broadcasting by individual users, will become available. As the government is currently working on making data-based pricing policies, interworking among the Korean big 3 is expected soon. So, it is not a technological matter. What would you say is the strength of LG U+? In the beginning of this year, LG U+ launched 'LB-NOS' system that can provide our 8.8 million users with the best voice call quality. When a user enters an area with weak signal strength, alerts are sent to the system. alerts are sent to the system. It helps us to collect the data and produce a nationwide shadow area map. It is our goal to use this map to proactively respond before reports are made by customers. This feature, already used in our LTE commercial network, is the Korea's and world's first of its kind. All of our networks are all IP networks. So this allows all devices such as Homeboy, smartphones and TVs to communicate with each other. For example, in the past, if you recorded something using CCTV, you could watch it at certain places only. But since Internet-enabled CCTV became available, you can watch it on your smartphone anywhere by using services, like 'MomCa'. As an LTE leader, we are leading all-IP networks business as well. n Korea ICT News & Articles Sign up for our FREE newsletter for more Netmanias’ contents sent to your inbox www.netmanias.com/en/ member.php?m=register Consulting Future LTE IP/MPLS CarrierEthernet Networks POC Training Wi-Fi Infrastructure Services CDN Transparent Caching IMS eMBMS protocols Analyze trends, technologies and market Report Technical documents Blog One-Shot gallery Analysis Concept Design DRM © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 15
15. KT’s GiGA LTE, world’s first commercial wireless 1 Giga (3-band CA + GiGA WiFi) 06/17 | By NETMANIAS (tech@netmanias.com) Korea ICT News & Articles The service will be available on Samsung Galaxy S6 and S6 edge models first, and can be used after firmware update starting June 16. The service can be used only in places where both 3-band LTE-A and GiGA WiFi equipment is installed. KT explained that, as of June 2015, it has over 200,000 LTE base stations and 140,000 GiGA WiFi zones across the nation, securing the nation‟s largest and widest „GiGA LTE‟ coverage. Mr. Oh pointed out, “Similar Multi-RAT Giga services from other operators can only be offered on one or two applications. But, ours allows users to enjoy „Giga LTE‟ speeds, virtually on all applications, including mobile IPTV, SNS, game, etc.” He added, “What matters most in GiGA LTE is how wide Giga WiFi coverage can be provided. KT has the widest coverage in the nation.” KT‟s launch of GiGA LTE has triggered its competitors, SK Telecom and LG U+, to move. They plan to commercialize „Multi-path‟ service that would also use LTE and WiFi networks concurrently. n KT announced that it succeeded in commercialization of the world‟s first wireless 1 Giga service, called “GiGA LTE". The service is known to have achieved speeds 15 times faster than the current LTE, through combining two heterogeneous networks: LTE and WiFi. Previously, the company has released “GiGA Internet” in October 2014, and “GiGA WiFi Home” in March 2015. Now with the launch of GiGA LTE, KT opened up a real wired and wireless Giga era indeed, allowing customers to enjoy Giga Internet service anywhere – at home, at work and on the go. On June 15, KT held a press conference at its Kwanghwamoon office, and unveiled its new service “GiGA LTE” that integrates 3-band CA LTE and Giga WiFi networks. Mr. Sung-mok Oh, the head of Network Division at KT, noted, “GiGA LTE is a prerequisite to 5G communication, and we are proud to present it for the first time in the world, and also three years earlier than initially planned.” The service will be available for general customers starting June 16, he added. The new service features Multi-Path TCP (MP-TCP), a technology co-developed by KT and Samsung since September 2014. By adding 3-band CA 300 Mbps and Giga WiFi 867 Mbps, the service is known to support up to 1.17 Gbps which is 4 times faster than conventional 3-band CA, and 15 times faster than current LTE. At this speed, you can download an 18 GB UHD movie in just 126 seconds. This is why GiGA LTE is deemed as a stepping stone to 5G era where 100 Gbps speeds are required. During the demonstration conducted using smartphones at the press conference, a maximum of 835 Mbps and an average of 600~700 Mbps speeds were supported. Server LTE 3-band CA 300 Mbps P-GW Internet MPTCP Application Subflow (TCP) Subflow (TCP) Subflow (TCP) Subflow (TCP) MPTCP TCP G/W KT’s MPTCP G/W KT’s GiGA LTE TCP Application LegacyTCPsession LegacyTCPsession Legacy TCP session KT’s GiGA LTE: maximum 1.17 Gbps ELUON Samsung Galaxy S6, S6 edge GiGA WiFi 867 Mbps GiGA LTE 1.17 Gbps DASAN Networks Unveils Next-Generation Gigabit Internet Solutions in APAC and Europe 06/22 | By NETMANIAS (tech@netmanias.com) DASAN Networks is accelerating its global business in Asia-Pacific and European markets. DASAN Networks participated in CommunicAsia 2015 in Singapore, and K- Global 2015 in London, on the 2nd of June and the 16th of June respectively, to introduce its next-generation network solutions. During four days at CommunicAsia 2015 (June 2~5), DASAN Networks promoted its cutting edge Next-Generation fiber solutions for Gigabit speed Internet. The solutions included a new NG-PON2 OLT to perform 40 Gbps providing a cost effective method to expand networks and higher bandwidth, and G.fast solution that provides up to 1 Gbps using 1 pair of copper line, Wireless and Mobile Backhaul solutions ready for the upcoming 5G and IoT era. With various Telecom operators and ISPs (Internet Service Provider) from Asia- Pacific countries - Singapore, Vietnam, Indonesia and Taiwan, DASAN Networks discussed cooperation plans on its next generation fiber network solutions including G.fast and NG-PON2 along with the legacy GPON/EPON. DASAN also had a chance to make further business opportunities on Mobile Backhaul solutions that had been successfully launched in Japan. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 18
16. Shortly after CommunicAsia, DASAN Networks showcased at K-Global 2015 (Jun 16~18) in London, a part of Interop London during London Technology Week (June 15~21). During the event, DASAN Networks met valuable customers including BT and proactive business partners who aim to expand market reach in Europe, Middle East and Africa with DASAN Networks‟ customer centric solutions. Thomas Song, Vice President in Global Business Division of DASAN Networks said, “DASAN Networks has been aggressively pursuing the global market, and recently started to gain a sales momentum especially from its new G.fast and NG-PON2 solutions. DASAN Networks will leverage its proven technology and take more chances in the global market this year.” n Emergency status in 3 mobile carriers as permission to use 2.6 GHz is given to 4th mobile carrier...Will broadband frequency end up to 1? 06/01 | By An, Hochun | hcan@etnews.com There is a state of emergency in 3 mobile carriers as they try to secure broadband frequency (one way 20 MHz range) because 700 MHz‟s direction is unclear and government gave a permission to use 2.6 GHz to 4th mobile carrier. It can be end up as 3 mobile carriers fighting for securing one broadband frequency (2.1 GHz). According to communication industry on the 31st, 3 mobile communicators are in a deeper concern as government announced its plan to support 4th mobile carrier. Ministry of Science, ICT, and Future Planning (MSIP) approved a use of not just 2.5 GHz (LTE-TDD 40 MHz range), but also 2.6 GHz (LTE-FDD 40 MHz range) to 4th mobile carrier. By allowing businesses to freely choose technology methods, new businesses can now enter the market easier. At the frequency auction that was supposed to happen at the end of this year, bandwidths that were mentioned as broadband frequencies were 700 MHz, 2.1 GHz, and 2.6 GHz. But things began to change rapidly as National Disaster and Safety Communication Network‟s issues began to rise last year. As the government distributed 20 MHz out of 700 MHz to National Disaster and Safety Communication Network, battle between broadcast and communication businesses that was already present began to intensify even more. MSIP presented desperate measure that distributes 40 MHz out of 700 MHz for mobile communication purposes and 4 channels (24 MHz) to local UHD channels. National Assembly rejected this measure, and local channels still insist on using all 700 MHz residual bandwidths on UHD channels. Sense of crisis begins to grow as broadband frequency can completely fade away and rest of bandwidths can all be passed to broadcasts. Worst case of scenario can happen if 3 mobile carriers don‟t receive 700 MHz broadband frequency, and 4th mobile carrier chooses 2.6 GHz. Industry thinks that there is a high possibility that 4th mobile carrier will choose 2.6 GHz bandwidth that uses frequency division long term evolution method (LTE-FDD) by considering card readers and product‟s supply and demand. “It‟s difficult for mobile carriers can say yes or no regarding government‟s distribution of 700 MHz. We just hope to secure even just 40 MHz range. It is unknown whether or not 4th mobile carrier will choose 2.6 GHz, but it is something that existing mobile carriers don‟t really want.” One employee that is in charge of frequency at a mobile carrier confessed about what existing mobile carriers really want. If those mobile carriers don‟t received broadband frequency from 700 MHz and 2.6 GHz, it is inevitable that they will fight for 2.1 GHz. Even before Disaster and Safety Communication Network‟s and 4th mobile carrier‟s issues stuck out, 2.1 GHz was something that those carriers showed much interest in. LG U+ uses 20 MHz for LTE purpose, and SK Telecom and KT use 60 MHz and 40 MHz for 3G purposes respectively. SK Telecom and KT switched 20 MHz out of 60 MHz for LTE purposes last year and started tri-band LTE-A service. MSIP plans to collect total of 100 MHz that SK Telecom and KT use by end of 2016 and recycle minimum of 60 MHz range for LTE purpose. All three mobile carriers have a chance to secure additional broadband as of right now. “All 3 mobile carriers are looking to secure 2nd broadband frequency as it is advantageous to secure broadband frequency as much as possible due to increase of data traffic. Frequency‟s direction will be decided when 700 MHz‟s use is decided and decision of 4th mobile carrier‟s selection is made at the end of this year.” A person in this industry said about what will ultimately happen at the end of the year when everything is decided. n Korea ICT News & Articles Broadband frequency action: Bands and concerns Band 700 MHz 2.1 GHz 2.6 GHz Concerns Fierce competition over this band among broadcasters and operators Fair chance of ALL 3 operators securing additional wideband frequency Very likely to be auctioned off to a 4th operator © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 19
17. LG U+'s new services: 'LTE Video Portal' and 'Home IoT' 06/29 | By NETMANIAS (tech@netmanias.com) After 4 years of providing LTE service, LG U+ (www.uplus.co.kr) presented the world's first integrated video streaming service „LTE Video Portal' and a new IoT solution 'Home IoT Service' at a press conference held at its Yongsan headquarters on the 29th. At the conference, LG U+ Vice President Sang- chul Lee revealed his ambitious plans, stating: "With LTE Video Portal, LG U+ will lead the real video era where every part of your life is related to video" "We will position ourselves as the global IoT market leader by 2020, making the world a hyper-connected society" Korea ICT News & Articles Source: LG U+ CEO of LG U+ Sang-chul Lee He stressed, "Video will become the next generation's voice. An era, where video replaces everything else, has arrived. So, the LTE Video Portal certainly is an innovative, customized service that will serve the era, allowing users to access all video content across the world. He also noted, "IoT can be classified into four categories - Personal, Home, Industrial and Public. Regardless of the category, all information is stored in cloud so that users can be served any time. The key factors in home service are safety, energy and cost." • Over 130,000 VOD titles - 100,000 from current U+HDTV/U flix and 30,000 from new 'Premium Knowledge Pack' service • 6 new home IoT services - switch, power outlet, energy meter, heating and cooling control, open detection sensor and door lock - ready to go in July © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 20
18. LTE Video Portal (World's first mobile ‘LTE Video Portal’) The LTE Video Portal is the latest service by LG U+ that allows you to enjoy various popular, interesting or informative video content from all around the world with just a few clicks. What makes this service the world's first of this kind is that it offers one place filled with a variety of video content that viewers of all ages might want, from TV shows to movies and even UCC, and more. LG U+ combined its two previous services, 'U+HDTV' (available at KRW5,000 per month)' and 'U flix Movie (KRW7,000 per month)', with a new service 'Premium Knowledge Pack' (KRW5,000 per month) featuring over 30,000 VOD titles, into this new service. Current U+ HDTV subscribers can stay as LTE Video Portal members, and even subscribers to other operators are welcome to join. LG U+ also launched a free video data plan called 'Subway Video Free'. In addition to 1 GB of data a day for video streaming provided by its video data usage-based billing plans, the company will offer an additional 1 GB of data at no extra cost when used on a subway. There will be a special promotion 'Upload Data Free' until the end of the year offering unlimited data upload from any U+ service for free. Home IoT (IoT Hub and IoT@Home App) In July, LT U+ is planning to introduce six new home IoT-based services such as light switches, power outlets, energy meters, heating and cooling control, opening detection sensors, and door locks, along with Gaslock and Momca, the two services showcased earlier this year. For this, UG U+ also presented a dongle-type 'IoT Hub', which would connect all IoT-based appliances at home by using Z-Wave, its new wireless communication solution. Those who are currently subscribing to LG U+ WiFi (around 2 million users) can easily make their home IoT ready by simply plugging in the IoT Hub to their WiFi devices. Along with the IoT Hub, the company also introduced „IoT@Home‟, a smart application that lets you control various home IoT services and devices, all on your cellphone. The app is available for download in any app market. Korea ICT News & Articles These IoT services all feature voice command for the first time in Korea. And anyone, regardless of their operators, can subscribe to the services. Also, LG U+ announced two new data plans: 'IoT Unlimited Data' and 'One By One'. The 'IoT Unlimited Data' plan comes with five key IoT devices (at discounted price) and lets you use IoT service on the devices at KRW11,000 per month (3-year commitment), regardless of the number of devices to connect. The 'One By One' plan allows you to use a first IoT device at KRW11,000 per month (3-year commitment), and charges an additional fee of KRW1,000 per month for each additional device. This plan offers no special discount for device purchase. The company plans to boost customer satisfaction, by exclusively offering a full range of service from installation to after-sales service. n Visit www.netmanias.com to read more KCR issues. Q2 2015 Q1 2015 Q4 2014 Q3 2014 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 21
19. The AdaptiV EPC pulls together software-based virtualized network functions (VNFs) running on a KVM hypervisor, and can use standard Commercial Off The Shelf (COTS) general- purpose hardware, or specialized purpose built Samsung servers, depending on the operator's specific requirements. Samsung Electronics and SK Telecom to jointly develop SDN PoC for LTE core network 06/25 | By NETMANIAS (tech@netmanias.com) Samsung Electronics announced on the 25th that it will partner with SK Telecom, to develop a Software Defined Networking (SDN) Proof of Concept (PoC) for an LTE core network. Both companies have recently announced their plans to develop virtualized, software-based networking solutions. SDN is one of the hottest, and most interested next generation technologies, and many global players have been paying keen attention to development of new SDN solutions and services. SDN is designed to separate control and data plane in network equipment, in order to create more efficient data transmission routes. An SDN-enabled Evolved Packet Core (EPC) solution is known for the ability to offer optimized traffic routes according to types of subscribers and services, without having to go through the core network. Using this solution, operators can determine the shortest routes for data delivery, improve QoE, and reduce undesired network overload. In addition, they can handle network fault fast and keep investment costs down. What is great about SDN is that it can offer different and flexible network services to each subscriber according to their selected plans (Network as a Service), while still using the current network (Network Slicing). Because of these benefits, large-scale organizations like corporations, universities, public institutions, etc. can enjoy the convenience of using private network services through the networks already built by operators, without the hassle of building a new network themselves. Plus, SDN is expected to significantly lower the risk of data leakage because it allows for delivering of important, confidential data directly via base stations nearby, instead of delivering through the public Internet network. So, it can be useful for large-scaled organizations like corporations, hospital, public institutions, etc. Also, because SDN makes sure data travel via the shortest routes near the base station, lower latency can be achieved. This will make many real- time, latency-critical data services to be available in the coming 5G era, like cloud games, remote driving, etc., a reality. The two companies plan to lead the next generation network innovation in the global market, through cooperation in development of SDN-enabled EPC equipment and standardization by October. Jin-hyo Park, Head of Network Tech- nology Center at SK Telecom noted, "SDN is one of the key next generation technologies for innovation of network and cloud infrastructure of operators." He continued, "We are planning to effectively accommodate ever- increasing mobile data traffic through new EPC equipment development, and offer differentiated multimedia service experiences." “Software-based technologies such as Network Function Virtualization (NFV) and SDN are key enablers for innovative services and efficient network operations,” said Dong-Soo Park, Executive Vice President and Head of R&D for Network Business at Samsung Electronics. n Korea ICT News & Articles Source: Samsung AdaptiV solutions are also supported by Samsung's CognitiV Cloud Manager system for flexible and scalable management of processing, storage and network resources. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 22
20. Samsung succeeds in demonstrating world’s first public safety communication net based on ‘PS-LTE’- standard 06/03 | By NETMANIAS (tech@netmanias.com) Samsung demonstrated world‟s first public safety communication net based on Public Safety Long Term Evolution (PS-LTE) and introduced communi- cation equipments at Samsung Digital City on the 1st. Samsung built actual communication network in Digital City, and demonstrated communication between central control center and scene of a disaster by setting a fake disaster situation. It introduced Push To Talk (PTT) technology that allows to rapidly call many people at once. It also introduced „eMBMS‟ technology that transfers HD images to many communication terminals even when crowd is presented at a disaster area. Lastly it introduced Device to Device (D2D) technology that supports communication between units even when base station is destroyed by a disaster. Smartphone terminal for disaster that Samsung also introduced can provide stable service during extreme situation because it has IP67-level waterproof and dust protection functions. IP67-level can support flooding for 30 minutes under 1 meter of water. Samsung demonstrated as the worlds first in just 3 months from establish PS- LTE standard technology. “This was possible Samsung because it possesses important technologies and variety portfolios that are related to public safety communication net such as chipset, terminal, communication equipment, and service application. We actively participated in standardizing PS- LTE.” A person explained. Samsung is putting a lot of effort along with small businesses to build a construction business of public construction business of public safety communication net system. On made an agreement ceremony in Digital City with 15 Korean small cooperative companies for public safety communication net business.- business. President Kim Young Ki of Samsung‟ network department said that Samsung will keep on focusing on public safety communication net. n PS-LTE Demonstration based on IMS and eMBMS by Samsung Korea ICT News & Articles Global players, like Alcatel-Lucent, Ericsson LG, Nokia, Huawei, etc., are still showing a keen interest in the NECN project as well. Since the beginning of the year, they have conducted demonstrations for the public and media, aggressively promoting their solutions and service to impress operators. The pilot project will take place in two regions: Region 1, Central Control Center and Pyeongchang, and Region 2, Gangneung and Jeongseon. The Ministry of Public Safety and Security will issue a contract concerning center, base station and device for Region 1, but one concerning base station and device only for Region 2. So, competition will be more intense in Region 1. An RFP for the project will be sent out at the end of the month, and the outlines of consortiums among the candidates will become fairly visible next month. n With the national emergency communication network pilot project impending, under-the- table negotiations now begin 06/02 | By NETMANIAS (tech@netmanias.com) With the plan for the National Emergency Communication Network (NECN) pilot project being almost finalized, everyone in the industry is busy negotiating under the table to form a consortium. Fierce competition among operators, equipment vendors and device vendors are expected. On the 2nd, Samsung Electronics conducted a demonstration of Public Safety LTE (PS-LTE) equipment at Samsung Digital City in Suwon, Gyeonggi-do. Candidates for the NECN pilot project Building Network Equipment Device Candidates SK Telecom, KT, LG U+ Samsung, Alcatel-Lucent, Nokia, Ericsson-LG, Huawei, ZTE 4 ~ 5 vendors including Cybertel Bridge, KT powertel, and AM Telecom Other Design and construction, IT service providers, etc. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 23
21. connected to its IoT gateway, including Alljoyn-type AllPlay Speaker, Z-Wave devices, IR devices, etc. It also demonstrated a tablet-based GUI application designed for controlling and maintaining devices connected to the IoT gateway, showing how different operation modes like security management, remote control, away from home, etc., are actually supported. It was noteworthy that the IoT gateway features 'speech recognition' technology, a very 'user-friendly' interface. A MODACOM personnel at the event stressed, "Smart BrainTM is an excellent solution that supports a wide range of IoT standards, from global standards like AllJoyn, oneM2M, Z-Wave, etc., to home appliance specifications like WeMo, Hue Light, etc. So, no matter what product/ service you select, you can select an IoT device with design and features you want and install it with ease. In addition, you can build your own IoT infra at home by leveraging the built-in IoT platform in Smart BrainTM. Or if cooperating with an operator, you can even offer more intelligent IoT service by having it interwork with the operator's IoT service platform." He added, "Now with Smart BrainTM in the market, we will continue to strengthen our marketing and business partnership with operators and platform vendors in Korea and around the world." n among home users, but also among different industries around the world. In the past, to address IoT fragmentation issues, IoT industry alliances and standardization bodies around the world, like Allseen alliance, oneM2M, Open Interconnect Consortium (OIC), Z-Wave, etc., have defined their IoT platform standards, and now they are competing with each other based on the defined standards. MODACOM has been working on development of IoT platform, while leading the IoT standardization process since 2011. It also has been seeking a way to have various low-energy devices interact with each other, and to apply different market-leading IoT end devices to a single platform. The new IoT gateway solution by MODACOM features oneM2M and AllJoyn platform, both defined as global standards. It is designed to support Personal Area Network (PAN) protocols like WiFi, Z-Wave and Bluetooth Low Energy (BLE) for interaction with a wide range of wireless sensor network devices. The solution also offers a feature that can control commercialized IoT devices, like "WeMO", "Hue light", etc., and Infrared Radiation (IR)-controlled home appliances already released in the market. At the WIS, the company showcased multifarious IoT devices that can be connected to its IoT gateway, including Korea ICT News & Articles MODACOM launched smart IoT Gateway, opening a new IoT era MODACOM, a South Korea-based mobile router and USB dongle device manufacturer, unveiled a new IoT gateway solution called Smart BrainTM at the World IT Show (WIS) 2015 held at Samsung COEX from May 27th through 30th. IoT gateway solutions allows you to connect various mobile IoT end devices, and have them interact with each other through an IoT platform. They can also offer many different intelligent IoT services through interaction with an external IoT service platform server. Recently, IoT technologies and services have gained huge popularity not only among home users, but also among 05/28 | By NETMANIAS (tech@netmanias.com) IoT Gateway, Smart BrainTM by MODACOM IoT devices that can be connected to Smart BrainTM and Service GUI © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 24
22. SK Telecom opens ThingPlug, an integrated IoT platform based on oneM2M standards 05/20 | By NETMANIAS (tech@netmanias.com) • ThingPlug offers an attractive one-stop development environment as well as diverse application-enabling features for developers • The company expects the platform to contribute to the creation of massive number of innovative IoT services that deliver enhanced value for customers SK Telecom today launched „ThingPlug,‟ an open IoT platform based on oneM2M* standards, along with its website (https://sandbox.SK Telecomiot.com) to allow anyone to develop and use IoT services. As an open platform based on the international standard for IoT (Release 1 specifications, oneM2M), ThingPlug is expected to play a crucial role in boosting the IoT ecosystem. The biggest strength of ThingPlug lies in its application enablement and openness: It offers service platform functions and DIY (Do It Yourself) development environment for developers to create any IoT services on their own. Korea ICT News & Articles B2C Biz • Planty: Connect with your plant anywhere • TTEO: Things Talk to Each Other • iThing : IoT-based device control using voice ... B2B Biz • Allion - Interactive blackbox • MAGICAR - Remote car starter • RAPA - Repeater power meter • Fish farm water maintenance system ... Developers can easily build a service/ app by downloading the SDK (Software Development Kit) from the ThingPlug website and combining it with their hardware including various sensors. They can then use the service/app immediately after registering the service and device to the website, and allow others to use the service as well. By enabling individual developers to create and share diverse IoT services tailored to their needs, the range of IoT services, which has been confined to the enterprise and government markets, is likely to expand to the consumer market. ThingPlug also offers various features - jointly developed with Daliworks, a Korean IoT platform service company - to support easy management of IoT services and devices. Developers can conveniently check, in real time, the service status and data via many different types of devices, including PCs, smartphones and tablet computers, thanks to the same UI (User Interface). In addition, the platform allows developers to save cost associated with building and maintaining a server building and maintaining a server by providing a cloud-based server. Furthermore, as the nation‟s largest carrier with differentiated competitiveness in the IoT network technologies, SK Telecom supports IPv6 for ThingPlug and ensures a high level of data security. The company plans to apply ThingPlug to the smart city test bed which will be created in Busan at the End of this year. Under cooperation with the city government, SK Telecom is planning to upgrade a long list of public services - e.g. parking management, building energy management, safety services for the socially underprivileged, etc. - to smart IoT services to create a best practice model. It also plans to hold an IoT hackathon in the third quarter of this year to boost the use of ThingPlug. “The launch of ThingPlug, an open IoT platform based on oneM2M standards, carries a significant meaning as it allows anyone to develop an IoT service, leading to the creation of a truly enriched IoT ecosystem that brings increased value and convenience increased value and convenience to developers across the globe,” said Alex Jinsung Choi, the Chief Technology Officer of SK Telecom. “To this end, we will not only work closely with the local governments, solution developers and technology institutes in Korea, but also join hands with IoT players around the world.” * Formed in 2012, oneM2M (www.onem2m.org) is a global organization creating a scalable and interoperable standard for communications of devices and services used in M2M applications and the Internet of Things. The purpose and goal of oneM2M is to develop technical specifications which address the need for a common M2M Service Layer that can be readily embedded within various hardware and software, and relied upon to connect the myriad of devices in the field with M2M application servers worldwide. n © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 26
23. SK Telecom unveils Smart Home to realize perfect home environment 05/20 | By NETMANIAS (tech@netmanias.com) SK Telecom today launched Smart Home, a service built on an open IoT platform to realize a safe, convenient and energy-efficient home environment for consumers. The company held an event at its Seoul headquarters to commemorate the launch of the Smart Home service. Together with diverse partners including iRevo, Winix, KyungDong Navien and Time Valve, SK Telecom introduced four different Smart Home-compatible products - dehumidifier, boiler, door lock and gas valve lock. SK Telecom stressed that users can conveniently control these home appliances through a single mobile application on user‟s smartphone - in a Wi-Fi connected environment* - instead of having to install a mobile application for each and every connected device/ appliance. Customers, regardless of their mobile carrier, can use SK Telecom‟s Smart Home service by purchasing a SK Telecom Smart Home-compatible device. * Battery-powered products like door lock and gas valve lock may require a Z-Wave bridge to reduce battery consumption Korea ICT News & Articles • Launches Smart Home service along with four compatible products, including boiler and door lock, to realize a safe, convenient and energy-efficient home environment for customers; and plans to add more than 10 compatible products within this year • Managed through a single mobile application, Smart Home suggests the easiest way to control many different household appliances in an integrated manner • Built on an open IoT platform, Smart Home is expected to create a mutually-beneficial ecosystem for partners More importantly, users can also set these connected products to work in an integrated manner according to the user‟s situations – e.g. waking-up, leaving home, returning home, going to bed etc. For instance, when activated, the „Away Mode‟ will automatically lock the door and gas valve, and turn off the boiler and dehumidifier. Also, users can activate the „Coming Home Mode‟ on their way home from work to turn on the boiler and dehumidifier to create a pleasant home environment just in time for their arrival. SK Telecom expects these features to not only enhance customer safety and convenience, but also result in saving energy costs. The ultimate vision of SK Telecom‟s Smart Home is to create an ideal home environment for customers by not just providing connectivity for a comprehensive range of household products (including both electronic and non-electronic devices/appliances like furniture), but also enabling these products to work flawlessly in harmony to maximize customer experience and value. The company is currently working actively with a long list of market- leading companies - including Ace Bed, Altoen Daewoo, Banditongsin, Carrier, Daesung Celtic, DS Tek, GE Lighting, Haatz, KyungDong Navien, Kumho Electric, Kyowon L&C, iRevo, MCT, Powervoice, Rinnai, Time Valve, Tongyang Magic, Winia, Winix, Wizit, YPP and Yujin Robot - to set up a more enriched smart home environment. It plans to add air purifier, lighting, smart plug and smart switch to its service platform in the third quarter of this year; water purifier in the fourth quarter; and even connect furniture next year. Moreover, SK Telecom will set itself further apart from other players by adding intelligent features to Smart Home. For instance, the company is planning to link Smart Home to its location-based service platform, weather service platform, big data/ personalization platform and dispatch security service platform to provide features tailored to each customer. The company‟s long-term plan includes collaboration with companies in in other industries, including energy and construction, to develop new business models. To this end, the company has built the Smart Home service on an open IoT platform. It also announced plans to open related APIs (Application Programming Interfaces) within this year to encourage further innovations from developers and household appliance manufacturers, thus creating a mutually-beneficial ecosystem. “SK Telecom‟s Smart Home is the first service ambitiously built as part of our IoT Service Platform, one of the three Next-Generation Platforms chosen as the company‟s new growth engine in April,” said Cho Young-hoon, Senior Vice President and Head of Smart Home Task Force. “Smart Home will go beyond simply connecting products to become a truly intelligent service that provides features customized to each user‟s situation and needs. At the same time, it will boost the creation of a virtuous ecosystem that brings benefits to all stakeholders. n © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 27
24. IPTV commercialization by Korean Big 3 operators as of July 1, 2015 (157 CHs: FHD 122, HD 0, SD 35) 15 UHD subscribers: 5,000+ UHD subscribers: 3,000+ UHD subscribers: 30,000+ UHD subscribers: 50,000+ UHD subscribers: 10,000+ UHD subscribers: 60,000+ UHD subscribers: 125,000+ IPTV subscribers: 6,042K • Changing pricing plan - OllehTV10 (192 CHs, FHD 149): 10,000 - OllehTV15 (213 CHs, FHD 164): 15,000 IPTV subscribers: 3,029K IPTV subscribers: 2,039K • LTE subscribers: 634 K (2.4%)08 09 À launched Live IPTV service À launched Live IPTV service IPTV subscribers: 773K IPTV subscribers: 775K IPTV subscribers: 65K • LTE subscribers: 634 K (2.4%) 13 À launched Full HD service IPTV subscribers: 4,968K IPTV subscribers: 2,095K IPTV subscribers: 1,549K À launched Full HD service • LTE subscribers: 634 K (2.4%) 14 launched UHD service (app) • All HD channels (122) upgraded to FHD IPTV subscribers: 5,859K IPTV subscribers: 2,828K IPTV subscribers: 1,949K À launched UHD (STB) service À launched UHD (STB) service 1 UHD CH (SkyUHD) &VoD UHD VoD only 5 FHD CHs (135 HD CHs, total 203 CHs) H.264@12Mbps • All HD channels (130) Upgraded to FHD, @10Mbps À launched UHD (STB) service UHD VoD only, HEVC 213 CHs: UHD 1, FHD 96, HD 69, SD 47 175 CHs: UHD 0, FHD 130, HD 0, SD 45 33 FHD CHs, @10Mbps• launched Cloud DVD service 12 IPTV subscribers: 4,030K IPTV subscribers: 1,445K IPTV subscribers: 1,054K 11 IPTV subscribers: 3,076K IPTV subscribers: 981K IPTV subscribers: 862K 10 IPTV subscribers: 2,085K IPTV subscribers: 947K IPTV subscribers: 613K µIPTV Revenue: $352m (VoD: $69m)µIPTV Revenue: $647m (VoD: $185m) µIPTV Revenue: $253m (VoD: $45m)µIPTV Revenue: $461m (VoD: $172m) µIPTV Revenue: $436m (VoD: $86m) µIPTV Revenue: $157m (VoD: $68m) µIPTV Revenue: $183m (VoD: $31m)µIPTV Revenue: $386m (VoD: $116m) µIPTV Revenue: $201m (VoD: $45m) µIPTV Revenue: $139m (VoD: $22m)µIPTV Revenue: $287m (VoD: $68m) µIPTV Revenue: $143m (VoD: $32m) µIPTV Revenue: $77mµIPTV Revenue: $175m µIPTV Revenue: $110m À launched Live IPTV service 33 CHs, SD&HD • Agreement with HBO (VoD contents: 600 titles) • Agreement with Sony Pictures Entertainment (UHD VoD contents: 100 movie, drama 150 H) • Agreement with NBCUniversal (UHD VoD contents) • Agreement with Sony Pictures Entertainment (UHD VoD contents: 180 titles, 250 H), 3- year 122 CHs (HD 42, SD 80) 88 CHs (HD 28, SD 60) 119 CHs (HD 60, SD 59) 137 CHs (HD 60, SD 77) 115 CHs (HD 62, SD 53) 124 CHs (HD 77, SD 47) µIPTV Revenue: $21mµIPTV Revenue: $91m µIPTV Revenue: $71m IPTV subscription cross 10 million in Korea • Agreement with Sony Pictures Entertainment (UHD VoD contents: 180 titles) • Remastering of FHD to UHD (Korean Movie: Masquerade, The good, the bad, the weird, Sympathy for Lady Vengeance, The Berlin File, etc.) • Remastering of FHD to UHD (Korean Movie: The Admiral: Roaring Currents) • Remastering of FHD to UHD (Korean Movie: The Admiral: Roaring Currents), 18Mbps 15~20Mbps, H.265 (HEVC) • UHD VoD Contents: In-service (239 titles), acquired contents (378 titles) * In-service (239): movie (85), documentary (60), series (48), life (22), sports (15), concert (9) Y • Agreement reached on real-time retransmission between over-the-air (terrestrial) broadcasters and IPTV service providers (for cost per subscriber: 280 per month) 1 2 3 4 11 1 12 3 12 4 9 8 10 12 7 12 12 12 12 11 3 3 M IPTV subscription cross 11.1 million in Korea 1 1 World First World First • UHD 3 CHs (SkyUHD1, SkyUHD2, UXN) 6 1 World First UHD subscribers: 100,000+5 UHD subscribers: 20,000+ UHD subscribers: 150,000+ SK Broadband LG U+KT UHD subscribers: 170,000+ UHD subscribers: 20,000+ UHD subscribers: 162,000+ © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 28
25. Service launched December 2013 - # of Full HD CHs 154 channels 157 channels 127 channels - Resolution 1920x1080 1920x1080 1920x1080 VLC Codec H.264 H.264 H.264 VLC Encoding Rate 9.5 Mbps 9.95 Mbps 8.5 Mbps VLC Streaming Rate 13.1 Mbps 12.6 Mbps 11.3 Mbps Wireshark Network BW 13.5 Mbps 12.9 Mbps 11.7 Mbps Wireshark Transport Protocol UDP UDP UDP Wireshark Multicast IP address 233.15.200.55:5000 239.192.40.26:49220 233.18.145.194:55216 Wireshark Channel Request IGMPv2 IGMPv2 IGMPv2 Wireshark Encryption Encrypted Not encrypted Encrypted VLC QoS 0x80 (DSCP: 0x20) 0x80 (DSCP: 0x20) 0xb8 (DSCP: 0x2e EF) Wireshark Service launched April 2015 VLC # of Pre-UHD CHs 5 CHs Wireshark Resolution 1920x1080 VLC Codec H.264 VLC Encoding Rate 17.2 Mbps VLC Streaming Rate 20.7 Mbps Wireshark Network BW 21.4 Mbps Wireshark Transport Protocol UDP Wireshark Multicast IP address IGMPv2 Wireshark Channel Request 233.18.158.46:5000 Wireshark Encryption Encrypted VLC QoS 0x80 (DSCP: 0x20) Wireshark Service launch September 2014 - UHD STB Kaon Media - # of UHD CHs 3 (SkyUHD1, SkyUHD2, UXN) - Resolution 3840×2160 VLC Codec H.265 VLC Frame Rate 30 fps - Encoding Rate 21.3 Mbps VLC Streaming Rate 26.3 Mbps Wireshark Network BW 27.1 Mbps Wireshark Transport Protocol UDP Wireshark Multicast IP address 233.13.231.18:5000 Wireshark Channel Request IGMPv2 Wireshark Encryption Encrypted VLC QoS 0x80 (DSCP: 0x20) Wireshark # of Total Channels 216 channels 194 channels 162 channels - Full HD Tested Channel: MBC (011) Pre-HD Tested Channel: JTBC (015) UHD Tested Channel: SkyUHD (001) KT SK Broadband LG U+ Test Tool Not serviced Not serviced Not serviced Not serviced Live TV services by Korean Big 3 Operators (June 30, 2015) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 29
26. # of UHD VoD KT has 306 UHD titles, the largest UHD content libraries in Korea, followed by LG U+ with 267, and SK Broadband with 254. UHD VoD contents provided by Korean Big 3 Operators (June 30, 2015) UHD VoD Total Play Time KT, with the largest UHD VoD content collection, has secured a total of 17,974-minute (300-hour) running time, which is enough to play non-stop for 12 days. # of Free UHD VoD Almost everything, except American TV shows and commercial movies, can be watched for free. KT offers a total of 124 titles, the most among the big 3. Genre Common contents of Big 3 • Movie: Spider-Man, Elysium, Men In Black, Salt, Total Recall, etc. • Series: House of cards 2, Masters of sex 1, Breaking Bad, The Blacklist, etc. 254SK Broadband 267LG U+ 306KT 300 hourSK Telecom 278 hoursSK Broadband 271 hoursLG U+ 124KT SK Broadband 78 82LG U+ 77 86 11078 128 111 6778 14 52 5778 17 33 22 15 1 9 9 0 Movie Series Documentary Life Sports Performance KT SK Broadband LG U+ 19 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 30
27. 19.9Mbps •Title:LasVegas •VoDfileinfo.:Playtime(914sec) •Codec:H.265 •Resolution:3840x2160 •Encodingrate:20.8Mbps •Streamingprotocol:RTSP •Transportprotocol:TCP •NetworkBWconsumed -VoDTraffic:23.2Mbps -RTSPtraffic:3.4Mbps StreamingTest (May2015) ServicelaunchedSeptember2014September2014October2014 #ofUHDVoDpieces237pieces,199hours176pieces,184hours •Title:HouseofCards2,es1 •VoDfileinfo.:Filesize(6.79GB),Play time(3,019sec) •Codec:H.265 •Resolution:3840x2160 •Encodingrate:18.0Mbps •Streamingprotocol:RTSP •Transportprotocol:UDP •NetworkBWconsumed -VoDtraffic:18.9Mbps -RTSPtraffic:»0Mbps KTSKBroadbandLGU+ KTGigaInternet (FTTH:EPON) KTIPTV HeadendKTIP Network Giga ONTUHDSTB UHDTV KTCDN Kaonmedia Samsung TestEnvironment •Title:HouseofCards2,es1 •VoDfileinfo.:Filesize(6.66GB),Play time(3,019sec) •Codec:H.265 •Resolution:3840x2160 •Encodingrate:17.6Mbps •Streamingprotocol:RTSP •Transportprotocol:TCP •NetworkBWconsumed: -VoDtraffic:19.9Mbps -RTSPtraffic:»0Mbps 3.4Mbps 23.2Mbps 27.2Mbps RTSPmessages VoDtraffic+RTSPtraffic VoDTraffic(TCP)VoDtrafficUDP) RTSPPLAY 18.9Mbps RTSPPLAY SKBroadbandGigaInternet (FTTH:GPON) SKBIPTV HeadendSKBIP Network Giga ONTUHDSTB UHDTV SKBCDN Humax Samsung LGU+GigaInternet (LAN) LGU+ IPTV Headend LGU+IP Network Giga RGUHDSTB UHDTV LGU+CDN LG Samsung VoDTraffic(TCP) RTSPPLAY 4KUHDVoDStreamingTechnologiesofKoreanIPTVserviceproviders © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 31
28. KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) UHD Services from Korea Telco KT 4K UHD IPTV Services Live TV, Most Popular Channels Now, 4-Channel View and VoD Dr. Harrison J. Son (tech@netmanias.com) KT launched the world's first UHD IPTV service in September 2014. Now it has over 100,000 subscribers as of May 2015, closing trailing LG U+ who has attracted around 150,000 UHD subscribers over the same period of time. What differentiates KT's UHD IPTV service from its competitors' is that it is the only service that offers not only UHD VoD, but also UHD broadcasting channels. UHD VoD service is available from its competitors, SK Broadband and LG U+, as well, but neither of them provides a UHD broadcasting channel. Then in September 2014, the company began to offer UHD service (encoding rate: 21Mbps, 3840x2160) via its UHD-only channel 'Sky UHD' (450 hours). In addition, since it first applied 'Pre-UHD' technology (encoding rate: 17Mbps, 1920x1080) in April 2015 to upgrade some of the popular channels in Full HD (encoding rate: 9.5Mbps) to UHD-class, KT has provided more semi-UHD channels (We were very satisfied with the video quality of the UHD channel, and I personally did not notice any difference in video quality between Pre-UHD and UHD channels. It apparently is very subjective, though). This year, KT plans to continue to upgrade existing channels to Pre-UHD class. KT is currently offering 3 UHD channels, including Sky UHD2 (130 hours) and CJ UXN (400 hours) just launched in June. Live TV So, we thought it would be worthwhile to take a look at KT's Live TV service (real-time retransmission of broadcast channels over IP network, linear TV channels). First, we will briefly review the history of KT's IPTV Live TV service. KT launched SD/HD-class IPTV Live TV service in January 2009, and Full HD service in December, 2013. UHD Pre-UHD FHD SD 201: SkyUHD1 001: SkyUHD2 203: CJ UXN Channel Resolution 3840x2160 Codec H.265 Encoding Rate 21.3 Mbps Network BW 27.1 Mbps 015: JTBC 017: TvN 021: Mnet 028: OCN 058: SBS Sports 1920x1080 H.264 17.2 Mbps 21.4 Mbps 011: MBC 183 channels 1920x1080 H.264 9.5 Mbps 13.5 Mbps 183: E-daily 25 channels 720x480 H.264 3.5 Mbps 4.4 Mbps Drama Series Documentary Movie Category News Drama/Enter. Show/Concert Movie Sports Terrestrial News Frame/sec 30 30 30 30 UHD (3) Pre-UHD (5) Full HD (154) SD (54) Figure 1. KT’s IPTV Channels Information KT IPTV Channels (Total 216 Channels) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 32
29. KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) Terrestrial Comprehensive PP Home Shopping TvN OCN OCN Series Catch On Catch On + Super Action O’live XTM On Style Story On Tooniverse NGC Baduk TV Chinese TV Mnet KM OnGamenet CJ MediaCJ Powercast CJ UXN MPEG2, FHD (20~30Mbps) 4 streams, 88Mbps (each stream: H.264, 22Mbps) H.264 Live Encoder H.265 Live Encoder SkyUHD1 SkyUHD2 STB KT IPTV UHD STB KT IP Network KT IPTV Headend KT Leased Line PPs H.264, FHD (10Mbps) H.265, UHD (21Mbps) MBC KBS SBS CJ O Shopping NS Home Shopping GS Shop Lotte Home Shopping Hyundai Home Shopping TV Chosun Channel A JTBC MBN H.265, UHD (21Mbps) H.265, UHD (21Mbps) Figure 2. Channels Delivery of KT IPTV (Major Channels) MPEG2, FHD (20~30Mbps)H.264, FHD (10Mbps) MPEG2, FHD (20~30Mbps)H.264, FHD (10Mbps) H.264 Live Encoder Broadcasting Playout Mastertape,schedule H.264, FHD (10Mbps) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 33
30. minutes according to the viewing rates. This service allows you to check what other people are watching the most that moment so you do not miss the fun everyone else is having. It also helps you to get the latest trends in TV shows yourself in real time. It is always good to be able to compare the viewing rates of TV shows, so you can make an informed decision on what to watch. It is always good to be able to compare the viewing rates of TV shows, so you can make an informed decision on what to watch, which can be a very important decision after a long, busy day. In Korea, viewing rates of TV programs are measured by TNmS and Nielsen Korea, each using a sample of just about 3,000 households. On the contrary, KT has over 6 million IPTV subscribers. Most Popular Channels Now (9-Channel View) You probably have been switching channels, looking for something interesting to watch, until you finally settle down for one. For viewers like you, KT offers a new way of selecting channels through a service called "Most Popular Channels Now". At the company's Olleh TV home, the following video clip appears when you click the "Most Popular Channels Now". Of over 200 channels that it is currently offering, KT picks the top 27 channels that are currently being watched the most, and shows 9 channels each time in a split screen as seen in the video clip above, leaving all of them muted except for the one in the red box. Channel selection is updated every 5 KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) Figure 3. KT’s UHD Channels (SkyUHD2) Streaming: Encoding Rate and Required Network BW KT IPTV HeadendKT UHD STB (Kaonmedia) UHD TV (Samsung) 27.1Mbps (IP Multicast Stream) 21.3Mbps (UHD stream) UDP, IP, Ethernet overhead Encryption, FEC overhead 26.3Mbps KT IP Network Network BW 27.1Mbps (wireshark) Streaming Rate 26.3Mbps (wireshark) Encoding Rate 21.3Mbps (content bitrate in vlc) Broadcast stream + CAS overhead + FEC O/H + network overhead Broadcast stream + CAS overhead + FEC O/H Broadcast stream Sky UHD Network BW = 27.1Mbps, CBR, QoS Marking 0x80 * Streaming rate: Refers to the UDP payload rate which can be obtained by subtracting the network overhead (including Ethernet, IP, UDP headers) from the network bandwidth of a multicast stream measured by Wireshark. In general, streaming data includes not only video data, but also other data including encryption information, FEC data, etc. So, the actual encoding rate of a video is lower than its streaming rate. * Encoding rate: Refers to the Content Bitrate value measured in VLC. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 34
31. KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) To find out, we conducted a test. First, we watched the Most Popular Channels Now for about 70 seconds, and then selected MBC. As seen in the figure below, during the 70 seconds, an IGMP Join message for 233.15.200.104 was sent from the STB to KT's network, and just ONE multicast stream (233.15.200.104) was transmitted to the STB. Then, when MBC was selected, an IGMP Leave message for 233.15.200.104 was sent out, disconnecting the Most Popular Channels Now stream, and an IGMP Join message for MBC (233.15.200.55) was sent out, getting a multicast stream of MBC (233.15.200.55) instead. This proves that the 9 channels were mixed into one channel in the headend, and then transmitted to the STB in one multicast stream (233.15.200.104). So, the answer to our question is ❷. The multicast stream (233.15.200.104:5000) has: • Network bandwidth: 6.7 Mbps, VBR • 9 audio streams (of the 9 channels with highest viewing rates) and one video stream (9 channels mixed into one) • Video codec: H.264 • Encoding rate: 4.5 Mbps • Video resolution: 1280x720 (HD) • Video frame rate: 29.97 fps One thing we noticed was that there was about 20 seconds of delay in watching the channels through the Most Popular Channels Now channel (in 9-split screen), compared to watching them through their original channels (just one channel in main screen). This delay must have been caused because i) top 9 popular channels (with the highest viewing rate) had to be chosen from all over 200 channels transmitted to KT's headend in real time, ii) they had to be mixed into one stream, and finally iii) the stream had to be sent to KT's IP network. Figure 4. Screenshot of Most Popular Channels Now (9-Channel View) So, if KT's measurement of viewing rates were based on the data from over 6 million real viewers, than the other two's, which are based on a much smaller sample. Now, let's find out ❶ whether each of the 9 channels (displayed in one screen) are transmitted in independent multicast streams, or ❷ whether they are mixed into a single channel in the headend first, and then transmitted in one multicast stream. UHD STB KT IPTV Headend single multicast stream 9 CHs mixed into one channel ❷ UHD STB KT IPTV Headend CH 1/Multicast stream 1 CH 2/Multicast stream 2 CH 9/Multicast stream 9 ... ❶ Figure 5. 9 or Single Multicast Stream Figure 6. Wireshark Analysis The 9 channels were mixed into one channel in the headend, and then transmitted to the STB in one multicast stream (233.15.200.104) MBC (233.15.200.55) UDP Multicast Packets IGMP Join (233.15.200.104) Ethernet BW: 6.7 Mbps IGMP Leave (233.15.200.104) IGMP Join (233.15.200.55) Ethernet BW: 13.5 Mbps 9-mixed-CH (233.15.200.104) UDP Multicast Packets 9-mixed-CH © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 35
32. In a recent test we conducted by using KT GiGA Internet, Samsung's UHD TV and Kaonmedia's UHD STB, we found all 4 multicast streams are transmitted to STB in both cases - whether operator-selected or user-selected. We also confirmed that both options allow for re- arrangement of the channels in the screen. So, a user can move channels around, for example, from the main window to one of the 3 sub-windows, or the other way around. The user-selected 4-channel view also the same results as seen in Figure 7. KT's 4-channel view (operator or user-selected) allows all 4 channels to be independently transmitted in individual multicast streams. As a result, channels can be switched between the main and sub- windows, which makes KT's service different from others'. In summary, KT's 4- channel view service features 3 SD sub-windows (of 3.6 Mbps each, in 720x480) and one Full HD main window (of about 11Mbps, in 1920x1080). Viewing all 4 channels in UHD (3840x2160) is not technically possible, yet. I personally was very satisfied with the quality of the service (both operator and user-selected options). Especially, watching 4 different news channels all at once with a peace of mind that I am not missing any news was a great experience. What I liked about the service most was that I could watch just what I wanted without having to watch all the annoying advertisements. Apparently, this kind of service will change the way people watch TV from now on. 4-Channel View KT also offers 4-channel view service. This service is pretty similar to LG U+'s and has the following two options: 1. Operator-selected channels: Offers a set of 4 channels selected by operator (sports, shopping, over-the-air and movies) 2. User-selected channels (launched in March 2015): Allows users to select 4 channels, and watch them in a customized 4-split view KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) Figure 7. Screenshot of 4-channel view Figure 8. Wireshark Analysis We found all 4 multicast streams are transmitted to STB in both cases - whether operator-selected or user-selected. KT's 4-channel view service features 3 SD sub- windows (of 3.6 Mbps each, in 720x480) and one Full HD main window (of about 11Mbps, in 1920x1080) Main window: MBC Sports+ SBS Sports KBS N Sports SPOTV 060: MBC Sports+ Multicast Stream (233.19.187.208) 051: SPOTV Multicast Stream (233.13.231.2) 059: KBS N Sports Multicast Stream (233.19.187.183) 058: SBS Sports Multicast Stream (233.19.187.235) 11.2Mbps 3.6Mbps 3.6Mbps 3.6Mbps 060 (MBC Sports+) 059 (KBS) 058 (SBS) 051 (SPOTV) 1920x10 80 720x480 720x480 720x480 11.2Mbps 3.6Mbps 3.6Mbps 3.6Mbps Channels arrangement Resolution Network BW [bps]Network BW Main window MBC Sports+ 1920x1080 (FHD) H.264 8.5 Mbps 11.2 Mbps Sub window 1 SBS Sports 720x480 (SD) H.264 2.5 Mbps 3.6 Mbps Sub window 2 KBS N Sports 720x480 (SD) H.264 2.5 Mbps 3.6 Mbps Sub window 3 SPOTV 720x480 (SD) H.264 2.5 Mbps 3.6 Mbps Channel Resolution Codec Encoding rate Network BW © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 36
33. 4K UHD VoD Success or failure of UHD service lies in how much UHD contents the service provided can offer. Being well aware of that, KT has gradually secured more contents, for example, through upscaling of Full HD movies to UHD quality (e.g. 'The Admiral: Roaring Currents', 'The good, the bad, and the weird', 'Masquerade', etc.), through partnership with Sony Pictures for UHD contents (e.g. House of Cards 2 filmed in UHD), etc. A total of 306 UHD VoD contents (300 hours long in total) are currently available for service - 124 free and 182 paid contents. KT 4K UHD IPTV Services | Dr. Harrison J. Son (tech@netmanias.com) Figure 10. KT’s UHD VoD Streaming Of all the 306 contents, we captured the traffic of 124 free contents (by using KT GiGa Internet, Samsung's UHD TV, and Kaonmedia's UHD STB), and found that a HEVC (H.265) codec was used and the frame rate was 30fps. The test also discovered the RTSP streaming protocol was used. The encoding rates were 18.0 Mbps for most of the contents, and 25.0 Mbps for some of them. The contents with both encoding rates were played smoothly. • Codec: HEVC (H.265) • Encoding Rate: 18.0 Mbps (25.0 Mbps for some contents) • Frame Rate: 30 fps • Streaming Protocol: RTSP • Transport Protocol: UDP Following is the captured streaming traffic of 'House of Cards' (Episode 1 of Season 2), an American TV series: • Codec: HEVC (H.265) • Encoding Rate: 18.0 Mbps (see RTSP/SDP in the figure below) • Frame Rate: 30 fps • Streaming Protocol: RTSP • Transport Protocol: UDP • Network BW required: 18.9 Mbps (encoding rate x network overhead), CBR • QoS Marking: DiffServ 0x60 (DSCP 0x18: Class Selector 3) n # of Free UHD VoD 124 # of UHD VoD 306 l Genre 86Movie 111Series 52Documentary 33Life 15Sports 9Performance l UHD VoD Pieces Figure 9. KT’s UHD VoD Contents Sony Pictures, Paramount Pictures, IMAX, BBC, Red Bull, King content, AVA, Daewon Media, Green Narae, etc. l Content Providers Encoding Rate: 18.0 Mbps Ethernet BW: 18.9 Mbps RTSP PLAY [bps] UHD VoD Streaming (House of Cards 2, episode 1) Movie Stream (UDP Unicast Packets) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 37
34. B2C IoT services available from Korean operators (right green box: commercialized service) Category Services Description SK Telecom Smart Furniture Users can use the Internet, listen to the radio, search for news or recipes, food prices and the weather, and even make a phone call using the touch screen on their furniture, such as dressing tables and cabinet doors. C Smart Mirroring Mirrors smartphone or tablet screen onto TVs or larger screens using Wi-Fi network. Play With (Ballpark) Provides smartphone users in a ballpark with various location-based information on events at the ballpark, promotions at shops, etc. in real time, by using Beacon devices installed at the ballpark and related IoT platforms. Solar Skin Solar-powered smartphone charging case that uses light to generate electric current to charge a smartphone battery. C C C Health Telecare Remotely monitors activities of the elderly living alone or the severely disabled by using HD cameras, and sends alerts in case of fire, gas detection, emergency calls, etc. UO Band Wearable watch that notifies users of incoming calls, SMS/MMS, emails and SNS updates, but also provides fun features like physical exercise and health-care for users. UO Headset Bluetooth earset that provides basic earset features plus a four-channel hearing aid feature for people with hearing loss. T-Car Provides T-car service users (drivers) with vehicle-related information on their smartphone for easier maintenance using a wireless modem (3G, LTE) and a controller built into vehicles. The users can start their car remotely using T-Car app downloaded on their smartphone. C Eggo-mate Personal assistant service that arranges/organizes events, meetings and schedules and even sends messages on behalf of a user. Smart Shopper Allows users to just scan the barcodes of desired items using a scanner instead of actually putting them in a cart, and pay at once at a kiosk. Extra service like home delivery of purchased items may be available too. Smart Stamp Allows users to get electronic coupons or have reward cards stamped on their smartphone, and use them just like real printed coupons and cards. Smart Creditcard Saves information of many credit cards onto one BLE-enabled electronic card so that card holders can make payment using the card without having to carry all the cards. Shopkick Provides shoppers with various shopping information related to nearby stores (like coupon, discount, rewards) on their smartphone as they pass by. C ICT Bike Solution (LBS) Provides IoT-based integrated bike management services, including i) theft/loss prevention service, and ii) registration/management service, through a built-in Beacon sensor. C C Petfit A necklace-type appcessory (application + accessory) that helps your pet stay healthy by monitoring the amount of exercise and calories burned. UO Air Cube An easy-to-carry air condition monitoring system that lets you check the levels of air pollution, fine dust, temperature and humidity, and informs you of what to do in case of emergency. C Health On 2.0 An all-in-one health tracker that monitors and analyzes the amount and level of your physical activities using various fitness bands. C Life Smart Autoscan An IoT smartcar solution that provides you with detailed, easy-to-understand diagnostics information about your vehicle, helping you better maintain and drive it. CC Smart Home Remotely switches on/off and controls all home appliances/devices through the IoT platform/network. 1. Air-purifier, air-conditioning, refrigerator, lighting 2. Boiler, door lock, gas lock, smart switch/outlet C Smart Beacon Lighting An IoT service that combines Bluetooth beacon and smart lighting with 65,000 colors to blend and customize. Smart Golf An IoT tool for golfers that measures distance to cup holes and steepness of the field, and works as a ball marker as well. C C C Entertainment UO Audio Linkage Portable Wi-Fi speaker capable of supporting a high quality music files such as Free Lossless Audio Codec (FLAC). UO Smart Beam Laser Small sized projector built with laser technology to project a high definition and brighter image. CC C © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 38
35. Safety T Kidsphone Joon Allows parents to check the whereabouts and safety of children through the information transmitted from the wearable 3G phone of their children. Offers child safety-related features like emergency calling, SOS notification, real-time location tracking and Safe Zone setting. Electronic Anklet Keeps track of sex offenders' whereabouts in real-time via an anklet with built-in sensor they are wearing. C C PointCam Monitors CCTV footages recorded at remote sites in real-time via smartphone or PC. C C KT Health Home Fitness Checks and provides statistics on speed, distance, and calories burned, by using sensors built into sportswear, sports shoes, training machines, etc., and connectivity options like IPTV set top box, smartphone. C Yodoc Portable self-diagnosis urine analyzer for self-checkup at home. C Smart Air Monitors indoor air pollution levels and sends pollution alerts through interworking with an external IoT big data platform. Controls the IoT enabled air-cleaning system accordingly. Home IoT Remotely switches on/off and controls lights and plugged-in appliances using the IoT platform at or away from home. Helps to conserve energy over time by preventing unnecessary power usage. Tap Sign Unlike conventional E-commerce, this service allows a credit card company to authenticate an e-commerce transaction on a smartphone (NFC enabled), simply by placing a "Tap Sign" credit card (RF IC chip inside) on the smartphone. Safety U Secure Service Alerts parents or caregivers if a child leaves the designated safety zone. C Entertainment Giga Sound Qualcomm's "Allplay" technology-based music service. It enables an IoT based wireless speaker to play the music (supporting FLAC) that is being played through a music app. On smartphone (e.g., Genie service) via a wireless IoT network. C Emergency Safety Care Services Sensors installed at home detect any emergency situation of the elderly living alone or the severely disabled, sending alerts to their designated caregivers as needed. C Life Smart Doorlock Unlocks a door using an NFC-enabled smartphone that has a mobile key stored into the USIM card. Apps for issuing mobile keys are available from operators at charge. C Smart Mirror Senses IoT users' movement through D2D technology, and displays various information (weather, temperature, traffic and etc.) on the mirror by interworking with an IoT platform. Can also displays personal digital albums (photo/video) and SMS messages as well. LG U+ Health Smart Healthcare IoT-based spiral health care solution (posture control, correction, etc.) Magic Mirror Precisely diagnoses skin conditions through the magic mirror equipped with a special camera and display, offering various skin care solutions. Car Link Displays services and features on smartphone in the display/screen in a vehicle (Connected car). C Safety LTE Blackbox In case of accidents, LTE blackbox installed in a vehicle of a nursery/kindergarten automatically sends recorded data to LG U+'s control server through LTE network, while alerting an related administrator and parents. Home CCTV Momca Remotely monitors children's academic and daily activities at nursery/kindergarten in real-time through CCTV. C Gas Lock Remotely checks and turns off the gas valve from anywhere using a smartphone, and also features overheat alert, automatic lock, timer setting, etc. C C C Giga IoT Home Cam Home Cam sends you a video clip recorded at home to your smartphone app in real time. You can have a security team sent to your home by pressing "Emergency call" button. C Walking Coach A smartphone band that records and manages your walk data. C Life IoT@Home Remotely switches on/off and controls all home appliances/devices through the IoT platform/network. 1. Gas lock, door lock, smart switch/outlet 2. Energy meter, temperature sensor, intrusion sensor C © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 39
36. B2B LTE Drone Performs HD video transmission and real-time control using LTE modem-equipped drones : Broadcasting, fire, military area C Digital Tachograph(DTG) Records and sends driving information of a vehicle, such as location, distance to the control center, etc., by using DTG (Digital Tachograph) system and a wireless modem in the vehicle. C LTE CCTV Monitors activities at remote sites in real-time on CCTV through LTE network. MOS Remotely monitors and controls the status of facilities and equipment in a big building complex, factory, plant, etc. *MOS: Monitoring, Maintenance and Management Operating System C Smart Energy Measures, analyzes and manages the amount of energy consumed by corporate or individual person. Bus Stop Shelter Provides bus passengers with various information and advertising service through media outlets at bus stop shelters (partnered with KT media hub). Eco Food Bin Keeps track of the amount of waste discharged in an individual RFID built-in container, and delivers the information to the main system of “Korea Environment Corporation (KECO)” for billing. Smart Voting Issues voting papers for remote voters through smart voting terminals installed by the Election Authority. C SK Telecom B2B Smart DTG Remotely collects and transmits DTG (Digital Tachograph) information of vehicles through a wireless communication module (GPS-embedded). Smart Eco-driving Offers cost-efficient driving solutions for commercial vehicles (cargo, bus, etc.), supporting features such as real-time location/operation reporting, DTI, eco-driving information, travel route/tracking. T Smart Farm Provides diverse remote control features for indoor/outdoor farms through IoT/M2M infrastructure (open/close water, turn on/off heater, pesticide application, CCTV footages). Smart Fish Farm Monitors the growth and health of fish (eels), measuring the quality of water in the eel fish tank. C Location-based (Beacon+Glass) The Beacon-based LBS helps workers to easily trace accurate locations items/products, and the Smart Glass transmits videos captured at sites to the control center, by combining Beacon with Smart Glass platform. CLOUD BEMS Monitors/analyzes/manages energy usage in building facilities through a cloud-based BEMS (Building Energy Management System) for energy-saving. Wireless ATM Service Provides the existing ATM service with a wireless connection using LTE router. B2G Traffic Signal Control Communication Service Monitors the system status information of the traffic signal controllers remotely through a built-in LTE modem, minimizing traffic jams caused by traffic system errors. C B2G Weather Planet Provides high-resolution weather information collected by AWS (Automatic Weather Stations) located at SK TELECOM’s base station sites. Lake Water Monitoring Monitors the quality of lake water and sends the collected data through a wireless modem. LG U+ B2B Smart Locker Enables operators to check the conditions and status of the automated locker systems in subway stations in real time, by using LTE router device. Also, the systems can be upgraded and managed effectively through wireless connection. C C C C C C C C C C B2B IoT services available from Korean operators (right green box: commercialized service) KT Category Services Description © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 40
37. LG U+ achieved 600 Mbps in its second LTE-U demonstration Dr. Michelle M. Do (tech@netmanias.com) In its second demonstration of LTE in unlicensed spectrum ("LTE-U", LAA in 3GPP term) conducted last month - 7 months after its first demonstration where it showed 300 Mbps through CA of 20 MHz at 2.6 GHz and another 20 MHz at 5.8 GHz, LG U+ successfully achieved 600 Mbps through carrier aggregation (CA) of 20 MHz at 2.6 GHz and 60 MHz (3 x 20 MHz) at 5.8 GHz. The operators all have 40 MHz of LTE bandwidth (DL), and support up to 300 Mbps through 3-band CA (as of 2015 Q1). So far, they all somehow have managed to secure additional LTE frequencies gradually (10→20→30→40 MHz), offering faster speeds through CA. But, they are about to face a harder battle. At the end of the year, an auction for 700 MHz, 2.1 GHz and 2.6 GHz bands is scheduled. Especially, to get a wideband (20 MHz) frequency, the 3 operators will have to compete not only with each other, but also with local over-the-air broadcasters requesting UHD channels, a possible 4th mobile operator, etc. Besides, the Korean government's policies on frequency allocation and the astronomical frequency costs are imposing a big burden on the operators. LTE-U is a radio access technology that is designed to use 5 GHz unlicensed band, mostly used for WiFi so far, for LTE purpose as well. So, the technology will allow the band to serve pretty well as a supplementary band (of more than dozens of MHz) for LTE, although not as a dedicated, primary band like licensed bands do. For the operators who are under pressure to deal with issues like growing traffic, frequency shortage, and high costs of frequency, LTE-U certainly sounded With LTE-U not even standardized yet, Korean operators are already in fierce competition in the new technology. LG U+ has been apparently leading the race so far, tightly followed by its competitors SK Telecom and KT, who also showcased 450 Mbps LTE- U, with Ericsson/Qualcomm in February, and with Samsung/Qualcomm in March, respectively. LG U+, with two successful demonstrations, said it is currently working on commercialization of the technology. Then why are all the operators so obsessed with LTE-U demonstration, especially LG U+? First, let's see what is going on in the Korean communication market now. Korean LTE market is already pretty mature. As of 2015 Q1, it has i) 66% of LTE subscription, ii) 120 PB of LTE data usage, which accounts for 96% of its total mobile data usage, and iii) 3.4 GB of monthly average data usage per LTE subscriber. LG U+ achieved 600 Mbps in its second LTE-U demonstration | Dr. Michelle M. Do (tech@netmanias.com) Figure 1. LTE-U demonstration by LG U+ (Source: LG U+) LTE-U demonstration network Up to 600 Mbps was achieved in the demo at LG U+ Yongsang building on March 7 4-band CA of LTE 20 MHz (2.6 GHz) and unlicensed 60 MHz (5 GHz), achieving 600Mbps HUB Small RRH CPRI Optical Fiber CPRI over Ethernet Notebook (DM tools) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 41
38. In the demonstration, a total of 4 carriers - one from LTE 2.6 GHz band and 3 from WiFi 5.8 GHz band - were aggregated. Each carrier was 20 MHz wide, and so the UE used a total of 80 MHz, achieving download speeds of up to 600 Mbps, which was two times faster than the current LTE-A. Optic fiber cables were used for connection between the BBU and HUB, and UTP cables were used between the HUB and small RRHs. Data sent to the UE travels as follows: • The data travels through CPRI interface from BBU to HUB. • Then it travels through Gigabit Ethernet (GE) interface, i.e. CPRI over Ethernet, from HUB to small RRHs (CPRI is terminated at the small RRHs). • At the small RRHs, LTE baseband signals are converted into LTE/WiFi RF signals. The primary LTE carrier and 3 supplementary WiFi carriers are combined and sent to the UE through carrier aggregation. An LTE-U Small RRH has a modular structure, and consists of two types of modules: 2.6 GHz module (LTE module) and WiFi 5.8 GHz module (LTE-U module). In the figure above, Small RRH 1 has one LTE and one LTE-U modules while Small RRH 2 has 2 LTE-U modules. In the demonstration, each module in the small RRH used their own UTP cables to connect HUB. But once LTE-U is commercialized, connection will be made from each small RRH (not from each module) to HUB via a single dedicated UTP cable. Currently, LTE-U Small like an attractive alternative. The output power is limited to low power in the 5 GHz unlicensed band. So small cells are most likely to be the first place where commercialized LTE-U will be employed. Also, indoor/outdoor hotspots or in-building solutions are expected to be the first target of the new technology deployment. We had a chance to discuss with a member of LG U+ Access Network Development Team who conducted the LTE-U demonstration last month. Below we will briefly review what we learned from him about their LTE-U demonstration, target areas, and commercialization plan, one at a time. LTE-U demonstration Figure 1 is a diagram that illustrates LTE-U demonstration by LG U+. Figure 2 is a picture of the real demonstration site prepared by the company. The LTE-U demonstration network consists of: • UE: 1 test LTE-U UE • RAN - 1 commercial BBU operated in 2.6 GHz LTE network - 2 LTE-U small (multi-band) RRHs supporting multi-band, LTE 2.6 GHz and WiFi 5.8 GHz - 1 HUB that connects the BBU and the small RRHs • Core Network: Commercial EPC LTE-U combines LTE and WiFi bands, with an anchor in reliable licensed, LTE band, providing wider transmission bandwidth. LG U+ achieved 600 Mbps in its second LTE-U demonstration | Dr. Michelle M. Do (tech@netmanias.com) Figure 2. LG U+'s LTE-U demonstration room DL Throughput 600 Mbps Small RRH 1 Small RRH 2 BBU, HUB, Test UE DM information © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 42
39. RRHs can support 2-band, but will be supporting 3- band next year. The figure 3 shows an example of LTE-U deployment an in-building environment. It looks pretty much like Macro C-RAN applied in the same environment. Here, LTE-U is similar to Macro C-RAN in that BBU and RRH are separated, but has a little bit modified architecture of C-RAN in that the BBU and small RRHs are connected via a HUB. CPRI interface in Macro network between BBU and RRHs via optic cabling is, now in LTE-U, further divided into: i) CPRI interface between BBU and HUB (optic cabling), and ii) GE interface (CPRI over Ethernet, UTP) between HUB and small RRHs LTE-U can be compared to DAS in that they both offer distributed access points for users in a building. The biggest difference between the two will be that DAS uses antennas distributed over a building as those access points, but LTE-U uses small RRHs, instead. Then, why LG U+ is so eager to launch LTE-U fast? With the last demonstration done successfully, LG U+ said now their next plan is to aggregate up to 4 carriers (80 MHz) alone in 5.8 GHz unlicensed band, and combine them with one 20 MHz licensed carrier, to achieve speeds of up to 750 Mbps (i.e. through CA of 20 MHz at 2.6 GHz and 4x20 MHz (80 MHz) at 5.8 GHz). As LTE-A allows for CA of up to 5x20 MHz carriers, 750 Mbps is the maximum capacity LTE-A can support in 2x2 MIMO environment. So, why LG U+ is moving so fast, actually the fastest? 1. World's highest LTE subscription rate, but not enough frequency Unlike its competitors, LG U+'s network has evolved from 2G CDMA directly to LTE, skipping 3G network. And it already has 79% of LTE subscription rate, the highest among the big 3. Given the fact that the other two already have 3G and WiBro (Mobile WiMAX) frequencies that are convertible into LTE frequency, LG U+ needs additional LTE frequency more than anyone else (see Figure 4). 2. Excellent hotspot solution After about 9 months of working on construction of a nationwide LTE network since its LTE service launch in July 2011, LG U+ finally built the world's first nationwide LTE network in March 2012. Shortly after, it also commercialized the world's first VoLTE service, providing voice service 100% through the LTE network. Voice service is a real- time service. Due to such nature, the company's hotspots have been built mostly in small cells, rather than in WiFi. Solutions for improving data offloading and capacity in hotspots have been sought after due to traffic growth. And the LG U+ personnel said LTE- U small cell could serve as an excellent alternative hotspot/in-building solution. While others are busy working on WiFi, upgrading hotspot WiFi into Giga-class WiFi, LG U+ decided to stick to working on LTE-U, accelerating expansion of LTE-U hotspot sites, and thereby ensuring more reliable and secure communication than WiFi in the hotspots. LTE-U Service Commercialization Plan For successful commercialization of LTE-U, co- existence between WiFi and LTE-U has to be secured first, and then the following two issues: LG U+ achieved 600 Mbps in its second LTE-U demonstration | Dr. Michelle M. Do (tech@netmanias.com) Figure 3. An example of deployment: in-building broadband UTP cable Small RRH CPRI HUB HUB CPRI over Ethernet CPRI BBU Ethernet backhaul 600Mbps 600Mbps © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 43
40. 1. Korean government's policies on 5GHz band must be finalized Co-existence policies must be announced first. Then based on them, the current technology standards on 5 GHz band must be revised accordingly. 3GPP is considering to adopt Listen- Before-Talk (LBT), a LTE-U channel access procedure, as an effort to ensure fair share of 5 GHz band with WiFi. 2. LTE-U enabled devices must be available Qualcomm plans to release LTE-U enabled mobile chipsets without LBT feature this year, and ones with LBT feature next year. LG U+'s plan now is to commercialize LTE-U service at the same time when LTE-U enabled devices hit the market. According to the LG U+ personnel, by next year i) the Ministry of Science, ICT and Future Planning (MSIP) will finish finalization of 5 GHz policy, and ii) LTE-U enabled devices with LBT feature will be available in the LG U+ achieved 600 Mbps in its second LTE-U demonstration | Dr. Michelle M. Do (tech@netmanias.com) Figure 4. Why LG U+ is so eager to launch LTE-U fast? market. So, the new service will probably be released sometime next year as well. It looks like LG U+ wanted to make the most of LTE-U in indoor/outdoor hotspots. The new C- RAN based small cell architecture showcased last time is expected to play a large part as the key hotspot/in-building solution of the company. With LTE-U standardization due in about a year, if everything goes will, LG U+ should be able to launch the service next year as scheduled. Well, we will just wait and see. n 2.6 GHz 850 MHz 2.1 GHz 850 MHz 2.6 GHz 850 MHz 2.6 GHz 2.1 GHz 150 Mbps 225 Mbps 300 Mbps 2013.07 2.6 GHz 5 GHz 5 GHz 2.6 GHz i) Without a wideband freq. > 2015 20 MHz 30 MHz 40 MHz 450 Mbps Without a wideband frequency (20 MHz) in a licensed band, higher speed can not be guaranteed by 2016 LG U+’s concern 60 MHz 100 MHz 40 MHz 50 MHz 2-band CA 2014.06 2015.01 5-band CA ii) With a wideband freq. 300 Mbps 375 Mbps LTE-U LTE • Wideband freq.: available • Frequency cost: - • for Indoor/hotspot ...3-band CA 2015 Q4 700 MHz 1.8 GHz 2.1 GHz 2.6 GHz (example) 750 Mbps ø Currently, a RF transceiver can support CA of up to 3 bands • Wideband freq.: uncertain • Frequency cost: ₩₩ ... ... 2.6 GHz 2.6 GHz ? MHz ? Mbps 850 MHz 75 Mbps 10 MHz 2011.07 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 44 Plan for LTE frequency auction
41. • SK Telecom(SK TELECOM) was selected as the winner for the “Outstanding LTE Contribution” award at the GSMA Global Mobile Awards for two years in a row in recognition of its contribution to LTE technology worldwide. • SK TELECOM has shown its technology leadership in 2-band and 3-band carrier aggregation (800MHz, 1.8GHz, 2.1GHz). • SK TELECOM has its own operation know-how for CDMA/WCDMA/LTE/VoLTE networks. • SK TELECOM has diverse experiences and know-how in the operation of multi vendors’ equipment. • Recently, SK TELECOM provided LTE consulting services to Global MNOs. Jay Byun, j.byun@sk.com • Target : A company starting a new MNO business, considering to adopt a new network, looking for a high quality network compared to its competitors. • Allow rapid and accurate decision making regarding strategy, planning, design, installment, and operation and thereby ensuring a successful service launching. • Receive high-level professional services with costs cutting, flexibility, high network stability and reliablity from the MNO’s perspective. • Obtain various network solutions for optimization, Network Management System (NMS), and Customer Experience Management (CEM). SK Telecom has developed them on its own and they are currently in operation. • Through audit, able to find and improve weak points of your network from the operator’s perspective. N/W Audit N/W Audit •N/W audit criteria •N/W audit process •End to end performance Benchmarking Test •3G benchmarking test -Own measurement method related to user experience -Measurement result report -Call fail analysis -Recommend RF parameter •LTE benchmarking test -Own measurement method -Measurement result report -Call fail analysis -Recommend RF parameter N/W Optimization •RF optimization •System & parameter optimization •Call failure analysis •Packet analysis, new features N/W Operation •N/W KPI management -Gather data & analyze (system and field performance based on KPI) and evaluate KPI •Sharing SK TELECOM’s experience and recommendation -Traffic management -Risk management -Customer experience management N/W Design •N/W architecture of LTE •N/W design (access, core, transmission) •Traffic egineering (process & criteria) •Cell planning recommendation •VoLTE standardization (requirement) •KPI recommendation •Vender’s N/W design review Strategy •Interconnection strategy with legacy N/W •N/W service strategy -Voice service strategy -Data throughput •N/W coverage strategy •N/W rollout/migration strategy •Multi vendor strategy •Frequency strategy N/W Deployment •Installation test scenario •Site review - Visit sites and check deployment status • Offers network consulting services that are best optimized for mobile network operators based on many years of experience in operating various networks (LTE/A, HSPA+, CDMA, WiMAX) and systems. N/W Rollout N/W Design Benefits Why SK Telecom
42. most of its base stations have become C-RAN based, and small RRHs were introduced in some regions last year. For indoor, Distributed Antenna System (DAS) solution has been pretty dominant. This solution, originally designed for extending coverage, might not work best today because what is sought after most now is a solution that can extend an indoor/ in-building capacity for accommodating the ever- increasing LTE traffic of these days. For this reason, i) DAS solutions have been evolving to give enhanced capacity, and ii) small cell-based solutions have been introduced. Let's take a look at SK Telecom's in-building solutions now. I. SK Telecom's In-building Solutions SK Telecom's highly scalable in-building solutions (for medium and large-scaled buildings) can be classified as follows: • DAS Evolution • 3G DAS + LTE small cell • Indoor C-RAN: NEURON DAS, traditionally focused on coverage expansion, is now evolving to yield increased capacity. In the meantime, small cells, capable of providing capacity on their own, unlike DAS, are evolving to further extend their coverage, beyond hotspots. This nature of small cell inspired SK Telecom to come up with new in-building solutions. First, in line with the decision to convert some of the 2.1 GHz 3G band to LTE band, it combined LTE small cell and 3G DAS at 2.1 GHz in 2014. Second, it presented NEURON, a solution designed to adopt C-RAN architecture for indoor use (tested in early 2015). II. DAS Evolution Conventional DAS: A popular coverage solution since 2G/3G designed to extend the coverage of a base station to areas with poor radio reception in a building. It brings RF signals from a base station/ RRH into a building via optic/RF cables, and has them transmitted across the building via antennas distributed in the building. This solution lets an As of April 2015, SK Telecom's mobile data traffic accounts for 44% of the entire mobile traffic in Korea (See Figure 1). Since the launch of LTE service, the company has experienced rapid growth of mobile traffic - more than tenfold from 5.7 PB in June 2011 (right before LTE service launch) to 57.7 PB in April 2015. With the company's announcement of unlimited LTE data policy in May, LTE traffic is expected to increase even more and faster. Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) Figure 1. SK Telecom's mobile traffic growth (source: MSIP and SK Telecom) SK Telecom, with a 47% market share in Korean LTE market, has the same amount of LTE frequency bandwidth (in DL) as its competitors, but is generating almost half of the entire LTE traffic in the nation. Currently, the company has a total of 40 MHz commercial LTE frequency across three bands: 10 MHz at 850 MHz (Band 5), 20 MHz at 1.8 GHz (Band 3), and 10 MHz at 2.1 GHz (Band 1) (FDD LTE and DL only). Since 3-band carrier aggregation (CA) commercialization in last December, SK Telecom has been supporting up to 225 Mbps. For enhanced network capacity, SK Telecom made LTE/LTE-A macro cells in urban areas smaller - as small as several hundred meters in radius. And it began to employ Centralized Radio Access Network (C-RAN ) for reduced cell site construction costs and efficient inter-cell coordination. As a result, 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 2011 2012 2013 2014 2015 Mobile data usage per month Korea SK Telecom 57.7 PB (44%) 131.6 PB 2011.06 5.7 PB 2011.07 LTE service launched Evolution of SK Telecom's in-building LTE solutions Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 46
43. but also good capacity. In addition, installing process should be fast and inexpensive. To satisfy all these requirements, SK Telecom's DAS is evolving to ensure: • Cheaper and faster installation using UTP cabling: To save costs of cabling, which often is the No. 1 cost-increasing factor in DAS installa- tion, economical and scalable standardized UTP cables are used instead of RF cables. • Remote management: A smart antenna unit with both antennas and RF transmission control modules is introduced. A smart antenna unit reports radio signal measurements and status information, and remotely performs tasks like configuration, status check, fault management, etc., allowing for remote optimization. • Increased capacity: MIMO and CA are supported for increased capacity. MIMO requires more antennas because it allows different types of radio signals to be sent within the same frequency band. CA combines radio signals from different frequency bands, and thus requires more frequency bands. Although in need of more frequency bands than MIMO, it can take advantage of SISO mode, doubling the speeds at devices. outdoor cell work indoor as well, allowing its coverage to extend indoors. Benefits: DAS distributes RF signals to antennas, and can deliver different Radio Access Technologies (RAT) like CDMA, WCDMA, LTE, etc., all through a single optic/RF cable (technology-neutral). Plus, since a single cell covers both indoors and outdoors, no quality degradation is caused by inter-cell interference or handover. Drawbacks: DAS has too many components (attenuator, donor unit, remote unit, splitter, coupler, booster, etc.), which means complicated installation, longer construction period, and higher construction costs. But, what is even worse is that it has poor scalability which will make it hard to increase capacity when needed in the future - a serious drawback in this era of soaring data traffic. Also, all antennas used in DAS require individual power adjustment. Besides, if any of them fails, it is hard to detect the one that failed. Because outdoor cell resources are shared, high-speed data usage can be limited. In-building solution I: DAS Evolution Because LTE serves more data than voice, DAS should be able to provide not only good coverage, Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) Figure 2. Architecture of DAS evolution In-building IP/MPLS Macro RRH BBU BBU... Tens of BBUs (connecting 100s of RRHs) CPRI CPRI EPC SAE GW Rooftop # of CO » 400 # of BBU Marco Cell » 300 # of RRHs » 180,000 RT RT COT C-RAN: Centralized/Cloud RAN BBU: Baseband Unit RRH: Remote Radio Head SCAN: Smart Cloud Access Network GE Multi-10GE BBU SK Telecom’s CO RURURRH RURURRH RURURRH BBU Fronthaul: Active WDM Conventional DAS DAS Evolution LTE RURURRH MU: Master Unit RU: Remote Unit Att.: Attenuator Remote UTP cable MIMO Smart antenna LTE RF cable SISO Passive antenna LTE MU Att. MU Att. RT RU RU RU RU RU RU © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 47
44. outdoor base station are used. Small cells, on the contrary, are low-powered base stations with their own resources (i.e. with frequency re-use), and thus can improve capacity by using the resources. Small cell-based solutions have been actively adopted for indoor, but it does not appear they can simply replace DAS, yet. Then, what are key issues that SK Telecom should consider to make small cell solutions work as hotspot/in-building solutions in urban areas? • Interference: Operating with the same frequency by indoor small cell and macro cell can cause co-channel interference. To minimize this interference, SK Telecom introduced multi-band small cell in August 2014 and eICIC in January 2015. Multi-band small cell is a reconfigurable public femto cell, and so it can use any of the three LTE bands (Band 1, 3 and 5), eliminating the chance of two cells' using the same band. eICIC makes macro cell and small cell work at different times, effectively avoiding co-channel interference. • Mobility: Handovers between macro and small cells during hand-in (from outdoor to indoor) or hand-out (from indoor to outdoor) may cause QoE degradation. Other causes for QoE degradation include co-channel interference, as mentioned above, and technological disparity among macro/small cell vendors in implementing handovers. SK Telecom introduced eICIC to minimize co-channel interference, and has managed both macro and small cells through a single solution, centralized SON, thereby addressing multi-vendor interworking issues. • Capacity: The success of a small cell solution in III. Small Cell How will they evolve? So far, SK Telecom's small cell evolution has been focused on femto cell. Now the operator is attempting to make small cell further evolve to serve larger buildings as well. The evolution of femto cell can be summarized as follows: • In 2012, SK Telecom launched the world's first LTE public femto cell for hotspots that serves up to 32 active users. One public femto cell can offload data traffic at a macro cell by 6.6%, improving indoor capacity as well as macro user's throughput. • In 2013, the world's first C-RAN-typed (DU and RU separated) LTE femto was introduced. Although this Femto Remote Solution (FRS) has not become very popular and ended up being applied only in limited areas, R&D activities on this type of indoor C-RAN went on. Then, at the beginning of the year, NEURON, a new solution featuring the ability to support fronthaul of any kind and high scalability, was showcased, and is getting ready for commercialization. • In 2014, SK Telecom presented RF Reconfigurable Femto, alleviating interference with outdoor cell while increasing femto cell capacity to support up to 64 users. In January 2015, it commercialized eICIC, an interference coordination solution in HetNet, for the first time in the world. What to consider when using small cell in- building solution DAS boosts RF signals from an outdoor base station and distributes them. So, the resources of the Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) increasing capacity in medium and large-scaled building lies in the way small cells are deployed. Small cells are low- powered base stations designed specifically for short range use. So, an economical and scalable in-building solution that can extend coverage across the entire building is needed. Figure 3. What to consider when deploying small cells CPRI Fronthaul BBU Pool Small cell EPC Core Macro cell site Hand-out Co-channel Interference Hand-in Mobility Capacity PCI collision PCI=100 PCI=100 Hanover Fail Macro RRH • Interference • Mobility • Capacity Small Cell Deployment Issues (Active WDM) © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 48
45. leveraging the established DAS infra. Currently, SISO antennas are used in DAS systems, and the capacity increase expected from an added LTE small cell is 37.5 Mbps. An LTE small cell is designed to be connected to a Master Unit (MU) or Remote Unit (RU) at DAS. Incoming LTE RF signals are received through a MU (or RU), and then converted into optic signals before being distributed by DAS. How many and where to add small cells are determined according to the amount of traffic. For example, just one at MU will work for low traffic, but one at each RU is required for high traffic. To an MU with sectoriza- tion feature, multiple small cells can be connected, allowing for dynamic control of in-building capacity and the coverage of each small cell. 3G base stations are connected to the EPC core network, through 3G mobile backhaul. However, each LTE small cell can be connected to the core network either through SK Telecom's mobile backhaul or through SK Broadband (SKB) Internet network depending on their locations and the conditions of SK Telecom's infra. For example, an LTE small cell installed at a 3G base stations connects to the core network through PTS while ones installed remotely (e.g. in other building) connect through the SKB Internet network. A small cell accessing through the Internet network must be connected through security GW and small cell GW. The goal of SK Telecom's small cell-based in- building solution for medium and large-scaled buildings is to find a cost-effective way to improve both capacity and coverage. And SK Telecom has been making efforts to achieve the goal through introduction of new solutions like, 3G DAS- combined LTE small cell solution in 2014, and NEURON solution (deploying RUs of small cells as in DAS), to be discussed in details below, in early 2015. In-building solution II: 3G DAS + LTE Small Cell This solution can be useful when you want to enhance in-building capacity in a building where DAS system has already been installed. You can simply add a small cell to the current DAS system - fast and economical. Last year, SK Telecom converted a part of its 2.1 GHz 3G band to LTE band - 10 MHz out of 30 MHz (DL), and launched a new in-building solution that adds a 2.1 GHz LTE small cell to the current 2.1 GHz DAS system. So, this solution allows for two different signals, 3G signals from macro cells and LTE signals from small cells, to be combined on RF through an optic repeater. And as a result of the combination, the DAS system, now with added LTE small cell capacity, can benefit from the resulting in-building capacity improvement while the LTE small cell can extend its coverage by Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) Figure 4. Combining LTE small cell with 3G DAS (2.1GHz) IP/MPLS Macro RRH BBU BBU... CPRI CPRI EPC SAE GW RT RT RT COT LTE GE Multi-10GE BBU SK Telecom’s CO RURURRH RURURRH RURURRH BBU Fronthaul: Active WDM Adding LTE Small Cells over Existing DAS 3G Network Small Cell GW SeGW LTE traffic In-building 3G traffic RF cable RU RU RU sCell sCell sCell LTE3G SK Broadband Ethernet © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 49
46. NEURON consists of DU, Optic Extendable Unit (OEU) and RF Unit (RU). Between DU and OEU, baseband signals are digitized, and transmitted through optic cables. Then between OEU and RU, IF signals are digitized, and transmitted through UTP cables. Because distributed RUs are connected through inexpensive UTP cables, it costs much less and takes much shorter to build an in-building network. • DU: Cost-effective as a femto modem is used. Can serve up to 64 active users when 10MHz used (up to 128 when 20MHz used). Each DU can support up to 80 RUs. Dynamic cell configuration made possible as RUs can be grouped according to traffic conditions. • OEU: Connects to DU (or other OEU) through optic cable, and to distributed RUs through UTP cable. UTP cable connection works within up to 100m, but optic cable performs much better, allowing RUs to be distributed pretty far. OEU uses radio signal digitization and compression technologies for more efficient transmission through UTP cables. After terminating baseband signals, OEU converts them into IF signal. Then it digitizes and compresses the signal, and sends it to RU. OEU supplies the RU with remote power using Power over Ethernet (PoE) • RU: Connected to OEU through UTP cables. When digitized IF signal is received from OEU, RU converts it into RF signal, and then transmits it through antennas. There are two types of RU: Each small cell can serve up to 64 active users at once. According to the data presented by SK Telecom at the Small Cells Asia Summit 2015, the average connected users at a 15-story building in Seoul was around 60. In a test that applied DAS + Small Cell solution in a 15-story building, the success rates of E-RAB/RRC and hand-in/out were reported 100/99% and 97/99%, respectively. In-building solution III: NEURON - LTE small cell with C-RAN modified for indoors Another small cell-based in-building solution is NEURON, which is a version of C-RAN modified for indoor. This solution can be an excellent option when DAS system cannot be leveraged because it features small cells with C-RAN architecture where DU and RU are separated. These types of small cells can provide their own capacity (i.e. resources and DU) unlike DAS, but their RUs are still distributed across the building just like DAS. Because NEURON allows small cell stations to group the RUs the way they want, cells can be configured dynamically and virtually. So, for example, you can group all the RUs into one to create a single cell as in DAS, or form multiple cells depending on the traffic condition in the building. NEURON (New Extendable eNB based on UTP, RF and Optic for fronthaul) was demonstrated in the beginning of the year, and is currently being tested for commercialization in the second half of the year. Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) Figure 5. NEURON - LTE small cell with C-RAN modified for indoors IP/MPLS Macro RRH BBU BBU... CPRI CPRI EPC SAE GW RT RT RT COT LTE GE Multi-10GE BBU SK Telecom’s CO RURURRH RURURRH RURURRH BBU Fronthaul: Active WDM Small Cell GW SK Broadband SeGW LTE traffic DU: Digital Unit OEU: Optic Extendable Unit RU: RF Unit NEURON In-building UTP cable RU LTE CPRI OEU OEU IF over UTP CPRI DU © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 50
47. Consulting Future LTE IP/MPLS CarrierEthernet Networks POC Training Wi-Fi Infrastructure Services CDN Transparent Caching IMS eMBMS protocols Analyze trends, technologies and market Report Technical documents Blog One-Shot gallery Analysis Concept Design DRM NETMANIASTM ••• We design the Future NMC Consulting Group Co., Ltd. • 2F, Namyeong Building 730-13, Yeoksam-dong, Gangnam-gu, Seoul 135-921, Korea • 3832 NE 88th Street Seattle, WA 98115 USA • e-mail: tech@netmanias.com i) LTE-only RU that can support only one LTE band, and ii) WiFi-embedded RU that supports two LTE bands and WiFi band. Because WiFi- embedded RUs can operate with both 10MHz at 2.1 GHz, and 20 MHz at 1.8 GHz, CA can be supported, providing up to 225 Mbps throughput. NEURON supports all types of fronthaul (optic, RF and UTP cable), and thus can give fairly flexible small cell coverage. It features DU with a femto modem, LAN (UTP) cable-friendly RU, and OEU with great scalability. Because of these properties, the solution is known to extend coverage as well as capacity in buildings of any scale, from small to medium/large-scaled buildings, in a more cost- effective, flexible way. In a test conducted by the operator, NEURON was found to support 41~125 Mbps when using 20 MHz at 1.8 GHz, and 26 ~ 56 Mbps when using 10 MHz at 850 MHz. IV. Summary We have so far explored the three in-building solutions by SK Telecom: DAS evolution solution, DAS + LTE small cell solution, and NEURON. We have also learned how DAS and small cell, respectively based on excellent scalability in coverage and capacity, are evolving, independently or dependently, for further enhancement of coverage and capacity. Now with more options to choose from, an operator can find a solution to use to build, operate and extend a more economical and reliable in-building network, according to its needs and conditions, like the current network infra in the building, the operator's infra in the area, etc. n Evolution of SK Telecom’s in-building LTE solutions | Steve Shin and Dr. Michelle M. Do (tech@netmanias.com) Table 1. Summary of SK Telecom's in-building solution Target scenario Capacity enhancement Coverage enhancement Dynamic cell configuration SISO/MIMO Multi-band Carrier aggregation (CA) Max. throughput UTP cabling WiFi support Medium and large-scaled buildings Support CA and MIMO Originally designed for coverage None (A single cell) MIMO Multi-band (1.8 GHz, 2.1 GHz) CA 225 Mbps UTP cable - I. DAS Evolution Medium and large-scaled buildings Add small cell Leverage DAS Dynamic cell configuration SISO Single-band (2.1 GHz) - 37.5 Mbps - - II. 3G DAS + LTE Small Cell Medium and large-scaled buildings Add DU Distribute RUs as DAS Dynamic cell configuration MIMO Multi-band (1.8 GHz, 2.1 GHz) CA 225 Mbps UTP cable WiFi-embedded RU support III. Indoor C-RAN: NEURON © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 51
48. AboutContela Over 15 years, Contela has accumulated commercial experience of telecommunication industry with CDMA/WCDMA/LTE Products in Korea and Japan. With a wide range of Small Cell End-to-End Solution including Small Cell(Home, Public/Enterprise, Outdoor), Gateway, and Management System, Contela has been providing the reliable wireless network service with our advanced LTE Small Cell Solution that enables wireless carriers to enhance the capacity to high traffic areas, offering low CAPEX & OPEX for LTE. www.contela.com The Leader of LTE TDD/FDD Small Cells Market ContelaLTESmallCellSolution Unlike the existing LTE network, LTE Small Cell System has its own characteristics of network configuration which enables the interworking with the core network through the public internet network. As the number of the base stations like the small cells increase, the HeNB GW shall be required for interworking with the core network in order to absorb the risk which the core network could be exposed to the public internet network. Contela’s LTE Small Cell Solution consists of LTE Small Cell which provides the wireless network service for LTE by interworking with UE, SeGW for the data security through the authentication with small cells, and HeNB Gateway which controls the S1 interface with EPC to transmit the LTE Small Cell data to EPC and the Management System(HeMS) for managing these element nodes. According to the small cell market needs, Contela has been expanding the portfolios of our small cell products such as Home, Enterprise/Public, and Outdoor for both TD-LTE and FD-LTE. Globally, Contela is fully capable for supplying Small Cell End-to-End Solution with our own strengths/competitiveness as follows based on our commercial deployment experience for Small Cell Solution since 2010. *StrengthsofourSmallCellEnd-to-EndSolution • IntegratedManagementSystemforSmallCells,HeNBGateway • FlexibleArchitectureofInitialandServingHeMS •ATCAbasedSmallCellGatewaywithHighCapacityandCarrier-GradeSolution • Active/StandbyRedundancySupport *CommercialExperienceinUMTS<ESmallCellSolutioninKorea • CommercializedofIu-hbasedUMTSSmallCellEnd-to-EndSolution - UMTSHomeandDataSmallCell/HNB-GW/HMS • CommercializedofLTESmallCellEnd-to-EndSolution - LTEEnterpriseandOutdoorSmallCell/HeNB-GW/HeMS IuPS IuCS S1-MME S1-U SGSN GGSN MSCMGW UMTS Core Network UE UE Uu lu-h S1Uu HNB S-GW P-GW LTE Core Network(EPC) MME HeMS SeGW Small Call Gateway HeNB
49. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 56 n Visitors (GEO) Google Analytics, June 2015 Netmanias, based in South Korea, is a professional networking consulting company providing insightful online/ off-line media content generated by in-depth analysis of the mobile network technology/service/market in South Korea and around the world. We have a team of dedicated and skilled analysts and reporters who make sure the latest, hottest topics, like LTE, 5G, IoT, Broadband, etc., are covered through posts on our website and in our cutting edge quarterly networking magazine, “Korea Communication Review.” Netmanias has over 50,000 members who are actively working in the networking industry and over 240,000 unique visitors per year. About NETMANIAS.COM n NETMANIAS.com n Korea Communication Review (Digital Edition) n Korea Communication Review (Printed Edition) CIRCULATION: 5,000+ Korean Communication Review (KCR) magazine is published in January, April, July and October and distributed to netmanias’ subscribers, managements of Korean ICT companies and government. Additional copies will be distributed at several industry shows in 2015, including MWC 2015(Barcelona, Shanghai) , CeBIT 2015, Small Cell & Carrier Wi-Fi World Summit (Singapore, London, Dubai, Dallas), Metro Ethernet Forum, KRNET 2015, HSN 2015. Netmanias Media Kit l June 2015 l www.netmanias.com
50. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 56 Corporate Management (C- level) 3% Business Development/St rategic Planning 6% Sales/Marketing 6% Engineers 41% Network Operations 16% IT Operations 6% Customer Service 1% Education 4% Other 17% About NETMANIAS.COM > Netmanias Subscribers at Major Companies Subscribers 50,500+ Subscribers 50,500+ NETMANIAS Subscribers Profile > Subscriber’s Job Function > Subscriber’s Industry Netmanias Media Kit l June 2015 l www.netmanias.com MBC/SBS/KBS 210 CJ 271 ETRI 489 tbroad 26 NTT 52 Verizon 43 AT&T 30 KINX 31 Telenor 28 CHT 38 Vodafone 37 Reliance 115 Telefo nica 16 TATA 28 Orange 32 KT 1,515 337 LG U+ 592 SK Telecom and SK Broadband Teleco m Italia 18 BT 26 China Mobile 21 MTN 24 Sprint 18 Packet One 27 Taiwan Mobile 45 Zain 15 Viettel 27 Turkcel l 18 Telkom Indone sia 21 PCCW 21 SFR 15 China Telecom 24 SwisscomThree UKBell MobilyvimpelcomOoredoo IdeaRogersTelekom Rostelec om TaifoMTS WindYTL TelecablePTCLRightel SFR Telekom Serbia Wind Tele2SingTelOi Bouygues Telecom Smartfren Yemen Mobile KDDI Sri Lanka Telecom ubiQuoss 55 Ericsson 315 LG 645 Cisco 218 ALU 270 Nokia 141 Apple 75 Huawei 323 Dasan 182 HFR 121 Samsung 1,837 Innowireless 102 GNTEL 128 Intel 48 Qualcomm 36 ZTE 43 IBM 24 Oracle 22 HP 29 Contela 52 Humax 43 SMEC 35 Eluon 42 Techmahindra 45 TTA 37 Wipro 48
51. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 56 About NETMANIAS.COM EDITORIAL CALENDAR Q4 2015 IN EVERY ISSUE ► Korea ICT Statistics: Mobile, Broadband and IPTV ► LTE/LTE-A commercialization by South Korea’s big 3 operators ► IPTV innovation path in Korea ► IoT services available from Korean operators ► Korea ICT News > IoT services in Korea > LG U+’s 4G, pre-5G strategies > UHD IPTV > Netmanias Interview at MWC 2015 Shanghai Q3 2015 > UHD IPTV services in Korea > Commercialization of Giga LTE service in Korea > SK Telecom’s approach for in-building LTE deployment > LTE-U [Sponsor content] IoT G/W [Sponsor content] In-building wireless broadband Q2 2015 > Netmanias Interview with Korean companies at MWC 2015 (KT, SK Telecom, HFR, Contela, Dasan, etc.) > IoT services available from Korean operators > LTE-A, LTE-U, LTE-H, LTE-TDD [Sponsor content] Why do we need antenna-integrated RRH? [Sponsor content] 6 things you should know about enterprise WLAN [Sponsor content] Unified mobile fronthaul & backhaul solutions for LTE-A Hetnet: HFR’s flexiHaul solution Q1 2015 > Korean Big 3's 5G strategies (SK Telecom, KT and LG U+) > Commercialization of Giga Internet in Korea (SK Broadband, KT and LG U+) > LTE and WiFi [Sponsor content] Ethernet access at 10Gbps Q4 2014 > SK Telecom’s LTE-A network evolution strategies > Network migration strategies to Giga-class access in Korea > KT to build Giga Internet access network Q3 2014 > KT’s vision - GiGAtopia > Broadband access network in Korea [Sponsor content] HFR’s optical fronthaul solutions Netmanias Media Kit l June 2015 l www.netmanias.com
52. © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 56 About NETMANIAS.COM RATE CARD NETMANIAS.COM RATE CARD Ad. Section Advertising sales contact Steve Shin Office: +82-2-3444-5747 Mobile: +82-10-2884-8870 E-mail: sales@netmanias.com Online (www.netmanias.com) Offline (KCR) $2,000/Month $2,000/Month $1,500 (700-1,500 words) $2,000/Month $1,000 1x $2,000 $1,000/Month $1,995 1x $2,000 $1,500 (700-1,500 words) $3,000 $2,500 $3,500 1x $2,000 $50 per copy Banner: Main page (728x90) Banner: Contents pages (200x550) Sponsor content page (Video can be included) Vendor page in netmanias.com 1st position (top of the email) Full page ad. Banner: KOREA ICT NEWS page 1 dedicated email blast to Netmanias subscribers White paper posting Sponsored blog/articles (Video can be included) Inside front cover Inside back cover Outside back cover Sponsored articles/white paper Reprint Netmanias Media Kit l June 2015 l www.netmanias.com
53. Korea, the Hottest LTE Market in the World LTE success story in Korea n Mobile penetration rate 62.5% 47.2% 41.9% 20.3% 19.8% 13.3% 7.8% 4.3% 4.3% 3.4% 2.9% 2.3% 2.2% 1.9% 0.6% SouthKorea Japan US UK Canada Kuwait Germany China SaudiArabia Colombia Romania Russia SouthAfrica Brazil Mexico Dec-14 Dec-13 Smartphone penetration (% of population) LTE penetration (% of mobile subscribers) 85% 80% 75% 74% 72% 70% 69% 68% 68% 67% 66% 65% 65% 62% 60% 58% 57% 57% 57% 56% 53% 51% Singapore South Korea Sweden Hong Kong Spain China Denmark UK Norway Taiwan Australia Netherlands Ireland Israel Switzerland New Zealand Finland USA Canada Austia Italy Malaysia South Korea South Korea 80% Global LTE/mobile penetration: 6.2% 62.5% 80% # 1 0 5 10 15 20 25 30 35 40 45 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2G 3G 4G n Mobile subscribers, in Korea, by technology generation (Q1 2007 – Q1 2015) The number of 2G (CDMA) subscribers reached 41 million, the highest on record, in Q2 2007 while 3G (WCDMA) reached its highest level, 35 million, in Q4 2011. As of Q1 2015, 4G LTE service launched in July 2011 has 37.6 million subscribers, which accounts for 66.3% of the total 57.3M mobile subscriptions. 3G Peak 4G Subscribers [Million] n Global mobile subscribers, by technology generation * Source: Ministry of Science, ICT and Future Planning 2G Peak n Mobile subscribers in Korea (Q1 2015) 2G (10.1%) 3G (24.6%) 66.3% 57.3M Total Mobile Subscribers in Korea 4G LTE Feature Phone Smartphone 72.0% 27.0% 1% Smart Pad 57.3M Total Mobile Subscribers in Korea #2 Source: GSMA Intelligence, 2014 2G 3G 20072006 2008 2010 2012 2014 2016 20182009 2011 2013 2015 2017 20202019 Mobileconnections[Billion] 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2G Peak 4G LTE © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 57
54. Korea, leading the World Mobile Innovation LTE success story in Korea n Fierce competition: Big 3 all have the same commercialization timeline n About deployment period of nationwide LTE network in Korea • LTE-A (150 Mbps) • Wideband LTE (150 Mbps) • LTE (75 Mbps) • LTE-A (150 Mbps) • Wideband LTE (150 Mbps) • LTE (75 Mbps) • LTE-A (150 Mbps) • LTE (75 Mbps) • Wideband LTE (150 Mbps) • eMBMS • 3-band LTE-A (300 Mbps) • Wideband LTE-A (225 Mbps) • Wideband LTE-A (225 Mbps) • Wideband LTE-A (225 Mbps)1 1 2 2 1 • 3-band LTE-A (300 Mbps) 1 World’s first 2 World’s second 1 • Expanded LTE to nationwide • Expanded 3-band LTE-A to nationwide • 3-band LTE-A (300 Mbps) 1 2 2 SK Telecom LG U+ KT Wideband (WB) LTE Spectrum Auction • Expanded Wideband LTE to nationwide • Expanded Wideband LTE to nationwide • Expanded LTE to nationwide • Expanded LTE to nationwide • Expanded Wideband LTE to nationwide 1 13 12 11 14 15 1 7 8 10 7 6 8 12 7 9 1 1 4 6 3 3 6 7 6 1 13 14 12 1 6 8 7 9 1 7 8 10 12 117 15 4 6 3 3 6 7 6 10 12 7 9 10 10 3-month • GiGA LTE (1.17 Gbps) 1 The yellow lines shows how long did it take to complete the nationwide coverage from each LTE service launch time. Mostly, they have completed a nationwide coverage just for several months. • LTE-A (150 Mbps) • VoLTE • World’s first full HD streaming • Wideband LTE (150 Mbps) • LTE (75 Mbps) 850 MHz • Launched unlimited LTE data plan • LTE-A (150 Mbps) • Multi-Carrier • World’s first 4 CH multi-view • Wideband LTE (150 Mbps) • LTE (75 Mbps) • VoLTE • Launched unlimited LTE data plan • HD 4Mbps streaming • Multi-Carrier • LTE-A (150 Mbps) • LTE (75 Mbps) • VoLTE • Wideband LTE (150 Mbps) • eMBMS • Launched unlimited LTE data plan 1.8 GHz + 900 MHz 1.8 GHz • Multi-Carrier 1.8 GHz + 900 MHz + 2.1 GHz • 3-band LTE-A (300 Mbps) • Wideband LTE-A (225 Mbps) • Wideband LTE-A (225 Mbps) • Wideband LTE-A (225 Mbps) 1.8 GHz + 850 MHz + 2.1 GHz 1 1 2 1 1 1 1 • 3-band LTE-A (300 Mbps) 1 World’s first 2 World’s second • eICIC 1.8 GHz 1 1.8 GHz + 850 MHz 1.8 GHz + 900 MHz • 3-band LTE-A (300 Mbps) 2.6 GHz + 850 MHz + 2.1 GHz 2.6 GHz + 850 MHz 850 MHz + 1.8 GHz 850 MHz SK Telecom LG U+ KT Wideband (WB) LTE Spectrum Auction 1 2.6 GHz 13 12 11 14 15 1 7 8 10 7 6 8 12 7 9 1 1 4 6 3 3 6 6 1 13 14 12 1 6 8 7 9 1 7 8 10 12 117 15 4 6 3 3 6 6 1.8 GHz 2 1 21 2 • GiGA LTE (1.17 Gbps) 1 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 58
55. Mobile statistics in Korea (Q1 2015) LTE success story in Korea n 4G and smartphone madness (Q1 2015) n Mobile traffic and application usages 0 10 20 30 40 50 60 70 1112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 2011 2012 2013 2014 2015 Subscribers [Million] 0.7M 21.3 M 50.0 M 52.3 M 2012 2013 2014 41.3 M: Smartphone subscribers 57.3 M: Mobile subscribers 50.5 M: Population 37.60 M: LTE subscribers Q1 2015 Mobile penetration rate (% of population) 113.6% Smartphone penetration rate (% of population) 81.7% LTE penetration rate (% of population) 74.6% LTE subscription rate (% of mobile subscribers) 65.6% 74.6% 81.7% Smartphone 4G LTE 0 20 40 60 80 100 120 140 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 2012 2013 2014 2015 3G (WCDMA) 4G (LTE) Monthly Traffic – per Access Network [PB] 126.9 PB (96.5%) 4.6 PB (3.5%) Mobile Traffic Composition (4G traffic only) 45 44 45 49 56 49 19 19 18 16 14 15 13 14 15 16 15 16 10 11 10 9 8 16 8 7 8 6 4 35 5 4 5 5 2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Video Web SNS Multimedia (Music, etc) MarketDownload Etc. 4G © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 59
56. Mobile operators’ revenue growth by 4G transition LTE success story in Korea n Ramp-up of operator’s revenue by 4G transition n Why 4G subscribers’ ARPU is higher than 3G? (ex. SK Telecom: 4G ARPU 48,400, 3G ARPU 33,700) 26,000 28,000 30,000 32,000 34,000 36,000 38,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Mobile Subscribers in Korea 4G LTE 3G 2G Mobile APRU (2G+3G+4G) Subscribers [Million] [KRW] Mobile Service Revenue (2G+3G+4G) in Korea 2012 2013 2014 2012 2013 2014 29,203 36,468 18,000 18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 22,500 2011 2012 2013 2014 3.1% 9.5% 14.2% [KRW Billion] 22,165 19,412 USD 20BUSD 17.5B 2012 2013 2014 24.9% Band Data 100 Band Data 80 Band Data 61 Band Data 51 Band Data 47 Band Data 42 Band Data 36 Band Data 29 Pricing Plans 100,000 80,000 61,000 51,000 47,000 42,000 36,000 29,900 Monthly Fee [KRW] Unlimited Voice Call 35 GB + 2GB/day 20 GB + 2GB/day 11 GB + 2GB/day 6.5 GB 3.5 GB 2.2 GB 1.2 GB 300 MB Data SK Telecom 3G/4G Tariff Plan Monthly Traffic – per device type [GB] 0 1 2 3 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 2012 2013 2014 2015 3.49 GB 0.97 GB X3.6 4G smartphone 3G smartphone 2G & 3G feature phone 0.004GB • Most monthly plans from Korean mobile operators come with unlimited talk, and your choice of data amount. • Same rate for 3G and 4G: Rates vary depending on the data amount you choose (e.g. 1GB, 5GB, etc.), not whether you use 3G or 4G. • 4G subscribers use about 3.6 times as much data as 3G subscribers do (see the chart below), which means their ARPU is higher than 3G subscribers’. 150~300 Mbps 3.49 GB ~12Mbps 0.97 GB 4G 3G Max BW/Cell Ave. Monthly Data Usage / User © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 60
57. Korea Big 3 operators - SK Telecom, KT and LG U+ LTE success story in Korea n Major players in Korea n End-to-end 4G LTE network (built with world top class vendors’s solutions) Mobile subscribers trace in Korea (2011-2014) Mobile subscribers in Korea (Q4 2014) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2011 2012 2013 2014 2012 2013 2014 Subscribers [Million] 4G LTE 3G WCDMA 10.8 M 6.5 M Dec. 2014: 17.3M 0.0 5.0 10.0 15.0 20.0 25.0 30.0 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2011 2012 2013 2014 2012 2013 2014 Subscribers [Million] 4G LTE 3G WCDMA 16.7 M 8.4 M Dec. 2014: 28.6M 2G CDMA 3.5 M 0.0 2.0 4.0 6.0 8.0 10.0 12.0 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 2011 2012 2013 2014 Subscribers [Million] 4G LTE 8.5 M 2G CDMA 2.8 M Q4 2014: 11.3 M 2012 2013 2014 SK Telecom KT LG U+ 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 SK Telecom KT LGU+ 4G LTE 3G WCDMA 2G CDMA SK Telecom KT LG U+ 28.6M 17.3M 11.3M 16.7 M 10.8 M 8.5 M IP Backhaul PE BBU Pool L3 SW RRH Edge SK Telecom C-RAN/Fronthaul EPC Core Center Node (4) Edge Node (14) PE Edge PE Edge CPRI over Active/Passive WDM P P PE EPC Core Node (2) P CO (400) P P KT CO BBU Pool L3 SW RRH CPRI over Dark Fiber 10G PE Edge Core Node (14) P P Center Node (2)Edge Node (31) PE Edge PE Edge EPC Core RRH BBU Pool EPC Core C-RAN: Samsung/Ericsson/Nokia EPC Core: Cisco IP/MPLS: Cisco/Juniper C-RAN: Samsung/Ericsson/Nokia EPC Core: Samsung/Ericsson Fronthaul: HFR IP/MPLS: Cisco/ALU/Juniper © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 61
58. SK Telecom Case Study LTE success story in Korea n SK Telecom’s technology innovation and commercialization History n SK Telecom’s revenue increase by ARPU improvement and LTE subscriber growth 1.1 1.7 1.8 2.1 2.1 2.2 2.2 2.2 2.6 2.9 3 3.1 3.26 3.22 3.29 3.31 3.383.37 3.4 3.49 3.57 3.53 3.6 3.64 3.67 3.63 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 1 1.5 2 2.5 3 3.5 4 4.5 LTEtraffic Mobile ARPU LTE data usage per-capita growth [GB] 0 5 10 15 20 25 30 11 2 5 8 11 2 5 8 11 2 5 8 11 2011 2012 2013 2014 LTE 3G 2G 16.7M 28.6M 2,500 2,550 2,600 2,650 2,700 2,750 2,800 2,850 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Mobile Revenue [KRW Billion] LTE Subscribers Growth Mobile ARPU Growth Mobile Revenue Growth [10K KRW] 2,621 2,805 2.4% 7% 13% 21% 27.9% 35% 41% 45% 49.3% 53.1% 55.1% 57.1% 58.5% 61.3% 0. 0% 50. 0% 100. 0% 150. 0% 200. 0% 250. 0% 300. 0% 350. 0% 400. 0% 450. 0% 500. 0% 0 5 10 15 20 25 30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 n LTE penetration rate (% of mobile subscribers) 2012.07 Multi-Carrier 1 2012 2013 2014 20152011 2011 C-RAN/Fronthaul Commercialization 2011.07 LTE (75Mbps) 2012.08 VoLTE 1 2013.06 LTE-A (150Mbps) 1 2013.09 Wideband LTE (150Mbps) 1 2014.06 Wideband LTE-A (225Mbps) 1 2015.01 3-Band LTE-A (300Mbps) 1 2014 Deploy Small RRH 2013.07 Full HD Mobile Streaming 1 2015.01 eICIC 1 2012.04 Completion of Nationwide LTE network building 2 2015.04 Completion of Nationwide 3band LTE-A network building 2014.11 (MSIP) Wideband LTE-A: 116.9Mbps 2013.12 (MSIP) Wideband LTE: 56.2Mbps 2012.12 (Benchbee) LTE: 37.2Mbps Av. D/L Speed n Mobile subscribers n LTE subscribers © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 62
59. SK Telecom Case Study LTE success story in Korea n Technology innovation path: qualified at SK Telecom’s commercial LTE network D-RAN (Macro Cell) C-RAN (Macro Cell) C-RAN (Small Cell) In-Building RU RU MU Macro RRH (2011.07) Small RRH (2014) In-Building Trial (2014.12) Macro Small Cell Macro 2011 07: LTE (75Mbps) 06: 2-Band CA (150Mbps) 09: Wideband LTE (150Mbps) 2012 2014 20152013 01: 3-Band CA (300Mbps) 01: eICIC Commercialized Demonstrated 04: Uplink CoMP 06: Wideband LTE-A (225Mbps) RAN Architecture Evolution Path 4G Technologies Evolution Path 02: LTE-U 450Mbps 03: mmWave System (28GHz, 7.5Gbps) 03: FD-MIMO 06: Full-Duplex Radio ~ 2020 02: 3-Band CA (450 Mbps) 02: LTE-A CA Femto 02: Inter-Site CA 06: FDD-TDD LTE CA (3.8 Gbps) 07: LTE-WiFi: MP-TCP 02: CA (150 Mbps) 10: Wideband LTE-A 02: CA 06: eICIC • 2015: 5G Test-bed • 2016: 5G Pilot Trial • 2018: 5G Field Trial – PyeungChang W. Olympic 08: VoLTE CoMP (propretary) • cm/mmWave • 5G Small Cell • New RAT • Massive MIMO ø scheduled ø planned Macro eNB BBUs 4G LTE 4G LTE-A 5G Start LTE Start LTE-A 5G n SK Telecom’s LTE network innovation: macro – small cell – in-building IP/MPLS Macro RRH BBU BBU Macro RRH Master Marco Cell WDM RURURRH 10GE (Ring, P2P) ... BBU Macro Cell Backhaul WDM ... BBU BBU WDM WDM 1. Macro C-RAN WDM Tens of BBUs (connecting hundreds of RRHs) CPRI CPRI CPRI CPRI CPRI CPRI LTE RRH 2. Small Cell C-RAN EPC SAE GW RT RT COT RT RT COT LTE C-RAN: Centralized/Cloud RAN BBU: Baseband Unit RRH: Remote Radio Head SCAN: Smart Cloud Access Network GE Multi-10GE BBU GE CO (SK Telecom’s office building) RURURRH RURURRH RURURRH BBU RURURRH RURURRH RT RURURRH Fronthaul: Active WDM Fronthaul: Active WDM RRH 3. In-Building RT RU RU RIUMUUTP Cable LTE Digital RF Signal RU RU UTP Cable LTE RIUMU LTE LTE Small Cell C-RAN In-Building # of CO >> 400 # of BBU Marco Cell >> 300 # of RRHs >> 180,000 © Netmanias Consulting • www.netmanias.com Korea Communication Review • Q3 2015 63
60. Locations Headquarter 2F, Namyeong Building 730-13, Yeoksam-dong, Gangnam-gu, Seoul 135-921, Korea Branch Office 3832 NE 88th Street Seattle, WA 98115 USA Visit https://www.netmanias.com to view and download more technical documents. Research and Consulting Scope of Netmanias We design the Future We design the Future We design the Future About Netmanias (www.netmanias.com) NMC Consulting Group (Netmanias) is an advanced and professional network consulting company, specializing in IP network areas (e.g., FTTH, Metro Ethernet and IP/MPLS), service areas (e.g., IPTV, IMS and CDN), and wireless network areas (e.g., Mobile WiMAX, LTE and Wi-Fi) since 2002. Carrier Wi-Fi Data Center Migration Wireline Network LTE/LTE Advanced Mobile Network Mobile WiMAX Carrier Ethernet FTTH Data Center Policy Control/PCRF IPTV/TPS Metro Ethernet MPLS IP Routing 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 eMBMS/Mobile IPTV Services CDN/Mobile CDN Transparent Caching BSS/OSS Cable TPS Voice/Video Quality IMS LTE Backhaul/Fronthaul 14 Consulting Future LTE IP/MPLS CarrierEthernet Networks POC Training Wi-Fi Infrastructure Services CDN Transparent Caching IMS eMBMS protocols Analyze trends, technologies and market Report Technical documents Blog One-Shot gallery Analysis Concept Design DRM Scan to Learn More