WiBro overview 1 Korea's pioneering role in global 4G technology development Under the flagship theme of "Toward Successful WiBro (Mobile WiMAX) and 4G", the Korean Ministry of Information and Communication was proud to host the "Wireless Broadband World Forum 2006" from May 22 through 25 at the Hotel Lotte World, located in the beautiful and dynamic city of Seoul, Korea. The domestic communication service market has over the past several years enjoyed a high growth rate thanks to the explosive spread of mobile telephone and high-speed Internet usage. However, as this growth pace starts slowing, voices of concern are being raised about whether the overall communication service market is reaching the limits of its growth capacity. In contrast, as convergence between business spheres advances due to subscribers' convenience pursuit, needs are growing for data communication, and communication technology's increased capacity, with WiBro (portable Internet) emerging as a new market opportunity. The background to the rising interest in WiBro is that it is not only a demand for a Ubiquitous service environment that is possible anytime, anywhere, and with any device, but also because it can meet the supply & demand for all such as communication business provider's investment environment development to strengthen profitability security and competitiveness through WiBro. The Korean government has been promoting WiBro's technology standardization, centering on the role of the Telecommunication Technology Association (TTA) to nurture WiBro as a new growth engine of the nation. Accordingly, KT which has acquired a WiBro business license from the government in Jan. 2005, has prepared the company's WiBro business comprehensively and succeeded in carving a niche impressively regarding 'WiBro' to the people of the world by demonstrating it for the first time globally at the APEC Summit Conference, held in Busan in Nov. 2005. As the wired communication market's stagnation continues due to a saturation of telephone and high-speed Internet market, the wireless data market is expected to grow explosively by 20%~40% every year in terms of turnover. Accordingly, the wireless data market is forecast to forge a market of 6 trillion won (around $6.3 billion) by 2008, the equivalent of current wire data market, from 3 trillion won (around $3.16 billion) scale in 2004. Experts point out that such a market outlook reflects customers' desire to use high speed wireless Internet with reasonable prices while on the move. Considering that current existing mobile telephone wireless Internet has its limitations due to low transmission speed and high use rate, a service to which all classes can approach easily with fast transmission speed, reasonable price and diverse contents, is forecast to assume leadership of the data market. The WiBro market is anticipated to increase from 8 million to 10.70 million by 2011, but if business providers succeed in active business promotion of the new service, the market scale is forecast to be even greater than this. WiBro users clearly desire the use of a multimedia, file transmission, e-mail, location-based service etc. This means that because current mobile telephone wireless Internet does not satisfy users' multimedia service desire, due to low transmission speed, expensive rate levels, and shortages of high quality content, WiBro service will succeed in its service activation by reflecting such customer desire, and its real demand can be even greater than expected. Accordingly, WiBro service requisites include high-speed transmission speed and optimal service quality, content offering to be able to meet the desire of changing customers, comprehensive policy support such as terminal subsidy permission and combination service permission, world market inroads through global standardization activity, digital paradigm change initiative and so forth. WiBro service's activation is anticipated to make the $20,000 national income era and Ubiquitous society a reality earlier than expected to serve as a new growth engine of the future by increasing national conveniences and by creating employment with new investment and associated industry's activation for the stagnated domestic IT industry. As for 4G, on one hand, 4G mobile communication is a wireless communication technology that can provide over 100Mbps in high-speed of over 60 km too and 1Gbps notch speed during a stop. Through this 4G technology which will be commercialized after 2010, large capacity data service, three dimensional solid screen, and mobile virtual reality which were impossible in 3G are expected to be possible. In the case of Korea, Samsung Electronics is forecasting to be able to assume leadership of global 4G technology with the introduction of WiBro. The company is also actively unfolding 4G mobile communication's standardization activities, with 4G forecasted to be commercialized in 2010 or thereabouts. As 4G standardization is accepted by nations, by regions, and further in global level simultaneously, Korea's MIC also plans to take the initiative in international standardization and related market development by testing a system that can make 4G technology a reality globally by next year.