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SK Telecom s Technology Evolution 2 Analyst SK Telecom 2003. 9

SK Telecom DMB Beyond 3G Software Defined Radio

I. SK Telecom SK Telecom 1984. 3 1996. 1 1999. 10 2000. 10 2000. 12 2001. 10 2002. 1 CDMA Cellular (n.top) CDMA2000 1X 3G (W-CDMA) (NATE) CDMA 1xEV-DO 18,000 15,000 12,000 9,000 6,000 3,000 - Rapid Subscriber Growth Subs (thousand) CDMA Launch 1,562 6yr CAGR : 31.8% 10,110 10,935 566 AMPS Termination 15,179 17,220 5,400 2,299 3,008 592 `96 `97 `98 `99 `00 `01 `02 CDMA AMPS STI Acquisition 17,956 `03. 08 49.7% Strong Market Leadership [SKT s M/S in Korea cellular market] 50.6% 52.3% 53.3% LGT 14.3% KTF 31.5% 53.6% 53.8% 54.2% SKT 54.2% Jun-01 Aug-01 Dec-01 Jun-02 Jan-03 Jun-03 Aug-03

I. SK Telecom Data ARPU & % of Total Revenues* ARPU & MOU (Data ARPU in Won) (ARPU in Won) 3,290 3,847 4,893 12% 5,068 13% 5,743 14% 15% 195 42,668 183 42,295 194 44,439 208 199 196 190 45,537 45,556 43,788 43,295 10% 9% 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 2003 (E) Apr-02 Jun-02 Aug-02 Oct-02 Jan-03 Mar-03 May-03 % of Total Revenues* WI ARPU *% of Total Revenues excluding interconnection revenues ARPU MOU (Outgoing) ARPU : Average Revenue Per User MOU : Minute of Usage

I. SK Telecom SK Telecom, Data Transmission Speed - k bps 2,000 384 144 128 64 9.6 0 May `84 AMPS 1G Voice Telephone (Voice) 2G Text Messaging Voice Mail Fax Jan`96 : 95A Aug`99 : 95B CDMA IS-95 CDMA 2000 1X E-Newspaper E-Mail E-Book October `00 January `02 `03 Onward Still Image Audio Streaming Location -Based Service 1x x EV-DO VOD Mobile TV Mobile Advertising 3G WCDMA Video Streaming Video Telephony Digital Image Video Mail M-Coupon M-Commerce

SK Telecom DMB Beyond 3G Software Defined Radio

II. - 2000 2005 2010 Service Data Voice Data Video (Internet,TV) Commerce 3D, (,, ) Entertainment(Game,Gamble) Service SMS Text Service E-mail Picture e-mail (,, ) Video e-mail LBS Mobile TV (Interactive TV) ITS HDTV DMB GMPCS ISDN ADSL/VDSL Cable HFC(10M) HFC(100M) FTTH Infra CDMA 2000 1X IS-95A/B 1xEV-DO 1xEV-DV GSM WCDMA HSDPA All-IP Wireless LAN High-speed Wireless LAN Access (WLL) Access(BWA) (Mobile BWA) ITS : Intelligent Transport System ISDB : Integrated Services Digital Broadcasting ADSL : Asynchronous Digital Subscriber Line BWA : Broadband Wireless Access VDSL : Very high speed Digital Subscriber Line HFC : Hybrid Fiber Coaxial Cable FTTH : Fiber To The Home GMPCS : Global Mobile Personal Communications by Satellite LAN : Local Area Network DMB : Digital Multimedia Broadcasting HSDPA : High Speed Downlink Packet Access WLL : Wireless Local Loop

II. - DMB Cellular Network WLAN Home Network Coverage ~512kbps Macro ~ 10 Mbps Micro 30~50Mbps Hot Spots 11~100Mbps Indoor 100~3.2Gbps Data Rate 0.824 0.849 0.869 0.894 1.75 1.78 1.84 1.87 1.885 1.98 2.01 2.025 2.11 2.17 2.20 2.30 2.4 2.4835 2.63 2.655 5.150 5.825 GHz IS-95/CDMA2000 1X IMT-2000 PI WLAN/HN DMB WLAN

II. - Broadband Convergence Network Commerce Finance Solution Media 5.Beyond 3G 100Mbps~1Gbps, 2-10 GHz Band Vehicular Environments FTTH Extremely High Speed Fiber xdsl ADSL: Upto 8Mbps,4~5Km range VDSL: Upto 54Mbps,400~500M Existing Copper Gateway Authentication Billing Roaming NMS IP Backbone/ All Optical Network New Mobile Access 4.Satellite DMB 20-155Mbps/3,40 GHz band Fixed User/Metropolitan Area Broadcasting ITS Satellite IEEE 1394 Ethernet/HPNA Home RF IEEE 802.11 Bluetooth Access Gateway PLC 1.Cellular Network IS95-A/B, CDMA 2000 1x, 1xEV-DO, WCDMA Application Application AP roaming 2.WLAN AP 3.Portable Internet Vehicular Speed < 60Km/h User Data Rate > 1Mbps roaming ITS : Intelligent Transport System ADSL : Asynchronous Digital Subscriber Line VDSL : Very high speed Digital Subscriber Line FTTH : Fiber To The Home HPNA : Home Phone-line Networking Alliance PLC : Power Line Communication NMS : Network Management System DMB : Digital Multimedia Broadcasting

II. SK Telecom DMB Beyond 3G Software Defined Radio

II. 1995 1999 2000 2001 2002 2003 + 3GPP2 IS-95-A Voice 14.4 kbps circuit IS-95-B Voice 64 kbps Data IS-95A compatible CDMA2000 1x Voice Capacity(x2 IS-95) 153 kbps Data IS-95A/B Compatible 1xEV-DO Higher Cap Voice/ Data 2.4 Mbps Data IS-95A/B Compatible CDMA2000 1X Release A CDMA2000 3x 1xEV-DV Integrated Voice/ Data 4.8 Mbps Data CDMA2000 1X Release C Voice Capacity (x3 CDMA2000 1X) 384k ~ 2Mbps Data IS-95A/B Compatible 3GPP IS-136 GSM Voice 9.6 kbps GSM GPRS 30~40 kbps Packet GSM Compatible EDGE 384 kbps Packet WCDMA R 99,R4 High Capacity Voice 384 kbps ~ 2 Mbps Packet TDD/FDD mode R5 IP Transport IP based Multimedia service HSDPA Integrated Voice/Data 10Mbps Packet Broadcasting Service Capacity Increase WCDMA R5 ~ Voice Voice, Data (circuit) Data Voice, Data (circuit, packet) Return

II. SK Telecom DMB Beyond 3G Software Defined Radio

II. AAA WLAN E1/T3 Router S/W Hub AP / Router AP S/W Hub WLAN S/W Hub,, S/W Hub AP),, Hotspot Solution / AP Network NATE Campus: 7 - AP: 600 AAA : Authentication, Authorization, and Accounting AP : Access Point Zone 2 (, ) -57Hotspot - AP: 200 NMS : Network Management System WLAN : Wireless Local Area Network Core Network Core - AAA, Billing, NMS

II. SK Telecom WLAN WEP AES(Advanced Encryption Standard), TKIP(Temporal Key Integrity Protocol) TKIP : TTLS(Tunneled Transport Layer Security), PEAP(Protected Extensible Authentication Protocol), Cellular,, inter-system handover delay, AP,, WRC 2003 5GHz 455MHzWLAN 5GHz WLAN,, ( ) 5GHz Feasibility PI : Portable Internet AAA : Authentication, Authorization, and Accounting Connection Manager : / (TTLS), CDMA2000 1X/WLAN BASN(Broadband Access Serving Node) : Mobile IP, Access control, Radius Proxy Connection Manager : 1xEV-DO/WLAN, PI/WLAN BASN WLAN/ WLANAAA : PEAP 5GHz WLAN WEP : Wired Equivalent Privacy Return

II. Cellular High Mobility Low Data rate Enhancing Data rate Mobility Enhanced High Data Rate Multi Access Low Cost High Speed Mobile Internet Medium Tier( ) Enhancing Mobility WLAN Low Mobility High Data rate 30~50 Mbps High Tier(Cellular) IMT-2000 (WCDMA, CDMA2000 1X, 1xEV-DO/DV) Low Tier (Wireless LAN) (802.11b/a/g) IP based Radio Access network All-IP based Core Network Telecommunications World Internet/Intranet World 2002. 10: 2.3GHz WLL 2003. 1Q: HPi Project (ETRI,, SK Telecom, KT, KTF, ) 2003. 3Q: TTA 2.3GHz

II. ETRI HPi Flarion f-ofdm BroadStorm Broad@ir Navini Ripwave ArrayComm i-burst Duplex Bandwidth Multiple Access TDD 10MHz OFDMA FDD TDD TDD TDD 1.25MHz x 2 5MHz 5MHz 5MHz FH-OFDMA OFDMA MC-SCDMA TDMA/SDMA Single User Downlink Data Rate at Cell Edge 1Mbps 634Kbps 800Kbps 1Mbps 384Kbps Maximum Data Rate DL UL 24.8 Mbps 5.2 Mbps 3.2 Mbps 950 Kbps 8 Mbps 512 Kbps 8 Mbps 4 Mbps 14.4 Mbps 1.6 Mbps Maximum Vehicular Speed Supported 60Km/h 250Km/h 100Km/h Future 250Km/h 40Km/h(NLOS) 80Km/h(LOS) 25Km/h Maximum User/Sector not defined 125 500 1000 2000 Urban Coverage Suburban Rural Antenna Technology Commercialization 0.6Km 1.3Km 5Km 05 MIMO 05, 2Q 0.6Km 1.5Km 6Km 1.6Km 3Km 8Km 5.7Km 10Km 13Km 3-sector Tx/Rx Diversity 4Q, 04 Smart Antenna Smart Antenna Joint detection 1.3Km 3Km 11Km Smart Antenna 03, 1Q - 03, 1Q 04, 3Q OFDM : Orthogonal Frequency Division Multiplexing MC : Multicarrier FH : Frequency Hopping SDMA : Space Division Multiple Access TDMA : Time Division Multiple Access MIMO : Multiple-Input Multiple-Output

II. HPi HPi-10 HPi-10m Subject 1 2003 2 3 4 1 2004 2 3 4 1 2005 2 3 4 Output HPi Specification Draft Spec Spec Standardization Spec (TTA) Standardization Standardization (TTA) (Global) - Specification System Implementation (HPi-10) System Implementation (HPi-10m) High Level Design Detailed Design Demonstration Implementation Testing Detailed Design Implementation Testing - Portable Terminal - Base Station(AP) -PAR(Packet Aggregation Router) HPi-10m : MIMO applied system(dl : 50Mbps) MIMO : Multi-Input Multi-Output Return

II. DMB DMB Satellite DMB Gap-Filler,, TDM 25 MHz (13.824 ~ 13.849 GHz) CDM 25 MHz (13.858 ~ 13.883 GHz) CDM 25 MHz 2.630 ~2.655GHz TDM 25 MHz (12.214 ~ 12.239 GHz) Gap Filler CDM 25 MHz 2.630 ~2.655GHz CDM : Code Division Multiplex TDM : Time Division Multiplex DMB : Digital Multimedia Broadcasting

II. DMB DMB Satellite SS Loral (20041 ) Gap Filler Gap Filler (3Q, 03) Terminal -,,, PDA -, LG, Toshiba 21 - (4Q, 03), (1Q, 04) CellPLAN TM DMB (3Q, 03) DM(Diagnostic Monitor) (4Q, 02)

II. DMB Gap Filler 9 11 CD-quality CDM (32~512kbps) 2003. 12 2004. 1 2004. 5 Return

II. SK Telecom DMB Beyond 3G Software Defined Radio

II. Beyond 3G Systems Beyond IMT-2000 will encompass the capabilities of previous systems High Beyond 3G Mobility IMT-2000 Enhancement Enhanced IMT-2000 New Mobile Access New Capabilities Of Systems Beyond IMT-2000 Dashed line indicates that the exact data rates associatedwith Systems Beyond are not yet determined. Low New Nomadic / Local Area Wireless Access 1 10 100 1000 Peak Useful Data Rate (Mb/s)

II. Beyond 3G Ubiquitous Mobile Access Beyond 3G High Capacity 3G Smart Antenna, /,, Low Cost Service Return

II. 신기술 및 서비스 광대역 통합망(BcN) 광대역 광대역 통합망의(BcN) 통합망의(BcN) 개념 개념 유무선의 유무선의 다양한 다양한 접속환경에서 접속환경에서 통합 통합 단말 단말 및 및 정보가전을 정보가전을 통해 통해 언제 언제 어디서나 어디서나 고품질 고품질 음성, 음성, 데이터 데이터 및 및 방송이 방송이 융합된 융합된 광대역 광대역 멀티미디어 멀티미디어 서비스가 서비스가 제공되는 제공되는 통합 통합 네트워크 네트워크 OSS/BSS CP/PP 통신/방송 등 다양한 서비스 Soft-switch Open API G/W Mobility server IP기반 단일망 (IPv6/MPLS) Access gateway Beyond 3G QoS/security Control Control server Transport 광 전송 망 Broadband Wireless(HPi) Application Satellite Access Wired Comm. Broadcasting broadcasting Mobile Home Network UC Network Terminal 다기능 통합 단말 및 정보가전 -24- BcN : Broadband convergence Network UC : Ubiquitous Computing CP : Content Provider PP : Program Provider OSS : Operating Support System BSS : Business Support System MPLS : Multi-protocol Label Switch

II. - Requirement Ubiquitous BcN BcN (2003) BcN / e-korea 2006 (2002 ~ 2006) U-Korea BcN U-Network BCN u-korea 2010 Time

II. - Factors 1 st st Stage (2004 ~ 2005) 2 nd nd Stage (2006 ~ 2007) 3 rd rd Stage (2008 ~ 2010) Network Independent Evolution of IP based Services High Quality and Security Integration of Mobile and Fixed Network Introduction of FTTH Integrated IP based Network Spread of FTTH Speed (bps) Fixed 50M Mobile 2M Fixed 50M ~ 1G Mobile 2M ~ 50M Fixed 50M ~ 1G Mobile 10M ~ 100M NGcN (diffusion ratio) 5,000,000 House Hold (31%) 35,000,000 Subscribers (73%) 11,200,000 House Hold (70%) 37,440,000 Subscribers (90%) 14,400,000 House Hold (90%) 39,840,000 Subscribers (93%) Services (examples) Mobile/Fixed Video Phone Home Networking Network Based High Quality Broadcasting Service Broadband MMoIP

II. SK Telecom DMB Beyond 3G Software Defined Radio

II. Software Defined Radio SDR SDR Upgrade, / SDR S/W GSM, SDR CDMA prototype -AirNetAdaptCell -SDRTSpectruCell - HarrisFALCON II,, 2004 Time-to-market

II. Software Defined Radio SDR Roadmap SDR Forum Prototype B3G Spec. work in progress SDR SDR SDR Prototype SDR SDR SDR GSM CDMA200 1x WCDMA HSDPA HPi B3G Service

II. CellPLAN RANO(Radio Network Optimizer)

II. - 2002. 10 2004. 2Q 2005. 2Q Simulation 2003. 7~9 Sprint Field Trial Diversity Chip

II. -, 2002. 6~8 (Drive test) 2002. 10 Compact MLA 2003. 1 License Agreement Multi-band : SDR 2003. 3Q,

II. - -CellPLAN GIS(), Cellular Network 1998. CDMA Cellular 2001. CDMA2000 1XCellPLAN Network 2001. 1xEV-DOCellPLAN Know-how 2001. WCDMACellPLAN Tool (,,, ) 3 GIS DB CellPLAN (Cellular Radio Network Planning System)

II. - Cellular Network Real-time Network, Network Network Network 2002. CDMA2000 1XRANO 2003. 1xEV-DORANO Know-how Tool 2004. WCDMARANO Network Engineering Cellular Network RANO (Radio Network Optimizer) Performance Indication Monitoring Efficiency Indication Monitoring Statistical Analysis for Optimization Optimization Analysis Diagnosis Analysis for Optimization

SK Telecom DMB Beyond 3G Software Defined Radio

II.

SK Telecom DMB Beyond 3G Software Defined Radio

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Thank you September 2003