What is KT chairman Hwang Chang-gyu’s strategy to become no. 1 in the World? It’s ‘GiGAtopia’
Date: Wed, 03/02/2016 - 18:10
KT entered into a strategic partnership, including export of GiGA LTE service, with Turk Telecom Group (Turk Telecom) of Turkey on February 22 at 2016 MWC. To the right, KT Chairman Hwang Chang-gyu
Image credited to KT
The chairman also unveiled export results of the world’s first GiGA LTE and GiGA Wire developed by KT and a plan to build the first gobalGiGA Island in Maheshkhali of Bangladesh.
KT introduced its strategies for Global No. 1 at a press conference at the 2016 Mobile World Congress held in Barcelona of Spain on February 23. At the press conference, the company’s chairman said, “As a keynote speaker of 2015 MWC, I forecast a future that will be shaped by 5G. Leaders who envisioned the same future have promised cooperation for 5G.” He added, “KT will strive to further develop 5G through global cooperation.”
KT also unveiled details on outcomes of its global business operations and its operational strategies. The communications service provider is strengthening fundamentals of its existing business operations including establishment and operation of a communications network and consultation to produce more outcomes from its global business operations. In addition, KT has drawn up 3 key strategies to develop business opportunities: 1) acceleration of core business operations such as ICT convergence in the future, 2) expansion of the global market for GiGA Solutions, and 3) increase in investments of overseas business operations.
KT’s business for ICT convergence in the future has made progress by establishing intelligent remote meter reads (AEM) in Uzbekistan, setting up an integrated security network in Rwanda, and signing an agreement to build a hologram in Sentosa of Singapore. Specifically, for spread of GiGA Solutions in the world, KT reached an agreement to export GiGA LTE service to Turkey and began to provide GiGA Wire service to Spain (Cataluña).
KT also plans to concentrate on and increase business operations conducted by overseas corporate bodies it has invested in, which has been demonstrated by the FDD LTE project in Rwanda and the TDD LTE project in Uzbekistan.
For development of infrastructure business operations through consultation for network establishment and strategic cooperation, the company recently signed an agreement for additional projects in India. KT is also expected to carry out another project in Iran following a project it’s been conducting. The company’s plan includes cooperation with leading SMEs as well to make inroads to overseas markets. KT had provided support for 31 SMEs that spanned 2 years from 2014 to 2015 and contributed to their sales of 110 billion KRW.
KT owns companies that are globally competitive such as BC Card and KTH.BC Card, aspiring to be ‘Asia’s No.1 payment service provider’, has increased cooperation with China’s UnionPay and established a joint venture with Mandarin, Indonesia’s government-run bank. KTH pioneered the Korean T-commerce market and is planning to enter T-commerce markets in the U.S. and Japan.
KT’s global business operations have been led by KT Group in an effort to create synergy effects. The communications service provider generated sales of about 750 billion KRW in its global business last year. The company’s 3 key strategies set a target of producing sales of 2 trillion KRW by 2020.
KT entered into a strategic partnership, including export of GiGA LTE service, with Turk Telecom Group (Turk Telecom) of Turkey on February 22 at 2016 MWC. Turk Telecom is one of the leading Turkish communications service providers. Having 18 million subscribers of wireless Internet service, Turk Telecom offers mobile service, Internet access, and telephone service (PSTN). GiGA LTE is expected to be commercially available fast in Turkey as the LTE service launched in April will accelerate the integration of wired and wireless Internet service.
Export of GiGA LTE service to Turkey shows the global market’s recognition of the technology developed by KT for the first time in the world. Moreover, the partnership includes not only export of the LTE service, but cooperation for the development of global technical standards for 5G and 5G services, which provides a good example of spreading Korea’s advanced ICTs to the world.
KT will also offer ‘GiGA Wire’ service which it introduced for the first time in the world. At 2016 MWC, the company signed an MOU with the local government of Cataluña to provide GiGA Wire service. Barcelona is the capital of Cataluña and the host of MWC.
KT’s GiGA Wire service uses copper wires instead of optical fiber cables to provide GiGA speed (up to 600Mbps). Cataluña is characterized by a number of historic sites and they would make it difficult to construct optical fiber cables and increase the need for use of GiGA Wire.
Rental apartments will have access to GiGA Wire first in Barcelona. The city has 7-8 million tourists annually and its hotels are so expensive that an increasing number of tourists rent an apartment. Once the service becomes available, tourists will be connected to the Internet at a faster speed.
GiGA Wire is also anticipated to help close the information gap that underdeveloped cities in Cataluña are experiencing. The local government has a plan to use GiGA Wire service to enhance the Internet environment of less developed cities in Cataluña.
- KT Strives to lead establishment of international standards for 5G by successfully hosting the world’s first ‘5G Olympics’
KT announced a plan to lead the 4th Industrial Revolution by converging intelligent GiGA infrastructure and ICT last September when Korea celebrated the 130th anniversary of the birth of Korean telecommunication. The company promised to provide wireless Internet access at the speed of 2Gbps, 4Gbps and 20Gbps by 2016, 2017 and 2018 respectively after its successful offering of the service at 1 Gbps in 2015.
On February 17, KT collaborated with Ericsson in Sweden and became the world’s first provider that successfully managed to transmit data at the speed of 25.3Gbps in the wireless Internet environment with multiple users by using mmWave. The data was transmitted 80 times faster than 3CA. The collaboration was part of an effort to become a leading provider of 5G which is a cornerstone of GiGAtopia KT strives to create.
KT established ‘Pyeongchang 5G core standards’ based on mmWave through cooperation with global companies to hold the world’s first ‘5G Olympics’ at Pyeongchang in 2018. Manufacturers have showcased some 5G technologies through devices developed using their own standards. Unlike these technologies, ‘Pyeongchang 5G core standards’ created through global cooperation will provide service compatibility between participating companies since they meet technical requirements of 5G.
KT and its global counterparts are developing systems and chips based on‘Pyeongchang 5G core standards’. The company plans to make continuous efforts to help ‘Pyeongchang 5G core standards’ that use core 5G technologies to be adopted as international standards.
3GPP, the technical collaborative body for mobile communications standardization, had a plan to decide ‘Release (Rel.)14’ for 5G which are the first set of standards by the end of 2017. KT’s commitment contributed to cut the target date short. As a result, the world’s first 5G technologies will be introduced at Pyeongchang in 2018.
KT will strengthen cooperation with communications service providers in and outside of Korea. The company formed a global body called 5G-TSA (Trial Specification Alliance) with Verizon, NTT Docomo, and SK Telecom for the establishment of test standards. 5G-TSA plans to build a common platform shared by both service providers and manufacturers to establish 5G standards and cooperate to develop 5G systems and draw up a schedule to provide the service. The alliance is also discussing to adopt ‘Pyeongchang 5G core standards’ as test standards.
KT, China Mobile, and NTT Docomo are leading communications service providers in Korea, China, and Japan respectively. These three service providers have a trilateral consultation body called Strategic Framework Agreement (SCFA). SCFA is expected to establish a ‘5G working group’ through which KT facilitates technical cooperation in 5G standardization and frequency. SCFA is Asia’s largest strategic consultation body between communications service providers.
Last days, KT invited officials of Pyeongchang Olympics and demonstrated services based on 5G technologies including 5G Safety, Sync View, 360 degree VR and Hologram Live which were highly praised. These services are expected to surprise people in the world in 2018.
Fierce competition to take a leadership position in 5G technical standards has encouraged KT to make its utmost efforts to host the ‘5G Olympics’ at Pyeongchang in 2018. Even Korea’s neighboring countries such as Japan and China have announced they would host the 5G Olympics at the 2020 Tokyo Summer Olympics and the 2022 Beijing Winter Olympics respectively.
- KT Builds the first ‘global GiGA Island’ in Maheshkhali of Bangladesh
KT Chairman Hwang Chang-gyu, Minister of ICT in Bangladesh Zunaid Palak, and Deputy Secretary General of IOM Laura Tomson signed a trilateral MOU to conduct GiGA Story in Bangladesh at MWC on February 23.
GiGA Story is KT’s project to create shared values (CSV) that contribute to improve enhance living environment such as educational opportunities, cultural activities, medical services, and economic opportunities of residents in remote areas including islands and mountains by providing high-speed Internet and customized ICT solutions. The project started with Imja Island (GiGA Island) in October 2014 which was followed by Daesungdong in DMZ (GiGA School), Baekryung Island (GiGA Island), and Chunghakdong (GiGA Creativity Village). These examples show at a glance how the residents’ lives have changed through GiGAtopia.
The MOU will build the first global GiGA Story in Maheshkhali, an island in Bangladesh. Bangladesh has set a strategy to join the ranks of developed countries by enhancing its medical environment, eradicating poverty and lowering unemployment rates through ICTs by 2021 when it will celebrate 50th anniversary of its foundation. The strategy is called ‘Digital Bangladesh’.
Maheshkhali has as many residents as the Maldives and its land is similar to that of the Maldives in size, which enables Bangladesh to see it as a place to learn lessons to develop national policies. The government of Bangladesh has a plan to make Maheshkhali a primary example of ‘Digital Bangladesh’ by building GiGA Island there. When GiGA Island is established in Maheshkhali and GiGA service becomes widely available in the country, the project will be an example of GiGAtopia’s promoted at the national level overseas.
Minister Zunaid Palak said, “It is my great pleasure that Bangladesh signed the MOU to become the venue of KT’s first global GiGA Story. I hope the GiGA Story built by KT and the government of Bangladesh is repeated in other developing countries.”
UN Broadband Commission for Digital Development introduced KT’s GiGA Story as one of the best practices to spread broadband service across the world in its official report published in last September. KT was the only Korean service provider included in the report. GSMA is carrying out GSMA Industry Purpose supporting UN SDGs to make social and economic contributions. GSMA Industry Purpose also listed KT’s GiGA Story as one of the best practices to achieve SDGs.
- KT Spreads Korea’s advanced ICTs to every corner of the world… commitment to become the ‘World’s No. 1’
KT Chairman Hwang Chang-gyu unveiled his plan to realize ‘GiGAtopia’ based on GiGA infrastructure and convergence services in his first press conference as a chairman of the communications service provider. GiGAtopia refers to a world where human beings and all things are connected through GiGA infrastructure and ICT ecosystem revitalized by convergence services facilitates industrial development and innovation in everyday life. ‘GiGA Story’ is KT’s CSV program and allows people to take a peek into a future GiGAtopia will shape.
KT has a strategy to expand GiGAtopia to the world. The company suggested a new goal of contributing to establishing GiGA infrastructure and providing convergence services to realize ‘global GiGAtopia’.
For ‘Global GiGAtopia’, KT’s top priority is to provide the world with Korea’s advanced ICTs and top 5 convergence services for the future. This strategy focuses on establishing as outstanding an ICT infrastructure as that of Korea in other countries instead of simply exporting technologies or building network.
Examples include GiGA LTE service offered to Turkey. The service is provided at the same speed as the combined speed of LTE and Wi-Fi and is expected to bring changes to lives of the Turkish. Another example is GiGA Wire provided for Cataluña in Spain. GiGA Wire will allow tourists in Barcelona to have access to the Internet at a speed of up to 600Mbps, which might change travel trends. Global GiGA Story can be used as a case study to show the effectiveness of an ‘intelligent network’ to developing countries.
The chairman said, “The more people in the world are able to use ICT services as readily as Koreans, the more people will share the commitment to realize ‘global GiGAtopia’. I believe global GiGAtopia will be the driving force to achieve KT’s vision of becoming the ‘World’s No.1’.”