July 1, 2016

NGON2016

SK Telecom(SKT) provides integrated telecommunication services and pursues growth biz. through transforming to Lifestyle, IoT and Media Platform Provider

SK Telecom Overview

【 Corporate Strategy 】 【 Subscriber & ARPU Trends 】

SK Telecom is on the verge of transforming into a next generation platform player

- Lifestyle Platform: enrich user life style value

- Media Platform : provide optimally personalized contents and seamless user experience

- IoT Platform : Improve convenience and productivity by collecting/analyzing data from all things

LTE Market/Tech Leadership boosts penetration subscribers and steady growth in ARPU

LTE/LTE-A Technology Leadership

World’s Best 3G/LTE Operator, leading Innovation of Mobile Broadband

2G

CDMA1x & EVDO

3G

WCDMA/ HSDPA

4G/LTE

850㎒

LTE-A

10+10M Carrier

Aggregation

Broadband LTE-A

10+20M Carrier

Aggregation

Multi-Carrier

850㎒ /1.8㎓

3 Band LTE-A

10+20+10M Carrier

Aggregation

‘96~’02 ‘06 ‘11.7 (Korea’s First)

‘12.7 ‘13.6 ‘14.6

850㎒ +1.8㎓ +2.1㎓

Maximum Download

Speed[Mbps] 0.384

14.4

75

150

225

300

‘14.12

LTE/Wi-Fi Aggregation

LTE: 300Mbps Wi-Fi: 867Mbps

Multi-Path TCP

850㎒ +1.8㎓ +2.1㎓ + 5 ㎓

1.17 [Gbps]

‘15.6

850㎒ +1.8㎓

850㎒ +1.8㎓

75

World’s First and Best

Top ranking in Korea Customer Satisfaction Index

for 18 Consecutive years

LTE-A Pro /Wi-Fi

Aggregation

LTE: 500Mbps

850㎒ +1.8㎓ +2.1㎓ + 5 ㎓

1.37 [Gbps]

‘16.6

256QAM

Source: SK Telecom

12

Total Traffic 21

Multimedia Traffic

LTE Commercial Service

’11.7 ’15.5

1,206%

2,081%

Source: Cisco VNI, 2015

’16 ’17 ’18 ’19

CAGR

57%

0

0.5

1

1.5

2

2.5

3

3.5

4

’12 Jan

’12 Apr

’12 Jul

‘12 Oct

‘13 Jan

‘13 Apr

‘13 Jul

‘13 Oct

‘14 Jan

‘14 Apr

‘14 Jul

‘14 Oct

‘15 Jan

‘15 Apr

Tra

ffic

per

User

(GB

)

3G

4G

Total Traffic

Multimedia Traffic

1.0 GB

3G User Traffic 3.5 GB

4G/LTE User Traffic

Average Monthly Data Traffic per User

Monthly Global Data Traffic Forecast (‘19)

Multimedia File Sharing Web/Data/VoIP

CAGR (%)

Traffic (EB) 19.2

64

0.5

75

4.6

38

Share (%) 2 19 79

Key driver for 5G: 1) Rapid mobile traffic growth multimedia

The mobile network infrastructure must evolve to accommodate the rapidly increasing mobile traffic (especially in multimedia), efficiently and intelligently

The communication paradigm shift due to the emerging devices and services necessitates the network to support not only high bandwidths but also explosive number of connections

Key driver for 5G: 2) All connected

[2012] [2020]

“50 billion devices by 2020…”

“Market impact $4.5 Trillion by 2020”

Source: IBM

“… will surpass the mobile phone market…”

Tremendous amount of data gathered from diverse devices create opportunities for new services with diverse technical requirements, calling for flexible & programmable network

Key driver for 5G: 3) Service enrichment and data explosion

Large number of rich services

Enterprise Data

2010 2015

VoIP

Social Media

Sensors & Devices

Source: IBM Research Global Technology Outlook 2012

3000

4000

5000

6000

Volu

me in E

xabyte

s

Generated data (Forecast from IBM)

1G 2G 3G 4G 5G LTE

All-IP

New RAT

All-IT

Digital

Packet

MNO & N/W Players

OTT & Device Players

IT & IoT Players

Tech

Player

Service

Voice Roaming

Smartphone IoT

Virtual Exp. Smart Machine

(2010~) (2020~) (1980~2010)

Mobile network evolution

5G will be All-IT infrastructure supporting services such as VR and mission-critical IoT services

5G Architecture

SK Telecom’s 5G architecture consists of 3 layers: 1) Hyper-connected radio, 2) All-IT infrastructure, and 3) Innovative services

【 5G Roadmap】

Trial service in 2017 and commercialize in 2020

’16 ’17 ’18 ’19 ’20

Trial Service Commercial 5G

TestBed/Pilot

Rel-14 Rel-15(1st) Rel-16(2nd)

5G Requirements Spectrum > 6GHz

Spectrum < 6GHz Spec. Freeze

Telco

service

UHD &

Hologram

Massive

IoT

Mission-

Critical IoT

Network slices

Telco/IT functions

Virtualization

O&

M

Low-cost small cell

Massive MIMO

f1

Unlicensed,

Millimeter-wave

f2

fn …

fm

New waveform Cloud-RAN

Cloud

Core

Orch

estra

tion

Cloud-RAN

Telco API

Unified Transport

Hyper-connected radio

Innovative Services

for virtual experience, massive IoT, critical IoT

All-IT Infrastructure for value creating network, monetization

for massive and multi-Gbps connectivity

T-SDN platform offers programmability and unified controllability of transport infra. comprising Multi-vendor, Multi-layer network

T-SDN Platform – Transport Infra. Orchestrator

Transport Infra Orchestrator

Management Components Control Components Intelligent Eng./Operation

Components

Vendor EMS Vendor EMS Vendor EMS

Local Physical N/W Controller Vendor EMS

Local Virtualized N/W Controller

Open API

Virtualized Transport Network Functions

● ● ●

NG-Fronthaul (T-PON)

IP/MPLS (L3)

POTN (L1-3)

vIPS/ vIDS

Open NG ROADM

(L0)

Physical Transport Network Functions

Open PON (L1-2)

Open N/W Control & Mgmt Model Agent

Legacy PNFs

vSwitch/ vRouter

Operation Automation

Resource Optimization

Traffic Mgmt.

…

Bandwidth Calendaring

… N/W Planning

Bandwidth on Demand

Provision on Demand

Carrier App.

T-SDN Platform

Customer App.

Current T-SDN Platform

T-SDN platform offers simplification of operation through abstraction, real-time optimization & design of network resource, centralization of network control and real-time optical signal quality measurement

OTN PNC (A Vendor)

IP/MPLS N/W

ROADM N/W (A Vendor)

OTN N/W (A Vendor)

ROADM N/W (C Vendor) OTN N/W (B Vendor)

IP Backbone NMS ROADM

PNC (C Vendor) OTN Physical N/W

Controller (B Vendor)

T-SDN Platform

Dual-domain service

ROADM PNC (A Vendor)

Abstract

Network

Information

Network

Optimization

& Planning

Unified

End-To-End

Control

Performance

Monitoring &

Statistics

T-SDN Platform in 2017

Packet-Optical Transport Network

Internet

Transport Network

Analytics-based E2E Orchestration

NFV Orchestration T-SDN Platform

DU Pool

4G Fronthaul

5G Connectivity

5G Fronthaul

Edge DC#1

COTS

Edge DC#2

COTS

Centralized DC

COTS

Providing efficient network operations and centralized routing control for different services in multi-layer, multi-vendor or multi-domain networks

L0/L1

L2/L3

Traffic A : Low-tolerant service

Traffic B : Low-latency service

Open ROADM Plan

Transport Infra. Orchestrator

Vendor A

Controller

Carrier Application

Legacy ROADM(A)

Vendor A

EMS

Legacy ROADM(B)

SNMP,

Corba REST-API TL1 REST-API

Ciena EMS Vendor B

Controller

Transport Infra. Orchestrator

A

Con.

Carrier Application

Legacy

ROADM(A)

A

EMS

Legacy

ROADM(B)

SNMP,

Corba T-API TL1 T-API

Ciena EMS B

Controller

NG ROADM

Ciena EMS Controller

Open ROADM

API

Transport Infra. Orchestrator

A

Con.

Carrier Application

Legacy

ROADM(A)

A

EMS

Legacy

ROADM(B)

SNMP,

Corba T-API TL1 T-API

Ciena EMS B

Controller

NG ROADM

Open ROADM API

Open Source

Controller

Now

Disaggregated

NG ROADM

Summary

T-SDN Platfrom extends former SDN from enterprise networks to carrier networks, providing the decision mechanism of how to engineer their IP/MPLS(-TP) packet networks (layer 2/layer 3) and optical transport networks (layer 0/layer 1) organically in multi-vendor

or multi-domain networks.

The future network should accommodate 4 requirements : “SUPER” connectivity,

“Software”-based flexibility, operational “Intelligence”, and new “User Experience”.