SK Telecom Mobile Cloud

Mobile World Congress 2012

Byun, Jae W. Ph.D.

EVP/CTO, SK Telecom
Contents

SK Telecom Overview

Challenges for Operators

Strategic Directions

SK Telecom Mobile Cloud

Concluding Remarks

1
Ⅰ. SK Telecom Overview

SK Telecom (No. 1 in Korea with 50.2% M/S)

CDMA WCDMA LTE Wi-Fi

(850MHz) (2.1GHz) (850MHz) 122,000 AP’s
2x5MHz 2x30MHz 2x10MHz Open to SK Telecom
0.6mn subscribers Customers
6.9mn subscribers 19.1mn subscribers

Convergence
(Network, IT, Cloud, etc.)

SK Planet (Subsidiary for IT Service)

Application Communication Commerce

Personal Media
Market Platform (Melon, Hoppin) (11Street)
(T Store) (Cyworld, NateOn)

2
Ⅱ. Challenges for Operator

OTT Player in Mobile Ecosystem

Device Platform Content
 OTT players (Apple, Google, Amazon, etc.)
are leading the mobile world
iTunes App
Store  Network operators have been losing the
initiative in the ecosystem
 SK Telecom is open to OTT players and
fairly competes with them
Open Network *OTT: Over-The-Top

Traffic/Revenue Decoupling

Traffic/CAPEX  Data traffic and corresponding CAPEX has

Gap significantly grown due to smart devices
 However, revenue growth has been
Revenue
saturated
 New values are expected to come from
the end-to-end understanding of content,
Time platform, network, and device for
optimized user experience
3
Ⅲ. Strategic Directions

1. Smart Pipe Transition

Various intelligent services from big
data analysis (location, presence,
IT-CT Convergence
customer behavior, etc.)
IT Industry CT Industry
De facto Mobile De jure
Innovative, Cloud Stable, 2. Network Efficiency Enhancement
Experimental Proven
Global Service Local Service CAPEX reduction by introducing
(Internet) (License) common platform instead of
functionally-dedicated equipments
< IT Innovative Technology >
Virtualization,
Data Management,
Personalization,
Large-scale Server Operation, etc. 3. IT Market Entry

CT: Communication Technology

Cloud services (SaaS, PaaS, IaaS, etc.)
based on operator’s wireless/wired
network infrastructure

4
Ⅳ. SK Telecom Mobile Cloud Smart Pipe – Big Data

Smart network implemented with information technology will come into play with
operator’s distinct assets (e.g. location, presence, customer behavior).

Now
Google
Service
Google
Dumb Apple  No new value creation from
Apple Pipe Service
dumb pipe
Naver
Naver Service
 Smart pipe by big data analysis
(e.g. deep packet inspection,
usage pattern analysis on smart
Future device)
Naver
Smart Pipe Google
A Apple
Google Service  Offering various intelligent
Big Data Naver
Analysis
Google services with optimized QoS
Apple B Apple
Service
Naver
A B C Google
Naver C Apple
Telco Values
Service

5
Ⅳ. SK Telecom Mobile Cloud Network Efficiency – Soft Network

CAPEX can be reduced by introducing the virtualization to mobile network, Soft

Network, which dynamically allocates resources depending on the service loads.

Dedicated Platform

 Dynamic resource allocation by

server virtualization based on
SMS MMS SFS common platform

Independent Servers
 Test completed in 2011 and
commercialization expected by
2013
Common Platform (Soft Network)
 CAPEX reduction by approximately
16%
(32 common platform servers
SMS, MMS, SFS vs. 38 dedicated servers)
Server Virtualization

SFS: Span Filtering Service

6
Ⅳ. SK Telecom Mobile Cloud Network Efficiency – Mobile CDN

Mobile CDN could save 30% backhaul traffic by caching frequently used contents at
the caching server located at the base station.

Mobile CDN
SK Telecom
Mobile
Network  Approximately 30% traffic
EPC
reduction at the backhaul by
moving the caching server to the
Content base station
Backhaul
Provider Move to
Base Station CDN  Control ability, such as mobility
Caching support and QoS control, must be
Server handled at the caching server
Base
Station
 In SK Telecom, a pilot test to be
completed by the end of 2012

7
Ⅳ. SK Telecom Mobile Cloud IT Market – Cloud Service

SK Telecom has been providing both B2C and B2B cloud services for better mobile
experiences and business environment.

T cloud (B2C)

(SNS) (Video Streaming)

Personal
 T Cloud (B2C) provides not only
(Music Portal) Data/Contents storage service, but also seamless
and personalized experience to SK
Telecom customers

 T Cloud Biz (B2B) integrates

T cloud biz (B2B) enterprise cloud service with
mobile/broadband network service
Platform Server, Storage
(PaaS)
as a total solution package
(IaaS)

Solution Network
(SaaS) Infrastructure

8
Ⅴ. Concluding Remarks

 Network operators are challenged to create new value from the mobile life
era, where OTT players are taking the initiative and the revenue from the
pipe is being saturated.

 New values are expected to come from not solely the network, but the
convergence of network, information, and cloud: (1) smart pipe transition,
(2) network efficiency enhancement, and (3) IT market entry.

 SK Telecom have worked on mobile cloud in the above three areas.

(1) Smart pipe transition: big data analysis projects (user behavior, resource allocation,
optimized service, etc.) in progress
(2) Network efficiency enhancement: server virtualization and mobile CDN for cost-
effective network
(3) IT market entry: B2C and B2B cloud service provider

9
Thank You!