KT to Upgrade Multimedia
Infrastructure to
'the Fiber to the Home'

Aims to chalk up 11.9 trillion won in sales in 2007

KT plans to build up multimedia infrastructure for delivering such convergence services as IPTV (Internet Protocol Television) and u-Robot (ubiquitous robot) by 2010.
To this end, KT will invest 1.2 trillion won to upgrade its high-speed Internet network to the "fiber to the home"(FTTH), KT CEO Nam Joong-soo told a news conference in Seoul on December 12.
IPTV is a system where a digital television service is delivered using the Internet Protocol over a network infrastructure. The plan calls for connecting all homes across the country with fiber optics networks with a download transmission speed of 1Gbps which can allow IPTV and Internet to download a movie at a speed of one or two seconds. FTTH is part of the Broadband Convergence Network (BcN) that can control TVs, refrigerators, air-conditioners, handsets, navigation devices and CCTV through wireless and wired systems. Under the plan, people will be able to heat up water in the bathtub before returning home from work and watch TV news that are delivered automatically through Internet TV.
KT plans to raise investments into the FTTH network buildup on a step-by-step basis. Korea's largest fixed-line operator and broadband service provider will set aside 2.8 trillion won next year, similar to this year's level, to implement such projects as supplying 1.8 million FTTH lines, expanding the mobile Internet WiBro coverage and commercialization of IPTV.
Specifically, KT will channel 140 billion won and 150 billion won into developing a IPTV network and securing sources of IPTV content, respectively. KT plans to forge a strategic alliance with cable program providers in time for the launch of Internet protocol TV (IPTV).
KT President Nam indicated his determination for pushing ahead with the commercialization of the IPTV project, which has been put off by wrangling over the formation of regulatory framework. Nam stressed, "We have produced a wonderful toy pinwheel,
but we cannot remain still and wait until the wind blows. We would dash forward to spin the toy pinwheel."KT aims to post 11.9 trillion won in sales in 2007, more than 200 billion won this year.
KT CEO Nam declared a customer-oriented management vision, saying that KT will focus on the "first 1 Mile", a space for creating the invaluable value for customers, departing from the telecom operator's physical space "Last 1 Mile"concept.
Nam said KT will shift from a customer service system focusing on A/S (after-sale) services to B/S (before-sale) one on a gradual basis in a bid to improve the value for customers and secure its competitive edge by offering differentiated services. In this vein, KT decided to inaugurate the Value Innovation Center designed to analyze customers'demands and reflect the outcome into businesses and the Design Management Center that was created to put design factors into telecommunication services.
The KT CEO said KT will reorganize the existing businesses into four values ― "digital entertainment," "onvenience/ business solutions,"and "evolution of telecom services."Each subsidiary of the KT Group will focus its capability on developing its own value to have synergetic effects and offer diverse services tailored to meet customers'needs. KT plans to test-operate WiBro next April before it is put into commercial service in the Seoul metropolitan area, including the entire capital. To this end, KT will make an additional investment of 240 billion won.
In an effort to strengthen its social responsibility, KT will create a 100 billion won fund by setting aside 1 percent of its net income every year. The fund, dubbed the "Fund for Advancing Knowledge-based Society,"is part of KT's efforts to firm up its social responsibility as a corporate citizen, departing from the passive attitude of regarding social responsibility as mandatory, KT CEO Nam said. KT plans to take a lead in transforming Korea into a digital knowledge-based society by fostering 1,000 "IT supporters"to meet IT demands of society, Nam said.
He said KT tries to solve a riddle concerning growth, coexistence and innovation, given by customers as suggested by the opera "Turandot,"but KT will do its best to grab attention from customers, saying that it is meaningless for his company to fail to gain trust from clients. nw

KT CEO Nam Joong-soo mingles with newly hired KT employees to share views with them in a series of meetings with youngsters.

KT CEO Nam Joong-soo.