The future of information communications technology will depend on the convergence of regular networks with broadband networks. All the elements -- hardware, software and management -- have to be balanced just right to make the network run smoothly. Other pressures are that consumers are demanding voice, video and data over the same network and they also want wireless and fixed line networks to be seamlessly integrated. The challenge all network systems face is how to respond to these demands, whether from an individual, a government agency, a company or an educational institution. What is the Korean experience in broadband networking and how can that be applied elsewhere This is one of the most complex undertakings in human history: Who will get it right The World ICT Summit Session 3, which was held at 1:30 p.m.-3:00 p.m. on May 18, the first day of the Seoul Digital Forum, consisted of six speakers. They included Jeffrey Rothfeder, author and technology journalist (moderator), John E. Davies, Vice President, Intel, Young Shu, President, Asia Pacific, Riverstone Networks, Josef Lorenz, Senior Vice President, Solution Management, Siemens, Joo Youn Song, Executive Vice President, KTF, Chang Bun Yoon, President, Hanaro Telecom and Prashant Pathak, Partner and Consultant, McKinsey & Company Toronto Office. The following is a summary of their discussion regarding "Wired and wireless Broadband Network Convergence". Mr. Rothfeder: The entire group comes from similar interests and backgrounds in this subject of convergence. Let's hear what our panel members have to say in regard to the subject of convergence. Mr. Yoon: He stated that Hanaro Telecom was the first to introduce broadband to the Korean market and plans to deploy many more broadband services in the near future. He indicated that the concept of convergence came from the IT industry. He said that the four major enablers are the development of digital technology, new services, user demands and changing regulations within the environment. He also said that customers are happy with convergence and broadband and expect new types of service in the future. To the IT industry, convergence means structural change. These changes will bring about new opportunities and allow for new quality services to be developed for customers. Mr. Lorenz: Convergence is a means of communicating through all devices, wherever you are at any time. The industry continues to develop new technologies and strives to bring them all together. There are many types of opportunities through convergence, including entertainment, video, communication, etc. Current technology is sufficient and providers are trying to bring it into the home. We have the technology, users and the networks, so therefore we must develop the infrastructure and provide services. Mr. Pathak: In the case of wire and wireless convergence, there are two issues in Korea. The first is the ongoing revolution and the second is the completion of the service platforms. My organization has had a long-standing relationship with many clients in Korea and that Korea is currently on the leading edge of broadband technology. One of the key points for the industry is to determine what the customer believes will be happening five to seven years down the road. Industry players will flood into all facets of the industry, thus creating a situation where companies and different areas of value chains will be competing. Mr. Rothfeder: How do you plan to manage the life cycle and what issues will challenge the industry going forward Mr. Song: My company is the second largest mobile operator in Korea with a total of 12 million subscribers. The company offers numerous types of services at any place and any time through the use of convergence. Some of the services include home networking, media, data, communications and gaming. A new chip for the new phone they recently developed can perform activities through the handset and include auctions, mobile banking and financial services, airline ticketing, food purchasing, telematics and home networking. Mr. Shu: My organization has been very successful in broadband in the Korean market. The first phase of broadband in Korea took place in 1998 and now Korea leads the way, worldwide. The main challenge for the operators is to figure out a way to make money as the service in general is not that profitable. Korean gaming development companies have a huge upside and the potential to make huge profits in the future. The key to the industry is how all companies can improve their profit margins and increase revenue from broadband in the future. Riverstone is trying to develop a new technology of broadband and infrastructure that offers a profit solution, is cost effective and that provides quality products to the customer. Mr. Davies: In convergence, the next step from voice is data. In the case of Korea, the total share of data is higher than all the other countries. Operators and cable service providers want to provide VOIP service, but the overall market is currently not growing. The devises are not fully utilized, so there is a requirement for further investment in those areas. The competition is becoming severe in Korea, but the customers do not care about those issues. In Korea, the number of PCs is very high, the number of mobile phones is high also, home networking is popular and that there is a lot of convergence within the market. There are, however, many areas for improvement. These areas include healthcare, sales people/field service personnel, and blue collar service workers. A great deal of productivity could be attained if the technology was used properly in these fields. Mr. Rothfeder: What does KTF and SKT need to do provide services and make money through these services in the future Mr. Pathak: The service providers need to be more service and customer focused. To make the technology become more productive across different industries, costs can be reduced thus creating a better point for customers. The industry needs to try to achieve full convergence beyond the network using bandwidth and software together for better efficiency. Also, operators need to partner with others and work to integrate all the technologies. Essentially, the business model needs to be made simpler to promote ease of use for the customers. Mr. Rothfeder: What do you think of the comments and the advice that has been given Mr. Yoon: Without operators, convergence is impossible. Telematics and medical industries are just a few examples where operators do play a major role. Mr. Davies: I don't see companies utilizing all the technologies to their full capabilities. Customers, in general, need to be educated further. Mr. Shu: The applications are more important than access. In the future, the business model will change with more consolidation and the focus will be more on profit. Mr. Rothfeder: What about regulation within the industry Mr. Yoon: There is a need to balance regulations and competition to improve the industry. Korean providers understand Korean mentalities and tendencies, but exporting our business model overseas can be difficult within different cultures. The government needs to relax regulations in the future and be flexible enough to expand business within the industry. Mr. Shu: In general, it is hard to export infrastructure, but one can export service. The primary focus should be placed where the highest margin is within the value chain.