Skip to main content

KT Broadband Convergence Network (BcN)

Market incumbent and technology pioneer, KT Corporation of South Korea, has announced US$3.1bn CAPEX guidance for 2006 despite a dismal revenue performance during its earnings call for the last quarter. One-third of this will be spent on upgrading infrastructure and deploying technologies that will help secure its long-term market position. KT has no choice - it has to spend and speed up its upgrade process.

Despite lackluster performance in 4Q05, KT Corporation remains undeterred in realizing its broadband convergence network (BcN) objective. This year it plans to spend one trillion Korean Won (US$1.03bn) on technology enablers of its next generation network. In particular, two services are being planned this year to create a much-needed revenue growth avenue for the operator: IPTV and Wireless Broadband (WiBro).

In particular, out of the three trillion Korean Won (US$3.1bn) CAPEX guidance for 2006, KT allocates KRW500bn (US$517m) on WiBro deployment, KRW50bn (US$52m) on IP Media with possible deployment within the year, KRW300bn (US$310m) on next generation networks (NGN), and KRW150bn (US$155m) on other growth areas (such as content).

Popular posts from this blog

European AI to Reach $47.6 Billion in 2024

The European Artificial Intelligence (AI) and Generative AI (GenAI) market will reach $47.6 billion in 2024 and record a compound annual growth rate (CAGR) of 33.7 percent over the 2022-2027 forecast period. Europe represents around one-fifth of the global AI market according to the latest worldwide market study by International Data Corporation (IDC). While the share of GenAI reached only 9.6 percent of the total European AI market in 2023, it is increasing rapidly. Investment in GenAI will grow more than three times as fast as spending on the rest of the artificial intelligence market. As a result, GenAI will be more than a quarter of the European AI market in 2027. European AI Market Development Software will be the largest technology segment in 2024, with a market value higher than hardware and services combined. Furthermore, software is expected to have the fastest growth during 2022-2027, driven by demand for AI applications and platforms. The share of hardware technologies will