KOREACOMMUNICATIONSCOMMISSIONANNUALREPORT2011ThisannualreportisasummaryofthemainactivitiesandachievementsoftheKoreaCommunicationsCommissionduringthepastyear,pursuanttoArticle16ofthe「ActontheEstablishmentandOperationoftheKoreaCommunicationsCommission」.MessageFromTheChairmanTheKoreaCommunicationsCommission(KCC),launchedamidtheflowofthetimeswithhighexpectationsforandinterestintheconvergenceofbroadcastingandtelecommunications,successfullycompleteditsinauguralthree-yearmissionandstartedafreshonitstheSecondTermCommissionofdevelopmentinMarch2011.In2011,thenumberofsmartphoneusersinKoreaexceededthe20-million-mark,andthe4GLTEcommercialservicewaslaunched,indicatingthatKoreahadsteppedintothefull-fledgedsmartage.ThenumberofsubscriberstotheIPTVservice,atypicalconvergencebetweenbroadcastingandtelecommunications,exceeded4.5million,contributingtothegrowthofthelocalpaidbroadcastingmarket.Toaugmentmediadiversityandensuresharedgrowthamongallthepartiesconcerned,theKCCapprovedthelaunchofgeneralbroadcastingchannelsandspecializednewschannelsandhomeshoppingchannelsdevotedtosmallandmediumbusinesses.Theyear2012willbecomeacrucialyearforKoreainthatwhetheritcanplaceitselfinakeyplayerpositioninthesmartageornotwillbedeterminedduringthisoneyear.Thebroadcastingandtelecommunicationsserviceisexpectedtomovebeyondameremeansofcommunicationtowardsageneralcultureserviceplatformfordiversesocialculturalconveniences,andthesmarttechnologyrevolutionsparkedbysmartphonesandtabletPCsismostlikelytoexpandintosmarttelevisionsastheglobalcompetitiontoseizetheleadershipinthesmarteconomygrowsevermoreintense.Thefutureglobal'smarthegemony'willrestuponwhocancreateasmartecosystemconvergingsmartcontents,platforms,networksanddevicesinacreativeway.IamcertainthatKoreawillemergeasasmartpowerhouseequippedwiththeworld'stopcompetitivenessinbroadcastingandtelecommunications,providedthatKoreacopeswiththechallengingglobalenvironmentbyusingitsconvergedcutting-edgetechnologicalprowess,humanresources,creativity,andinnovativecapacityagainstthebackdropofitssuccessfulexperiencesinbuildinguptheworld'stopcompetitivenetworking.ThisannualreportlooksatthetracesoftheeffortsoftheSecondTermCommissiontotransformKoreaintoasmartpowerhouseinlinewiththewiththepolicydirectionsoftheKCCandthebasicbroadcastingandtelecommunicationsplans,includingtheKCC’smajorachievementsin2011.IwouldliketoconcludebyassuringyouthattheKCCwillcontinuetotaketheleadingroleinestablishingagloballycompetitivesmartecosysteminKoreaandrealizinga“SmartKoreaenjoyedbyallitsCitizens.”Thankyouforyourcontinuinginterestandencouragement.March2012Kye-CheolLeeChairmanKoreaCommunicationsCommissionBroadcastingandTelecommunicationsPolicyAccomplishmentsinGraphsBroadcastingandTelecommunicationsPolicyAccomplishmentsinGraphsⅰ|ⅰ■Thebroadcastingandtelecommunicationsindustryismakingcontinuouscontributionstothegrowthofthenationaleconomy.oThebroadcastingandtelecommunicationssectorcontinuestogrowintermsofICTindustryexportsandbroadcastingandtelecommunicationsoutput.Korea'sICTdevelopmentindex,asgaugedbyaninternationalorganization,ITUwasrankedno.1forthesecondconsecutiveyearin2011.(unit:%)Economicdevelopmenttrends(GDP)(unit:ranking)ITU’sICTDevelopmentIndex(IDI)evaluationranking(unit:US$100million)ICTIndustryExports(unit:US$100million)ICTBalanceofTrade(unit:KRW1trillion)Domesticbroadcastingandtelecommunicationsoutput(unit:KRW1trillion)DomesticinternetAdrevenueE:EstinatedValueofparametersbasedonpredictionValuesP:PreliminaryfiguressubjecttoChangedependingontheavailabilityoftheexactfigureslateron2011KOREACOMMUNICATIONSCOMMISSIONANNUALREPORT■Thedevelopmentofnext-generationbroadcastingandtelecommunicationsconvergencetechnologyandthediffusionofsuchserviceshavehelpedlaythefoundationsforavitalizedmarket.oToday,threeyearsafteritscommerciallaunch,IPTVhasasubscriberbaseof4.57millionpeople.Thenumberofsmartphoneusersincreasedbyawhopping213percentinjustoneyear(2011)to22.58million.oThenumberofWiBrosubscribersincreasedby75.4%to798,000in2011.Wi-Fizonescontinuedtoexpandin2011,improvingthesmoothwirelesstelecommunicationsenvironment.Note:AsofDecember2011;KTandSKTintermsofzonenumbersandLGU+inWi-FiAPnumbers(unit:10,000subscribers)NumberofIPTVsubscribers(unit:10,000subscribers)Numberofsmartphonesubscribers(unit:10,000subscribers)NumberofWiBrosubscribers(unit:10,000units)ExpansionofWi-FizoneBroadcastingandTelecommunicationsPolicyAccomplishmentsinGraphsⅱ|ⅲ■TheKoreaCommunicationsCommission(hereinafterthe‘KCC’)strengthenedthebaseforoverseasexpansionoflocalcompaniestoenablethemtotaketheleadindevelopingtheenvironmentfortheglobalbroadcastingandtelecommunicationsmarket.oIn2011,nineteencountrieswereinvitedtotheannual‘TheWorldInformationandCommunicationsSummit’forenhancedinternationalcooperationatthegovernmentallevel.Thenumberofcountriesforwhichoverseasmarketinformationmustbesubmittedforoverseasadvancewasraisedfrom47to54.oTheKCCupgradedKorea’sstatusasagloballeaderinbroadcastingandtelecommunicationsbycontinuouslyexpandingthenumberofinvitedcountriesthatareeligibleforKorea'sbroadcastingandt