Redefining Broadband

Alex Arena Group Managing Director

Overall IP traffic is expected to grow to 278 EB/mth by 2021, up from 96 EB/mth in 2016. Nearly triple in 5 years.

Key traffic volume drivers : Proliferations of IoT devices

Video applications amount to 82% of internet traffic

Global IP Traffic Volume

Exabytes = 1018 Bytes

Proliferation of IoT Devices

Source : Sandvine 2016 Global Internet Phenomena - Inside the connected Home. Survey base 500,000 broadband households.

Average number of active connected devices per household is 7.1

About 6.0% broadband households have 15+ devices

Video Bandwidth Drivers in Near Future

Virtual and Augmented Reality – new and more affordable hardware together with growing body of content

Immersive Video - Facebook 360, YouTube VR180 are video streaming 3~10 times of HD video

Surveillance Cameras – 24x7 steady flow of video stream to cloud for remote viewing

360

49 times of HD 1080

Sources: Deutsche Bank VR Study, 2016. CISCO VNI Forecast 2014-2019

Sources: Google I/O 2017

High Rise

Premium

Rural,

Remote &

Islands

Up

to 1

0G

bp

s

2016

Up

to 1

Gb

ps

2013

2014

2010-2012

2015

As of Dec 2016, FTTH Coverage has reached

83.5% and FTTB Coverage is at 87.6% * FTTH coverage means HKT can provide FTTH service to customer within 4 days

Territory-wide Fiber Broadband

2011

0

50

100

150

200

45

2012 2013 2014 2015

66 84

117

175

Ave

rage

Mo

nth

ly D

ata

usa

ge p

er

Lin

e

(GB

yte

s)

Netvigator’s Internet Traffic

250

2016

238

During the second half of 2016, the Average Monthly Data Usage per Line has increased by 36% since end 2015, reaching 238 GBytes

Year

Internet Traffic Growth

0

50

100

150

200

Ave

rage

Mo

nth

ly D

ata

usa

ge p

er

Lin

e

(GB

yte

s)

250

2016

238

44%

56%

44% 56%

Internet Traffic

Internet (Non-video) Internet Video

The Internet video streaming traffic (e.g. YouTube, Netflix, Facebook Live, NowTV VOD, etc.) accounted for 43.64% of Internet traffic as of December 2016.

Video Traffic vs Non-video Traffic

0

50

100

150

200

250

300

350

400 A

vera

ge M

on

thly

Dat

a u

sage

pe

r Li

ne

(G

Byt

es)

2016 2015

393

134

104

155

26.4%

34.1%

39.5%

Broadband Traffic

Internet (Non-video)

Internet Video

IPTV (nowTV Broadcast)

Netvigator total video traffic (IPTV + Internet Video) amounted to 66% of total broadband traffic

85

90

145

320

Total Video Traffic Including IPTV

Cat 5 Cabling

Fiber

FTTCab

FTTB

FTTH

Fiber-To-The-Cabinet

Fiber-To-The-Building

Fiber-To-The-Home

Exchange

9

FTTH

FTTH

xDSL

Up to 100M

FTTCab

xDSL 100M

FTTB

PON 1,000M to 10G

HKT’s Fiber Broadband Evolution

Unleashing HKT’s

Fiber-rich Network

2015 onward

Massive Passive Optical

Network (PON) Deployment

2010 - 2014

Legacy Copper

Pre - 2010

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

100

Mbps

1,000

Mbps

10,000Mbps

10G PON is Here! B

road

ban

d S

pe

ed

(M

bp

s)

HKT’s Broadband Roadmap

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Bro

adb

and

Sp

ee

d (

Mb

ps)

Unleashing HKT’s

Fiber-rich Network

2x1000M

Multi-Use

4x1000M

Multi-Use

HKT’s Broadband Roadmap Genuine

10Gbps

Traditional Broadband Service

Internet

One Line One Circuit Many Applications on that single circuit

Internet

ISP Platform

Old Network Architecture, one line one circuit with many applications tangled together

4x1000M Multi-Use Service

Internet

ISP Platform

Entertainment

Home Office

Gaming

Security

Segregated Applications

New Network Architecture supporting multiple circuits and segregated applications

Multiple Circuits

Benefit of the New Architecture

Supports multiple applications with traffic segregation

Dedicated circuit for each application while maintaining high speed and quality of service

Enhanced security

4 x 1000M Multi-Use Service

Typical Application 1 - Gaming

Typical Application 1 - Gaming

Wi-Fi Router Built for Gaming This high-performance router minimizes ping times and ensures smooth, lag-free gaming thanks to its top-of-class CPU, blistering wired and Wi-Fi speeds plus, gaming-optimized firmware.

Recent Major Cyberattacks

11 12 1 2 3 4 5 6 7

2016 2017

8 9 10 7

Mirai

20 Sep 2016 Mirai Botnet Malware “IoT Malware” targeted at vulnerable devices (e.g. CCTV, DVR) to perform DDoS

12 May 2017 WannaCry Ransomware spread around the world, affecting systems at public health, enterprises and utilities

WanaCry

Mar 2017 WikiLeaks CIA Vault7 Contains CIA digital spy tools, e.g. • iOS/ Android

vulnerability • Turns smart TVs

into listening devices

Vault7

27 Jun 2017 Petya More advanced Ransomware attacks computers and networks of companies globally

Petya

Recent Major Cyberattacks

Typical Application 2 – Enhanced Security

Ranging from computing devices to IoT devices and cameras, the Secure Router can sense traffic abnormality and protects privacy of your home by blocking phishing, intrusive tracking & malicious attacks.

XG PON Optical Network

Terminal (ONT)

Traffic isolation Among 4 GbE ports can minimize the spread of virus and worm-type malicious attack

Secure Router (Optional)

Typical Application 3 - Entertainment

UHD (or 4K) IP VoD will account for 30 percent of global VoD traffic in 2021.

Video definition and required bandwidth keep increasing, results in significant demand for video traffic in future home.

UHD VR (500Mbps)

HD VR (167Mbps)

8K Wall TV (100Mbps)

UHD IP Video (51Mbps)

VR (17Mbps)

UHD Streaming (16Mbps)

2 UHD Cameras (8Mbps)

IP Video (8Mbps)

HD Camera (2Mbps) Today

Future

Application requirements in Mbps

Typical Application 3 - Entertainment

Typical Application 4 - Home Office

Reliable broadband service together with extended Wi-Fi coverage throughout the home to support work related applications

Typical Application 4 – Home Office

Single Router unit may not be able to cover every single corner of the home

“Wi-Fi Mesh” - a new type of Wi-Fi system aiming to blanket the entire home with multiple nodes placed at strategic locations.

Seamless handover technology for smooth transition between nodes without interruption of Wi-Fi signals

System composed of 2 or more nodes. A set of 3 nodes can cover a home up to 1,500 sq ft

x 2 4 or more

x 3

Typical Application 4 – Home Office

600-1,000 sq ft flat 1,000-1,500 sq ft flat

Over 1,500 sq ft flat and multi-storey house

May not need wired connection between nodes for multi-floors

Typical Application 5 – Video Surveillance

Protects from intrusion of privacy

Dedicated bandwidth for remote viewing and cloud recording

Typical Application 6 – Smart Home

XG PON Optical Network

Terminal (ONT) Traffic isolation Among 4 GbE ports can minimize the spread of virus and worm-type malicious attack

Secure Router (Optional)

The Secure Router blocks intrusive tracking and malicious attacks that target the IoT devices, camera and connected appliances in your Smart Home.

4 x 1000M Multi-Use Service (Available on Jul 6)

NETVIGATOR Broadband Service (24-month contract)

Monthly Fee from

4 x 1000M Multi-Use^ $458 2 x 1000M Multi-Use $258

1000M $168

^Installation leadtime: 21 days after offer application but not earlier than Jul 31.*For new customers residing at designated estates and commit at least 30 months. Please contact our sales representatives for details.

Limited Time Offer

Buy 1000M get 1000M free*

$168

New Pricing

Availability of Service

* FTTB-ready means FTTH service can be available within 29 days of receiving a service order, building management access permitting

** FTTH-XGPON ready means 10G service can be available within 21 days of receiving a service order for the first customer in the building and then 4 days for the next customer in the same building

FTTH-XGPON

ready (83.5%)** (supporting speeds up to 10Gbps)

(as of Dec 2016)

FTTB-ready (87.6%)* (supporting speeds of up to

100Mbps)

1.5M or above

(98%)

Seeing is believing …