KT expediting GiGA Internet distribution

KT’s marketing division Executive Vice President Kang Kook-hyun introduces the company’s plan to boost its gigabit-class internet service business during a press conference at its office near Gwanghwamun, central Seoul, Thursday. / Courtesy of KT

By Yoon Sung-won

KT pledged Thursday it will speed up penetration of faster GiGA internet services, aiming at establishing a foundation for fifth-generation (5G) networks.

The nation’s largest fixed-line operator said it was looking to boost the gigabit-class internet services coverage up to 95 percent for old apartments and houses next year, tapping into its exclusive GiGA Wire 2.0 technology, which enables high-speed internet access through existing copper telephone wire. Once this plan is completed, about 9 million households will be able to use the high-speed wired internet service, KT said.

“Even in the mobile era, wired network infrastructure works as a backbone for all information and communication technologies, helping networks handle the explosive increase in mobile data traffic,” KT’s mass general business division President Lim Heon-moon said during a press conference in Seoul, Thursday. “Based on GiGA internet, we have provided faster home Wi-Fi and long-term evolution (LTE) networks as well as ultra high-definition (UHD) television services. In the end, a telecom business that provides the best gigabit internet will lead the 5G competition.”

The telecom company said it has drawn more than 2 million subscribers for its faster GiGA internet service as of Sept. 20, less than two years after it offered the service on Oct. 20, 2014.

When KT announced a 4.5 trillion won investment plan for the GiGA internet business in May 2014, it said that it would provide a fast internet service to 9.5 million households at about 27,000 apartment complexes nationwide.

The company said the introduction of the service has refreshed its stagnant fixed-line operations as a new growth business. It said sales, which had continued to shrink until the second half of 2014, started to grow once after the number of subscribers exceeded 500,000.

“When we were first planning to start the service, market research results showed that only 5 percent of our customers were expected to accept the new technology,” KT’s marketing division executive vice president Kang Kook-hyun said. “But we pushed for the business because we believed that this will be the foundation for other new technology services such as big data, cloud, artificial intelligence, autonomous driving, virtual reality and the internet of things.”

Compared to the previous version, GiGA Wire 2.0 doubles the maximum transmission speed to 1Gbps, compared to the existing 500Mbps.

KT said the GiGA Wire technology has been favorably recognized overseas. It had established a deal to provide this technology to Turkey earlier this year in February and is currently testing it in Spain.

“In overseas markets, especially in Europe, many countries still have telecom infrastructure that falls behind that of Korea,” Kang said. “But telecom companies have difficulties in establishing optic-fiber cable networks due to historical remains. They are showing great interest in our GiGA Wire technology.”