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Wireless Data Revenue Convergence Trend Convergence Strategy Scenario of Applications Concept of Applications Opportunities of Applications Structure of Applications Gene H. Yoon/Senior Manager Emerging Business Incubation Center The revenue from wireless data services has jumped three fold over the past three years and the momentum is expected to continue into the future. 7.7% 8.7 9.9 12.1 13.4 14.4 15.7 18.5 18.1 19.0 21.2 23.9 02 1Q 02 2Q 02 3Q 02 4Q 03 1Q 03 2Q 03 3Q 03 4Q 04 1Q 04 2Q 04 3Q 04 4Q ※ Source: Company data / AS of 4Q 2004, Unit of Revenue : KRW billion 129.3 159.8 192.9 251.3 265.0 305.7 338.3 411.2 391.6 417.2 470.3 544.2 Wireless Revenue as% of Cellular Revenue Wireless Revenue Stagnant current market New growth engines Maintaining market dominance Driver IV: Corporation Convergence is a trend that is being accelerated by a number of drivers and will lead to ubiquitous service environment. Convenience High quality Personalization Driver II: Customer Broadband network Convergence devices Sensor network Driver I:Technology Eased regulation Fostering of strategic industries Driver III: Government Ubiquitous Environment ConvergenceAcceleration Higher Customer Acceptance Technology PushMarket Pull Chances Risks New Technology Commercial services available as of now Commercialization underway SK Telecom will make strenuous efforts to identify new business models in convergence to expand the company’s scope of business. Identify new business models in convergence field Expand mobile core business Personalization, Context-aware Integrated services Provide Higher service accessibility Improved convergence biz model Detection of new convergence areas by applying new technologies Game Music Finance Commerce Fixed Line Handset Broad- casting MobileCoreBusiness Logistics(RFID) Telematics ODS OTS OIS Mobile Terminal 1.RFID Code Scanning 2.RFID Code Transfer Mobile N/W Service RFID N/W Service Mobile N/W Mobil