Regulatory Issues in the Korean Wireless Service Market

摘要

The Korean wireless service market has shown a sharp annual growth of over 70% on the average since theearly 1990s thanks to the Korean government's efforts to ease regulations. The size of the wireless servicemarket was only 260 billion won in 1992 but it jumped to 6,106 billion won in 1998. The penetration rate ofmobile telephones in 1990 was no more than 1.86% of the population but it reached 48% at the end ofNovember 1999. Personal communications services (PCS), in particular, out of wireless services have greatlycontributed to the expansion of the entire wireless service market. Within only 19 months after PCS waslaunched in October 1997, PCS service providers have secured almost 10 million subscribers.In addition to the remarkable growth it has accomplished so far, the Korean wireless service industry isexpected to maintain the same high growth trend in the foreseeable future. However, the industry has someurgent issues to resolve, such as introduction of cost-based interconnection pricing system, prevention ofovercompetition and establishment of protective measures for consumers, in order to make a qualitativeadvance as well as to keep the current quantitative growth.This study will first examine current regulations governing wireless services and then the structure of wirelessservices market in Korea. Finally, this study will review regulatory tasks to deal with for the advancement ofwireless services.