New Regulatory Issues for the Wireless/Mobile VoIP Service in Korea

Abstract

When the Internet phone service, generally PC-to-phone, first entered into the telecommunications market, no regulatory issues were arisen in managing the service. While incumbent fixed telecommunications service enterprises had given with tremendous duties to continue the job categorized `facilities-based telecommunication service provider', and which can be unreasonable and unfair if Internet phone service enterprises are allowed to enter into the fixed telecommunications market without any regulation. Thus, new regulatory framework has worked for the Internet phone service named VoIP service generally in the fixed telecommunications market. Recently, VoIP is provided not only in the fixed telecommunications market but also in the mobile market as Wi-Fi phone is feasible in the wireless LAN environment. Furthermore, bundled service of Wi-Fi and cellular phone service will be launched soon, and the next version will be a mobile VoIP service operating like a cellular phone service. Thus, in this paper, we forecast the regulatory issues arising when the wireless or mobile VoIP service enterprises enter the mobile market, by analyzing both aspects of the incumbent operator's rights and the market liberalization. In market economies, competition is viewed as a positive force which can effectively increases the welfare of consumers. Most countries adopting a market-based economic system have competition laws in place to ensure and promote competition. The essential elements of a competition law, common to most national varieties, are regulation of monopoly or oligopoly, regulation of mergers, prohibition of unfair trade practices and prohibition of cartels. The ultimate goal of this body of law is to guarantee effective competition in the market. In this paper, we review some countries. And we try to draw a reasonable regulation direction for the telecommunications strategic alliance regulation