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The Impact of Competition on Universal Service in Korea

  • Informatization Policy
  • Abbr : 정보화정책
  • 2010, 17(4), pp.80-99
  • Publisher : NIA
  • Research Area : Social Science > Public Policy

Kim, Sung Wook 1

1서울여자대학교

Accredited

ABSTRACT

A substantial body of theoretical and case study literature exists about the relationship between competition and universal service in developing countries. On the one hand, many scholars have argued that state-owned monopolies in developing countries are not able to mobilize the capital needed for network expansion: the resulting unmet demand for services becomes a motivator for liberalization. On the other hand, the introduction of competition jeopardizes the internal and external subsidies through which the stateowned monopoly kept subscription rates low: the heightened concern about loss of subscribership incentivizes the creation of explicit universal service statutes and funding mechanisms concurrently with or soon after competition is introduced. This paper shows that universal service in Korea had a unique evolutionary path, which did not conform to either of these expectations. From this finding, it reaches the conclusion that the outcomes predicted by theory and observed in the case study literature are not intrinsic to the monopoly condition per se, but derive from the strategic choices made by telecommunications managers, regulators and lawmakers in developing countries.

Citation status

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