Koreas ICT Sector in the Era of Digital Convergence - Policy Issues for International Cooperation

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Nov 12, 2013 (3 years and 9 months ago)

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Korea

Information

Society

Development

Institute

Korea

s ICT Sector in the Era of Digital Convergence

-

Policy Issues for International Cooperation


2008.11.18

Sang
-
yirl Nam, Ph.D.

1

1. ICT in Korea

2. Challenges and Opportunities

3. Recommendations and Policy Guides

4. Summary and Implications

C
ontents

Korea Information Society Development Institute

2

Korea Information Society Development Institute

1. ICT in Korea




Information and Communication Technology (ICT)



-

For the better quality of life


-

As well as economic development




Macroeconomic aspects (2007)



-

ICT

s share in GNP: 17%


-

ICT

s share in aggregate exports: 35%


-

Contribution to economic growth: 1.6% of 5.0% in 2007P, 2.0%
of 5.1% in 2006

3

Korea Information Society Development Institute

1. ICT in Korea




ICT use (June 2008)



-

Mobile subscribers: 45.0 million (92.5% of population)


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3G subscribers: 12.3 million (27.4% of population)


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Internet users: 35.4 million (77.1% of population)


-

Broadband subscribers: 15.1 million (95% of total households)

4

Korea Information Society Development Institute

1. ICT in Korea




Convergence services of broadcasting and telecommunications



-

DMB service subscribers: 13.7 million (S
-
DMB & T
-
DMB,
introduced in May & December 2005, respectively)


* T
-
DMB can be an efficient disaster warning system.



-

IPTV: introduced pre
-
IPTV in July 2006 and will begin real
-
time services by the end of 2008 (three service providers)

5

Korea Information Society Development Institute

1. ICT in Korea




Global position


(ITU and IMD World Competitiveness Yearbook 2008)



-

Digital Opportunity Index (DOI): global top for 2005
-
2007


-

Broadband subscribers: 13th in the world (290.8 per 1,000
inhabitants)


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Broadband costs: 1st in the world ($0.03 per 100KB/month)


-

Technological infrastructure: 14th in the world

6

Korea Information Society Development Institute

1. ICT in Korea




Key success factors


(in policy and infrastructures)




-

Competition policy with the privatization of telecommunication
sector (e.g. KT in 2002)


-

Large investment in broadband infrastructures (including
FTTH)


-

Training and education of people for internet and computer


-

Promotion of e
-
commerce and IT adoption by traditional
industries

7

Korea Information Society Development Institute

1. ICT in Korea




Pending issues



-

Digital divide between generations, income levels, and regions


-

Cyber security


-

Rules and regulation for preventing privacy infringement


-

Education of cyber ethics

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Korea Information Society Development Institute

2. Challenges and Opportunities



Digital convergence



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Service convergence: broadband internet, VoIP, CATV



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Industry convergence: broadcasting, telecommunications


-

Network convergence: broadcasting network,
telecommunications network (broadband)


-

Device convergence: mobile phone, PC, TV set,





Regulatory/policy reform



-

Convergence is not a new phenomenon but accelerated by
network technology and service costs reduction


-

Regulatory/policy reform for digital convergence era is one of
the key challenges

9

Korea Information Society Development Institute

2. Challenges and Opportunities



Need to promote broadcasting and telecommunications content
sector



-

For balanced growth between network and content


-

Broadcasting and telecommunications content sector is a high
value
-
added industry with significant linkage effect to other
sectors


-

World content market is expected to grow 13.4% per annum




Efficient utilization of resources



-

Spectrum, as a key factor of production, became scarce: e.g.
increase broadband and mobile services (3G, 4G)

10

Korea Information Society Development Institute

2. Challenges and Opportunities




Support socio
-
economic changes and expected role of ICT



-

Need new economic growth potential


-

Meet aging society


-

Meet global issues: climate change and disaster management,
reduce carbon emission and environmental protection




Cyber security, stability and credibility



-

A must for healthy development of internet economy

11

Korea Information Society Development Institute

2. Challenges and Opportunities




Digital divide and international ICT cooperation



-

Need to attain shared society and ultimately global co
-
prosperity


* For example: internet usage gap


High income (87.4%, monthly income over $3,400) vs. low
income (52.8%)


General population (76.3%) vs. rural area (33.4%)


Young generation (99.3%, 20s) vs. old generation (34.1%, over
50s)


Non
-
disabled (76.3%) vs. disabled (49.9%)

12

Korea Information Society Development Institute

2. Challenges and Opportunities


* Global internet penetration by continent


(source:
Internet World Stat
)



North America: 73.6%


Oceania: 59.5%


Europe: 48.1


South America/Caribbean: 24.1%


World Average 21.9%


Middle East: 21.3%


Asia: 15.3%


Africa: 5.3%

13

Korea Information Society Development Institute

3. Recommendations and Policy Guides



Digital convergence



* launch of Korea Communications Commission (MIC + KBC) in
February 2008


To integrate policy making and regulatory functions of
broadcasting and telecommunications



-

Develop rich content


-

Support the development of global media service
providers/industry


-

Organize joint promotion activity with government, broadcaster,
and manufacturer



-

Develop mobile (internet) based environment


-

Improve digital reception environment by (assisting the)
building community reception facilities


* Korean Government plans to complete digital transition of
terrestrial broadcasting by 2012

14

Korea Information Society Development Institute

3. Recommendations and Policy Guides



Regulatory/policy reform



-

Lower entry barrier, create an environment of fair competition so that market
participants realize their full potential: focus on the benefits of consumers


-

From vertical to horizontal regulation


-

From ex ante to ex post regulation




To promote broadcasting and telecommunications content sector



-

Alleviating entry barriers, promote investment and competition


-

Enhance efficiency in producing and distributing broadcasting and
telecommunications content


* e.g. develop regional cluster and induce investment from telecommunication
service providers



-

Consider, to some extent of, public interest and cultural identity

15

Korea Information Society Development Institute

3. Recommendations and Policy Guides



Efficient utilization of resources (spectrum)



-

Korean Government plans to retrieve and redistribute for most preferred
frequency band, introduce a public auction system (in 2009)




Support socio
-
economic changes and expected role of ICT



-

Green IT or environment
-
friendly economic growth


* energy efficiency and environmental safety for whole life cycle of ICT
products, utilization of ICT for environmental protection and disaster
preparedness & management



-

For disaster preparedness/management


* ICT can be used to minimize the impact of natural or man
-
made disasters:
create early warning or management system (national disaster broadcasting
system, online/mobile network incl. SMS)



-

For global/regional issues, a unified, clear message on the role of ICT is
urgently required


* APEC Climate Center (APCC established in 2005)

16

Korea Information Society Development Institute

3. Recommendations and Policy Guides




Cyber security, stability and credibility



-

Enhance public awareness


-

Related human resource development


-

Need international cooperation in this global internet society




Digital divide and international ICT cooperation



-

Strengthen universal services


* Korean Government plans to promote telecommunications tariff
discount/exemption for low
-
income brackets,


To increase deployment of broadcast reception support device and
closed
-
caption programming,


To consider the establishment of universal service funds

17

Korea Information Society Development Institute

3. Recommendations and Policy Guides


-

Share information, basic technology, and experiences



-

Reduce digital gap between income
-
levels, regions, ages, and countries


* diffuse ICT4D information: e.g. KISDI publishes

ICT World Today,


a journal
of ICT4D in support of UN
-
APCICT


* Korea

s ICT cooperation projects for co
-
prosperity for East Asian countries


ICT policy consultation: Cambodia, Indonesia, Laos, Myanmar, Philippines,
Vietnam


Establish information access centers: Cambodia (2002), Vietnam (2003),
Philippines (2004), Laos (2005), Indonesia (2006)


Invited ICT training programs: 539 government officials and businessmen from
ASEAN member countries (2002
-
2008)


Dispatch youngster volunteers for ICT development: 384 college students and
professionals to ASEAN member countries (2002
-
2008)


Joint studies and projects: with Vietnam (2002
-
2008), U
-
ICT Forum (2007)
and other projects proposed by ASEAN

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Korea Information Society Development Institute

4. Summary and Implications



Sound understanding



-

Measurement, evaluation of current situation





Identify needs



-

Regional/global common interests


-

Demand and supply (potential donor and recipient)




Time span



-

Combination of short
-
run and long
-
run approach




Sharedness and efficiency



-

Competition and cooperation

19

Thank you for your attention!


Sang
-
yirl Nam, Ph.D.

Director of Communications Trade Research Center

KISDI


synam@kisdi.re.kr

K
orea
I
nformation
S
ociety
D
evelopment
I
nstitute