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Effective Competition, Administrative Guidance, and Collusion in the Telecommunications Sector
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- Authors
- Issue Date
- 2009
- Citation
- Korean Journal of Policy Studies, Vol.23 No.2, pp. 189-200
- Keywords
- Effective Competition ; Administrative Guidance ; Collusion ; Level Playing Field ; Telecommunications Sector
- Abstract
- The regulatory authority of the telecommunications sector in Korea
has typically employed explicit or implicit administrative guidance as a means
of effective competition. This paper critically reviews an administrative guidance
of the Ministry of Information and Communications (the regulatory authority for
the telecommunications sector until 2007) through the Korea Fair Trade Commission
case of KT Hanaro Telecomm in the fixed-line telecommunications
service market. Our analysis indicates that empirical evidence does not support
the concerns that motivated the administrative guidance. Instead, it turned out to
facilitate collusion between the dominant firm and a fledgling competitor. We
suggest an alternative pro-competitive policy that provides a level playing field
to fledgling competitors from the beginning and regulates predatory pricing and
collusion.
- ISSN
- 1225-5017
- Language
- English
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