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Effective Competition, Administrative Guidance, and Collusion in the Telecommunications Sector

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Authors
Bok, Hong-Seok; Park, Sangin
Issue Date
2009
Publisher
Graduate School of Public Administration, Seoul National University
Citation
Korean Journal of Policy Studies, Vol.23 No.2, pp. 189-200
Keywords
Effective CompetitionAdministrative GuidanceCollusionLevel Playing FieldTelecommunications 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
URI
http://hdl.handle.net/10371/69836
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Graduate School of Public Administration (행정대학원)Dept. of Public Administration (행정학과)Korean Journal of Policy Studies (정책논총)Korean Journal of Policy Studies (정책논총) vol.23(2) (2009)
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