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View Full Version : Good example of how things *could* be



Knersus
18-08-2004, 01:43 PM
This article gives an excelent example of how things could be and should be, and shows that Telkom needs not be so affraid of a little competition. Sure, the SA conditions are MUCH different than Korea and we will never have so many subscribers, but it's a model to look at and a VERY good example!

Here's some parts that I found extremely interesting:

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The decision to focus on broadband began in the mid-1990s and intensified after South Korea's economy was crippled by the collapse of the Asian financial markets in 1997, when policy makers targeted technology as a key sector for restoring the country's economic health.

Korean regulators set out a clear path for the network industry with well-publicized national goals. All big office and apartment buildings would be given a fiber connection by 1997. By 2000, 30 percent of households would have broadband access through DSL or cable lines. By 2005, more than 80 percent of households would have access to fast connections of <b>20mbps or more</b>--about the rate needed for high-definition television.

The government also spent $24 billion building a national high-speed backbone network linking government facilities and public institutions.

Even skeptics in the United States say that the South Korean government's advocacy role and intense focus can serve as a model for other countries looking to modernize their infrastructure.

"Had it not been for the government leadership, they would not be where they are today," said David Young, the director of technology policy for Verizon Communications. "There is a lesson to be taken there in setting a goal and providing support to achieve it."

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"The government made a decision to be very focused on this issue and set some very aggressive goals," said Laura Ipsen, Cisco's vice president of worldwide government affairs. "They worked with service providers to decide what the infrastructure would look like. Part of the plan included how the government and the private sector could help improve take-up rates."

Most of the country's consumers were already served by the dominant carrier Korea Telecom, but the government encouraged competitors with a low-interest loan program for companies that built their own broadband facilities. The program offered $77 million in two years alone, with a particular focus on rural areas.

The government offered other incentives for Korea Telecom. Once a state-owned monopoly, the company began the transition to private hands in 1993. But the government, which retained some shares until 2002, allowed the process to become final only on the condition that Korea Telecom bring broadband--defined as connections of 1mbps--to all the villages in the country.

As was the case with established U.S. telephone companies, Korea Telecom was initially reluctant to cannibalize its profitable dial-up ISDN business. The company eventually plunged headlong into high-speed service over DSL and fiber-optic lines, but only after rivals got an early jump on the broadband market, beginning to offer widespread services in 1999.

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What does Ivy and other government officials at Ministry of comunications say about that?!!!!??

Read the full article here:
http://news.com.com/South+Korea+leads+the+way/2009-1034_3-5261393.html?tag=nl