1. Keynote Address Session 5: Communications and Regulation – Time to Start Over? Korea Communications Commission Republic of Korea

2. Contents Emergence of Digital Convergence Launch of Korea Communications Commission Key Policy Agenda of the KCC

3. Emergence of Digital Convergence (1) Digital Convergence Service Provider Convergence Service Convergence Device Convergence Network Convergence Broadband Internet Mobile Phone Broadcasting Network Broadcasting SP Telecommunications SP VoIP CATV Telecommunications Network IPTV PC TV DMB Phone

4. Emergence of Digital Convergence (2) Regulatory Paradigm Shift for Broadcasting & Telecommunications Analog Era Digital Era Broadcasting Telecommunications Broadcasting & Telecommunications Convergence Digitization Wider Bandwidth Personalization Terrestrial TV (Video) Fixed Telephony (Voice) One-way programming Regulation of social/cultural monopoly Korea Broadcasting Commission Regulation of economic monopoly Ministry of Information and Communication Convergence Service (Video, Voice, Data) User control & Interactivity Fair Competition & User Protection Single Organization for policy & regulation Simple calling function

5. Launch of Korea Communications Commission To proactively respond to the digital convergence by integrating policy-making and regulatory functions of broadcasting and telecommunications (Feb ’ 08) Ministry of Information and Communication Korea Communications Commission Korea Internet Safety Commission Korea Broadcasting Commission Standards Commission KCC Communications Standards Commission

6. Key Policy Agenda(1) Establish integrated legal framework Separate legislation Lack of regulatory consistency Lay foundation for fair competition Restrict SMPs from abusing market dominance Promote market competition by easing regulation 1 2 Basic Act Lays down common legal rules Special Acts Lays down sector-specific legal rules BA TBA

7. Key Policy Agenda(2) Foster IPTV service “ Internet Multimedia Broadcasting Business Act ” passed Laws & systems for IPTV service introduction completed IPTV operator licensing and service commercialization initiated Production Inducement ₩ 10 trillion Job Creation 50 thousand jobs 3 ’ 07.12 ’ 08.5 ’ 08. 9 ( ’ 08 ~ ’ 12)

8. Key Policy Agenda(3) Complete digital switch-over to terrestrial broadcasting Enactment of Special Act (Dec ’ 07); complete digital switch-over by 2012 Assist the digitally underprivileged Improve digital reception by assisting community reception facility-building Increase market entry opportunities for new services Introduce resale and wholesale policies Market-based spectrum policy Allow more discretion regarding broadcasting and advertisement

9. Key Policy Agenda(4) Expand universal service Promote telecommunications tariff discount/exemption for low-income brackets Increase deployment of broadcast reception support device Expand closed-caption programming Strengthen content industry capacity Create enabling environment for digital broadcasting content by establishing digital content production centers Support HD-level, high quality broadcasting programs

10. Key Policy Agenda(5) Upgrade broadcasting and telecommunications network Complete transition to 100Mbps Broadband convergence Network(BcN) by 2010 Pilot deployment of Giga Internet – 1000 times faster than existing broadband network Enhance cyber security Upgrade security incident response mechanism Implement customized countermeasures against malicious spams Improve laws and systems (e.g., criminal punishment against spam advertisers)