TV elbows its way onto the Web

Korea’s fixed-line telecommunication service providers and cable television operators remain at odds over what each side claims is an invasion of the other’s business territory. KT Corp., Korea’s largest broadband service provider, demonstrated for the press its new Internet broadcasting service last December; it hopes to launch the service soon. Hanaro Telecom Inc., second in the broadband market, announced in January its own plans to launch a television portal service by July, giving users access to services similar to Web portals over their television sets. If both companies receive permission to offer broadcasting services over their high-speed Internet networks, it would deal a serious blow to cable TV operators; the Internet service will likely have more channels and a wider range of services than cable television. In response, cable TV operators are increasingly elbowing their way into the main territory of telecommunication service providers ― high-speed Internet. As of last October, Korea had 1.36 million, or 11 percent, high-speed Internet users using a service provided by cable TV operators. Even worse for telecommunications firms, cable TV firms are now mulling moving into Internet phone services: Seventeen cable operators recently founded Korea Cable Telecom Co. Industry analysts say that once the companies are able to bundle broadcasting, high-speed Internet, and Internet phone services into one package, they will provide a serious challenge to telecommunication service providers. “If we can combine these services, it will not only become more convenient for our users, but cheaper too,” said Kim Young-chul, a senior member of Korea Cable Telecom. The Korea Telecommunications Operators Association, an advocacy group for the nation’s telecommunication firms, told the Ministry of Communication last month that while its members are restricted from entering broadcasting, cable TV operators are free to offer high-speed Internet services. The Korean Broadcasting Commission has not yet allowed telecommunication firms to enter the realm of Internet broadcasting, arguing that they must first abide by the series of laws that govern the broadcasting industry. However, the Communication Ministry said yesterday that it would allow Korea Cable Telecom to move into the Internet phone business. The telecommunications association had said the ministry would violate the principles of fair trade if it authorized the move. “Now that we’ve granted permission to cable TV operators to begin Internet phone services,” said Yoo Dae-seon, a ministry official, “it’s time to remove barriers for telecommunication companies to enter broadcasting.” by Lee Hee-sung