Government steps into Internet TV debate

In the US, the merger of telecommunications companies create new giants - Verizon buying MCI was the latest in the marriage cycle. This won't create monopolies, so, since already, cable companies are entering the telecommunications sector, while those telecommunications companies are entering the cable sector. This is called convergence of industries and it is fun to observe.

Regulators are involved in mergers, of course, and check on certain competition-related issues.

While I am by no means a proponent of total capitalism, it is always bad, if regulators want to assume a role that they are not predestined to do. Especially, when it hurst a country in an area, where the country is competitive. There was this issue in the Philippines, when regulators in that country wanted to impose the franchise tax on SMS. Luckily, they withdraw the idea.

Now, a similar situation is happening in Korea. Here, "cable operators have scrambled of late to prevent telecom entities from entering the broadband-based TV service, calling it the realm of broadcasters and not telecom players." The government seems to agree as it plans to limit the service areas of telecommunication companies to just video on demand (VoD) format" - although KT and Hanaro Telecom originally planned to launch Web TV services later in 2005.

Korea is strong in Internet and broadband. But for how much longer?

(By Asia Business Consulting)