Commercializing Mobile Internet Service in 2005

Minister of Information and Communication Chin Dae-je announced that it plans on commercializing mobile Internet service provided on cell phones in 2005, a first anywhere in the world. In line with this, the government said it would select service providers and come up with measures to allocate frequencies.

He revealed the IMT-2000 policy in a press conference Thursday, saying, “To provide wireless Internet service seamlessly, the government will utilize now unused frequencies allocated for IMT-2000.”

Wireless Internet service is an advanced technology that allows users to enjoy high-speed broadband Internet services without the constraint of space. The government plans to establish a communication infrastructure that would allow the public to use the high-speed Internet service anywhere and at anytime. The Ministry of Information and Communication predicts that the government will grant the license to as many as 3 service providers if now-unused frequencies are put to use.

Minister Chin also said, ˝To boost the cell phone market, the government will draw up measures to impose different frequency usage fees for each cell phone service provider through measures such as cutting the fee for KTF and LG Telecom, latecomers to the market.˝

As for attracting foreign investment for Hanaro Telecom, he said, ˝Since it is in the interest of Korea, the ministry called on major shareholders of the company to approve the measures in a bid to attract foreign investment at a shareholders’ meeting. If the measure is not passed by the shareholders and the firm is put under court receivership, the government will consult with creditors about the issue.˝

Tae-Han Kim freewill@donga.com