The objective of this study is to analyze the effects of interconnection regime on competition in the telecommunications industry in Korea. At present, the price is a key factor in the industry's competition. However, the status of competition in the industry cannot be appraised without reference to the quality of service.
In this study, therefore, a hypothesis is advanced that introducing the quality competition into Korea's telecommunications industry would enhance over-all competition in the industry. Due to the lack of detailed cumulated data, this hypothesis has been tested by conducting a case study.
The result shows that the quality factor should be included in the interconnection policy. To promote competition, if a competing group failed to meet its targets for the quality of service, then, its permitted interconnection charge should be changed accordingly.
For future studies, it is recommended that more information on the characteristics of Korea's telecommunications industry should be made available. Based on the data thus made available, a valid index should be constructed. If such index is used, further research may provide some new insight into the relationship between the price and quality factor in the competition in Korea's telecommunications industry.
