The purpose of this thesis is to propose the countermeasures of Common Carriers in introducing telecommunication service resale.
Telecommunication service resale is planned to be introduced in telecommunication market in 1999 resulted from the agreement on the WTO basic telecommunication negociation. In 2001, 100% foreign investment in resale business will be permitted.
Resale is expected to make much influence in Korea telecommunication market, especially in long distance and international service fields in which cost price compensation rate is high. Resale is divided into two parts : the one interconnected with PSTN and the other disconnected with PSTN. Resales interconnected with PSTN are switched-resales, international simple reales and Internet phones. Resalers disconnected with PSTN are rebillers, aggregators and etc. Resale has two faces for Common Carriers ; the one is a competitor, the other is a cooperator.
The enterprises which are willing to enter the resale market are Internet service providers, VAN service providers, conglomerates which have nationwide private networks, the Korea Electric Power Corporation which has nationwide optical network, CATV network and etc.
Long distance and international services can be bypassed by leased lines, which can encroach Common Carriers' benefits.
Under these conditions, this paper presents 5 methods with which Common Carriers cope with resalers.
1. Strengthening the registration requisites of resalers
2. Relieving price regulation and driving price liberalization
3. Allowing primary interchange code(PIC) for efficient use of number resource and interconnecting with resalers for stable network operation
4. Imposing interconnection charge or interconnection surcharge
5. Constructing cooperative relation with resalers
Among the 5 methods, the 2nd one is most important factor for Common Carriers and resalers. However, because sudden change in price rate can invoke side-effects, this paper also suggests price rate restructuring to soften influences of full-scale price liberalization.