With the rapid growth of the Internet, one of the most important issues is how the Internet will affect the existing telecommunication's services industry. According to the drastic development of the Internet, many applications related with the Internet such as Internet Telephony have come out of the telecommunications market that might change the composition of PTO's revenue.
First of all, the focus of this thesis is to consider the impact of the Internet on the network and market structure. The thesis examines changes of traffic pattern on the telephone network and service market structure as a result of substitute and complimentary relations between conventional and emerging services, and then looks for the implicit meaning for telecommunication's carriers.
The thesis concludes noting that the strategy of Korea Telecom towards the paradigm shift affected by the growth of the Internet has to focus on how to strengthen the present core competence and gain new resources in order to keep competitive advantages
