Prior to opening global telecommunications market, Special Telecommunication Service(STS) such as Internet Phone, Resale, Callback is allowed in order to improve the competition of domestic telecommunications market from January 1998.
Internet phone of STSs can reduce costs by using bandwidth efficiently by Packet-switching and Speech compression. But Internet phone has less Quality of Service(QoS) than other services. QoS will be improving by ceaseless technology development in the near future.
As Internet Phone bypass international accounting rate system which is applying more higher accounting rate, it can reduce costs. Therefore, Internet Phone that has a low costs will be a strong rival service to incumbent common service.
Eventually as Internet Phone providers enter in international telecommunications market with a low charge, Facilities-based Service Providers (FSPs) is decreasing sales profit and suffering from the operation of company. Among Special Service Providers(SSPs), some are offering service with a normal way, others are offering service with a abnormal way, such as one way call termination, Leaky PBX.
As FSPs feel a deep threat for emerging Internet Phone providers, they must prepare special alternatives to overcome difficulties and react not with a passive way but with a aggressive way to SSPs. FSPs must plan the following reaction strategies in order to keep market position in the international telecommunications market.
(1) Incumbent international telecommunications service must offer a various goods to meet customer's needs
(2) FSPs(KT) must offer and develop Internet-based applications such as Unified Messaging Service(UMS), IP Call Center. Because E-business, Chatting through Internet will be widely used with an explosive increase of internet use
(3) Policy issues that FSPs can not solve themselves must improve as arranging policy alternatives and submitting to government them
(4) All of domestic carriers must find cooperative options that can win-win each other in preparing for entering global competitive carriers
