Indeed, the market is an evolutionary entity as an organic. However, there exist few studies on the market evolution mechanism. This is originated in seeing the market `an object', not 'the subject', that is market itself. In the telecommunications service market, this trend has been equally showed.
This thesis was performed to explain the market evolution in the telecommunications industry. For this, a model was portrayed and named `A 3-step market evolution model on telecom services'. According to this model, the motive power of market evolution exists in technological innovation. In the market, 3 factors influence each other doing reciprocal action. These factors are technology, demand, and competition, which respectively reflect service, user, and provider in the service market. And among them, there is a spirally cyclic pattern changed a leading evolution drive as time flows.
Since 1885, the first telecommunications service, namely telegraph, in Korea was opened, the market has evolved, based on this model. This has been certified at the times, in the change of service paradigm, and through the each service's ups and downs. By the time of the ultimate state of service, the telecommunications market will evolve in accordance to this model.
There are some implications in this model. Above all, the telecommunications service market is not the passive object any more. Consequently, the current regulation paradigm must have been changed reflecting a long comprehensive market evolution prospect. And in introducing services the market condition is an important factor together with the technology side.
