[Opinion] The Socialist Color Must Be Erased from Communication Policy

원본보기 아이콘

It is said that the "Act on the Improvement of Distribution of Mobile Communication Terminals," commonly known as the 단통법 (Mobile Device Distribution Improvement Act), will be abolished after 10 years. The original intent of the law?to lower device prices and regulate distribution order?was not achieved, and it is analyzed to have had negative effects on telecom companies, manufacturers, and consumers alike. The 단통법, which aimed to prevent customers from paying more for devices than others (referred to as "hogang," a combination of "hogu" meaning sucker and "gogaek" meaning customer), has been criticized for turning the entire nation into hogang.

In the case of landline phones and early internet, the role was primarily connectivity, and it was considered a right for all citizens to have equal access (access equality). Therefore, the government made efforts to take responsibility for the spread of telephones and the internet. Countries with remote areas like Amazon or vast lands like Australia have also been striving to ensure connectivity anywhere, whether in jungles or deserts.

Most developed countries have privatized telecom companies to transform them beyond the simple connectivity function, which was previously the government's responsibility, into multimedia communication, IT services, and content services such as music, video, and games. This means transitioning from government agencies to private enterprises. Moreover, as they expand their business beyond telecom, they have even removed the word "telecom" from their company names.

The transition to private companies implies securing massive capital from the private sector to support enormous investments and also means independence from the government, allowing autonomous operation. Autonomy enables creative development at a critical time for telecom companies' transformation. While regulatory bodies are established to maintain minimal public interest, the autonomy of private companies is maximally guaranteed.

Despite these global trends and changes, in our case, the government still tries to keep telecom companies confined to the telecom sector through the regulatory agency, the Korea Communications Commission. At one point, there was pressure on telecom companies to focus solely on telecom business. The mindset that equal telecom services must be provided to all citizens still exists, and there is persistent backwardness in interfering with the management of telecom companies in detail.

The 단통법, now being phased out, was created by hardline politicians with socialist thinking who did not fully understand reality, mandating that services and devices must be provided to all citizens at equal prices anytime and anywhere. How can distribution costs and conditions such as labor, rent, and logistics vary by region, time, and volume, yet be offered at the same price as if rationed? This was a regulation unimaginable in a capitalist society's distribution system.

Even if telecom is regarded as a social utility and regulated, autonomy in personnel matters must be guaranteed first. Intervening in the selection of the CEO and thereby interfering with the company's management direction is unthinkable for a capitalist private company. If telecom is to be regulated and further intervened in, it is necessary to separate the telecom sector and create independent governance. Such regulation should be limited to minimal rules and regulations, and be more flexible regarding commercial activities such as pricing and terms of service.

The idea of launching a fourth mobile carrier to reduce telecom costs is also incomprehensible. It is hard to accept that a new telecom company starting with economically challenging ultra-high frequency bands (28 GHz) can be competitive, and it will inevitably lose out in the supply competition for chips, antennas, and devices. There is a belief that the state can control the market as in socialist countries. Otherwise, one can only suspect that this new telecom company is led by those who stand to benefit from it.

Kim Hong-jin, CEO of Work Innovation Lab

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.