(A) model of technology-based evolution process of telecommunications industry

Abstract

Industry and society is indeed a technology-based evolutionary entity. Industrial Revolution could be a good evidence for this claim. However, there exist few studies regarding technological evolution and industrial change systematically. This study was performed to understand the evolution pattern of communications industry for better implementation of communications policy especially in following countries like Korea. Based on the analysis of experiences of some advanced countries`` communications industry, a model of technology-based evolution process (TEP) was derived. The TEP shows that advancement of technology with continuously revolutionized scientific knowledge interacts with market environmental change. Market policy and regulation are updated to make market functioning properly. Using the model, the coming environmental change of global market from advanced countries was anticipated and its impact on following (developing) country was analyzed. Based on these studied, a modified model of TEP, an artificial intended industrial development policy framework different from a natural industrial evolution process (TEP) in advanced country, for following countries which want to positively develop their industries was proposed. Applying the modified model to Korea with consideration of communications policy objective of equity and efficiency, we suggest basic policy direction for policy makers in communications sector whose whole market will be opened to the world from 1998. As a concluding remark, the Korean government should take a technology oriented global policy perspective and need to keep the communications market to be a dominant and fringe firms configuration with special roles conferred to them.