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History of Telecommunications

Telecommunications is a tool providing information services to both private and public sectors. It is highly involved in society and helps a society grow and flourish. It affects the ideals and trends of a society and, thus, is a very important factor in a growing country. With an area of 99,019 square kilometers, and a current population of 44. 6 million people, the Republic of Korea is a great challenge to connect through telecommunication tools and projects.

Even with such a great expanse of land and peoples, Korea has succeeded in becoming the eighth most advanced country in telecommunications. There are 337 telephones per 1000 people with an annual growth rate of 15. 6% for residential subscribers, 10. 1 % for commercial subscribers and 245 for leased line data services. Thus, the question of how Korea accomplished this in just a little over a decade comes to mind. In this paper, I will give an overview of the developments of the Korean telecommunications industry.

Then through other literary sources along with the telecommunications background information, I will show how the Korean Government’s practice of deregulation and liberalization has spurred on competition and, henceforth, progress in the Korean telecommunications industry. The first form of telecommunications in Korea began in 1885 with the first telegraph which linked Seoul and Inchon which were located 35 km apart. The periods of telecommunication development can be divided into three stages. In the first stage, 1885 to 1961, there was limited telegraph and telephone service available.

They were mainly for official business service. The Japanese occupation from 1910 to 1945 and the Korean War from 1950 to 1953 stagnated telecommunication progress (Lee et. al 1). Only 120,000 telephone lines were installed in this period, supplying a minimal fraction of 0. 4 phones per 100 persons. In the second stage, 1962 to 1981, significant progress in telecommunications occurred. The government improved basic communications facilities by connecting rural areas by phone and by creating training centers for telecommunication employees to keep the phone lines running smoothly.

Telephone subscriber lines increased to 4. 1 million lines offering 8. 4 phones per 100 people. More importantly, long-distance telephone calling circuits were boosted from 1,177 to 88,571 circuits, while international calling circuits were increased from 12 to 274 (Lee, et. al 2). During this period, the government installed the micro-wave network in 1967 and the scatter transmission network between Japan and Korea in 1968. The first two satellite earth stations were built during this period. In addition, a coaxial cable was installed to bring an automatic telephone call service between major cities.

In 1979, the electronic switching system (ESS) was introduced to aid with the increasing number of phone subscriptions. The third stage, occurring from 1982 to the present, illustrates a huge and dynamic change in the telecommunications industry. First, in 1982 to 1986 an addition of 6. 2 telephone lines were installed. Within this period, the participation of Korea in the Asian Games and the 1988 Olympics placed telecommunications at a high demand. With the 10th Asian Games in 1986, an integrated automatic switching system was introduced. The capability to install telephones immediately upon request became available.

The 1988 Olympics brought the idea of launching Korea’s own satellite in mind. Although a satellite was not launched during this period, it made the idea more of a future plan. Government Policies and Telecommunication Companies The development of Korea’s information society cannot be separated from the development of the Korean government policies. This is because all telecommunication sources were once controlled by the Korean government. Then as years went on, the government loosened its reigns for other private and publicly owned companies to develop telecommunication products which they could themselves market.

This decrease in government control resulted to a more competitive environment where progress prospered. In the early 1980’s, the Korean government Ministry of Communications (MOC) restructured the public telecommunications sector which led to the transfer of government operated telecommunications to a public corporation, Korea Telecommunication Authority (KTA) (Seo 154). Later in 1982, telecommunication powers were also given to a private company entitled the Data Communications Corporation of Korea (DACOM). This was a turning point for the telecommunications industry. Now the government did not have total control over the industry.

More importantly, later in its existence, KTA gave financial support to other telecommunications industries to create the necessary equipment for telecommunications such as coin telephone sets, a digital switching system, and fiber optical transmission system, etc. (Seo 154). KTA also aided in the development of the Electronics and Telecommunications Research Institute (ETRI), the first step for Korea towards an indigenous and self-reliant technological society (Seo 156). Korea was to begin its own research and development of telecommunication tools instead of relying on other countries’ imports.

In 1984, KTA Research Center (KTARC) was created to build a technology base and to absorb and adapt foreign technology according to the country’s needs. KTARC provided guidance and technical support to network operating group and industry based on the policy set by KTA. Thus, research for telecommunications were now being conducted by the country’s universities, by EERIE, by KTARC, and by other privately owned companies. As the capability of industry grows more and more complex, much of the work performed by EERIE will be taken over by industry, leaving EERIE to move into high risk research and development and advanced technological support.

In 1987, the total research and development investment by KTA is around 70 million US dollars. Thus, much has gone to research and development, the base for telecommunications progress and technology. Besides KTA and DACCA, two more telecommunication carriers were founded in the 1980’s. Korea Mobile Telecom (KMT), was established in 1984 to provide cellular and paging services. The availability of mobile phones in 1993 covers 107 towns and cities, reaching over 80 percent of Korea’s population. Korea Port Telephone Corporation was established in 1985 to provide communications services in the port areas.

Furthermore, in 1991, the business relationship between KTA and DACCA was changed so that KTA could provide data communications services and DACCA international telephone services. Results of Telecommunications Research and Development Research and development performed by Korea would be lead to progress. First, it would increase the technological capability in a key sector of the economy by providing the necessary infrastructure for the introduction of advanced telecommunications services. Second, technological dependence on foreign sources, and import of technology would diminish.

Third, the cost of acquiring technology especially in terms of foreign exchange would diminish at least in the long run, by the substitution of import for local production and by export earnings. Furthermore, enhanced indigenous technological capability provides Korea with a stronger bargaining power in negotiating with the foreign suppliers, which will ultimately be reflected in better condition of technology transfer and lower cost system acquisition (Seo 153). Thus, Korea would benefit greatly by performing its own research and developing its own products instead of relying on other countries for its telecommunication tools.

Development of Different Systems to Extend Calling Lines The first generation of Electronic Switching System (IS) appeared in the early 1960’s. But within a few years these were superseded by the system which reflected new concepts based on the combination of communications and computers. Over the same period, digital transmission techniques have also been greatly improved. Computer control of exchanges, time divisions switching and the transmission of information in digital form are the basis for the successful large scale telecommunications connections throughout Korea.

The recent development of microelectronics, space and optical fiber technologies made it possible to spread new telecommunications services around the world. Besides voice and text, huge quantities of visual information are being transmitted. Videotex systems connect subscribers to data banks and display economic, financial and scientific information as text or graphics on a television screen. In addition, services such as video-conferencing, teletex and electronic mail are widespread. All of these services could be integrated into a single global network called Integrated Services Digital Network (ISDN).

An ISDEN comprises digital switching, computer control and optical fiber digital transmission. Telecommunications network consist of subscriber terminals, subscriber lines, local exchanges, toll exchanges and interexchange circuits. Subscriber terminals have evolved from the simple telephone set designed to provide basic voice telephony. The current trend is toward increasing intelligence in the terminal, enabling subscribers to perform a range of functions which enhance the telephone utility. The terminals associated with other services such as facsimile and data have also become more versatile and sophisticated.

Already the concept is emerging of a multipurpose terminal for text, data and other non telephone services as well as being used as a telephone. An ordinary telephone line will be able to carry many of these services and devices of this kind and would make it easier and cheaper to provide non telephone services to rural and remote areas. Subscriber terminals are normally connected to local exchanges by a physical pair of conductors. The physical conductors are expensive, representing around 30% of the total capital cost of plant in urban areas.

However, in highly populated areas, a suitable local network distribution system can be planned and installed that can be expanded economically. Local networks use overhead or buried cables in various size and flexibility points, allowing sufficient capacity to accommodate new subscriber. Various means of concentrating traffic are available so that more than one subscriber may share each physical pair of conductors. However, local distribution represents the major problem of providing telephone service in rural and remote areas.

In rural areas, subscribers may be at a distance over 30 to 50 kilometers from the exchange and the terrain and environment communication transfer even more difficult. Local network cost may represent as much as 70 to 80% of capital plant cost which are themselves normally 4 to 5 times of urban cost. An alternative to physical conductors, especially in rural areas, is radio telephony. Ultra High Frequency and Super High Frequency systems have direct line of sight paths between transmitter and receiver at a distance of 50 to 70 kilometers.

In practice the environment and terrain reduce this distance, Improving the utilization of frequency spectrum is possible by using the cellular radio concept and other methods of dynamic frequency assignment. Manual systems with operators setting up connections using key plugs and jacks are still used in developing countries. If attended for 24 hours a day, these provide reasonable service with low investment, low consumption of power and simple maintenance. In automatic analog systems, speech is converted into a electrical signal with varying frequency and amplitude and calls are connected through separate switches in the system.

The oldest automatic switching system is the step-by-step system with electromechanical switches. Although extensively used, it becomes obsolete. Cross bar systems operate at higher speeds, are less costly to maintain, and give subscribers greater capabilities. But this system also will be obsolete and it is expected to remain in a limited lifetime only to provide for the expansion of existing systems. The most recent generation of analog ESS have Stored Program Control (SPC). In SPC systems the control functions are performed by a computer, and the switching matrix can use solid state electronic crosspoints.

Advantages include extensive remote operation and maintenance facilities, built-in test and signaling units and practically no open contacts, which make them less sensitive to dust and humidity. Normally SPC exchanges are built in compact form and so require air conditioning, especially in hot and humid climates. These systems are not yet obsolete, but most manufacturers are switching their product line to digital ESS. Digitalization of Telecommunications It is the digitalization of telecommunications that has accomplished much of its telephone connections. The TDX is a digital system.

In digital ESS, voice or signal is converted from the analog signal to a code form consisting of high speed on/off pulses. Pulses of different conversations are separated from each other by discrete time intervals and switched in turn by the time division switching system so that many calls are multiplexed by the same switch. Digital exchanges are cheaper to install and maintain than analog exchanges particularly in the larger sizes. Among the advantages of digital switching are its compatibility with computers and potential cost and space savings when operated in conjunction with digital transmission systems (Lee 27).

The links carrying calls between exchanges may be symmetrical pair cable, quad cable, coaxial cable, optical fiber cabled. The choice of medium depends upon bandwidth or traffic volumes to be carried, the distance and terrain to be covered, the performance required, the distribution of the traffic and the cost. Interexchange transmission system in the past were analog but are now being superseded by digital systems. Technological developments are reducing cost and improving the quality of service.

Optical fiber cable is particularly suited for high capacity routes, leaving longer distances between repeaters, further reducing cost and increasing reliability. Optical fiber cable will be replacing coaxial and quad cable systems as the preferred medium. Microwave systems are particularly suitable for medium and high capacity routes in inhospitable terrain. Coaxial or optical fiber submarine cable is also an economic choice in numerous cases for long distance or international transmission. There are many advantages of digital switching and transmission.

Such a network carries data traffic as easily as voice traffic and therefore is used by many types of service. The result is economies of scale and resilience when traffic on particular services peaks. The computers within exchanges monitor and control the behavior of the network as a whole system and open up new capabilities and techniques of operation. The flexibility of digital systems also simplifies the physical design of networks so that the limitations on serving large areas from a single exchange are reduced. KTA hopes to digitalize all phone lines by the year 2005.

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