Anyuser.Net Co. and Samsung Networks Inc. expect to start the country's first commercial Internet-based telephony services in July, after they finalize agreements with fixed-line telephone carriers on services charges, the companies said yesterday.
"We are talking with fixed-line carriers and the Ministry of Information and Communication to decide on the level of service charges and interconnection rates. We expect to complete the talks by the end of this month," said an Anyuser.Net spokesperson.

The Anyuser.Net official expects the call rates for Internet-based telephone services to be set at between 40 to 50 won ($0.05) per three minutes, a little more than current fixed-line telephone services that charge 39 won for every three minutes.

Anyuser.Net and Samsung Networks, which were granted licenses for voice-over Internet protocol (VoIP) services by the Ministry of Information and Communication last year, reached agreements to access the online equipment of fixed-line telephone carriers KT Corp. and Hanarotelecom Inc. in May.

However, the companies have failed to reach a consensus on service charges for Internet-based telephony, with the fixed-line carriers concerned that the new services could erode their customer bases.

KT, which controls more than 90 percent of local fixed-line customers, claimed that VoIP call rates should be set higher than current fixed-line services on a per minute basis, since the Internet-based telephone services could provide customers long-distance and international calls for the same price as local calls.

VoIP is a technology that enables voice signals to be sent over the Internet. VoIP services could provide cheaper voice services for consumers and allow access to features such as video-telephony and datacasting.

The government believes Internet telephony can increase competition in the slowing traditional telephone and broadband Internet market, with the comparatively low cost for technology putting up a low entry barrier for new companies.

Government officials predict Korea will complete its transition to IP-based telephony by 2010, while generating 5.3 trillion won ($4.6 billion) in service revenue by then.

Last year, the Ministry of Information and Communication dedicated an IP-only access code, 070, for VoIP services in an attempt to promote online telephony services.

The IP-only prefix can be used anywhere in the country and will be assigned to operators providing services that meet the quality requirements set by the Telecommunications Technology Association.

According to the state-run Korea Information Strategy Development Institute, the domestic VoIP service market will grow 109 percent annually through 2007 and have 3 million subscribers by then. International Data Corp., a U.S.-based researcher, expects Korea's IP-based telephone equipment market to grow to 257.9 billion won ($226 million) by 2008 from 70.3 billion won in 2004.

(thkim@heraldm.com)
By Kim Tong-hyung