Key Success Factors for Korea's Broadband

This paper aims to present policy directions for the sustainable development of broadband service by extracting the key success factors from the Korea's recent experience. Initially, ten success factors such as competition, interconnection, etc. are generalized into five categorizes of policy, demand, culture, technology, and market structure based on M. E. Porter's five-force model. However, the market environment for the broadband service is constantly changing. In particular, various information and communications technologies (ICTs) converge and markets get rapidly integrated. To take account of the changing environment properly, this paper propose a new seven-force model by extending Porter's five force model. In the future, the boundary of market and technology related with broadband is expected to be blurred due to the ongoing convergence. Then a new market definition by service differentiation is necessary. One of main implication is that policies for the technological development should emphasize complementary aspects of convergent technologies rather than their substitutability.