Vertical Integration
There will soon be a way for local mobile carriers to manufacture smart home devices, smartphones and accessories, and tablet PCs.
The government made such a decision at the 4th Information Communications Strategy Committee Meeting hosted by the Ministry of Science, ICT and Future Planning (MSIP) on May 27.
The government decided to select and ease seven ICT-related regulations that disrupt creative business activities or hinder technology development. As a result, the decision will open the way for mobile carriers to make cell phones and IoT-related terminals through a revision to the Telecommunications Business Act.
An official at the MSIP explained, “Global ICT enterprises like Google or Apple are working on the convergence of software platforms with terminals. So, we decided to remove regulatory barriers so that local mobile service operators can develop terminals in line with market conditions.”
Industry analysts are saying that the government's measure is mindful of more active M&A deals in the local ICT market in which barriers are disappearing due to convergence. A source in the communications industry said, “I think that the government decided to relax regulations so that mobile carriers can freely buy Pantech, which experienced a management crisis, or creative start-ups engaged in manufacturing terminals.”
In addition, the government agreed that it will provide support to revitalize the digital signage industry, establish standards to expand the use of the 57 to 64GHz frequency band, improve infrastructure for information protection industries, strengthen response systems for communications disasters, revitalize the construction of T-DMB relay facilities, and beef up safety standards for emergency broadcasting facilities.
A plan to foster the digital content industry, which was previously named as a future growth engine, was made as well. In line with a paradigm shift in digital technology, it was decided to develop five digital content technologies for virtual reality, computer graphic, hologram, five-sense interaction, and distribution.