Policy Implications of Mass Media and Telecommunication Convergence in Developing Countries: The Case of Korea Communications Commission By Ampoma Augustine THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY 2012 Policy Implications of Mass Media and Telecommunication Convergence in Developing Countries: The Case of Korea Communications Commission By Ampoma Augustine THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY 2012 Professor Cho, Yoon Cheong ABSTRACT Policy Implications of Mass Media and Telecommunication Convergence in Developing Countries: The Case of Korea Communications Commission. By Ampoma Augustine The globalization of technology coupled with the expanding world market size is changing the pace of technology adoption in developing countries. The collision of traditional mass media and telecommunication as a result of technology convergence presents opportunities as well as challenges to developing countries. A policy alternative that has been proposed for developing countries is the introduction of greater competition and unification of regulatory agencies for mass media and telecommunications. These policy responses, however, have implications for the development of indigenous communications industries, cultural preservation, national security, defense, and national development planning. This study therefore examines the policy implications of mass media and telecommunication convergence in developing countries in order to empirically determine the truth or otherwise of the claims that have dominated public debate. While some policy experts argue that effective communication convergence policies promote competition by opening up the market for new entrants, others believe that third world countries do not need competition. Secondly, as some policy experts recommend unification of regulatory institutions as a necessary condition for effective regulation, others do not see unification as a i sufficient condition. They recommend proper coordination of institutions instead of mergers as ideal for developing countries to benefit from convergence. After an empirical study, the evidence seems to support the assertion that greater competition is useful to all countries, including less populous developing countries with low GDP per capita and low literacy rates. Again, the evidence supported the view that effective coordination between institutions for traditional mass media (newspaper, radio and Television) and the telecommunication media (telefax, landline telephone), instead of simple unification is the practical path for developing countries to benefit from communication convergence. ii DEDICATION This work is dedicated to all the fallen souls of South Korea who through unforgivable indignity and adversity won the war against poverty and toiled to change their nation for the better. As a beneficiary of their sacrifice, I salute all South Koreans, especially those who never witnessed the goodness of their labor, for giving hope to the developing world. By their action, they have proven that there is nothing nations cannot do if they have a sense of purpose and the determination to succeed. iii ACKNOWLEDGEMENTS I am most grateful to the faculty and management of KDI School of Public Policy and Management for offering me the best tuition. I am particularly indebted to Prof. Cho, Yoon Cheong and Prof. Abraham Joseph Shragge for the guidance and supervision. I also wish to acknowledge, in a special way, Prof. Yoo Jung Ho, Prof. Stanley Sakai, Prof. Emeritus Hongik Chung, Mr. George Sarpong, Mr. Ko Chang Hyu, Mr. Koo, Jin-Wook, Mr. Yar Ishaq Alhassan, Ms. Rhoda Gavor, Mr. Thomas Broni, Mr. Benjamin Kwame Boateng and Ms. Megan Dale Sherrin. Profound thanks as well go to Ambassador Margaret Clark Kwesi, all the staff of Ghana’s Embassy in Seoul, South Korea, colleague students at KDI and Pastors and members of Seong Bok English Ministry. I am much obliged. iv TABLE OF CONTENTS CHAPTER I INTRODUCTION .................................................................................................... 1 1.1 DEBATE ON ICT POLICIES: ................................................................................................ 4 1.2 THE PROBLEM: ....................................................................................................................... 6 1.3 RESEARCH OBJECTIVES: ................................................................................................... 8 1.4 DEFINITION OF TERMS: ...................................................................................................... 8 1.5 RESEARCH QUESTIONS: ..................................................................................................... 8 CHAPTER II BACKGROUND OF STUDY ......................................................................... 10 2.1 REPUBLIC OF GHANA ........................................................................................................ 12 2.2 Ease of Doing Business Ranking 2012 ................................................................................ 13 2.3 National Media Commission (NMC) ................................................................................... 15 2.4 National Communications Authority (NCA) ...................................................................... 16 2.5 REPUBLIC OF SOUTH KOREA ........................................................................................ 17 2.6 Korea Communications Commission (KCC) ..................................................................... 18 2.7 LITERATURE REVIEW: ....................................................................................................... 23 2.8 THEORETICAL FRAMEWORK: ....................................................................................... 29 CHAPTER III HYPOTHESIS DEVELOPMENT: ............................................................... 33 CHAPTER IV METHODOLOGY: ............................................................................................ 38 4.1 Qualitative Method ................................................................................................................... 38 CHAPTER V DATA ANALYSIS AND DISCUSSION ........................................................ 41 CHAPTER VI CONCLUSION .................................................................................................... 62 CONCLUSION ................................................................................................................................ 62 LIMITATIONS OF THE STUDY ................................................................................................ 67 RECOMMENDATIONS ................................................................................................................ 68 BIBLIOGRAPHY ................................................................................................................................. 74 APPENDIX ........................................................................................................................................... 627 v LIST OF ACRONYMS KCC Korea Communications Commission KCSC Korea Communications and Standards Commission KISA Korea Internet Security Agency NCA National Communications Authority NMC National Media Commission KDI Korea Development Institute GDP Gross Domestic Product GPS Global Positioning System USF Universal Service Fund vi LIST OF TABLES Table Page Table 1. Different forms of Convergence .................................................................................................... 2 Table 2. Summary of World Bank, IFC Ease of Doing Business Rankings ........................ 14 Table 3. Some Examples of Regulatory Impediments to Multiple Play ................................. 29 Table 4. Implications When Competition Allows Entry of Multinationals .......................... 63 Table 5. List of Experts Interviewed ............................................................................................................ 72 vii LIST OF FIGURES Figure Page Figure 1. Global ICT Developments by ITU, 2010 .......................................................... 5 Figure 2. Mobile Cellular Subscription per 100 Inhabitants, 2000-2010 ........................ 10 Figure 3. Active Broadband Subscription, 2000-2010 ................................................... 11 Figure 4. Proportion of Households with Internet Access, by Region, 2008 .................... 11 Figure 5. Flag and Map of Ghana ........................................................................................... 12 Figure 6. Starting Business Rankings in Ghana, 2012 ......................................................... 13 Figure 7. Ghana’s Ranking of Starting Business 2012 Compared with Sub-Saharan Regional Average ..................................................................................................... 14 Figure 8. Starting Business Rankings in Ghana, 2012 and 2011 Compared .................... 14 viii CHAPTER I INTRODUCTION: The fast wave of scientific innovations did not influence only the realm of medicine and industrialization but has significantly affected the field of communications. As a result, there is an increase in the collision of technologies in communication creating a convergence between telecommunication and mass media. These emerging technologies are changing