Data Communications - Korea Adds Prefix Code to VoIP Calls
October 04, 2004
As part of the Korean government's new regulations to promote internet-based telephony services, the Ministry of Information and Communication announced the adoption of a VoIP (Voice over Internet Protocol) dialing code, 070, taking effect in October 2004.
The 070 prefix is effective nationwide, allocated to operators matching the qualifications set by the Telecommunications Technology Association. Operators hoping to acquire the license must reach at least 70 in the International Telecommunication Union voice quality rating, or a connection success rate exceeding 95%; signals must be received within 1.5 seconds from the time transmitted.
Unlike in the United Kingdom, the VoIP prefix will not be added to the subscribers' existing fixed-line numbers, so that consumers will not have to change numbers when switching to VoIP services. Also, considering the Korean broadband penetration rate, the public is expected to be highly receptive to VoIP.
Companies wishing to obtain a VoIP license may register immediately, while those currently in service must apply for renewal within 90 days from now for access to the 070 code. Counting in the association's reviewing period, the first wave of companies registering should have access to the 070 code by late October. For fixed-line operators holding the broadband networks and telephony infrastructure, such as KT and Hanaroteelcom, the dialing code will be available starting in 2005.
The VoIP interconnection rates imposed on internet telephony companies for backbone network access will be set before the end of 2004. To avoid the complexity in tracking down traffic and determining costs, the ministry is considering a revenue sharing model for interconnection payments.
Given the lower entry barriers of VoIP services, the government is hoping that VoIP will bring instill greater competition in the stagnating torpid telephone and broadband sectors. Authorities predict a complete transition to internet-based telephony by 2010, with a 5.3 trillion won (US$4.6 billion) revenue generated.
Fixed-line operators, such as KT and Hanarotelecom, offer internet telephony through their broadband networks. Software developers Serome C&T and Great Human Software provide PC-to-PC connections, while KT and long-distance operator Dacom leverage their internet resources to provide international call services.