Comparative Deregulation of Far Eastern Telecommunications Markets
Economic Incentives and International Competitive Strategies

Terrence P. McGarty
The Telmarc Group, Inc.

and

Jacob Davidson
Delta Three

The deregulation of telecommunications has taken a major step with the WTO
agreements in February of this year. Namely, each of the major Far Eastern
countries has agreed to open their market in some form of planned entry.
These markets will allow for the introduction of competition of local and
international services now currently restricted to the local PTT as well as
allowing the entry of new services in what are generally closed markets.

This paper discusses the entry into a set of dominant Far Eastern markets.
It discusses the current status, the proposed changes in those markets and
what is anticipated in terms of new entrants. In addition the paper reviews
the overall economy of each of these countries and presents an overview of
the economic impact that changes in regulation will have on each specific
market.

The paper also presents several case studies relating to each of these markets
to demonstrate the changes that are occurring and by focusing on specific
example attempt to project changes in these markets based upon actual results
that have already occurred. The examples focused upon are competition in local
telephony, competition in wireless/cellular, competition in the LMDS areas,
and competition in international telecommunications.

The paper analyzes each of the opportunity segments across each of the target
countries. It discusses the potential economic impact upon the United States
as well as between and amongst the target countries that the proposed changes
in deregulation may have. The differing policy positions are reviewed and the
relevance to the proposed current FCC positions are analyzed in detail.