Study on the role of government in development of broadband industry and experiences in Korea

This paper analyzes the role of government in development of broadband industry and points out three kinds of means that government promotes broadband industry to develop by introducing the experiences of Korea. Broadband industry can bring very high societal benefits, but rate of return may be lower than the acceptable critical return rate of enterprises. This win cause lack of investment in broadband industry and harm social welfare. The government should invest in the high social value projects that cannot obtain enterprises' investment by direct investment, industry policy and tax exemption. For broadband industry, the government should invest in broadband network directly and support the broadband application development by indirect measures.