Hanaro Telecom's New Venture
- Will launch t-commerce

Hanaro Telecom (President Yoon Chang-bun) has succeeded in entering the broadcasting market for the first time as a telecommunication operator after being selected as t-commerce operator recently, Hanaro Telecom officials announced on March 22.
The Broadcast Committee at its March 22 meeting selected and approved 10 companies to take on data broadcasting channel operators. The list includes CJ Home Shopping, LG Home Shopping, Woori Home Shopping, Korea Agriculture-Fishery Broadcasting, and Hyundai Home Shopping, among others.
The move attracted a lot of attention in the business community because of its ramification of allowing telecom operators to launch a broadcasting business for the first time. Previously, large telecom operators such as KT and SK Telecom succeeded in entering the broadcasting market in a circular way through setting up broadcasting affiliates like SkyLife and TU Media. KT has been attempting to enter the market through the use of IPTV, but its move is being stalled faced with the opposition by cable TV operators.
Hanaro Telecom plans to directly engage in its move to start a broadcasting business by securing a data broadcasting channel from a broadcasting business operator.
Byun Dong-shik, a director of the telecom operator, said the company plans to enter t-commerce business based on its license to operate either satellite or cable broadcasting, adding that t-commerce would be operable on any platform following the amendment of relevant laws and regulations with a hint that Hanaro would possibly be linked with IPTV. The director said the company has been talking with SO, SkyLife and others on its move to start t-commerce.
Industry sources said it remains to be seen what kind of results Hanaro's selection would bring to the industry, with t-commerce being a new challenge to the broadcasting industry.
Hanaro would have an advantage when broadcasting and communication operators are allowed to be merged under amended laws and regulations.
The selection of KTH, an affiliate of KT, has been drawing attention, although it cannot be seen as a telecom operator entering the broadcasting business since it's a portal business concern. It has been attracting attention due to the company's importance in KT's media strategy.
Some industry people believe that KTH will play the role of a bridgehead for entering the broadcasting market for the KT Group after consolidating its position as a t-commerce operator.
In the meantime, the selection of 10 t-commerce operators signal the arrival of their age based on TV, taking over from e-commerce based on the Internet.
The potential for t-commerce is considered enormous as TV would attract people in their 30s to over 60s, unlike e-commerce that mainly drew its customers from 10-20s age groups. Already, SkyLife and CJ Cablenet have launched the commercial operation of data broadcasting.
Hanaro Telecom, in the meantime, applied for a license for the government-driven portable Internet project recently and said it planned for commercial operation in 2006.
The government will allocate three licenses for portable Internet businesses, dubbed by officials as WiBro (wireless broadband), with fixed-line giant KT Corp. and mobile phone operator SK Telecom, expected to apply for the remaining spots. The government plans to finalize the allocation of the three licenses for WiBro by March following a three-month review period.
WiBro, designed to offer better mobility than wireless LAN services and faster connection than third-generation mobile-phone services, is expected to deliver high-speed Internet access up to 1 Mbps to receiver services moving at 70 km per hour. nw