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Telecommunications Research From Alternative Perspectives. 27. 08. 03 Hotel Marriot, Pusan. Prof. Dr. Hoon Paik Department of International Relations ChungAng University, Korea hoon@cau.ac.kr. Contents. I. ‘Creative Destruction’ by Networks II. Digital Market Restucturing
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Telecommunications Research From Alternative Perspectives 27. 08. 03 Hotel Marriot, Pusan Prof. Dr. Hoon Paik Department of International Relations ChungAng University, Korea hoon@cau.ac.kr
Contents I. ‘Creative Destruction’ by Networks II. Digital Market Restucturing III. Changes in Social Structure IV. Others
Creative Destruction by Networks - Joseph Schumpeter . “Innovation would destroy existing technologies and methods of production by newer and more efficient products.” - Digital economy’s discontinuity, uncertainty . ex: optical networks -> wireless -> the Internet protocol platforms. . mergers, acquisitions, investment and disinvestment in the worldwide markets - Social and political restructuring
Digital Market Restructuring - Industrial restructuring . disappearing industry boundaries, entry barriers, market positions -> interfirm alliances, cost-reducing innovations - Deregulation . collapse of natural monopoly . competitive entry and repricing . privatization, M&A, strategic alliances
- Newly competitive positioning . ‘hypercompetitive’ strategy -> substituting for protected market position - technological assumption shift . Digital, wide-bandwidth, wireless, IP-based platforms
- “business ecosystems” = cooperative business models (cooperation not confrontation) (James F. Moore, 1997) - act in unison and share core capabilites
- AT&T’s new strategy . Efforts for Market dominance -> investment in McCaw Cellular, Media One, TCI - Privatization of France Telecom, Telstra(Australia), Telecome Argentina (corporatizing process: government department -> state-owned -> public-private joint-ventures -> privatization)
Creative destruction of social structure - Murakami Ryu Exodus for Land of Hope (1998): Young generations’ rebel hoping for a New Digital World -> restructuring of Japanese Society not suitable in Digital Age - Japan’s traditional value system . Emphasis on continuity -> suitable for slow and predictable technological change (ex: incremental innovations) -> not suitable for discontinuity in digital environment
- Japan’s policy changes . 1973: ‘Information Society Initiative(Fujitsu, NEC)’ . 1970’s: Failure of Japan’s internet . 1984: JUNET(e-mail service) in fear of “Pax Digital Americana” . In line with America’s NII, NTT(Nippon Telegraph and Telephone) and MITI(Ministry of Industry and Trade) starts Information Highway -> Low user volume due to high user cost(discount only after 23hr)
. 1998: MITI’s ‘Real-Internet Consortium (RIC) – Terabit Router starts . 2000: MITI’s “Forum for Agreeable Living with Intelligence” project starts -> Digital restructuring of Japanese society
Political Perspective - Employment structure change . ‘informational labour’ cf. ‘generic labour’ -> highly educated, capable of self-programming -> maximum flexibility - political changes . From ‘class based politics, nationally based - politics’ to ‘identity politics’ - identity politics: expressing cultural shifts in sensibility - new social movements offering colletive identities -> political agitation