at the deepest levels of infrastructure where it will be effective and sustainable; (ii) focus regulation to deliver equality of access beyond those levels (iii) as soon as competitive conditions allow, withdraw from regulation at other levels; (iv) promote a favorable climate for efficient and timely investment and stimulate innovation; (v) accommodate varying regulatory solutions for different products and, where appropriate, different geographies; (vi) create a scope for market entry that could, over time, remove economic bottlenecks; and (vii) light touch regulation in the wider value chain. The final report is scheduled to be published in the summer of 2005.

## 6 Trends in ICT policies in Asia

The growth of the telecommunications market in China remains conspicuous, and in December 2004, the number of fixed line telephone subscribers reached 312.44 million and that of mobile phone subscribers 334.82 million, placing China at the top position in the world in terms of the number of subscribers. Meanwhile, the number of Internet subscribers reached 94 million, supposedly placing China in second position worldwide.

In the area of information and communications policy, China formally joined the WTO in December 2001, and promotes liberalization of the telecommunications market along with development of legal systems. With regard to legal systems, China has made a certain level of efforts for opening up the telecommunications market by dividing telecommunications business into “basic services” and “value-added services” in the Telecommunications Regulations enacted in September 2000, and allowing foreign investment of up to 49% in “basic services” while not limiting foreign investment in “value-added services.”

The number of subscribers to broadband services using DSL has continued to increase in the Republic of Korea, and according to the Republic of Korea’s Ministry of Information & Communication, the number of Internet users reached 31.58 million (70.2% of the total population) at the end of 2004. In May 2004, the government announced the “IT839 Strategy” based on the “Broadband IT KOREA Vision 2007.” The strategy aims to introduce and invigorate eight new major information and communications services at an early stage, under the value chain of the information and communications industry, to prompt investment in three major network infrastructures, and make nine new major IT growth engines, (including cutting-edge equipment/terminals and the contents industry) grow in synergy as a result. Consideration is given to establish a framework for promoting the strategy in a consistent manner by creating a master plan, releasing benchmarks such as the time to launch the services and the necessary technological development, and establishing an expert working group including government officials as an advisory organization.

In 2004, the number of telephone subscribers in India recorded a growth rate exceeding a 40% increase over the previous year, reaching 76.54 million at the end of March 2004, and the telephone penetration rate also increased from 5.1% to 7.0%. In particular, the mobile phone subscribers achieved a remarkable growth, increasing by 160% over the previous year (fixed line telephone: a 3% increase over the previous year) and accounting for 44% of all telephone subscribers (including mobile communications through WLL). Such development of the telecommunications market has been attained through a series of competition policies of the Indian government. Local communication has already been liberalized in 1997 and long-distance communication in 2000. Although the market was once monopolized by state-owned companies, BSNL and MTNL, the market share (including mobile phones and mobile communication through WLL) of private carriers increased to 21% by 2003 and to 39% by 2004. International communication was also liberalized in 2002.