Korea is preparing a new rule that will allow landline phone clientele to switch to Internet-based telephone carriers without changing their phone numbers. The new rule will be a bonus for consumers, but could cause severe damage to traditional telephone companies such as KT Corp. The government plans to bring in the "number portability" rule for landline and Internet telephony customers in the first half of next year. In 2005, Korea awarded seven licenses to Internet telephony operators, but the move didn’t spark a mass migration to Internet operators because the Internet telephone users require a new number with the prefix "070”. The new rule is aimed at reducing telephone costs for households in Korea; one of the worlds’s most wired nations with more than two-thirds of its 15 million homes connect to the high-speed, broadband Internet. The Internet telephone service, which uses voice-over-Internet Protocol technology, allows customers to speak over the Internet, substantially reducing the cost of long-distance telephone calls.
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