A Study on the Bottom-up Long-run Incremental costing Methodology for the Korean Mobile Network

이동통신망 상호접속요금 산정을 위한 장기증분원가모형에 관한 연구

The key objective of this paper is to suggest a pilot model for mobile network interconnection charge calculation by bottom-up long-run incremental costing methodology. Interconnection issues have lately attracted considerable attention by network operators and regulators. However there is no standard by all the network operators' agreement. The costing method is an acute problem because the interconnection charge is directly related to the network operators' revenue. Thus Korea has planned to launch the new interconnection policy based on the current traffic distribution and then we simulate the model in a sample area with virtual data. The results propose objective and reasonable guideline for the mobile network element cost calculation. It can be helpful for calculating price floor or bottom-up long run incremental interconnection charge by regulator.