Browse > Article
http://dx.doi.org/10.7840/KICS.2011.36B.7.806

Estimating Network Externalities Mark-up in Mobile Telecommunications Service in Korea  

Jung, Choong-Young (한남대학교 경영학과)
Lee, Jong-Yong (ETRI 기술전략연구본부)
Jung, Song-Min (한남대학교 경영학과)
Publication Information
The Journal of Korean Institute of Communications and Information Sciences / v.36, no.7B, 2011 , pp. 806-817 More about this Journal
Abstract
This paper constructed a model estimating mobile nework externalities based on Ofcom model and estimated externalities mark-up. The main results are as follows: 1) there are 15,626,711 marginal subscribers in mobile network irrespective of its maturity. 2) the value of network externalities ranges 2.1 billions won to 435.4 billions won. 3) the extrenalities mark-up to support marginal subscribers ranges 0.03 won to 6.47 won. This results provide useful implications to policy about mobile network terminations fee as well as externalities mark-up disputes.
Keywords
외부성;마크업;보편적 서비스;이동접속료;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Yoonsung Lim and Dong-Ju Kim, "The properties of reciprocal access charge and a revelation scheme for access costs," Telecommunications Polices Research, Korea Association for Telecommunications Polices, Vol.8, No.1, 2006.(in Korean)
2 Korea Communications Commission(KCC), "Determination of Fixed and Mobile Telecommunication Networks' Interconnection Charges in the year of 2008 and 2009," Press release, December 11, 2008.(in Korean)
3 Monopolies & Mergers Commission(MMC), "Cellnet and Vodafone: Reports on references under section 13 of the Telecommunications Act 1984 on the charges made by Cellnet and Vodafone for terminating call from fixed-line networks, December 1998.
4 Oz Shy, The Economics of Network Industries, Cambridge University Press, 2001, pp.111-113.
5 William J. Baumol, Economic Theory and Operations Analysis, pp.517-20, 4th edition, 1977.
6 Williams, F., Rice, R. E. and Rogers, E. M., Research Methods and the New Media, The Free Press, New York, 1988.
7 Duk Hee Lee and Dong Hee Lee, "Estimating consumer surplus in the mobile telecommunications market: The case of Korea," Telecommunications Policy, Vol.30, 2006, p.608.
8 ECORYS, "Welfare model MTA regulation," April 2007.
9 Eli M. Noam, Interconnecting the Network of Network, 2001, pp. 8-9.
10 David Allen, "New telecommunications services: network externalities and critical mass," Telecommunications Policy, 1988, pp. 258-259
11 ACCC, "Discussion Paper on the WIK Mobile Network and Cost Model to inform the MTAS Pricing Principles Determination 1 July 2007 to 30 June 2009," February 2007.
12 Competition Commission(CC), "Reports on references under section 13 of the Telecommunications Act 1984 on the charges made by Vodafone, O2, Orange, and T-Mobile for terminating calls from fixed and mobile networks," December 2002.
13 Cullen International, "Telecommunications: Western Europe," Cross-country analysis, March 7, 2008.
14 Kyung Joong Park, "Economic value and implication of network externality in the Korean mobile telecommunications service industry," A Thesis for Degree of Master, Graduate School of Information, Yonsei University, December 2006.(in Korean)
15 Min Soo Park, et al., "Empirical analysis and policy implications about the substitution of fixed-mobile telephone services," Research report, 07-05, KISDI, December 2007.(in Korean)