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http://dx.doi.org/10.6109/jkiice.2013.17.9.1975

The study on fairness issues in mobile telecommunication service charges  

Shin, Jin (School of Liberal Arts, Dankook University)
Publication Information
Journal of the Korea Institute of Information and Communication Engineering / v.17, no.9, 2013 , pp. 1975-1985 More about this Journal
Abstract
Telecommunication costs have been increasing successively in Korean households. Even though there are a lot of issues related to the high charges of mobile telecommunication services, plausible solutions have not been provided yet. 99% of Koreans use mobile phones and it is the highest in the world, but charges are relatively high. This situation may be brought by the government policy that supports 'three companies system.' Even the least efficient company might sustain by a tacit bottom price policy and the government did not introduce MVNO into the market. The government can make mobile phone charge system consider cost only in a proper manner and constrain marketing costs to the rational level. And it can reduce mobile charges and rights of consumers must be respected by restraining too much complicated rates system. Fairness of mobile phone charges could be achieved by mobile phone market structure improvement through active introduction of MVNOs and reduction of excessive marketing costs. If proper market structure and policy management are secured, 30% cut of charges could be achieved. And mobile service bills may be made more acceptable if charge is based on a measured rate system according to the amount of data usage.
Keywords
Mobile Telecommunication; Transaction Cost; Measured Rate System; Price Discrimination; MVNO;
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