• Journal of KIISE:Information Networking
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• v.37 no.4
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• pp.312-316
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• 2010

In this paper, we propose a game theoretic channel sharing model that allocates resources of a base station between MNO(Mobile Network Operator) and MVNO(Mobile Virtual Network Operator) in a fair and efficient manner. Considering the input traffic loads of MNO and MVNO, the proposed model uses the bargaining game theory to allocate channel resources between MNO and MNVO. When the input loads of the carriers are asymmetric, the proposed model increases the resource utilization by allocating more channel resources to the operator with high input load. In addition, the proposed model prevents the quality of service of an operator from degrading even if the input load of the other operators increases excessively.

• Journal of Information Technology Services
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• v.12 no.3
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• pp.111-126
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• 2013

As the gaps become narrower in interconnection fee and volume rate, the MNOs began to introduce flat pricing for unlimited voice traffic competitively in Korea wireless telecommunication market : 'unlimited talks within intra-network' by the 1st operator, followed by the 3rd operator's 'unlimited talks over all networks'. As a result, subscribers tip in toward the third ranked operator and could bring a substantial change to steadfast market structure over the last decade in Korea. This paper aims to develop a simple economic model to analyze competition with flat pricing for unlimited voice traffic, and to check whether the pricing can be appropriate for the MNOs. The results show that MNOs already step in the necessary conditions to launch flat pricing for voice traffic. It also predicts that the MNOs compete with unlimited talk over all networks and set a single fee in an equilibrium. At present, the MNOs run virtually identical pricing for unlimited talk over all networks, considering their differentiation with respect to service quality, coverage and brand preference.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.32 no.4B
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• pp.234-245
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• 2007

There are lots of controversies over the introduction of MVNO(Mobile Virtual Network Operator) policy to Korean mobile telecommunications market. MVNO is a kind of service-based competition in mobile market. This paper attempts to analyze the ripple effect of MVNO regulation and also desirable ways of implementing the policy. Based on Laffont, Rey and Tirole(1998), Armstrong (1998) model, theoretical MVNO model is defined and derived implications of price, quantity in the market. According to the model, the fact that MNOs have one-way access profit leads the static efficiency by lowering its market price. In regarding the most desirable way to enhance social welfare is revealed as 'two MNOs conduct MVNO' other than 'One MNO does' or 'Structurally divided network'.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2003.05a
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• pp.57-61
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• 2003

Many countries in the world introduced MVNO regulations to improve the competitiveness in mobile networks. Fixed operator in U.K. like British Telecom (BT) started MVNO business with Mobile Network Operator (O2) on October 1, 2002. For Korean fixed operator such as Dacom, Hanaro Telecom, Korea Telecom (KT), and Onse Telecom are focusing on MVNO market. Thus, this paper suggests possible regulation plans for mobile communication industry in Korea to enter the mobile market successfully.

• Electronics and Telecommunications Trends
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• v.37 no.3
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• pp.74-84
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• 2022

The Korean mobile service market has persistently grown with the number of subscribers and volume of mobile traffic. It shows the slow diffusion of 5G subscribers, and rapid growth of both the MVNO(Mobile Virtual Network Operator) market and unlocked mobile phones. Therefore, this study derives the direction of telcos' strategies and policy implications by empirically analyzing the usage and attitude of LTE and 5G subscribers. Our major findings are as follows: First, our current mobile service subscription market constitutes most long-term customers for their incumbent carriers only by device change from lock-in with bundle services. Mobile tariffs, data speed, and benefits of bundle services are important factors affecting choices and customers' satisfaction with a provider and intentions of churning to another. Second, demand and satisfaction for using 5G are less because speeds and service tariffs act as pain points for 5G services. Third, the users' high preferences for MVNOs and unlocked mobile phones are linked to their subscription to MVNOs' low-cost plans with unlocked mobile phones on online channels. These streams lead to a big change in the market competition that MNO(Mobile Network Operator)s' market shares are expected to decrease and MVNOs' shares will be increased by two times, in the near future. Therefore, MNOs need to change their distribution strategies from offline to online channels and try to resolve the stereotype, "mobile tariffs are expensive," by enhancing their service values. Finally, as consumers prefer one-stop service in the same channel regardless of the distribution channel, policies should focus on the consumers' needs for convenience rather than on the channel separation for perfectly unlocked mobile phones.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.1
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• pp.553-564
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• 2017

We analyzed the effects of government intervention on competition structure of telecommunication companies.. Results showed a decrease in market share difference among mobile telecommunication companies due to increased competition caused by the introduction of mobile virtual network operators (MVNO) and mobile number portability. We also found that the introduction of the MVNO caused a relaxed competition structure between network operators. Furthermore, we observed an increased subscriber influx of late adapters after the introduction of the Mobile and Service Retail Regulation Law (MRL). However, we found a gradual decrease in the competitiveness of MVNO following the introduction of MRL. In addition, the introduction of Mobile and Service Retail Regulation Law had a negative impact on customer churn as well as the financial structures of telecommunication companies.

• Journal of Information Technology Services
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• v.15 no.1
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• pp.81-96
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• 2016

This study analyzes how breach fee under long-term contract and/or cap regulation on the breach fee can affect the impacts of "Mobile Device Distribution Improvement Act" on handset bundle price, average revenue per unit (ARPU), and social welfare. We conduct comparative analysis with an economic model of duopoly competition in price when users are under long-term contract and the breach fee can be regulated. The results show that the Act lowers the equilibrium prices, lower than incumbent price without the Act. Price of non-dominant Mobile Network Operator (MNO) can be lower than poaching price without the Act if significant portion of switching cost is breach fee or the market is significantly asymmetric. Under the significant circumstances, the Act can raise ARPU even though it improves social welfare. By contrast, the Act increases consumer surplus without affecting social welfare if breach fee is the only source of user's switching cost and is capped by the regulation, and more symmetric market and the stronger cap leads to higher consumer surplus.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.4
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• pp.185-204
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• 2009

The USIM(universal subscriber identity module)-unlock introducing in July 1, 2008 might be led to a significant change that mobile service provider's dominance is considerably dispersed to the handset manufacturer and distributor. Under USIM-unlock environment, mobile service provider, handset manufacturer, and distributor have to make their decisions on their handset distribution channel strategies: the closed distribution channel strategy or the open distribution channel strategy. The change of distribution channel strategy between members in distribution channel can be understood as a matter of strategy choice, and we have developed a theoretical model and analyzed how to make a decision for the member's optimal distribution strategy based on 3-person game model between members of mobile phone distribution channel, under both of '1 subscriber-1 handset' and '1 subscriber-multiple handset' assumptions. Under '1 subscriber-1 handset' assumption, the closed strategy controlled by mobile service provider is all players' optimal solution because the maximum size of the mobile phone market is limited by subscribers. But, as total expected profit by the handset and distribution subsides is a deficit, mobile service provider have to choose the open strategy and consider the conversion to MNO(mobile network operator). Under '1 subscriber-multiple handset' assumption, mobile service provider is trying to find the way how to lock-in its service and mobile phone and how to maximize ARPU(average revenue per unit), while handset manufacturer and distributor have to look for the way how to maximize the mobile phone market using their own marketing efforts, because it is expected that total mobile handset demand for the open market is bigger than demand for the closed market under '1 subscriber-multiple handset' assumption.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.40 no.1
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• pp.115-123
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• 2015

As LTE service and smartphone are emerging as the mainstream of mobile communications market, the value and importance of mobile data service has been further increased. MNO(mobile network operator)s already recognized the data service as essential market needs, and have appealed to consumers based on various satisfaction elements of data service such as faster transmission speed, expended data volume provided as default, and introduction of unlimited plan. So, in the smartphone market where has been mature, investigating what service attributes affect users' selection of data service is very meaningful from the perspectives of both the industry and the academic. Under this background, this study explores determinants influencing consumer's choice for mobile data service and analyzes relative importance of the attributes among different type of users. The findings of this study makes us extend our understanding of consumer characteristics and their service needs in data service centric era, and it provides some implications for establishing telecommunications policies and business strategies.