• Korean Management Science Review
• /
• v.31 no.4
• /
• pp.75-92
• /
• 2014

Broadcast-telecommunication bundling services provide customized services and reduce household telecommunication costs, contributing to the improvement of users' welfare. However, following the recent fierce competition of broadcast-telecommunication providers, the Korea Communications Commission, an organization that regulates promotional gifts and fee-reduction benefits to attract subscribers, has imposed a series of regulations. The excessive offering of promotional gifts can distort fair market competition and damage users. Yet if all bundling services are regulated uniformly, some benefits for users may be reduced, and the autonomous marketing competition of service providers may be restricted, thereby shrinking the entire communications market. Therefore, this study attempts to investigate domestic and foreign regulations on promotional gifts and other offerings related to broadcast-telecommunication bundling services, to analyze problems with respect to the current regulations and to propose an improvement plan. The study asserts that it is necessary to improve the violation decision criteria of the Korea Communications Commission and its regulations on broadcast-telecommunication service providers' promotional gifts in order to regulate the bundling services reasonably. In addition, it proposes a proper regulation of the OTS(Olleh TV Skylife) product, a new service emerging in the evolution of the bundling service type.

• Journal of Internet Computing and Services
• /
• v.13 no.1
• /
• pp.27-36
• /
• 2012

This study aims to find out the effectiveness of regulation of promotional gifts and exemption of charges by analyzing the judgement criterion of illegality and the corrective action taken by regulatory agencies and suggests effective way of regulation. The results show that recently the differences of price-cut is getting bigger. In addition, Fair Trade Commission has considered discounts as unfair predatory price only if price is below the cost. But in the telecommunication business law enacted by Korea Communications Commission, 'expected profits per subscriber' has been applied as a key criterion. KCC's criterion is based not on the expected profit of individual service provider but on the averaged profit of services providers. It doesn't consider differences of service quality and the cost structure between dominant firm and late comers. Prohibition act of user discrimination result in the increase of subscriber and operating profits of late comers but this is not direct purpose of regulation. It can be desirable in the aspect of fair competition but since it may reduce consumer welfare, the criterion needs to be reconsidered.

• Journal of the East Asian Society of Dietary Life
• /
• v.24 no.3
• /
• pp.291-300
• /
• 2014

This study determined the effects of television (TV) advertising restriction of Energy-Dense and Nutrient-Poor Foods on product and promotion activities by food companies producing or selling children's favorite foods. A survey using a selfadministered questionnaire was conducted via on-line or fax by marketers or R&D managers from 108 food companies. The data from 55 respondents (50.9%) were analyzed. Restriction exerted positive effects on food products with respect to compliance with labeling requirements (4.0 out of 5 points) and reinforcement of nutritional contents examination of new products (3.7 out of 5 points). Reformulations of products such as reduction of nutrients like sodium, sugar and fat were also reported. In addition, food companies underwent diverse changes in promotional activities, including modification of package designs and displays in stores, offering free gifts, discounts, etc. In conclusion, restriction of TV food advertising may contribute to improvement of children's food environment by encouraging food companies to make favorable product changes. On the other hand, the results also revealed that food companies adopt diverse marketing channels that are not yet under regulation. Hence, to make policies more effective, regulation needs to be extended from TV to other marketing channels to which children are easily exposed.