Economic analysis of the introduction of the MVNO system and its major implications for optimal policy decisions in Korea

Kim, Byung Woon; Seol, Seong Ho

doi:10.1016/j.telpol.2007.03.002

Cited by 41 publications

(32 citation statements)

References 7 publications

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“…Foros and others [7] proposed a conceptual model for calculating the national roaming-related economic effect of MNS, using four scenarios: two national roaming option scenarios and two investment decision scenarios. Kim and Seol [10] estimated the economic effect expected from the introduction of an MVNO scheme in the mobile communication service market.…”

Section: Effects Of Mnsmentioning

confidence: 99%

“…Using a simulation analysis in which the effects of MNS are estimated according to a certain scenario results in case-by-case analysis that does not provide concrete elements of CAPEX or OPEX savings; this makes the results unsuitable for use in other estimations under different circumstances. Kim and Seol [10], a rare example in this regard, presented the components of CAPEX and OPEX that are reduced as a result of the introduction of MNS. However, their analysis was limited to only one type of MNS (MVNO) and, for this reason, cannot be used for other types.…”

Section: Effects Of Mnsmentioning

confidence: 99%

“…Moreover, it should increase consumer choices as it promotes market entry by new operators facilitating accelerated service expansion, bringing down both wholesale and retail prices. In this study, we distinguish five types of positive effects of MNS, according to the following definition (①-⑤): ① Decrease in duplication of network investment, reducing CAPEX and OPEX [3]- [6], [8]- [10]. ② Positive incentive to roll out networks in underserved areas [3], [4].…”

Section: Conceptual Model For Effects Of Mnsmentioning

confidence: 99%

“…④ Increased consumer choices as entry and expansion become easier and speedier [3], [4], [10]. ⑤ Reduction in wholesale and retail prices [3], [10].…”

Section: Conceptual Model For Effects Of Mnsmentioning

confidence: 99%

“…Sixth, a mobile virtual network operator (MVNO) is a mobile operator that provides mobile communication services but does not have its own radio access network [10], [11].…”

Section: Introductionmentioning

confidence: 99%

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Analyzing the Economic Effect of Mobile Network Sharing in Korea

Song¹

2012

ETRI J

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As mobile markets in most developed countries are rapidly coming close to saturation, it is increasingly challenging to cover the cost of providing the network, as revenues are not growing. This has driven mobile operators, thus far mostly involved in facility-based competition, to turn their attention to network sharing. There exist various types of mobile network sharing (MNS), from passive to active sharing. In this paper, we propose a model, based on the supply-demand model, for evaluating the economic effects of using six types of MNS. Our study measures the economic effects of employing these six types of MNS, using actual WiBro-related data. Considering lower service price and expenditure reduction, the total economic effect from a year's worth of MNS use is estimated to be between 513 million and 689 million USD, which is equal to three to four percent of the annual revenue of Korean mobile operators. The results of this study will be used to support the establishment of a MNS policy in Korea. In addition, the results can be used as a basic model for developing various network sharing models.

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Section: Effects Of Mnsmentioning

confidence: 99%

Section: Effects Of Mnsmentioning

confidence: 99%

Section: Conceptual Model For Effects Of Mnsmentioning

confidence: 99%

“…④ Increased consumer choices as entry and expansion become easier and speedier [3], [4], [10]. ⑤ Reduction in wholesale and retail prices [3], [10].…”

Section: Conceptual Model For Effects Of Mnsmentioning

confidence: 99%

“…Sixth, a mobile virtual network operator (MVNO) is a mobile operator that provides mobile communication services but does not have its own radio access network [10], [11].…”

Section: Introductionmentioning

confidence: 99%

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