Indirect access to mobile networks: economic effects and policy implications

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This study investigates the economic effects that may be expected from the introduction of an indirect access (IA) scheme, a potentially effective tool for stimulating competition, into Korea's mobile market. We estimate the changes in consumer surplus and operator's net revenues attributable to the IA system, using actual or estimated market data such as the price elasticity, call traffics, prices and interconnection charges, combined with some competition scenarios. Our results suggest that the increase of consumer surplus by the introduction of an IA scheme would be sizeable, regardless of its type and that is largest under the scheme access charge is regulated on cost-plus basis and mandated for Significant Market Power (SMP) only to provide interconnection service if IA providers (IAP) request.
Publisher
ROUTLEDGE JOURNALS
Issue Date
2011
Language
English
Article Type
Article
Citation

APPLIED ECONOMICS LETTERS, v.18, no.4, pp.377 - 381

ISSN
1350-4851
DOI
10.1080/13504851003670593
URI
http://hdl.handle.net/10203/100288
Appears in Collection
MG-Journal Papers(저널논문)
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