Analyzing the Economic Effect of Mobile Network Sharing in Korea

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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.
Publisher
ELECTRONICS TELECOMMUNICATIONS RESEARCH INST
Issue Date
2012-06
Language
English
Article Type
Article
Citation

ETRI JOURNAL, v.34, no.3, pp.308 - 318

ISSN
1225-6463
DOI
10.4218/etrij.12.0111.0471
URI
http://hdl.handle.net/10203/223394
Appears in Collection
MG-Journal Papers(저널논문)
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