Economic Effects and Some Implications on Introduction of Indirect Access Scheme into LM Market in Korea

To read the full-text of this research, you can request a copy directly from the authors.


This study analyzes the economic effects that are expected when competition in the LM market intensifies with the introduction of the indirect access policy. To that end, this study estimates consumer surplus and operator's profit variation with the introduction of the indirect access policy, by combining actual data (or estimated values) such as price elasticity, call volume, usage rates, and access charges, as well as assumptions about forecasted competition. According to the results of the analysis, it has been found that the increase in consumer surplus will to a large extent be due to LM rate reductions as competition toughens with introduction of the indirect access policy into the LM market. However, the net profit of the new indirect access service providers is found to be insignificant. In particular, analysis suggests that the net profit will be negative if the rate drops by 20% compared with the current price level once that policy has been adopted, and further suggests that reductions in the investment of incumbent fixed network service providers is inevitable since the net profit is likely to drop significantly, even when the access charge revenue increases from the indirect access service providers. Consequently, it is evident that more a cautious policy should be pursued before adopting the indirect access system in the LM market, and prior scrutiny should be made regarding the means of compensating for the loss in the local NTS section before making any decision

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

ResearchGate has not been able to resolve any citations for this publication.
Full-text available
En la UE se ha estimado que los costes de la congesti�n representan el 2% de su PIB y que el coste de la poluci�n del aire y ruido supera el 0,6% del PIB, siendo alrededor del 90% de los mismos ocasionados por el transporte terrestre. Ante este hecho y el continuo aumento de la demanda del transporte privado frente al p�blico para los desplazamientos, muchos abogan por una conjunci�n de medidas tanto restrictivas como alternativas al uso del coche. Dentro de las primeras se encuentra el establecimiento de un peaje o una tarifa por el uso de las carreteras, medida que aunque desde el punto de vista de la Teor�a Econ�mica es la manera m�s eficiente para corregir el fallo de mercado que supone la congesti�n, desde la visi�n de pol�ticos y del p�blico no goza de gran aceptaci�n. En este trabajo se pretende hacer una simulaci�n de los efectos que tendr�a sobre el bienestar social de la implantaci�n de una medida de este tipo en la Bah�a de C�diz. In the European Union it has been estimated that the congestion cost are the 2% of the gross domestic product and the cost of pollution and noise is over 0,6%, olso it is known that the 90% of this cost are caused by overland transport. For this reason and for the always increasing demand of private transport, there are professionals who thinks that the solution have to be restrictive measures added to alternatives to the car. road pricing is a restrictive measures that for the economic theory is the most efficient way to solve congestion cost but for politicians and user of transport is not always accepted. In this study we are going to simulate road pricing for commuters in the Bah�a of C�diz and then it will be estimated welfare effects.
Throughout the developing world the unsatisfied demand for urban and rural telephone and telex lines and other telecommunications services far exceeds supply. Investment in these services is inadequate not because telecommunications entities lose money or require subsidies. Rather, the reasons center on such issues as the capital cost of expanding telecommunications infrastructure; the variety and diversity of the benefits of such investment; and the organization of, and management in, the sector. Addresses 6 key questions: 1) Can the economic value of the benefits of telecommunications investment be demonstrated and better estimated quantitatively? 2) To whom do these benefits accrue? 3) What investment, regulatory, tariff, or other policies might best maximize the benefits, and under what circumstances; 4) How do these benefits compare with the costs of expanding the capacity and coverage of a telecommunications system? 5) What scale of investment, and what level of effort to overcome the constraints on efficient telecommunications sector expansion, can be justified by economic analysis? 6) Is sector organisation and management a major constraint on sector efficiency?-from World Bank
List of Figures. List of Tables. Preface. 1. Introduction and Overview. 2. Theory of Telephone Demand I: Basic Results. 3. Theory of Telephone Demand II: Extensions of Basic Results. 4. Business Telecommunications Demand. 5. Recent Studies of Residential Access Demand. 6. Recent Studies of Toll Demand. 7. The Demand for Local Calls and Related Local Services. 8. Business Telephone System Demand, Total-Bill and Socio-Demographic Effects. 9. Consumption Externalities. 10. Price Elasticities in the Hearing Room: the Promise and Limits of Econometric Analyses of Telecommunications Demand. 11. Evaluation and Conclusions. Appendix 1: The Pre-1980 Empirical Literature on Telephone Demand Access, Local Service, and Interstate Toll. Appendix 2: The Pre-1980 Empirical Literature on Telephone Demand Intrastate Toll, WATS and Private Line, Coin, etc. Appendix 3: A Model of Toll Demand. Bibliography. Index.
Contribution to the national economy and consumer welfare of the mobile communication service
  • M H Lee
  • M J Seo
Study on the charge strategy to identify the revenue sources of the wire/wireless communication network
  • Telecommunications Electronics
  • Research Institute
Evaluation of the communication service pricing system in terms of social welfare, and improvement of the consumer price index
  • C H Yoon
  • Y S Lee
  • B S Jeon
  • J H Yoo
Indirect Access Policy in Wire/Wireless Communication Services Market
  • B W Kim
  • J S Kyung
Estimation of the price and income elasticity of telephone call demand in Korea
  • N I Seong
Economic spreading effects of the telecommunications service industry
  • H J Lee
  • S W Moon
  • Yg Kim
  • J H Park
  • D Yoon
Competition tools in the recent mobile communication service market and the direction for improving government regulation
  • J W Park
  • I T Ahn