Study on Mobile Terminal Distribution Act : Effects of Subsidy Regulations

• 발행기관: 한국유통과학회
• 저자명: Xue Ting Yao Ju won Kwak
• 간행물 정보: 『한국유통과학회 학술대회 논문집』2017년 동계 국제학술대회, 131~132쪽, 전체 2쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2017.12.27

영문 초록

This paper analyzes the effect of the handset subsidy and the Mobile Number Portability subscriber subsidy regulation, which are the main regulation adopted in “Law on the Improvement of the Mobile Terminal Distribution System” (Mobile Terminal Distribution Act), on the social surplus, the consumer surplus and profits of telecommunications carriers. We focus our analysis on whether the service charge competition is stimulated enough so that it can compensate for the loss of subsidies. Number Portability subsidy, especially, undermines the rival’s market power and thus reduces the service charge. On the other hand, the regulations will also increase the profits of telecommunications carriers. However, social surplus is maximized when both of the regulations are present because the regulations reduces the frequency of switching handsets inefficiently. In enacting the Mobile Terminal Distribution Act, the telecommunications regulatory agency asserted that the regulation on subsidies will stimulate service charge competition, and in the long run, enhance the consumer surplus. However, contrary to the regulatory agency’s assertion, subsidy regulation, especially the regulation on Number Portability subsidy, reduces consumer surplus. On the other hand, the Mobile Terminal Distribution Act can also increase the profits of telecommunications carriers because it decreases competition among the telecommunications carriers.

목차

Abstract

1. Introduction

2. Model

3. Analysis

5. Conclusion

References

키워드

Mobile Terminal Distribution Act Mobile Telecommunication Subsidy Regulation Mobile Telecommunication Markets