• ETRI Journal
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• v.30 no.4
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• pp.587-596
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• 2008

Facility-based competition (FBC) in the telecommunications market is considered to have lower static efficiency in the short term and higher dynamic efficiency in the long term. Under service-based competition (SBC), the entrant can reduce its setup costs by leasing network facilities from the incumbent, which makes the entrant viable, pushes the market price down and promotes static efficiency. This paper attempts to measure static efficiency by comparing the profits of the incumbent and entrant in terms of consumer surplus and social welfare under each competition type by extending the Stackelberg model. The results, assuming a linear demand function and variation in regulatory level, show that FBC results in higher social welfare than SBC on the whole. However, SBC accompanied by strong regulation is also shown to have the potential to be superior over FBC. It is also revealed that FBC exhibits a higher producer surplus (particularly, the incumbent's producer surplus) and is, therefore, more desirable in terms of dynamic efficiency. When the entrant's cost is high in FBC, social welfare is shown to be lowered, implying that cost competitiveness is a necessary condition for social welfare.

• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.221-227
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• 2009

There are customer services jointly provided by two facilities so that each customer will complete the course made up of both facilities' sub-services. The two facilities are assumed invested respectively by an infrastructure owner and one subordinate facility owner, whose partnership is built on their capital investments. This paper presents a mathematical model of Stackelberg competition between the two facility owners to derive their optimal Nash equilibrium. In this study, each facility owner's profit is consisted of fixed revenue fractions of sold services, operating costs (including depreciation cost) and maintenance costs of her facility. The maintenance costs of one facility are incurred both by failures and deterioration due to usage. Moreover, for both facilities, failures are rectified immediately by minimal repairs and preventive maintenance is carried out at a fixed time epoch. Additional assumptions are also employed to develop the model such as customer arrivals are manipulated to follow a Poisson process, and each facility's lifetime is independently Weibull-distributed. The Stackelberg game proceeds as follows. At the first stage of decision making process, the infrastructure owner (acting as a leader) decides the allocation of revenue shares based on her self-interest. After observing the allocation of revenue shares, the subordinate facility owner determines her own optimal price of services. This paper investigates actions and reactions of the two partners in the system. Then analytical conditions are proposed to achieve a unique optimal Nash equilibrium. Finally, some suggestions for further research are discussed.

• ETRI Journal
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• v.36 no.4
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• pp.572-580
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• 2014

Mobile operators in saturated markets increasingly favor mobile network sharing (MNS) over facility-based competition. Previous research examining MNS primarily focused on its positive effects, while the negative effects were largely overlooked. This study proposes a decision-making model using an analytic hierarchy process technique to evaluate decision-making criteria among various types of MNS policies. The decision-making model was applied to Wireless Broadband services in Korea to determine the relative importance of both positive and negative evaluation criteria and preference among multiple types of MNS policies. Positive evaluation criteria (that is, efficiency) were far greater in importance than negative evaluation criteria (that is, competition harm). The preference for adopting MNS among five alternative approaches was also revealed. The study findings offer immediate policy insights in Korea and provide a decision-making framework for policy makers in other countries to utilize.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.32 no.4B
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• pp.234-245
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• 2007

There are lots of controversies over the introduction of MVNO(Mobile Virtual Network Operator) policy to Korean mobile telecommunications market. MVNO is a kind of service-based competition in mobile market. This paper attempts to analyze the ripple effect of MVNO regulation and also desirable ways of implementing the policy. Based on Laffont, Rey and Tirole(1998), Armstrong (1998) model, theoretical MVNO model is defined and derived implications of price, quantity in the market. According to the model, the fact that MNOs have one-way access profit leads the static efficiency by lowering its market price. In regarding the most desirable way to enhance social welfare is revealed as 'two MNOs conduct MVNO' other than 'One MNO does' or 'Structurally divided network'.

• IE interfaces
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• v.22 no.4
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• pp.368-375
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• 2009

This paper considers a two-stage supply system consisting of two make-to-stock facilities. The facility in the first stage produces a single type of component in anticipation of future demands from the market and the end item production while the facility in the second stage produces the end item in anticipation of future demands from the OEM customers. The facility in the first stage has the option of to accept or reject each incoming demand from the market. In this paper, we address the problem of how to control the exogenous component demand and how to manage the production of the end item and the component so as to maximize the system's profit subject to the system costs. In this paper, we present a heuristic policy that is the base-stock production policy combined with a linear switching curve for component demand control. Numerical study is implemented under different operating conditions of the system and it shows that the performance of the heuristic is very promising compared to that of the optimal policy for the Markov model.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2006.05a
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• pp.470-474
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• 2006

본 연구에서는 시내전화서비스시장을 중심으로 기존 사업자와 이 사업자와 경쟁관계에 있는 후발 사업자간의 복점경쟁 모형을 분석하고, 이 모형을 확대하여 시내전화서비스와 대체관계에 있는 것으로 알려져 있는 이동전화서비스까지 분석모형에 포함하여 기존 및 후발 시내전화사업자와 이동전화사업자들이 시내전화서비스시장에서 별이고 있는 3자간 경쟁효과를 분석하였다.

• Korean System Dynamics Review
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• v.3 no.1
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• pp.5-42
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• 2002

The main purpose of this paper is analyzing long-term growth possibility of a telecommunication Company (Telco) H. First of all, to achieve this purpose, the precise understanding about causal relations among growth and decay factors of Telco H is required. Based upon the causal analysis, a basic computer simulation model is developed. Finally, several predictive examinations about growth possibility and pattern of the Telco H are conducted using three scenarios. From simulation results, the most important policy leverages are capabilities of market share sustenance, improvement of service quality and squeezing current network facility to elevate profitability and efficiency. Recently, telecommunication industry has become more and more competitive due to introduction of Internet and deregulation. Internet has brought about global competition as well as confusion between telecommunication and broadcasting industries. At the almost same time, deregulation is a universal tendency and a catalyst of unlimited competition. Telco H has been a dominant company in Korea for last century. However, the dominant position of Telco H has been threatened by the change of competition environment. The competitive environment has many elements and keeps changing dynamically. Therefore, System Dynamics simulation methodology is adopted to examine the problem.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.42 no.3
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• pp.193-205
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• 2019

Looking at recent safety accidents in buildings, most of them due to lack of FM expertise, and this is due to human resources. In each all industry areas, some companies are competitive, representational, and leading in the market through long-term expertise and research in their respective fields. In the field of FM industry, some companies offer core-competencies in internal and external innovative building management through competition with others. However, old custom and old management form still exist in the FM field. However, an old custom and old management system still exist in the FM field; it forces cost-cutting and caused by carelessness in technical development competitiveness and safety measures. The government control by safety inspection and facility inspection through legislation of building management, but the management is still weak as a side of in the facility management section due to inspect sth as a mere formality and submit a paper report. These facts exist different kind of usage of the building have a three-party encounter between a building owner, user, and FM enterprises. In this research identify survey, especially building owner (manager)'s choice perception priority for optional factors to choose FM enterprises. Based on this, FM enterprises will be forced to seek a new dimension for better building management. In this light, the purpose of the research is to shape changes in the FM market culture safely and providing better service in building management and understanding building owner's insight through this research's information.

• Journal of the Korean Institute of Landscape Architecture
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• v.43 no.6
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• pp.138-149
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• 2015

In order to search for the reasonable planning directions for representing traditional landscape, this study conducted the comparative analysis of the designs on the panels and their constructions from both winners of "The Landscape Design Competitions for City Infrastructure of Minlak(2) District in Uijeongbu" and "The Design Competition for Dongtan(2) District Land Development Phase 1". The representing targets and views, the composition and placement of representing space, the design of representing facilities and landscape planting were examined based on the text, master plans, elevations and cross sections, diagrams, images, and perspective drawings proposed from the competition panels. Then, the landscape constructions were reviewed. The results are as follows: First, the types of the representing targets and views are the agricultural landscape, as the local landscape of target area, which are divided into the life space of a traditional village, the traditional water space, and the traditional culture. Second, as to the composition and placement of representing space, the traditional theme spaces are formulated considering the surrounding land use and the local cultural heritage. However, some spaces were changed to the exercise space or convenient facility spaces required in a neighborhood park. Third, in the case of the representing facilities, a round island in the square pond, a traditional pavilion and Hwagye(terraced flower bed) were made without the facilities designed creatively. Fourth, the application of traditional planting techniques was focused on planting trees in the village forest on an island in the square pond and on Hwagye. Fifth, the traditional representing work has gradually advanced with the selection of subject and experimental facility designs based on the professional references. Sixth, the choice of the realizable subject, the expertise for information analysis and the creative design of the traditional facility are required in the future.

• Asian Journal of Innovation and Policy
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• v.1 no.2
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• pp.148-167
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• 2012

This paper analyzes the impact of the change in telecommunication regulation changes including the unification of telecommunication service on network investment. The unification of telecommunication service plays a role of separating behavior regulation from entrance regulation and reducing entrance constraints. Therefore, it is expected that the market spillover effect is high through the improvement of behavior regulation. In addition, the effects of the other regulation changes in the 2010 Telecommunications Business Act revision are analyzed. This paper discusses critical factors affecting the decision making process in respect to the firm level and analyzes the impact path guiding investment and innovation. The key findings are as follows. First, the impact of entrance deregulation depends on the intensity of deregulation. If the intensity is not high, this regulation increases the incentive on investment and innovation. However, if the intensity is high as shown in abolishing of licensing, it affects the incentive negatively. Second, if interconnection regulation focuses on existing facilities or the intensity is not strong, this light handed regulation might increase investment and innovation. However, if interconnection obligation is expanded to the facility not constructed or the facility applying new technology, this regulation might deteriorate investment. Third, price deregulation increases the competition of service but it also increases the business opportunity, which means positive effect on investment. Finally, the paper proposes the guideline for telecommunications policy.