• Title/Summary/Keyword: Handset Subsidy

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Factors Affecting Subscribers' Switching between Providers within Mobile Number Portability System (이동전화 이용자의 번호이동에 영향을 미치는 요인에 대한 실증분석)

  • Kim, Ho;Park, Yoon-Seo;Jun, Duk-Bin;Yang, Liu
    • Korean Management Science Review
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    • v.25 no.2
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    • pp.57-71
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    • 2008
  • We study factors that affect consumers' switching behaviors among service providers in Korean mobile telecommunications service market. For empirical analysis, quarterly time series data from the first quarter of 2004 through the second quarter of 2007 were used. We chose the number of switchers to each mobile service provider in each quarter as dependent variables. Independent variables include acquisition costs per subscriber, which play the role of subsidy to mobile handset, switching costs, time trend, structural change effect, and waiting demand effects. Through the empirical analysis, we found that each provider's churn-in customers are affected by different factors. Specifically, the number of churn-in customers into SK Telecom is explained mainly by SK Telecom's customer acquisition costs and waiting demand from KTF, while the number of customers switching into KTF is better explained by switching costs from the previous service provider and waiting demand from SK Telecom. Those who chose LG Telecom as their new provider, on the other hand, were mainly attracted by LG Telecom's high subscriber acquisition cost.

Empirical Analysis on Subscriber Churning in Mobile Number Portability System (이동전화번호이동제도에 따른 가입자 전환 실증분석)

  • Kim, Ho;Park, Yun-Seo;Jun, Duk-Bin
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2007.11a
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    • pp.341-356
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    • 2007
  • We study factors that affect consumers' switching behaviors among service providers in Korean mobile telecommunications service market. For empirical analysis, quarterly time series data from the first quarter of 2004 through the second quarter of 2007 were used. We chose the number of switchers to each mobile service provider in each quarter as dependent variables. Independent variables include acquisition costs per subscriber, which play the role of subsidy to mobile handset, switching costs, time trend, structural change effect, and standby demand effects. Through the empirical analysis, we found that different providers' churn-in customers are affected by different factors. Specifically, the number of chum-in customers into SK Telecom is explained mainly by SK Telecom's customer acquisition costs and standby demand from KTF, while the number of customers switching into KTF is better explained by switching costs from the previous service provider and standby demand from SK Telecom. Those who chose LG Telecom as their new provider, on the other hand, were mainly attracted by LG Telecom's high subscriber acquisition cost.

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Estimating the Economic Value of Radio Spectrum for Trunked Radio System (주파수 공용통신 용도 주파수의 경제적 가치 측정)

  • Byun, Hee Sub;Yeon, Kwon-Hum;Kim, Yongkyu
    • The Journal of Korean Institute of Electromagnetic Engineering and Science
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    • v.30 no.5
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    • pp.356-364
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    • 2019
  • The Ministry of Science and ICT recently announced its policy direction that involves charging the economic value of radio spectrum for promoting its efficient usage. According to the policy, there will be much efforts to estimate the economic values of various usages of radio spectrum. In this study, the economic value of radio spectrum is estimated for trunked radio system(TRS) by employing the least cost alternative methodology. The proposed methodology estimates the value of radio spectrum according to the cost of an alternative that can be employed for providing the same service. The value of radio spectrum for TRS was determined on the basis of the cost associated with the provision of TRS through the LTE network, wherein the value of radio spectrum for TRS comprises the LTE network cost, capital expenditure for the LTE service, subsidy for the LTE handset, and compensation cost for migration. Results obtained from this study can aid in calculating the economic values of radio spectra for other services and applications.