Open AccessDetermination of the Optimal Access Charge for the Mobile Virtual Network Operator System
Author(s) -
Kim Byung Woon,
Park Sung Uk
Publication year - 2004
Publication title -
etri journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.295
H-Index - 46
eISSN - 2233-7326
pISSN - 1225-6463
DOI - 10.4218/etrij.04.0204.0016
Subject(s) - mobile network operator , computer network , cellular network , access network , computer science , mobile phone , internet access , mobile telephony , telecommunications , operator (biology) , mobile broadband , radio access network , idle , mobile computing , the internet , mobile radio , mobile station , wireless , base station , biochemistry , chemistry , repressor , world wide web , transcription factor , gene , operating system
The introduction of a mobile virtual network operator (MVNO) system is expected to increase consumer benefits, boost competition in the mobile market, utilize idle bandwidth, and expedite mobile‐fixed line convergence and growth in the mobile Internet market. This research endeavors to study the optimal access charge for an MVNO system, which is expected to be introduced to the Korean mobile communications market. We found that the optimal access charge is higher in the interdependent model than in the independent model if demand for mobile phone service is based on a substitution relationship. We also found that the optimal access charge is higher than the marginal cost.