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Journal Article
Identifying the Mobile Data Traffic Explosion in Korea: Explaining the Unlimited Data Use Plans Introduced into the LTE Ecosystem
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- Authors
- Hyeongjik Lee
- Issue Date
- 2015-10
- Citation
- Review of Integrative Business & Economics Research, v.4, no.4, pp.277-287
- ISSN
- 2304-1013
- Publisher
- Society of Interdisciplinary Business Research
- Language
- English
- Type
- Journal Article
- Abstract
- Offering unlimited LTE data use plans in Korea seems to run counter to the general belief about the impact of flat rate tariff plans on the current mobile ecosystem. This study attempts to empirically explain this unusual case using mobile traffic data and an event study approach. The results show a clear growth in mobile data traffic in Korea, though perhaps not enough to apply the term “mobile data traffic explosion.” Additionally, introducing unlimited data plans artificially boosted the growth in LTE traffic volume. These results imply that there may not have been a mobile data traffic explosion in Korea before April 2014, enabling Korea’s mobile carriers to launch unlimited LTE data plans. Thus, policy makers in Korea should thoroughly investigate whether potentially damaging high growth exists and its effect on the mobile ecosystem. Moreover, both the domestic media and the academic community should be cautious about using the term “mobile data traffic explosion” until harmful effects from such high growth in mobile data traffic is identified.
- KSP Keywords
- Academic community, Mobile data traffic, Mobile traffic, Traffic volume, Use Plans, data traffic explosion, event study, mobile ecosystem, traffic data