The remarkable growth of Korean telecommunication market has based on the introduction of competition as well as mobile technology like CDMA. It was well known that such a conspicuous growth has been towed by mobile service rather than fixed telephone service. In telecommunications service the number of subscribers to mobile was over 40 millions in 2006 and also, while the traffic amount of fixed telephone has been more decreased, that of mobile, which already outnumbers the fixed, has been constantly increased and will be much more in future. It will accelerate the substitution of access and call demand of fixed service by mobile. This change of technology and demand does affect directly the market performance of telecommunications. And regulation has also an effect on market structure, which finally affects on market performance. In this paper we supposethe fixed and mobile telecommunications services are in a same industry. After reviewing the relations among the demand, cost, charge structure and revenue structure in the one fixed and mobile telecommunications market using the framework of an industrial structure analysis, we discuss the current issues of telecommunications regulation and implications for the future regulation.
KSP Keywords
Fixed Service, Market performance, Market structure, Mobile Technology, Mobile services, Mobile telecommunication, Number of subscribers, Structure Analysis, Telecommunications services, charge structure, industrial structure
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