Market Efficiency Analysis of MVNO 


Vol. 32,  No. 4, pp. 234-245, Apr.  2007


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  Abstract

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’.

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  Cite this article

[IEEE Style]

I. W. Seo and D. H. Lee, "Market Efficiency Analysis of MVNO," The Journal of Korean Institute of Communications and Information Sciences, vol. 32, no. 4, pp. 234-245, 2007. DOI: .

[ACM Style]

Il Won Seo and Duk Hee Lee. 2007. Market Efficiency Analysis of MVNO. The Journal of Korean Institute of Communications and Information Sciences, 32, 4, (2007), 234-245. DOI: .

[KICS Style]

Il Won Seo and Duk Hee Lee, "Market Efficiency Analysis of MVNO," The Journal of Korean Institute of Communications and Information Sciences, vol. 32, no. 4, pp. 234-245, 4. 2007.

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pISSN : 1226 - 4717
eISSN : 2287 - 3880