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Is five too many? Simulation analysis of profitability and cost structure in the Korean mobile telephone industry

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  • Song, Jae-Do
  • Kim, Jae-Cheol

Abstract

Four new nationwide entrants were introduced into the Korean mobile telephone industry provoking intense competition among the five carriers by late 1997. Some assert that there is excessive competition and industry restructuring is needed. In this paper, we analyze the profitability of mobile telephone carriers and the degree to which cost is reduced through M&A, thereby obtaining principal information on the economic incentives for industry restructuring.

Suggested Citation

  • Song, Jae-Do & Kim, Jae-Cheol, 2001. "Is five too many? Simulation analysis of profitability and cost structure in the Korean mobile telephone industry," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 101-123, February.
    • Handle: RePEc:eee:telpol:v:25:y:2001:i:1-2:p:101-123
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    Cited by:

    1. Nicolle, Ambre, 2016. "Are consumers myopic? Evidence from handset and mobile services choices," 27th European Regional ITS Conference, Cambridge (UK) 2016 148693, International Telecommunications Society (ITS).
    2. Kim, Hee-Su & Kwon, Namhoon, 2003. "The advantage of network size in acquiring new subscribers: a conditional logit analysis of the Korean mobile telephony market," Information Economics and Policy, Elsevier, vol. 15(1), pages 17-33, March.
    3. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
    4. Keesookpun, Chutipong & Mitomo, Hitoshi, 2013. "The determinants of mobile operator switching and policy implications in developing countries: A case study of Thailand," 24th European Regional ITS Conference, Florence 2013 88472, International Telecommunications Society (ITS).

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