IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v37y2013i1p35-47.html
   My bibliography  Save this article

Cost allocation of WCDMA and wholesale pricing for mVoIP and data services

Author

Listed:
  • Kim, Byung Woon
  • Park, Joonho
  • Youl Ko, Chang

Abstract

This study estimates cost-based prices for wholesale voice and data services provided to 3G (WCDMA) MVNOs according to their distinct types. For estimation, 3G MVNOs are classified into different types, and the overall cost of WCDMA facilities are separated into voice and data components based on their subscriber rates, actual traffic rates, as well as efficiency consideration of traffic rates. The study then calculates cost-based wholesale prices of voice and data services for each of the 3G MVNO types. The result of this study shows that a cost-plus pricing scheme can help achieve the policy goals of the regulator, namely, lowering telecommunications tariffs and facilitating the introduction of new convergent-type services, far more effectively than the current retail-minus pricing scheme. The findings of this study may assist firms in developing business models based on 3G networks and telecom regulators in designing policies related to interconnection, mVoIP, prepaid calls, wholesale services, and network neutrality.

Suggested Citation

  • Kim, Byung Woon & Park, Joonho & Youl Ko, Chang, 2013. "Cost allocation of WCDMA and wholesale pricing for mVoIP and data services," Telecommunications Policy, Elsevier, vol. 37(1), pages 35-47.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:1:p:35-47
    DOI: 10.1016/j.telpol.2012.08.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596112001607
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2012.08.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shi, Shouyong, 2016. "Customer relationship and sales," Journal of Economic Theory, Elsevier, vol. 166(C), pages 483-516.
    2. Sarmento, Paula & Brandão, António, 2007. "Access pricing: A comparison between full deregulation and two alternative instruments of access price regulation, cost-based and retail-minus," Telecommunications Policy, Elsevier, vol. 31(5), pages 236-250, June.
    3. Kim, Byung Woon & Seol, Seong Ho, 2007. "Economic analysis of the introduction of the MVNO system and its major implications for optimal policy decisions in Korea," Telecommunications Policy, Elsevier, vol. 31(5), pages 290-304, June.
    4. Niladri B. Syam & Nanda Kumar, 2006. "On Customized Goods, Standard Goods, and Competition," Marketing Science, INFORMS, vol. 25(5), pages 525-537, September.
    5. Baldwin, John R. Gu, Wulong, 2006. "Competition, Firm Turnover and Productivity Growth," Economic Analysis (EA) Research Paper Series 2006042e, Statistics Canada, Analytical Studies Branch.
    6. Randolph Beard, T & Kaserman, David L & Mayo, John W, 1998. "The role of resale entry in promoting local exchange competition," Telecommunications Policy, Elsevier, vol. 22(4-5), pages 315-326, May.
    7. Oecd, 2007. "Enhancing Beneficial Competition in the Health Professions," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 8(3), pages 69-151.
    8. Oecd, 2007. "Competition in the Provision of Hospital Services," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 8(3), pages 153-247.
    9. Romero, Antonio & González, Carlos Enrique, 2006. "Condiciones generales de competencia en Guatemala," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 4973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Kahn, Alfred E. & Tardiff, Timothy J. & Weisman, Dennis L., 1999. "The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission," Information Economics and Policy, Elsevier, vol. 11(4), pages 319-365, December.
    11. Rakotoarisoa, Manitra & Gulati, Ashok, 2006. "Competitiveness and trade potential of India's dairy industry," Food Policy, Elsevier, vol. 31(3), pages 216-227, June.
    12. Oecd, 2006. "The Implications of WiMAX for Competition and Regulation," OECD Digital Economy Papers 108, OECD Publishing.
    13. B. -W. Kim & S. -H. Seol & D. -H. Lee, 2011. "Indirect access to mobile networks: economic effects and policy implications," Applied Economics Letters, Taylor & Francis Journals, vol. 18(4), pages 377-381.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Byun Jeong Wook & Kim Sung-Hwan, 2015. "The Effect of Vertically Differentiated Entry Under Retail-Minus Access Pricing," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 747-767, April.
    2. Viktoria Kocsis & Victoria Shestalova & Henry van der Wiel & Nick Zubanov & Ruslan Lukach & Bert Minne, 2009. "Relation entry, exit and productivity: an overview of recent theoretical and empirical literature," CPB Document 180.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Nan Xia & S. Rajagopalan, 2009. "Standard vs. Custom Products: Variety, Lead Time, and Price Competition," Marketing Science, INFORMS, vol. 28(5), pages 887-900, 09-10.
    4. Oksana Loginova & X. Hnery Wang, 2010. "Customization in an Endogenous-Timing Game with Vertical Differentiation," Working Papers 1008, Department of Economics, University of Missouri.
    5. Fay, Scott & Mitra, Deb & Wang, Qiong, 2009. "Ask or infer? Strategic implications of alternative learning approaches in customization," International Journal of Research in Marketing, Elsevier, vol. 26(2), pages 136-152.
    6. Forde, Tim & Doyle, Linda, 2013. "Cellular clouds," Telecommunications Policy, Elsevier, vol. 37(2), pages 194-207.
    7. Dennis L. Weisman, 2019. "The power of regulatory regimes reexamined," Journal of Regulatory Economics, Springer, vol. 56(2), pages 125-148, December.
    8. Vogelsang, Ingo, 2000. "Regulation of Access to the Telecommunications Network of New Zealand: A Review of the Literature," Working Paper Series 3931, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Paul Joskow & Roger Noll, 2013. "Alfred E. Kahn, 1917–2010," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(2), pages 107-126, March.
    10. repec:zbw:rwirep:0507 is not listed on IDEAS
    11. Alok Johri & Terry Yip, 2017. "Financial Shocks,Supply-chain Relationships and the Great Trade Collapse," Department of Economics Working Papers 2017-11, McMaster University.
    12. Tuck Siong Chung & Roland T. Rust & Michel Wedel, 2009. "My Mobile Music: An Adaptive Personalization System for Digital Audio Players," Marketing Science, INFORMS, vol. 28(1), pages 52-68, 01-02.
    13. Weisman, Dennis L., 2002. "Strategic sharing in regulatory regimes," Economics Letters, Elsevier, vol. 75(3), pages 361-367, May.
    14. Luigi Paciello & Andrea Pozzi & Nicholas Trachter, 2019. "Price Dynamics With Customer Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(1), pages 413-446, February.
    15. He, Bo & Mirchandani, Prakash & Yang, Guang, 2023. "Offering custom products using a C2M model: Collaborating with an E-commerce platform," International Journal of Production Economics, Elsevier, vol. 262(C).
    16. T. Jamasb & R. Nepal, 2015. "Issues and Options in the Economic Regulation of European Network Security," Competition and Regulation in Network Industries, Intersentia, vol. 16(1), pages 2-23, March.
    17. Amit Basu & Sreekumar Bhaskaran, 2018. "An Economic Analysis of Customer Co-design," Information Systems Research, INFORMS, vol. 29(4), pages 787-804, December.
    18. Ayd{i}n Alptekinou{g}lu & Charles J. Corbett, 2008. "Mass Customization vs. Mass Production: Variety and Price Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 204-217, August.
    19. repec:umc:wpaper:0814 is not listed on IDEAS
    20. Vitor Miguel Ribeiro, 2018. "Dark fiber price regulation in the absence of facilities-based competition," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 243-278, June.
    21. Weisman, Dennis L., 2002. "Is there 'Hope' for price cap regulation?," Information Economics and Policy, Elsevier, vol. 14(3), pages 349-370, September.
    22. Ko, Eunju & Hwang, Yoo Kyung & Kim, Eun Young, 2013. "Green marketing' functions in building corporate image in the retail setting," Journal of Business Research, Elsevier, vol. 66(10), pages 1709-1715.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:37:y:2013:i:1:p:35-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.