تخصیص هزینه WCDMA و قیمت گذاری عمده فروشی برای خدمات داده و mVoIP

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.

Since 1999, Mobile Virtual Network Operators (MVNOs) have been introduced in major countries throughout the world under arrangements that are adapted to their respective telecommunications market environment. The market entry of MVNOs has been made possible either by setting new spectrum licensing conditions (e.g., Germany), through a broad interpretation of telecom resale law (e.g., US) (FCC, 1996), or its amendment (e.g., Japan). The Korea Communications Commission (KCC) newly enacted article 38 (Wholesale provisioning of telecommunication service, also known as the MVNO Act) of the Telecommunications Business Act (hereafter referred to as the Act), and announced its enforcement ordinance in September of 2010 (registration requirements for special category telecommunications business) and public notice number 2010-42 in November of 2010 (obligatory wholesale provision service targets the obligatory wholesale provisioning service provider, and conditions, procedures, methods, and pricing of wholesale provisioning). The notice by the KCC designates 2G and 3G (WCDMA) mobile services (voice, Short Message Service (SMS) and data) by SK Telecom (the largest operator) as the mandatory wholesale services and prescribes retail-minus pricing for setting wholesale prices charged to MVNOs (Korea Communications Commission, (2010a), Korea Communications Commission, (2010c) and Korea Communications Commission, (2010d)). However, this retail-minus pricing scheme has a restrictive effect on the price lowering effect of MVNOs, connection to Wideband Code-Division Multiple Access (WCDMA) networks (Koo, Kim, & Kwon, 2010; Lee, Lee, & Jung, 2010), corporate utilization of mobile services, and the emergence of diverse and innovative business models based on converged media services and Machine to Machine (MtoM) services. To remedy this situation, the KCC is currently working on a method of breaking down 3G network costs into voice and data service components and is considering an alternative cost-based approach to setting the wholesale prices of MVNO's voice and data services.1 In this study, 3G MVNOs are divided into three segments according to their types and break down the cost of WCDMA facilities into voice and data costs based on actual traffic rates, subscriber rates, and efficiency traffic rates. Cost-based wholesale prices of voice and data services for each of the 3G MVNO segments are estimated, then describing the cost-plus pricing approach that the KCC is considering, instead of the retail-minus pricing scheme currently applied to 3G voice and data services, pursuant to article 38 of the Telecommunications Business Act (wholesale provisioning of telecom services), can effectively contribute to its policy goals of lowering telecom tariffs and facilitating the introduction of new converged-type services. Finally, by determining retail prices relative to corresponding cost-based wholesale prices pursuant to article 38 of the same act and the amount of retail discounts, this study provides information useful in designing a wholesale pricing policy when the current retail discount rule diminishes three years from now.

The result of this study implies that the KCC can achieve their policy objectives, if, they revise article 38 (wholesale provision of the telecommunication service) to reduce communication expenses and introduce new converged-type services and the MVNO enters the communication market by paying the cost-based data wholesale price using the 3G network. There are four main reasons for revision. First, the cost-based prices of wholesale MVNO services proved to be significantly lower than the current retail-minus prices. For example, they did not exceed the facility costs of the largest MNO of KRW 1300 billion. Second, instead of providing only mobile phone services based on a retail-plus scheme, MVNOs could provide, under a cost-based price scheme, a complete spectrum of services, including mVoIP, wireless data, and value-added services, against the payment of 3G network facility costs. Third, pursuant to article 32-5 (protection of users), and article 37-2 (prepaid call services and guarantee insurance enrollment), MVNOs may offer 3G network-based service bundles, wireless data, and content services on a prepaid basis, through direct top-up accounts.23 Lastly, given the introduction of an open Universal Subscriber Identity Module (USIM) system in July 2008, there is a strong likelihood that number portability will be also introduced between prepaid and postpaid accounts; something already achieved in the U.S. and U.K.24 This study also revealed the following four policy implications. First, in the perspective of short-term vision, the application of the cost-based wholesale price must be considered when determining the retail price discount level (article 38, telecommunication business act). Also, this study can be utilized as a useful reference when introducing the cost-based data wholesale price policy from a mid-to-long term perspective. Second, the wholesale data service price under the method proposed in this study, of less than KRW 110/MB, is considerably lower than the price currently charged by Korean MNOs to MVNOs of KRW 141/MB. Accordingly, if the government estimates the cost-based wholesale price of the 3G network, the MVNO can contribute to the development of a creative business model by improving data ARPU (average revenue per user), using the wholesale price lower than the voice service of which the wholesale price is determined by retail-minus pricing. While the retail-minus approach has the advantage of limiting market entry to MVNOs whose efficiency is at least equal to that of network operators, it is more difficult, under this pricing scheme, for competition to effectively erode the excess profit of MNOs. This is due to the large gap in price competitiveness between MNOs and MVNOs which eliminates any chance of meaningful competition between them. Also, even if efficiency competition between them produces a positive effect on retail prices, given the modest size of MVNOs, the reduction in retail prices, resulting from superiority in efficiency alone, is negligible. Generally, the cost-plus approach is better than a retail-minus approach for setting prices of wholesale MVNO services. As the retail price for the new service is determined at a lower level than the cost needed to provide the service, the retail wholesale price may not be sufficient to the cost needed to provide the service if the retail-minus method is selected due to the initial retail price being lower under the wholesale price for expanding the subscriber base. Therefore, more attention needs to be paid to the resale wholesale pricing of the new service. Meanwhile, information on cost-based wholesale prices can also help increase the bargaining clout of MVNOs during international roaming negotiations. Third, the 3G MVNO will contribute to a reduction of the communication expense by promoting various systems where communication service users pre-pay for SIM-only, combination products, wireless data, and contents through direct top-up. Lastly, regulatory bodies of major advanced communication service countries did not present the case that the facility cost of the 3G network is separated into voice and data, and cost-based data wholesale price for the MVNO's mVoIP service is calculated in detail. They only suggested the principle of the cost-based method. This study will be useful data for policy-makers of the regulator agency of each country who prepare policies regarding the data cost, wholesale price, interconnection, MVNO, mVoIP, prepay, and network neutrality, as well as the enterprises that try to create various business models, using the 3G network facility.