Choosing Internet Pricing Schemes: Flat or Usage in Korea

15 Pages Posted: 10 May 2011 Last revised: 19 Aug 2014

See all articles by Jeonghoon Mo

Jeonghoon Mo

Yonsei University

Weonseek Kim

Chung-Ang University

Date Written: March 31, 2011

Abstract

In this paper, we study the pricing behavior of Internet service providers in Korea over the last decade. The changes in user type, marginal utility and market structure are considered as explanations for the inability to choose between flat or usage-based pricing. We find the higher the difference in user type or the higher the marginal utility of traffic, the more attractive usage pricing is for service providers. We also anticipate that flat pricing only will cease with the introduction of MVNO and mVoIP service in Korea.

Keywords: Pricing of the Internet Services, Flat Pricing, Usage-based Pricing

Suggested Citation

Mo, Jeonghoon and Kim, Weonseek, Choosing Internet Pricing Schemes: Flat or Usage in Korea (March 31, 2011). International Telecommunications Policy Review, Vol. 18, No. 1, pp. 45-59, 2011, Available at SSRN: https://ssrn.com/abstract=1836429

Jeonghoon Mo (Contact Author)

Yonsei University ( email )

Seoul
Korea, Republic of (South Korea)

Weonseek Kim

Chung-Ang University ( email )

221 Heuksuk-dong
Dongjak-gu
Seoul, 156-756
Korea, Republic of (South Korea)

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