Data MVNO: Cost-based pricing in Korea

This study defines the prepaid MVNO type that applies the 3G telecommunication facilities and Article 38, Telecommunications Business Act (Wholesale provisioning of the telecommunication service, also known as the “MVNO Act”). In addition, the cost of 3G telecommunication facilities will be separated into voice cost and data cost, before calculating the data cost. The cost-based wholesale data price will be calculated for each prepaid MVNO type, and policy implications will be presented. The Korea Communications Commission newly enacted the MVNO Act in 2010, which regulates the wholesale price of voice calls by the retail-minus method. As a result, MVNO is very limited in the diverse and innovative business model, such as convergence services, enterprises´ utilization of mobile communication, and MtoM. This study will provide useful data for policy-makers preparing policies regarding data cost, wholesale price, interconnection, MVNO, mVoIP, prepay, and network neutrality, as well as for enterprises that seek to participate in various business models.