ANALYSIS OF COMPETITION SITUATION FOR THE BROADCASTING AND COMMUNICATIONS MARKET THROUGH ELASTICITY ESTIMATION IN KOREA

摘要

In terms of price elasticity, SKT and KT have a statistically significant price elasticity in the mobile telecom market. LGU+ has the highest income elasticity, and it is estimated that the subscription demand of SKT and KT has decreased. The analysis results of the broadband Internet market are not significant and it is difficult to interpret it. The elasticity of customer demand for the rest of the markets except for the mobile communication market is low, which can be interpreted as inelastic. From the viewpoint of price elasticity of other companies, the subscriber base of the mobile telecom market is expected to increase if telecom spending on other operators rises. Third-party price elasticity is 0.18 for operators with high market share, which is higher than third-party price elasticity (0.17) for operators with low market share. Income elasticity was highest for LGU+, followed by SKT, and lowest for KT. In the pay-TV market, the rise in broadcasting and telecom spending on other operators seems to be a substitute effect of the increase in subscription. However, such correlations appear to be weak in the rest of the broadband and converged markets. In terms of income elasticity, income elasticity of the quartiles is not consistently shown. First, in the mobile communication market, the discriminatory relationship is not remarkable, and in the high-speed Internet and pay-TV market, the higher the income, the lower the income elasticity. The highest income elasticity is in the third income quintile (2～3 million won). Finally, the resilience of competition between the operators is not clearly observed in the analysis of the elasticity of competition between the providers. In the analysis of the effect on the ARPU, SKT only shows the relationship that the ARPU of SKT falls when the demand for KT traffic increases. It is necessary to find new variables to analyze the competition relation.