A study on demand on 3G service

Abstract

3G service plays an important role as next main mobile telecommunication technology, and mobile operators have advanced the plans to promote 3G businesses. However, there are some insecure figures in both foreign and domestic markets, for example, a combination of wary capital markets and technological challenges have been delaying the 3G roll-outs of European operators. The purposes of this thesis are as follows : first, to analyze the 3G service market focused on service characteristics and to find the diffusion factors which affect the demand for 3G service ; second, to examine demand in 3G services in accord with the diffusion factor analysis ; third, to suggest several policies from the perspective of both mobile operators and governments through market analysis and demand forecast. In order to investigate the diffusion factors of 3G service, based upon the market analysis, using M. Porter``s five forces model, the previous researches about 3G service are reviewed. As a result of the analysis, the price of service, service quality, and the W-LAN service effect are chosen as the diffusion factors which affect the demand of 3G service. In order to forecast the demand, the Makov transit model was chosen. It was modified by price level to suit this research. Experts survey was performed according to price (when the price is the same as high speed internet and when it was 1.5 times, 2 times greater than that of the high speed internet service) and the W-LAN service effect (whether W-LAN service is considered or not). According to demand forecast, the demand for 3G service varies greatly according to the price. With the price factor, W-LAN service also affects the demand for 3G service slightly. The summary of demand forecast is as follows. $\bullet$ There are differences in saturation years of 3G service according to prices $\bullet$ There are differences in saturation rates of 3G service according to prices $\bullet$ Though there are differences in s...