Abstract

While telecommunication expenditures are of great interest in Korea, there is a lack of quantitative price statistics for different telecommunications consumption.
Price basket methodology defines a number of representative consumption patterns and measures the lowest prices that satisfy the baskets. A few of examples include the OECD, BEREC, and Ofcom baskets. However, internationa baskets are not applicable in Korean commmunication markets as they do not consider Korean specific features such as offline distribution channels and high mobile data consumption. For example, the average monthly mobile data usage in Korea is 18GB, but the OECD basket has only 20GB in the largest band.
Therefore, this report reviews different telecommunication baskets and proposes Korean telecommunication price baskets as a systematic methodology for analyzing Korean household telecommunication expenses. Standalone baskets for fixed broadband and mobile voice and broadband are presented as well as household baskets for one, two and three people.