Study on Access charge method between Fixed and Internet Phone

Recently following the open and convergence technology Internet phone based on VoIP (voice over IP) introduced to common users and it is rapidly spread into market. As the quality of internet phone continues to rise, internet phone becomes an increasingly attractive alternative to fixed-line service. In Korea the regulation for Internet phone service has been considered since 2002 and the telecommunication act; policy for number and quality, interconnection and usage fee of Internet phone; has been set up. As Internet backbone network and subscriber network has been calculated in separately for the case of interconnection and interconnection charge, the study for consumer welfare and competition effect has been slow and the study for regulation and regime is also not well known even that are the most important issue to consider. Therefore, in this paper we present an econometric model to analyze the consumer welfare and competition by comparing the usage-based and flat- rate pricing methods of call tariff which are the important issue to both backbone network provider and service provider based on the notion of Laffont & Tirole (1998) which studied about variation of corporation profit for efficient interconnection charge on independent network and Amstrong & Doyle (1996) which has been studied for basic model for interconnection model in telecommunication industry. Additionally we have suggested the rational amended direction for policy and regime with the result of each interconnection charge.