The Economic Value of User-Controllable Internet Speed Service

The Internet service market in Korea has reached the mature stage. This means that it is difficult for the ISPs to increase the revenue through brining new subscribers. According to the market survey, Internet users recognize that fee and speed are the most important factor among the attributes of Internet service. Therefore we suggest user-controllable Internet speed service (UCISS), which enables subscribers to control the Internet speed and charge the fee on an hourly rate. We will explain about the structure and operating process of UCISS. Contingent valuation method (CVM) is employed to analyze the value of UCISS.