스마트폰에 대한 SIM 카드 개방규제의 경쟁 효과

Abstract

The advent of smartphones has brought many revolutionary changes for mobile service industries. In particular, the traditional leadership of mobile network operators is being challenged by handset manufacturers and platform providers. One of the interesting issues related with this shift of power is how recent SIM unlocking regulation in Korea would affect the market. The SIM unlocking regulation, which basically forbids the forced bundling of a carrier-provided handset with a service contract, could make important differences with the growing power of handset manufacturers. This paper theoretically analyzes the impact of the SIM unlocking regulation and shows that such regulation reduces both consumer and social welfare. The primary cause of such a result is that the regulation makes it difficult to draw consumer commitment for long term subscription, which reduces total level of competition in the market. This result therefore provides a negative perspective toward the SIM unlocking regulation, or in a broader term, the neutrality for handsets.