|
News
Issue #2002 - 31
(August 2002)
(Updated Aug.
14, 2002)
INFRASTRUCTURE, PRODUCTS & SERVICES
South Korean Wireless Carriers Cut Rates to Boost Multimedia Messaging
South Korea's KTF and LG Telecom are deeply discounting the cost of their wireless multimedia messaging services such as video on demand and music on demand in a campaign to stimulate consumer use of the services. LG Telecom cut its multimedia messaging charges by 48 percent and introduced "ez-1 All Night," a plan that offers unlimited free access to the wireless Net from midnight to 8 a.m., after which the service costs 5.5 won (.005 cents) per packet of data. KTF's competitive response to the LG Telecom offering was to cut its prices for wireless net service by between 58.5 percent and 92.5 percent.
Source: Korea Times
MobileInfo Advisory & Comments: We thought
pricing theory was conceived by professors of Economics in American
business schools. But here is a lesson that we can learn from Asia.
We applaud South Korea's KTF and LG Telecom for this initiative. In
a market that is highly in-elastic, standard costing principles
dictate that the industry might as well make some money and recover
our variable cost components now by generating a demand for
MMS.
Note: This news release may contain forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
|
