A Study Using Intervention Analysis on the Effects of Mobile Communications Policy in Korea - With a Focus on the Law to Restrict Phone Subsidies(LRPS) and the Adjustment of Discount Rate Upwards(DRU)

This study attempts to estimate the effects of two policies (law to restrict phone subsidies (LRPS) and discount rate upwards (DRU)) using an intervention analysis model based on the monthly data for the period Jan. 2013-Sep. 2015. At this point, it may be worthwhile to study how the effects on the communication environment appear in connection with the introduction of and changes in Korea’s mobile communication policies. The intervention analysis is carried out in two phases. First, the pre-intervention model should be set through the time-series analysis of ARIMA(p,d,q); then, the effects of intervention with regard to the two policies may be analyzed. According to the results of the analysis, the DRU policy for the mobile communication market of Korea had a beneficial effect, while the LRPS policy appeared to be less effective.