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Some Spectrum Policy Issues on Mobile Internet

With the rapid increase in the demand for mobile Internet, the demand for spectrum has also increased greatly to result in the supply shortage. This paper discusses two problems of Korean government's spectrum policy on supplying additional spectrum bands for mobile Internet resolved in January 2012. First, it points that the Government's plan calculated the additional amount of spectrum supply based on an engineering model and on a naive forecast on the demand for mobile Internet, and it does not consider some factors that are essential for increasing economic efficiency. As a result, the plan may not maximize social welfare. Second, it discusses the problem of pursuing careless competition policy when intensifying competition in the mobile Internet market has negative effect on mobile network operaters' investment incentives.