A study on economic evaluation of IMT-Advanced satellite services in Korea

Abstract

The objective of this paper is to assess the economic feasibilities of International Mobile Telecommunication (IMT)-advanced satellite services in Korea. IMT-Advanced systems allow mobile services that are able to have an always-on access to a wide range of broadcasting and telecommunication networks including advanced mobile service with transparent devices. In this paper, economic aspects of a Fill-in Service and a Two-way S-DMB Service are analyzed; Revenues from the defined services are forecasted and capital expenditure as well as operating expenditure is estimated. To evaluate the profitability of IMT-advanced satellite services, the net present value (NPV), the internal rate of return (IRR) and economic spill-over effects are calculated. The results show that IMT-advanced satellite service is economically justifiable.