The competitiveness of telecom markets is nowadays threatening the sustainability of the traditional Universal Service. In order to minimize the conflicts among the carriers in process of providing Universal Service, it is necessary to arrive at commo...
The competitiveness of telecom markets is nowadays threatening the sustainability of the traditional Universal Service. In order to minimize the conflicts among the carriers in process of providing Universal Service, it is necessary to arrive at common consents on the scope of Universal Service and the method of cost accounting. In this paper we tried to find the validity to adopt LRIC(Long-Run Incremental Cost) model, which has mainly been discussed in the area of access charges, as a common-cost allocation rule for Universal Service. If Korean telecom market searches for a way of introducing LRIC, it is recommended to apply Top-down method rather than Bottom-up for convenience of data collecting.