HOUSEHOLD-USE VERSUS BUSINESS-USE DEMAND DIFFUSION OF TELEPHONE AND INTERNET ACCESS SERVICE IN KOREA

It is well known that the diffusion of the Internet over society has been faster than that of the traditional telecommunication service such as the telephone. There are some differences between the demand diffusion patterns of telephone services and the Internet as well as among the demand attributes, thus we focus on these differences. With each service, demand attributes comprise of business-use and household-use. In particular, Loglet analysis is used for comparing the diffusion pattern demand-attributes for the services. Firstly, from the analysis, during the overall reference period, the diffusion rate of the Internet is larger than that of telephone. Secondly, the gap between the diffusion rates of household-use and business-use in the Internet is much larger than it is for the telephone. Thirdly, the estimated potential demands of the Internet household-use are surprisingly similar to the present number of telephone users. We also examine country-specific factors underlying the diffusion of Internet access service in Korea.

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