Accelerated technological change, heightened market demands and aggressive competition are greatly affecting distribution channels, forcing telecommunication companies to reconsider fundamental assumptions about how they reach their markets. Even though, a variety of researches on the physical distribution structure have been done, distribution structure of telecommunication services has not been studied sufficiently.
Therefore, this study was done to analyze and propose the distribution structure of telecommunication services, especially in Korea. The conceptual framework developed in this thesis is based on the Channel Choice Function model proposed by Rangan, Menezes and Maier in 1992. Through an empirical analysis of data from the marketing members of Korea Telecom, the following results are found. In wired telephone services like local and long distance services, indirect channel was preferred. Because the services are simple and easy to use, customers usually seek middleman. In wireless communication services like IMT-2000, hybrid channel was preferred. It seems that the services has characteristics of voice and data communication. In data communication services like ISDN or ADSL, direct channel was preferred. Because users need more information about the services and are sensitive to its quality, they should be served directly by the telecom company.
According to the result of this empirical study, several suggestions are made to telecommunication companies. First, it is required to differentiate distribution channels to meet customer needs. Second, distribution channels need to be diversified by the market segment. Lastly, it is needed to activate cyber distribution channels for telecommunication companies.
