A competition in Telecommunications service industry occurs through interconnection. There is no standard theory for access charge which satisfies all of the players because they consider access charge as a zero-sum game. However long-run incremental cost methodology is reviewed and adopted by advanced countries recently. Telecommunication service market in Korea is gradually changed into perfect competition market. So it is time for Korea to think over present fully-dedicated-cost method.
This thesis studies various theory concerning access charge. Also it researches foreign access charge system and LRIC models in a exploratory way. Therefore, this thesis makes proposal to Korean regulators for adopting LRIC. First, this thesis suggests adopting LRIC for access charge system in 5 years. Secondly, regulators had better make a leading role to introduce LRIC, but LRIC model should be decided by the project team being consisted of outside specialist. Lastly Korea's own LRIC model should be developed using foreign model but considering Korea's unique network structure, technology, regulation system.
