Determination of Revenue Streams Subject to Sharing in the Mobile Internet Market

Abstract

Wireless operators often outsource the task of creating content to independent content providers in the mobile Internet market. Revenue streams of the mobile Internet market typically consist of two main sources, data traffic and content sales. It is often the case that only the revenue from content sales is subject to sharing between wireless operators and content providers. This paper applies the "dummy variable axiom" to the market data of a representative Korean wireless operator to show that, in some cases, data traffic revenues should also be shared between the wireless operator and content providers.