This study analyzes the effects of the Mobile Terminal Distribution Act for the change in welfare of users and three mobile service carriers through panel regression analysis methodology. It is believed that three mobile service carriers’ subsidy has an effect on own company’s revenue and ARPU since the enactment of the Mobile Terminal Distribution Act. The empirical results show that handset subsidy and revenue have a positive coefficient, and statistically significant relationship with higher sensitivity. In addition, communication charge and handset subsidy for households have a weak effect each other, but statistically significant between them. This seems to be the result of higher telecom service fee contracts to receive more handset subsidies. In addition, we believe that the increase in sales of service under the current act is due to the increase in sales through adherence rather than competition. Overall, the dummy variables that related the effect of the act influence the value of the entire model, and secure statistical significance. Therefore, in order to improve the current law, there should be no restriction on price competition, and it is necessary to make transparent the subsidy of the carrier as well as the subsidy of the manufacturer. In addition, by supplying various terminals, it is necessary to create a fair competition environment so that users can conveniently select them.

mobile terminal distribution act, mobile telecommunication, panel regression analysis, consumer welfare, revenue.