The purpose of this paper is to develop a modeling framework for analyzing the effect of price on the PCS (Personal Commununications Service) demand. To achieve this aim, a nonlinear regression model was derived to capture the income effect on the PCS demand and then was combined into an integrated Bass diffusion model. The model was then applied to the emerging PCS market in Korea and the market demands up to the year 2006 were estimated. The results were reviewed and evaluated in various aspects. Finally, the possibilities of model enhancement and model extensions were explored.