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Evaluating a decade of mobile termination rate regulation

Genakos, Christos and Valletti, Tommaso (2014) Evaluating a decade of mobile termination rate regulation. CEP Discussion Papers (CEPDP1282). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

We re-consider the impact that regulation of call termination on mobile phones has had on mobile customers’ bills. Using a large panel covering 27 countries, we find that the “waterbed” phenomenon, initially observed until early 2006, becomes insignificant on average over the 10-year period, 2002-2011. We argue that this is related to the changing nature of the industry, whereby mobile-to-mobile traffic now plays a much bigger role compared to fixed-to-mobile calls in earlier periods. Over the same decade, we find no evidence that regulation caused a reduction in mobile operators’ profits and investments.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2014 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
JEL classification: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
L - Industrial Organization > L5 - Regulation and Industrial Policy
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L98 - Government Policy
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 28 Nov 2014 14:58
Last Modified: 05 May 2019 23:20
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60353

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