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Accounting for ARPU: New evidence from international panel data

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Author Info

  • McCloughan, Patrick
  • Lyons, Sean

Abstract

Average revenue per user (ARPU) is commonly used by regulators and industry observers to compare the performance of mobile telephony markets. Under the new EU electronic communications regulatory framework, some national regulatory authorities (NRAs) have linked higher ARPU with 'significant market power'. This paper empirically examines the determinants of ARPU in a systematic way, taking account of service quality, market environment, regulation and quantity of service. The robust results suggest that concentration may not be a reliable indicator of competition in mobile markets; there are economies of density in mobile markets; and higher GDP per capita increases ARPU.

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File URL: http://www.sciencedirect.com/science/article/pii/S0308596106000747
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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 30 ()
Issue (Month): 10-11 (November)
Pages: 521-532

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Handle: RePEc:eee:telpol:v:30:y::i:10-11:p:521-532

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Related research

Keywords: Average revenue per user (ARPU) Mobile telecommunications Competition Significant market power Telecoms regulation Telecoms policy;

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Cited by:
  1. Gamboa, Luis Fernando & Otero, Jesús, 0. "An estimation of the pattern of diffusion of mobile phones: The case of Colombia," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 611-620, November.
  2. Balmer, Roberto, 2013. "Competition and Market Strategies in the Swiss Fixed Telephony Market. An estimation of Swisscom’s dynamic residual demand curve," MPRA Paper 54078, University Library of Munich, Germany.

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