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Saturation levels of mobile telecommunications markets and optimal termination rates

Author

Listed:
  • Daniel Ventosa-Santaulà ria

    (Banco de México
    CIDE)

  • Alexander Elbittar

    (Centro de Investigación y Docencia Económicas, A.C.)

  • Pedro Matías

    (Centro de Investigación y Docencia Económicas, A.C.)

  • Carlos Aguilar Huerta

    (Centro de Investigación y Docencia Económicas, A.C.)

Abstract

This paper analyzes the impact on mobile telephony diffusion patterns of the two main payment regimes, receiving party pays (RPP) and calling party pays (CPP), and provides evidence that a quadratic and concave relationship exists between the mobile termination rate and penetration of mobile telephony. We also find evidence that the impact on the saturation rate of competition, political regime and internet use is significant. Moreover, in most countries the global behavior of telecommunication markets has contributed to reducing the gap between the optimal and actual mobile termination rate.

Suggested Citation

  • Daniel Ventosa-Santaulà ria & Alexander Elbittar & Pedro Matías & Carlos Aguilar Huerta, 2020. "Saturation levels of mobile telecommunications markets and optimal termination rates," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 35(2), pages 331-355.
    • Handle: RePEc:emx:esteco:v:35:y:2020:i:2:p:331-355
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/406/513
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    More about this item

    Keywords

    mobile markets and diffusion; saturation levels; mobile termination rate;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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