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Regulatory fallacies in global telecommunications: the case of international mobile roaming

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  • Günter Knieps
  • Patrick Zenhäusern

Abstract

International mobile roaming cartel agreements prompted the EU to intervene, firstly encompassing competition law measures by a cartel exemption, then initiating several competition proceedings based on the accusation of abuse of a dominant market position, and finally applying price regulations of increasing scope. The paper exposes the temporary market power regulations, including the designated local break out measures, as insufficient and misleading. The solution is to solve the cartel problem at its root, permitting visiting customers the freedom of choosing between their home operator and alternative carriers from the visited country by the implemention of carrier portability. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Günter Knieps & Patrick Zenhäusern, 2014. "Regulatory fallacies in global telecommunications: the case of international mobile roaming," International Economics and Economic Policy, Springer, vol. 11(1), pages 63-79, February.
    • Handle: RePEc:kap:iecepo:v:11:y:2014:i:1:p:63-79
    DOI: 10.1007/s10368-013-0249-4
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    References listed on IDEAS

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    1. Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Sutherland, Ewan, 2001. "International roaming charges: over-charging and competition law," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 5-20, February.
    3. Knieps, Gunter, 1997. "Phasing Out Sector-Specific Regulation in Competitive Telecommunications," Kyklos, Wiley Blackwell, vol. 50(3), pages 325-339.
    4. Günter Knieps, 2006. "Competition in the Post-Trade Markets: A Network Economic Analysis of the Securities Business," Journal of Industry, Competition and Trade, Springer, vol. 6(1), pages 45-60, March.
    5. Tony Shortall, 2010. "A Structural Solution to Roaming in Europe," RSCAS Working Papers 2010/62, European University Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Knieps, Günter, 2014. "Competition and third party access in railroads," Discussion Papers 150, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter, 2013. "Market versus state in building the aviation value chain," Discussion Papers 146, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Knieps, Günter, 2013. "The evolution of the generalized differentiated services architecture and the changing role of the Internet engineering task force," Discussion Papers 147, University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Spruytte, Jonathan & Van der Wee, Marlies & de Regt, Mieke & Verbrugge, Sofie & Colle, Didier, 2017. "International roaming in the EU: Current overview, challenges, opportunities and solutions," Telecommunications Policy, Elsevier, vol. 41(9), pages 717-730.
    5. Stocker, Volker, 2013. "On the weal and woe of internet traffic management in Europe: A critical appraisal from a network economic perspective," 24th European Regional ITS Conference, Florence 2013 88542, International Telecommunications Society (ITS).
    6. Knieps, Günter & Stocker, Volker, 2014. "The fallacies of regulatory market splits: Network neutrality regulation ante portas," Discussion Papers 151, University of Freiburg, Institute for Transport Economics and Regional Policy.

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    More about this item

    Keywords

    K21; L51; L96;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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