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Developments in Mobile Termination

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Abstract

Wholesale interconnection rates for mobile telephony service in the OECD area have decreased by 53% from 2006 to 2011. The charges, or mobile termination rates (MTRs), represent the fees that telecommunication network operators (fixed, mobile and VoIP) pay for delivering telephone calls to mobile wireless providers. Lower rates enable competition in the telecommunications market, encourage greater usage of mobile services through flexible unlimited call plans, and increase overall consumer welfare. Furthermore, it is only in countries where rates are lowest or even at zero that new innovative VoIP services like Google Voice are able to flourish. This report is timely because many regulatory bodies, including in the United States and the European Commission, are debating whether to phase out MTRs altogether.

Suggested Citation

  • Oecd, 2012. "Developments in Mobile Termination," OECD Digital Economy Papers 193, OECD Publishing.
    • Handle: RePEc:oec:stiaab:193-en
    DOI: 10.1787/5k9f97dxnd9r-en
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    Cited by:

    1. Rasmus Lema & Björn Johnson & Allan Dahl Andersen & Bengt-Åke Lundvall & Ankur Chaudhary (ed.), 2014. "Low-Carbon Innovation and Development," Globelics Thematic Reviews, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management, number low-carbon, September.
    2. Kongaut, Chatchai & Bohlin, Erik, 2012. "Impacts of mobile termination rates (MTRs) on retail prices: The implication for regulators," 23rd European Regional ITS Conference, Vienna 2012 60348, International Telecommunications Society (ITS).
    3. Lee, Jongyong & Lee, Duk Hee, 2012. "Asymmetry of mobile termination rates and the waterbed effect," 23rd European Regional ITS Conference, Vienna 2012 60353, International Telecommunications Society (ITS).
    4. David Harbord & Steffen Hoernig, 2015. "Welfare Analysis of Regulating Mobile Termination Rates in the U.K," Journal of Industrial Economics, Wiley Blackwell, vol. 63(4), pages 673-703, December.
    5. Giesbrecht, Melissa & Crooks, Valorie A. & Castleden, Heather & Schuurman, Nadine & Skinner, Mark & Williams, Allison, 2016. "Palliating inside the lines: The effects of borders and boundaries on palliative care in rural Canada," Social Science & Medicine, Elsevier, vol. 168(C), pages 273-282.
    6. Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.
    7. Tommaso Majer & Michele Pistollato, 2016. "Calling vs. Receiving Party Pays," Competition and Regulation in Network Industries, , vol. 17(2), pages 150-180, June.
    8. Natarajan, Thamaraiselvan & Balasubramanian, Senthil Arasu & Kasilingam, Dharun Lingam, 2017. "Understanding the intention to use mobile shopping applications and its influence on price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 8-22.

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