Roaming and Investments in the Mobile Internet Market
AbstractThis model discusses mobile network operators' (MNOs) incentives to invest in their network facilities such as new 4G networks under various regimes of data roaming charge regulation. Given an induced externality of investments (spillovers) due to the roaming agreements it will be shown that MNOs, competing on investments, widely set higher investments for below cost regulation of roaming charges. Otherwise, if MNOs are free to collaborate on investments, they set higher investment levels for above cost roaming charges. Both below- and above cost charges may be preferred from a welfare perspective. Furthermore, the paper discusses e ects of the roaming charge regulation on roaming quality and MNOs' coverage. --
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Bibliographic InfoPaper provided by Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) in its series DICE Discussion Papers with number 46.
Date of creation: 2012
Date of revision:
mobile Internet; investment spillover; national roaming; regulation;
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-10 (All new papers)
- NEP-COM-2012-04-10 (Industrial Competition)
- NEP-ICT-2012-04-10 (Information & Communication Technologies)
- NEP-NET-2012-04-10 (Network Economics)
- NEP-REG-2012-04-10 (Regulation)
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