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An empirical analysis of the state of competition in OECD mobile wireless markets

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  • Sung, Nakil
  • Kwon, Mi-ae

Abstract

Contra the current trend of deregulation, mobile wireless markets in the OECD member states appear, until recently, to have been more or less concentrated. The study estimates the equations for market concentration, mobile prices, and profits using annual panel data from 24 OECD member states for the 1998-2009 period, in order to assess their interaction. Mobile prices, measured by revenue per minute in constant USD PPP, are regarded as a direct measure of consumer welfare. Estimation results indicate that in the second half of the 2000s, market concentration had no effect on mobile prices, whereas the positive relationship between market concentration and profits persisted. In other words, the market-power hypothesis is rejected in the second half of the 2000s. This empirical result provides a strong case for a recent lenient approach towards regulation and merger attempts in OECD mobile wireless markets. Additionally, the study provides evidence that regulatory policies have affected mobile market structure and performance. --

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Bibliographic Info

Paper provided by International Telecommunications Society (ITS) in its series 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues with number 52204.

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Date of creation: 2011
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Handle: RePEc:zbw:itse11:52204

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Web page: http://www.itseurope.org/

Related research

Keywords: Mobile wireless markets; market structure; market performance; regulatory policy; competition;

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  1. Heli Koski & Tobias Kretschmer, 2005. "Entry, standards and competition : firm strategies and the diffusion of mobile telephony," LSE Research Online Documents on Economics 801, London School of Economics and Political Science, LSE Library.
  2. Lukasz Grzybowski, 2005. "Regulation of Mobile Telephony across the European Union: An Empirical Analysis," Journal of Regulatory Economics, Springer, vol. 28(1), pages 47-67, 07.
  3. Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Development Research Unit Working Paper Series archive-45, Monash University, Department of Economics.
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Cited by:
  1. Michail Katsigiannis & Timo Smura & Thomas Casey & Antti Sorri, 2013. "Techno-economic modeling of value network configurations for public wireless local area access," Netnomics, Springer, vol. 14(1), pages 27-46, November.

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