Asymmetry of mobile termination rates and the waterbed effect
AbstractThis paper empirically analyzes the relationship between asymmetric regulation on mobile termination rates and mobile retail prices, using panel data collected from 20 OECD member countries for 22 quarters. In addition to the asymmetry of mobile access charges, the authors also focus on the impact of a number of variables, such as churn rates, mobile penetration rates, and the market concentration index on mobile operators' retail prices. The results reveal that pricing asymmetry in access services has a positive correlation with mobile retail prices. Therefore, this study supports the assumption that the waterbed effect between the asymmetry of mobile termination rates and retail prices may occur. --
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Bibliographic InfoPaper provided by International Telecommunications Society (ITS) in its series 23rd European Regional ITS Conference, Vienna 2012 with number 60353.
Date of creation: 2012
Date of revision:
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Web page: http://www.itseurope.org/
Mobile termination rates; Waterbed effect; Asymmetry of MTRs; Mobile retail Rates; Panel data techniques;
Find related papers by JEL classification:
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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