Roaming in the Mobile Internet
With the acquisition of UMTS licenses Mobile Operators (MOs), have often been obliged to deploy 3G network infrastructures covering at least a given percentage of users by a given date. This paper discusses the rationale for imposing these minimum coverage requirements by regulatory bodies. To that end, a model is built, which studies the incentives for MOs to compete for market share and over coverage within an unregulated environment where MOs are assumed to be free to enter sharing agreements and to negotiate a reciprocal roaming charge. Within this framework, it is first shown that MOs would deploy their infrastructure to guarantee the coverage of the entire territory (population), but they would avoid any network duplication in order to maximize rents from roaming revenues. It is then discussed whether a minimum coverage requirement is the best policy to reduce these excess rents, or whether alternative measures could be adopted which could serve other goals as well, such as the avoidance of network duplication.
Volume (Year): 32 (2008)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/bibliographic|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Damme, E.E.C., 2002.
"The European UMTS-auctions,"
Other publications TiSEM
6194adbb-6fa3-4fc0-ae52-a, Tilburg University, School of Economics and Management.
- Ken Binmore & Paul Klemperer, 2002.
"The Biggest Auction Ever: the Sale of the British 3G Telecom Licences,"
Royal Economic Society, vol. 112(478), pages C74-C96, March.
- Ken Binmore & Paul Klemperer, 2001. "The Biggest Auction Ever: the Sale of the British 3G Telecom Licenses," Economics Papers 2002-W4, Economics Group, Nuffield College, University of Oxford, revised 01 Sep 2001.
- Binmore, Kenneth & Klemperer, Paul, 2002. "The Biggest Auction Ever: The Sale of the British 3G Telecom Licences," CEPR Discussion Papers 3214, C.E.P.R. Discussion Papers.
- repec:oxf:wpaper:2004-w09 is not listed on IDEAS
- Paul Klemperer, 2004.
"Auctions: Theory and Practice,"
2004-W09, Economics Group, Nuffield College, University of Oxford.
- Jean-Jacques Laffont, 2001.
"Internet Interconnection and the Off-Net-Cost Pricing Principle,"
Theory workshop papers
357966000000000085, UCLA Department of Economics.
- Laffont, Jean-Jacques & Marcus, Scott & Rey, Patrick & Tirole, Jean, 2003. " Internet Interconnection and the Off-Net-Cost Pricing Principle," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 370-90, Summer.
- Laffont, Jean-Jacques & Marcus, Scott & Rey, Patrick & Tirole, Jean, 2001. "Internet Interconnection and the Off-Net-Cost Pricing Principle," IDEI Working Papers 130, Institut d'Économie Industrielle (IDEI), Toulouse.
- Tommaso M. Valletti & Carlo Cambini, 2005.
"Investments and Network Competition,"
RAND Journal of Economics,
The RAND Corporation, vol. 36(2), pages 446-468, Summer.
- Sutherland, Ewan, 2001. "International roaming charges: over-charging and competition law," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 5-20, February.
- Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
- Paul Klemperer, 2004. "Introduction to Auctions: Theory and Practice," Introductory Chapters, in: Auctions: Theory and Practice Princeton University Press.
When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:32:y:2008:i:1:p:50-61. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.