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Mandated MVNO access and MNO investment in mobile network markets: evidence from Germany and Spain

Author

Listed:
  • Niels Frank

    (Lademann & Associates
    University of Bayreuth)

  • Mitja Kleczka

    (Lademann & Associates
    Vrije Universiteit Brussell/Brussels Centre of Competition Policy)

  • Erion Shtjefanaku

    (Lademann & Associates)

Abstract

This article examines the effect of access obligation on mobile network investment. Access obligation is a form of regulated network access in wholesale markets that commits Mobile Network Operators (MNOs) to grant non-discriminatory access to Mobile Virtual Network Operators. While it is often claimed that such regulation might lower investment incentives of MNOs, this assertion has not yet been assessed by appropriate econometric methods. We implement an empirical Difference-in-Differences framework to investigate the link between access obligation and mobile network investment in Germany, where access obligation had been implemented for the 3G technology (but not for 4G and 5G), and in Spain, where access obligation had been introduced as a remedy for joint significant market power. Contrary to common claims, our results show that access obligation has not lowered mobile network investment in Germany and indeed increased investment in Spain.

Suggested Citation

  • Niels Frank & Mitja Kleczka & Erion Shtjefanaku, 2025. "Mandated MVNO access and MNO investment in mobile network markets: evidence from Germany and Spain," Journal of Regulatory Economics, Springer, vol. 67(1), pages 29-60, June.
    • Handle: RePEc:kap:regeco:v:67:y:2025:i:1:d:10.1007_s11149-024-09485-2
    DOI: 10.1007/s11149-024-09485-2
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    More about this item

    Keywords

    Mobile telecommunication; MNO; MVNO; Network access regulation; Investment;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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