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The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey

Author

Listed:
  • Kar, Mikail

    (Bursa Uludag University)

Abstract

The aim of this study is to analyze the economic effects of regulation in mobile telecommunications markets with the example of Number Portability in Turkey. In this study, switching costs as a factor preventing competition and mobile number portability as an example of regulation are taken into consideration. Switching costs affect the price elasticity of the consumer negatively and the loyalty of the customer positively, creating dependence and inertia, directing the consumer to buy again from the same firm, even if they are not satisfied with the current situation. Regulatory authorities in mobile telecommunications markets where these costs are observed are seeking to reduce these costs by implementing mobile number portability and create a more competitive structure. Examples from the world show that the effects of this regulation vary from country to country. In the empirical analysis, the long-term relationship between price and quantity in the Turkish Mobile Telecommunications Market is determined by cointegration with structural breaks analysis and the effect of the regulation on this relationship is examined. Considering the cost and goals, it was concluded that the regulation in Turkey creates a positive effect as a right and policy that promotes competition, but does not achieve its purpose

Suggested Citation

  • Kar, Mikail, 2019. "The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(2), pages 357-372, April.
    • Handle: RePEc:ris:buecrj:0395
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    More about this item

    Keywords

    Regulation; Switching Costs; Mobile Number Portability; Mobile Telecommunications Market; Cointegration with Structural Breaks;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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