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Measuring the Benefits of Mobile Number Portability

Author

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  • Sean Lyons

    (Department of Economics, Trinity College)

Abstract

Increasing numbers of countries require mobile telephone networks to offer mobile number portability (MNP). MNP allows customers who wish to switch mobile operator to keep their mobile numbers, avoiding the costs of switching to new numbers. Ex ante assessments suggest that MNP should reduce switching costs and strengthen competition. In this paper, we test MNP's impact on market outcomes using international time-series cross-section data. We find that MNP significantly increases average mobile telephony retail prices and churn (a proxy for switching).

Suggested Citation

  • Sean Lyons, 2006. "Measuring the Benefits of Mobile Number Portability," Trinity Economics Papers tep2009, Trinity College Dublin, Department of Economics.
  • Handle: RePEc:tcd:tcduee:tep2009
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    File URL: http://www.tcd.ie/Economics/TEP/2006_papers/TEP9.pdf
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    References listed on IDEAS

    as
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    5. Stefan Buehler & Justus Haucap, 2004. "Mobile Number Portability," Journal of Industry, Competition and Trade, Springer, vol. 4(3), pages 223-238, September.
    6. Gans, Joshua S. & King, Stephen P., 2000. "Mobile network competition, customer ignorance and fixed-to-mobile call prices," Information Economics and Policy, Elsevier, vol. 12(4), pages 301-327, December.
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    8. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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    Cited by:

    1. Peter D., Lunn & Sean, Lyons, 2017. "Consumer switching intentions for telecoms services: evidence from Ireland," MPRA Paper 77412, University Library of Munich, Germany.
    2. Pauline Affeldt & Rainer Nitsche, 2014. "A price concentration study on European mobile telecom markets: Limitations and insights," ESMT Research Working Papers ESMT-14-07, ESMT European School of Management and Technology.
    3. Czajkowski, Mikołaj & Sobolewski, Maciej, 2016. "How much do switching costs and local network effects contribute to consumer lock-in in mobile telephony?," Telecommunications Policy, Elsevier, vol. 40(9), pages 855-869.
    4. Pacharasut Sujarittanonta, 2017. "Evaluating mobile number portability policy in the Thai mobile telecommunications market," Journal of Regulatory Economics, Springer, vol. 51(2), pages 220-233, April.
    5. Lucio Fuentelsaz & Juan Pablo Maicas & Yolanda Polo, 2012. "Switching Costs, Network Effects, and Competition in the European Mobile Telecommunications Industry," Information Systems Research, INFORMS, vol. 23(1), pages 93-108, March.
    6. Rebeca Escobar Briones, 2018. "Impacto de las modificaciones en el proceso de portabilidad numérica sobre los servicios de telecomunicación móvil/The impact on telecommunications services of modifications to mobile number portabili," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 33(1), pages 3-28.

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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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