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International Internet Roaming

Author

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  • Lippert, Steffen
  • Fabrizi, Simona

Abstract

We study mobile data providers' pricing strategies and incentives to enter voluntary reciprocal international data roaming agreements. We show that roaming fees and retail prices charged to mobile data users at home and abroad vary under asymmetries in the domestic competition of providing roaming access and providers' relative bargaining power. A mutual moderation effect prevails only for symmetric degrees of competition across countries while international integration inflates roaming fees and leads to incentives to foreclose non-integrated providers in more competitive markets. Finally we discuss implications proposing novel ways for antitrust policy to combat against inflated international data retail roaming prices.Keywords: international reciprocal data roaming agreements data roaming fees symmetric and asymmetric domestic competition international integration foreclosure refusal to supply bargaining antitrust versus regulation.JEL codes: C7 F2 F5 L22 L42 L86 L96

Suggested Citation

  • Lippert, Steffen & Fabrizi, Simona, 2012. "International Internet Roaming," Working Paper Series 4120, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
  • Handle: RePEc:vuw:vuwcsr:4120
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/4120
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    More about this item

    Keywords

    international reciprocal data roaming agreements; data roaming fees; symmetric and asymmetric domestic competition; international integration; foreclosure; refusal to supply; bargaining; antitrust versus regulation;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • F2 - International Economics - - International Factor Movements and International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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