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Asymmetry of mobile termination rates and the waterbed effect

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  • Lee, Jongyong
  • Lee, Duk Hee

Abstract

This paper empirically analyzes the relationship between asymmetric regulation on mobile termination rates and mobile retail prices, using panel data collected from 20 OECD member countries for 22 quarters. In addition to the asymmetry of mobile access charges, the authors also focus on the impact of a number of variables, such as churn rates, mobile penetration rates, and the market concentration index on mobile operators' retail prices. The results reveal that pricing asymmetry in access services has a positive correlation with mobile retail prices. Therefore, this study supports the assumption that the waterbed effect between the asymmetry of mobile termination rates and retail prices may occur.

Suggested Citation

  • Lee, Jongyong & Lee, Duk Hee, 2012. "Asymmetry of mobile termination rates and the waterbed effect," 23rd European Regional ITS Conference, Vienna 2012 60353, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse12:60353
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mobile termination rates; Waterbed effect; Asymmetry of MTRs; Mobile retail Rates; Panel data techniques;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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