We re-consider the impact that regulation of call termination on mobile phones has had on mobile customers' bills. Using a large panel covering 27 countries, we find that the waterbed' phenomenon, initially observed until early 2006, becomes insignificant on average over the 10-year period, 2002-11. We argue that this is related to the changing nature of the industry, whereby mobile-to-mobile traffic now plays a much bigger role compared to fixed-to-mobile calls in earlier periods. Over the same decade, we find no evidence that regulation caused a reduction in mobile operators' profits and investments.
Genakos, C., Valletti, T. (2015). Evaluating a Decade of Mobile Termination Rate Regulation. ECONOMIC JOURNAL, 125(586), F31-F48 [10.1111/ecoj.12194].
Evaluating a Decade of Mobile Termination Rate Regulation
Valletti T.
2015-01-01
Abstract
We re-consider the impact that regulation of call termination on mobile phones has had on mobile customers' bills. Using a large panel covering 27 countries, we find that the waterbed' phenomenon, initially observed until early 2006, becomes insignificant on average over the 10-year period, 2002-11. We argue that this is related to the changing nature of the industry, whereby mobile-to-mobile traffic now plays a much bigger role compared to fixed-to-mobile calls in earlier periods. Over the same decade, we find no evidence that regulation caused a reduction in mobile operators' profits and investments.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.