We analyse competition between perfectly substitutable networks. Monopolization can be sustained in equilibrium by asymmetric access prices whereby entry is deterred by a set of margin squeezes. A regulatory package consisting of (i) mandatory interconnection; (ii) reciprocal access prices;...

This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show that the monopolistic outcome may prevail independently of market concentration when access prices are determined in bilateral negotiations. A lighthanded regulatory policy can...