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I generalize the workhorse model of network competition to include income effects in call demand. Empirical work has shown call demand to increase significantly with income. For any positive income effect, network operators prefer a termination rate above marginal cost if networks are...
Persistent link: https://www.econbiz.de/10010320390
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We analyse network competition in a market with international calls. National regulatory agencies (NRAs) have incentives to set regulated termination rates above marginal cost to extract rent from international call termination. International network ownership and deregulation are alternatives...
Persistent link: https://www.econbiz.de/10010247435
and network effects. It argues that the regulation of mobile termination rates based on fully allocated costs, or “long …
Persistent link: https://www.econbiz.de/10014198775
externalities and network effects. It shows that the regulation of mobile termination rates based on "long-run incremental costs …
Persistent link: https://www.econbiz.de/10014209210
regulation. In our example, the termination rates have been part of a vertical restriction strategy. The observed network … competition, rest on a cost-based asymmetric price regulation. The further research allows a statistical assessment of the … asymmetric price regulation implemented by the Mexican regulatory authority during January 2013 to June 2017. This paper …
Persistent link: https://www.econbiz.de/10012012970
lead to other networks raising their termination charges. If market shares are fixed, then extending termination regulation … for subscribers then extending termination charge regulation to a non-dominant network may lead to higher call prices …
Persistent link: https://www.econbiz.de/10014144678
, investments increase off-net traffic from the investor’s network but also from competitors’ networks. Regulation changes the … functions. Testing for a common regulation-investment effect provides evidence that the negative investment externality is not … due to regulation. -- regulation ; mobile telecommunications ; investments ; interconnection …
Persistent link: https://www.econbiz.de/10003902948
This note demonstrates that the puzzling profit neutrality of access charges, i.e., the networks' profits are independent of the access charge with two-part call tariffs, depends crucially on a specific property of subscription demand. Profit neutrality is equivalent to the subscription...
Persistent link: https://www.econbiz.de/10012724007
The Federal Communications Commission is coming under intense political pressure to reclassify broadband Internet access as a common carrier telecommunications service under Title II of the Communications Act. Yet, almost no attention has been directed at the fine details of how reclassification...
Persistent link: https://www.econbiz.de/10013032398