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European mobile communication markets are two-stage markets which are composed of the infrastructure (the network and its components) and the service markets (telephony, mobile internet, SMS). In contrast to most other network-based markets there are multiple fully integrated providers which...
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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
We analyze the impact of mandatory access on the infrastructure iinvestments of two competing communications networks, and show that for low (high) access charges firms wait (preempt each other). Contrary to previous results, under preemption a higher access charge can delay first investment....
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We develop a model of competition between interconnected networks, with separate local and long-distance markets …, allowing for various degrees of symmetry between carriers. Assuming two part pricing, we show that effective competition can be … interconnected local networks want to agree on cost based interconnection charges, but that through competition for local market …
Persistent link: https://www.econbiz.de/10014171873
We analyse competition between perfectly substitutable networks. Monopolization can be sustained in equilibrium by … (off-net) networks is shown to restore competition. This regulation requires neither demand data nor information about call …
Persistent link: https://www.econbiz.de/10014212811
We develop a model of unregulated competition between interconnected networks and analyze the mature and transition … for large network substitutability and that freely negotiated access charges may prevent effective competition in the … mature phase of the industry and erect barriers to entry in the transition toward competition. Last, we examine the meaning …
Persistent link: https://www.econbiz.de/10014074126
of competition policy with the creation of internal energy and communications markets. The paper considers the multiple …
Persistent link: https://www.econbiz.de/10014075507