Competition vs. Regulation in Mobile Telecommunications

Competition and regulation in telecommunications

Paul de Bijl* Economic Affairs, the Ministry of Transport, Public Works and Water Management), regulators (e.g. Opta, and the recently established competition authority NMa), and legislators, in their attempts to achieve efficient outcomes, are facing a complex task. An important lesson from economic theory – a lesson often serving as a practical shortcut – is that ‘effective’ competition, or c...

Price Regulation of Mobile Termination: Promoting Competition and Investment in Telecommunications A Report on behalf of Hutchison Telecommunications

The analysis here represents the views of CoRE Research Pty Ltd (ACN 096 869 760) and should not be construed as those of Hutchison Telecommunications. In April 2003, the ACCC released an information paper Mobile Services Review, 2003 and announced its intention to review the pricing methodology for mobile phone termination charges. As part of its current inquiry into mobile services regulation...

Platform Competition in Telecommunications

Facility based competition in telecommunications

In this paper we study network competition when costs differ among interconnected networks. Such cost differences are observed in the mobile sector as well as in fixed networks. In the paper we find that cost based regulation will not result in first best market shares. The low cost firm will be too small in equilibrium. This is partly due to tariff mediated network externalities. This result i...

Competition in the Long-Distance Telecommunications Industry