Abstract

http://ssrn.com/abstract=1410308
 
 

References (31)



 
 

Citations (26)



 


 



Mobile Call Termination


Mark Armstrong


University College London - Department of Economics

Julian Wright


National University of Singapore (NUS) - Department of Economics

0000

The Economic Journal, Vol. 119, Issue 538, pp. F270-F307, June 2009

Abstract:     
We analyse charges levied by mobile telephone networks to deliver calls. We integrate two literatures: one analysing calls from the fixed network, where predicted unregulated termination charges are too high, and one analysing calls from rival mobile networks, where predicted charges are too low. In practice, however, networks adopt uniform charges for terminating both kinds of traffic, as do regulators. We show how incorporating wholesale arbitrage and demand-side substitution helps to reconcile theory with practice. In our framework, the unregulated charge is uniform and typically lies between the efficient and monopoly benchmarks. There remains a rationale for regulation, albeit reduced.

Number of Pages in PDF File: 38

Accepted Paper Series


Date posted: May 27, 2009  

Suggested Citation

Armstrong, Mark and Wright, Julian, Mobile Call Termination (0000). The Economic Journal, Vol. 119, Issue 538, pp. F270-F307, June 2009. Available at SSRN: http://ssrn.com/abstract=1410308 or http://dx.doi.org/10.1111/j.1468-0297.2009.02276.x

Contact Information

Mark Armstrong
University College London - Department of Economics ( email )
Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom
Julian Wright
National University of Singapore (NUS) - Department of Economics ( email )
AS2 Level 6, 1 Arts Link
Singapore 117570
Singapore
6568743941 (Phone)
6567752646 (Fax)
HOME PAGE: http://profile.nus.edu.sg/fass/ecsjkdw/
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References:  31
Citations:  26

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