Abstract

http://ssrn.com/abstract=984240
 
 

Citations (1)



 
 

Footnotes (82)



 


 



Hanging Up on Carterfone: The Economic Case Against Access Regulation in Mobile Wireless


Marius Schwartz


Georgetown University

Federico Mini


Bates White, LLC

May 2, 2007


Abstract:     
Recently, Professor Tim Wu recommended subjecting the U.S. mobile wireless industry to Carterfone type regulation governing attachment of devices to the network, and others have sought such "open" access regulation also for suppliers of software applications. Carterfone was applied to a regulated monopoly Bell system and its precedent simply does not fit today's wireless industry. We document that the U.S. mobile wireless industry (a) is not highly concentrated, relative to industries typically subject to access regulation, and to the European mobile wireless industry, (b) displays competitive behavior, and (c) is continuing to deliver performance that compares favorably both over time, and with Europe. The industry, therefore, presumptively is not a candidate for intrusive access regulation. Professor Wu's alleged examples of "restrictive" practices do not alter this presumption. Some of the allegations are factually wrong, and others describe practices of individual carriers that have not been adopted industry wide; moreover, the alleged practices plausibly serve beneficial purposes. Finally, Carterfone regulation succeeded largely because the technology of the public switched telephone network was relatively simple and stable, whereas mobile wireless technology is much more complex and rapidly changing. Thus, access regulation of this industry is unwarranted as a matter of economics: the costs are likely to be substantial, and the threshold case that "competition is not working" has not been made.

Number of Pages in PDF File: 40

Keywords: Carterfone, Mobile Wireless Competition and Regulation, Access Regulation

JEL Classification: L96, L98, L86, L88, L51, L10, L23

working papers series


Download This Paper

Date posted: May 8, 2007  

Suggested Citation

Schwartz, Marius and Mini, Federico, Hanging Up on Carterfone: The Economic Case Against Access Regulation in Mobile Wireless (May 2, 2007). Available at SSRN: http://ssrn.com/abstract=984240 or http://dx.doi.org/10.2139/ssrn.984240

Contact Information

Marius Schwartz (Contact Author)
Georgetown University ( email )
Washington, DC 20057
United States
202-678-6112 (Phone)
Federico Mini
Bates White, LLC ( email )
2001 K St., NW
Suite 700
Washington, DC 20006
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,661
Downloads: 320
Download Rank: 50,624
Citations:  1
Footnotes:  82

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.437 seconds