Mobile Wireless Market Performance in Canada: Lessons from the EU and the US

58 Pages Posted: 15 Sep 2013

See all articles by Erik Bohlin

Erik Bohlin

Chalmers University of Technology

Kevin W. Caves

Econ One Research

Jeffrey A. Eisenach

NERA Economic Consulting; American Enterprise Institute

Date Written: September 1, 2013

Abstract

In this study, we examine the comparative performance of mobile wireless markets in Canada, the US and the EU. We find that Canada's wireless market is generally performing on par with the US, while the EU has fallen behind both Canada and the US in recent years. As in the US, Canadian wireless customers use their connections much more intensively (both in terms of voice and data) than those in the EU, resulting in lower unit prices. The difference in usage, in turn, is at least partially attributable to the more advanced state of wireless networks in North America relative to the EU, i.e., the more rapid and extensive deployment of next generation LTE networks. We also note that the performance of the Canadian market needs to be viewed in the context of the relatively high costs of deploying and operating wireless networks in areas with low population densities. With respect to policies, we find that the relatively poor performance of the EU market is at least partly attributable to policy choices by the EC and national regulators, and that efforts to import EU-style regulation into Canada, such as policies designed to artificially inflate the number of market participants would be counterproductive.

Keywords: Canada, EU, mobile wireless markets, U.S., wireless regulation

Suggested Citation

Bohlin, Erik and Caves, Kevin W. and Eisenach, Jeffrey A., Mobile Wireless Market Performance in Canada: Lessons from the EU and the US (September 1, 2013). Available at SSRN: https://ssrn.com/abstract=2325599 or http://dx.doi.org/10.2139/ssrn.2325599

Erik Bohlin

Chalmers University of Technology ( email )

SE-412 96 Goteborg
Sweden

Kevin W. Caves (Contact Author)

Econ One Research ( email )

United States

Jeffrey A. Eisenach

NERA Economic Consulting

1255 23rd Street, NW, Suite 600
Washington, DC 20037
United States
202-448-9029 (Phone)
202-466-3605 (Fax)

HOME PAGE: http://www.nera.com

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

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