Evaluating a Decade of Mobile Termination Rate Regulation

18 Pages Posted: 20 Aug 2015

See all articles by Christos Genakos

Christos Genakos

Cambridge Judge Business School; Athens University of Economics and Business (AUEB); Center for Economic Policy Research (CEPR); Center for Economic Performance (CEP)

Tommaso M. Valletti

Imperial College Business School; Centre for Economic Policy Research (CEPR)

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Date Written: August 2015

Abstract

We re‐consider the impact that regulation of call termination on mobile phones has had on mobile customers’ bills. Using a large panel covering 27 countries, we find that the ‘waterbed’ phenomenon, initially observed until early 2006, becomes insignificant on average over the 10‐year period, 2002–11. We argue that this is related to the changing nature of the industry, whereby mobile‐to‐mobile traffic now plays a much bigger role compared to fixed‐to‐mobile calls in earlier periods. Over the same decade, we find no evidence that regulation caused a reduction in mobile operators’ profits and investments.

Suggested Citation

Genakos, Christos and Valletti, Tommaso M., Evaluating a Decade of Mobile Termination Rate Regulation (August 2015). Feature Issue, Vol. 125, Issue 586, pp. F31-F48, 2015. Available at SSRN: https://ssrn.com/abstract=2647117 or http://dx.doi.org/10.1111/ecoj.12194

Christos Genakos (Contact Author)

Cambridge Judge Business School ( email )

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Athens University of Economics and Business (AUEB) ( email )

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Athens, 104 34
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HOME PAGE: http://www.aueb.gr/users/cgenakos

Center for Economic Policy Research (CEPR) ( email )

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Center for Economic Performance (CEP) ( email )

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London WC2A 2AE
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Tommaso M. Valletti

Imperial College Business School ( email )

South Kensington Campus
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London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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