MTR Reduction: The Impact on Effective Competition Conditions in Telecommunication

13 Pages Posted: 29 Nov 2016

See all articles by Alexander Elbittar

Alexander Elbittar

Centro de Investigación y Docencia Económicas; CIDE

Elisa V. Mariscal

Centro de Investigación y Docencia Economica (CIDE); Global Economics Group

Date Written: June 22, 2016

Abstract

Based on a model proposed by De Bijl and Peitz (2002) and calibrated with data from the Mexican Telecommunication market, we build some counterfactuals that allow us to evaluate three different regulatory approaches for using the MTR as an instrument to create effective competition conditions in the mobile telecommunication market. We found that the asymmetric regulation of interconnection rate is a better way to promote effective competition conditions and raise the competitiveness of service providers in the telecommunications sector for the benefit of consumers.

Keywords: Asymmetric regulation, Mobile Termination Rate, Symmetric Regulation

JEL Classification: L86

Suggested Citation

Elbittar, Alexander and Mariscal, Elisa V., MTR Reduction: The Impact on Effective Competition Conditions in Telecommunication (June 22, 2016). CPRLATAM Conference, Mexico, June 22-23rd, 2016 in conjunction with CLT2016, June 20-23rd, 2016 . Available at SSRN: https://ssrn.com/abstract=2876419

Alexander Elbittar (Contact Author)

Centro de Investigación y Docencia Económicas ( email )

Carretera México- Toluca 3655
Col. Lomas de Santa Fe
Mexico City, DF 01210
Mexico

HOME PAGE: http://www.cide.edu/investigador/profile.php?IdInvestigador=1125

CIDE ( email )

Carretera México- Toluca 3655
Col. Lomas de Santa Fe
Mexico City, DF 01210
Mexico

HOME PAGE: http://www.cide.edu/investigador/profile.php?IdInvestigador=1125

Elisa V. Mariscal

Centro de Investigación y Docencia Economica (CIDE) ( email )

Mexico City
Mexico

Global Economics Group ( email )

1400 S. Dearborn, Suite 400
Chicago, IL 60603
United States

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

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