Mobile Telephony in the UK
Regulation Initiative Working Paper No. 15
Posted: 30 Dec 2003
Date Written: September 1997
This paper discusses aspects of recent policy towards mobile telephony in the UK including (i) the level of retail charges for calls from fixed to mobile networks (ii) the level of connection subsidies offered by mobile network. A formal model of the market is introduced, which offers a direct linkage between call termination rates and the level of connection subsidy.
This provides a framework for discussing the ideal level of call termination charges on mobile networks, a topic of current controversy in the UK.
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