Impacts of mobile termination rates on retail prices: the implication for regulators
Journal article, 2014
– This paper applies the one-step generalised method of moments (GMM) approach to dynamic panel data.
Findings
– The results support the hypothesis that lower MTRs will reduce consumer retail prices, which is consistent with the EC framework. It is therefore recommended that regulators in the calling party network pays (CPNP) regime reduce MTRs to at least the same level as the operators' cost to raise overall social welfare, especially consumer welfare. However, the approach by each country can differ depending on its situation. Originality/value
– This study supports the idea that it is appropriate for the EC to regulate MTRs by reducing the rates to at least the same level as the efficient operators' cost, and other regulators with a calling party network pays regime from other regions could also follow this strategy.
Author
Chatchai Kongaut
Chalmers, Technology Management and Economics, Technology and Society
Erik Bohlin
Chalmers, Technology Management and Economics, Technology and Society
Info
1463-6697 (ISSN) 1465-9840 (eISSN)
Vol. 16 2 80-93Subject Categories
Economics
Economics and Business
Business Administration
DOI
10.1108/info-11-2012-0043