Abstract

AbstractThis paper is aimed to verify the effectiveness of the asymmetric regulation of mobile termination charges, under the assumption of discriminatory retail pricing. In the mobile competition, the networks revenue depends on two factors: the retail price and the termination charge. If the retail prices are different between calls that terminate on the same network (on net) and calls that terminate on the rival network (off net), the competition is more complex, involving positive networks externalities for the incumbent operator.KeywordsBrand loyaltyinterconnected asymmetric networksdiscriminatory retail pricesnon reciprocal termination charges

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