Organizing Mobile Industry: An Alternative Common Framework

Abstract

In contrast to the current piecemeal behavioral regulations used in the mobile sector, this article provides an alternative structural framework. This framework is developed by the following two principles: (a) ownership of identifications by customers and (b) transparency of infrastructure availability combinations information by industry. It is based on a premise that there is a technical standard that terminals (handsets) are capable of organizing and displaying the infrastructure availability combinations and tariff-relevant information. Under this common framework, when terminals are unlocked, customers are capable of selecting, by their own discretion, payment modes (calling party payment [CPP], receiving party payment [RPP] or collect call payment [CCP]), and dissimilar infrastructure/service providers to make and receive each call. In this way, direct competition among infrastructure providers is enhanced; CPP, RPP, and CCP products can be substituted for each other, and the wholesale markets can be circumvented while customers retain the identifications (mobile numbers). As a result, ex ante regulations can be reduced or terminated, involving number portability, mobile termination, and domestic and international roaming. The proposed framework applies to situations where terminals are not sold locked in the beginning, or where terminals are sold locked in the beginning but can be unlocked later, on the request of customers, under some conditions, either by deferring to regulations or by following operators’ own policies.