Roaming and Investments in the Mobile Internet Market

Torben Stühmeier
Authors registered in the RePEc Author Service: Torben Stuehmeier

No 46, DICE Discussion Papers from Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)

Abstract: This model discusses mobile network operators' (MNOs) incentives to invest in their network facilities such as new 4G networks under various regimes of data roaming charge regulation. Given an induced externality of investments (spillovers) due to the roaming agreements it will be shown that MNOs, competing on investments, widely set higher investments for below cost regulation of roaming charges. Otherwise, if MNOs are free to collaborate on investments, they set higher investment levels for above cost roaming charges. Both below- and above cost charges may be preferred from a welfare perspective. Furthermore, the paper discusses e ects of the roaming charge regulation on roaming quality and MNOs' coverage.

Keywords: mobile Internet; investment spillover; national roaming; regulation (search for similar items in EconPapers)
JEL-codes: L22 L51 L96 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-com, nep-ict, nep-net and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Roaming and investments in the mobile internet market (2012)
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