Asymmetry of mobile termination rates and the waterbed effect

Jongyong Lee and Duk Hee Lee

23rd European Regional ITS Conference, Vienna 2012 from International Telecommunications Society (ITS)

Abstract: This paper empirically analyzes the relationship between asymmetric regulation on mobile termination rates and mobile retail prices, using panel data collected from 20 OECD member countries for 22 quarters. In addition to the asymmetry of mobile access charges, the authors also focus on the impact of a number of variables, such as churn rates, mobile penetration rates, and the market concentration index on mobile operators' retail prices. The results reveal that pricing asymmetry in access services has a positive correlation with mobile retail prices. Therefore, this study supports the assumption that the waterbed effect between the asymmetry of mobile termination rates and retail prices may occur.

Keywords: Mobile termination rates; Waterbed effect; Asymmetry of MTRs; Mobile retail Rates; Panel data techniques (search for similar items in EconPapers)
JEL-codes: L51 L88 L96 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse12:60353

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