Static and dynamic causes of the decline in the price of mobile telecommunication services

François Jeanjean

24th European Regional ITS Conference, Florence 2013 from International Telecommunications Society (ITS)

Abstract: Telecommunication industry is characterized by a sharp fall in unit price which highly benefits to consumers. This article aims to identify the main parameters that lead to such a fall. Using a 13-countries wireless market dataset, it shows that investment actually drives the exponential growth of traffic. As the growth of revenues are much lower, the price of MByte decreases sharply.Telecom operators need some margin to invest. The increased margin increases subscription price, however, in the same time, it also increases investment. The paper shows that the impact on investment highly outweighs the impact on subscription price. As a result, the overall impact of increased margin is the fall of Mbyte price.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/88490/1/773976299.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse13:88490

Access Statistics for this paper

More papers in 24th European Regional ITS Conference, Florence 2013 from International Telecommunications Society (ITS)
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().