EU Roaming Regulation: Theoretical Model Suggests a Positive Assessment

Pio Baake and Lilo Wagner

DIW Weekly Report, 2018, vol. 8, issue 6, 59-64

Abstract: Since June 15, 2017, mobile network operators in the European Economic Area may not impose surcharges for making telephone calls, sending text messages, or using data services in other EEA countries. The regulation was designed to create a digital domestic market without adversely affecting consumers. The regulation raises the expectation of changes in mobile network operators’ tariff structures. Theoretical examination shows that as long as mobile network operators do not exclude a roaming option for users who travel only occasionally, everyone will benefit from the regulations—even occasional travelers. In this case, positive effects are also anticipated for overall social welfare. However, negative effects are likely if some tariffs exclude a roaming option. The market result is highly dependent on how strongly consumers differ in their user behavior. The fact that all three mobile network operators in Germany exclusively offer tariffs with roaming options is evidence in favor of a positive assessment of the EU regulatory measures.

Keywords: EU Roaming Regulation; Regulation Theory; Microeconomic Theory; Telecommunications Policy (search for similar items in EconPapers)
JEL-codes: D04 D86 L51 L96 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.577412.de/dwr-18-06-1.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:diw:diwdwr:dwr8-6-1

Access Statistics for this article

DIW Weekly Report is currently edited by Tomaso Duso, Marcel Fratzscher, Peter Haan, Claudia Kemfert, Alexander Kritikos, Alexander Kriwoluzky, Stefan Liebig, Lukas Menkhoff, Karsten Neuhoff, Carsten Schröder, Katharina Wrohlich and Sabine Fiedler

More articles in DIW Weekly Report from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().