Self-destructive competition in cellular: regulatory options to harness the benefits of liberalisation

Muriuki Mureithi

Telecommunications Policy, vol. 27, issue 1-2, 11-19

Abstract: The last 10 years has seen a dramatic growth of cellular service overtaking fixed line service in Africa. This paper reviews the evolution of cellular over the last 10 years. The review finds that increasing competition alone without a change of regulatory framework at the market level has a negative impact on continued expansion of cellular. Competition within the present regulatory framework has a negative impact on penetration and results in increased tariffs which in turn affect affordability due to reducing economies of scale. The paper recommends that governments should urgently review the regulatory framework to remove restrictions on international and national cellular infrastructure.

Keywords: Cellular; Competition; Regulatory; framework (search for similar items in EconPapers)
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