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The effects of lower mobile termination rates in South Africa

Ryan Hawthorne

Telecommunications Policy, 2018, vol. 42, issue 5, 374-385

Abstract: The effects of a 90% reduction in mobile termination rates (MTRs) are evaluated over the period between 2009 and 2017 in South Africa. Prepaid prices and quality-adjusted postpaid prices declined by over 40%. However, only approximately 30% of the decline in prepaid prices and 60% of the reduction in quality-adjusted postpaid prices can be explained by lower MTR costs. On-net and off-net prepaid prices converged as MTR costs dropped. Regulators concerned about high retail prices and differences between on-net and off-net prices should reduce MTRs.

Keywords: Telecommunications; Hedonic regressions; Mobile termination rates (search for similar items in EconPapers)
JEL-codes: L15 L16 L41 L96 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:telpol:v:42:y:2018:i:5:p:374-385