Saturation levels of mobile telecommunications markets and optimal termination rates

Daniel Ventosa-Santaulà Ria, Alexander Elbittar, Pedro Matías and Carlos Aguilar Huerta
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Daniel Ventosa-Santaulà Ria: Banco de México
Alexander Elbittar: Centro de Investigación y Docencia Económicas, A.C.
Pedro Matías: Centro de Investigación y Docencia Económicas, A.C.
Carlos Aguilar Huerta: Centro de Investigación y Docencia Económicas, A.C.
Authors registered in the RePEc Author Service: Daniel Ventosa-Santaulària

Estudios Económicos, 2020, vol. 35, issue 2, 331-355

Abstract: This paper analyzes the impact on mobile telephony diffusion patterns of the two main payment regimes, receiving party pays (RPP) and calling party pays (CPP), and provides evidence that a quadratic and concave relationship exists between the mobile termination rate and penetration of mobile telephony. We also find evidence that the impact on the saturation rate of competition, political regime and internet use is significant. Moreover, in most countries the global behavior of telecommunication markets has contributed to reducing the gap between the optimal and actual mobile termination rate.

Keywords: mobile markets and diffusion; saturation levels; mobile termination rate (search for similar items in EconPapers)
JEL-codes: L1 L5 L96 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:emx:esteco:v:35:y:2020:i:2:p:331-355

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