A model of international roaming regulation and competition in European mobile markets

Edmond Baranes and Cuong Hung Vuong

23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world from International Telecommunications Society (ITS)

Abstract: This paper investigates the impacts of the current roaming rules on domestic competition and welfare. We consider a model for two countries in which each country has two operators that compete in the retail market for access services and also in the wholesale market for roaming. We first derive equilibrium prices in the two markets when operators are not subjected to regulatory restrictions. We then introduce Roaming Like At Home (RLAH) obligation and show how retail tariffs and wholesale roaming charges can be sensitive to this regulatory regime. Since introducing a fair use clause in roaming regulation can be a tool to avoid permanent roaming, we study different cases depending on whether RLAH is acompagnied by a fair use safeguard or not. We emphazise the most interesting results, considering the role played by cost and demand asymmetries between operators and countries.

Keywords: International roaming; mobile telecommunications; roaming like at home; fair use policy; interconnection (search for similar items in EconPapers)
JEL-codes: L13 L51 L96 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-com, nep-isf and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itsb21:238008

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