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In this paper we show how two apparently similar ways to report mobile call prices: the average expenditure per minute and the average revenue per minute can differ in a striking way. The non-linearities of mobile tariffs, especially the widespread use of two part tariffs which consist of a minimum expenditure and call connection fees, underlie the difference between the two types of price proxies. Whilst average revenue per minute informs about operators yields, average expenditure per minute is an indicator of the effectiveness of price discrimination.

Measuring prices in the electronic communications market: some thoughts about non-linear tariffs for mobile phone calls