M2M Call Termination – Regulation or Competition? | Zendy

Tommy Staahl Gabrielsen | Zendy; Steinar Vagstad | Zendy

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M2M Call Termination – Regulation or Competition?

Author(s) -

Tommy Staahl Gabrielsen,

Steinar Vagstad

Publication year - 2008

Publication title -

applied economics quarterly

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.186

H-Index - 3

eISSN - 1865-5122

pISSN - 1611-6607

DOI - 10.3790/aeq.54.3.203

Subject(s) - sketch , competition (biology) , incentive , industrial organization , mobile telephony , economics , business , microeconomics , telecommunications , public economics , computer science , mobile radio , ecology , algorithm , biology

We review the recent literature on mobile termination rates (MTR) in mobile communication networks (M2M). This literature shows that mobile networks may have incentives to charge ine¢ cient high termi- nation charges leading to reduced surplus for consumers and society, and therefore should be regulated. We discuss optimal regulation of MTRs and the two main objectives behind current regulation: exces- sive pricing and entry assistance. We also present a sketch of a new regulatory regime for the mobile industry.

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