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| Author: | Armstrong, M. Wright, J. |
| Title: | Mobile call termination |
| Journal: | Economic Journal
2009 : JUN, VOL. 119:538, p. 270-307 |
| Index terms: | mobile phones telecommunications industry telecommunication networks markets United Kingdom competitive advantage pricing |
| Freeterms: | charges |
| Language: | eng |
| Abstract: | This study analyzes charges from mobile telephone networks (henceforth as: m-t-nets) in delivering calls. Two literatures are incorporated: one analyzing calls from the fixed network (here as: net) with predicted (herein as: prcd.) unregulated termination (as: u-t:) charges being too high, and one analysing calls from competitive m-t-nets with prcd. charges being too low. In practice, however, nets adopt uniform charges for terminating both kinds of traffic, as do regulators. It is shown how incorporating wholesale arbitrage and demand-side substitution helps to reconcile theory with practice. In the framework, the u-t. charge is uniform and typically btw. the efficient and monopoly benchmarks. |
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