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Market Power and competition effect on Interconnection fees: Econometric Estimation of the Mobile Tunisian Market

Author

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  • Sami ALI Debbichi

    (Faculty of Economics and Management of Tunis el Manar, Tunisia)

Abstract

Econometric analysis can be mobilized by the regulator to set cost-oriented prices. Indeed, the regulator can influence the market structure to lower interconnection prices. Our work is to estimate, econometrically, the effect of variables related to market structure and competition on mobile termination rate evolution .The variable of market power will be estimated, based on the work of Parker Roller and the assumption "Balanced Balling Pattern". The “conduct parameter†measuring the intensity of competition is not null during the period (1993-2011), in this situation operators practice full market power. Econometric model will be based on Ordinary Least Squares method during the period (1993, 2011).Results show that competition affects the interconnection prices. This issue is underlined clearly in the official report of OECD Developments in mobile interconnection fees (2012).

Suggested Citation

  • Sami ALI Debbichi, 2015. "Market Power and competition effect on Interconnection fees: Econometric Estimation of the Mobile Tunisian Market," Economics Bulletin, AccessEcon, vol. 35(2), pages 1227-1236.
    • Handle: RePEc:ebl:ecbull:eb-13-00800
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    References listed on IDEAS

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    More about this item

    Keywords

    interconnection fees; Market power; Competition;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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