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On the competitive effects of mobile virtual network operators

Author

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  • Kalmus, Philip
  • Wiethaus, Lars

Abstract

Mobile virtual network operators (MVNOs) offer mobile telecoms services by purchasing capacity from mobile network operators (MNOs) and competing with the latter at the retail level. This paper employs a two stage model and analyses to what extent MVNOs may exert a competitive constraint on MNOs. In the first stage MNOs determine both their wholesale and retail capacities. In the second stage MNOs and MVNOs compete in the retail market. It is found that MNOs host MVNOs if and only if the latter do not exert a competitive constraint on MNOs' retail businesses. Thus, absent access regulation, MVNO entry may happen but is unlikely to reduce consumer prices. The results do not depend upon the scarcity of capacity.

Suggested Citation

  • Kalmus, Philip & Wiethaus, Lars, 0. "On the competitive effects of mobile virtual network operators," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 262-269, June.
    • Handle: RePEc:eee:telpol:v:34:y::i:5-6:p:262-269
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    Citations

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    Cited by:

    1. Lestage, Romain & Flacher, David, 2014. "Infrastructure investment and optimal access regulation in the different stages of telecommunications market liberalization," Telecommunications Policy, Elsevier, vol. 38(7), pages 569-579.
    2. Otello Ardovino & Marco Delmastro, 2021. "An empirical analysis of the impact of structural changes in the mobile market," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 257-274, June.
    3. Garrido, Elisabet & Whalley, Jason, 2013. "Competition in wholesale markets: Do MNOs compete to host MVNOs?," Telecommunications Policy, Elsevier, vol. 37(11), pages 1124-1141.
    4. Luis Guijarro & Vicent Pla & Bruno Tuffin & Patrick Maillé & Jose Vidal, 2011. "Competition and bargaining in wireless networks with spectrum leasing," Post-Print hal-00725488, HAL.
    5. Cricelli, Livio & Grimaldi, Michele & Levialdi Ghiron, Nathan, 2012. "The impact of regulating mobile termination rates and MNO–MVNO relationships on retail prices," Telecommunications Policy, Elsevier, vol. 36(1), pages 1-12.

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