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International Network Competition

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Abstract

We analyse network competition in a market with international calls. National regulatory agencies (NRAs) have incentives to set regulated termination rates above marginal cost to extract rent from international call termination. International network ownership and deregulation are alternatives to combat the incentives of NRAs to distort termination rates. We provide conditions under which each of these policies increase efficiency and aggregate welfare. Our findings provide theoretical support for recent policy initiatives by the European Commission.

Suggested Citation

  • Tangerås, Thomas & Tåg, Joacim, 2014. "International Network Competition," Working Paper Series 1005, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1005
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    More about this item

    Keywords

    Cross-border ownership; Decentralized regulation; International markets; Network;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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