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Mobile telephony in the UK

Author

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  • Armstrong, Mark

Abstract

This paper discusses aspects of recent policy towards mobile telephony in the U.K., including (i) the level of retail charges for calls from fixed to mobile networks, (ii) the level of call termination charges on mobile networks, and (iii) the level of connection subsidies offered by mobile networks. A formal model of the market is introduced, which offers a direct linkage between call termination rates and the level of connection subsidy. This provides a framework for discussing the ideal level of call termination charges on mobile networks, a topic of current controversy in the U.K.

Suggested Citation

  • Armstrong, Mark, 1997. "Mobile telephony in the UK," MPRA Paper 35405, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35405
    as

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    File URL: https://mpra.ub.uni-muenchen.de/35405/1/MPRA_paper_35405.pdf
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    References listed on IDEAS

    as
    1. Armstrong, Mark, 1997. "Competition in Telecommunications," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(1), pages 64-82, Spring.
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    Cited by:

    1. Hoernig, Steffen, 2014. "Competition between multiple asymmetric networks: Theory and applications," International Journal of Industrial Organization, Elsevier, vol. 32(C), pages 57-69.
    2. Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
    3. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    4. Tommaso Valletti & George Houpis, 2005. "Mobile Termination: What is the “Right” Charge?," Journal of Regulatory Economics, Springer, vol. 28(3), pages 235-258, November.
    5. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.

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    More about this item

    Keywords

    Telecommunications; regulation; access pricing;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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