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A model of international roaming regulation and competition in European mobile markets

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  • Baranes, Edmond
  • Vuong, Cuong Hung

Abstract

This paper investigates the impacts of the current roaming rules on domestic competition and welfare. We consider a model for two countries in which each country has two operators that compete in the retail market for access services and also in the wholesale market for roaming. We first derive equilibrium prices in the two markets when operators are not subjected to regulatory restrictions. We then introduce Roaming Like At Home (RLAH) obligation and show how retail tariffs and wholesale roaming charges can be sensitive to this regulatory regime. Since introducing a fair use clause in roaming regulation can be a tool to avoid permanent roaming, we study different cases depending on whether RLAH is acompagnied by a fair use safeguard or not. We emphazise the most interesting results, considering the role played by cost and demand asymmetries between operators and countries.

Suggested Citation

  • Baranes, Edmond & Vuong, Cuong Hung, 2021. "A model of international roaming regulation and competition in European mobile markets," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238008, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb21:238008
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    References listed on IDEAS

    as
    1. Oecd, 2011. "International Mobile Data Roaming," OECD Digital Economy Papers 180, OECD Publishing.
    2. Oecd, 2009. "International Mobile Roaming Charging in the OECD Area," OECD Digital Economy Papers 166, OECD Publishing.
    3. Ambjørnsen, Terje & Foros, Øystein & Wasenden, Ole-Christian B., 2011. "Customer ignorance, price-cap regulation, and rent-seeking in mobile roaming," Information Economics and Policy, Elsevier, vol. 23(1), pages 27-36, March.
    4. Sutherland, Ewan, 2001. "International roaming charges: over-charging and competition law," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 5-20, February.
    5. Infante, Jorge & Vallejo, Ivan, 2012. "Regulation of international roaming in the European Union—Lessons learned," Telecommunications Policy, Elsevier, vol. 36(9), pages 736-748.
    6. Stühmeier, Torben, 2012. "Roaming and investments in the mobile internet market," Telecommunications Policy, Elsevier, vol. 36(8), pages 595-607.
    7. Salsas, Roger & Koboldt, Christian, 2004. "Roaming free?: Roaming network selection and inter-operator tariffs," Information Economics and Policy, Elsevier, vol. 16(4), pages 497-517, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International roaming; mobile telecommunications; roaming like at home; fair use policy; interconnection;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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