Mobile telephony in the UK

Armstrong, Mark (1997): Mobile telephony in the UK. Unpublished.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Telecommunications; regulation; access pricing
• Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications; L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation; D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection

References

Armstrong, Mark (1997), “Competition in Telecommunications”, Oxford Review of Economic Policy, 13, 64-82.

OFTEL (1997a), “Market Information Update: April 1997”, London: Oftel.

OFTEL (1997b), “Fair Trading in Mobile Service Provision: A Statement”, London: Oftel.

OFTEL (1997c), “Prices of Calls to Mobile Phones: A Consultative Document”, London: Oftel.

OFTEL (1997d), “Number Portability in the Mobile Telephony Market”, London: Oftel.

Mitchell, Bridger and Ingo Vogelsang (1991), Telecommunications Pricing, Cambridge: Cambridge University Press.