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Munich Personal RePEc Archive

Mobile telephony in the UK

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

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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.

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