Termination-discriminatory pricing in European mobile communications markets
by Torsten J. Gerpott
International Journal of Mobile Communications (IJMC), Vol. 6, No. 5, 2008

Abstract: Termination-discriminatory pricing entails voice connection price differentials depending upon whether calling and called parties subscribe to the same Mobile Network Operator (MNO) (on-net) or not (off-net). On–Off-Net Price Differentiation (OONPD) might have anti-competitive effects in markets where MNO entry dates vary due to staggered license allocations. This paper reviews evidence related to the extent of OONPD and its impacts on subscriber behaviours. Further, it includes a study of OONPD patterns of 32 MNO from nine European countries with a special emphasis on Germany. A policy conclusion is that regulators should consider remedies against OONPD of dominant early entrant MNO.

Online publication date: Mon, 07-Jul-2008

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