Title: Termination-discriminatory pricing in European mobile communications markets

Authors: Torsten J. Gerpott

Addresses: Chair of Strategic Management, Mercator School of Management, University of Duisburg-Essen, Lotharstr. 65, D-47057 Duisburg, Germany

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.

Keywords: early entrants; pioneer advantage; late entrants; follower disadvantage; mobile communications; off-net traffic; on-net traffic; price differentiation; termination charges; discriminatory pricing; Europe; voice connection; price differentials; mobile networks; Germany; mobile phones; cell phones.

DOI: 10.1504/IJMC.2008.019322

International Journal of Mobile Communications, 2008 Vol.6 No.5, pp.564 - 586

Published online: 07 Jul 2008 *

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