Analysis of the Mobile Number Portability Policy in the Telecom Market with Or Without Price Discrimination PDF Download
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Languages : en
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We attempt to analyze why the adoption of the mobile number portability policy incurs no (or very little) effect in encouraging competition in the telecommunication market. The cause is related to network externality. The level of network externality can be characterized by the proportion of any individual friends who are also adopting in the same carrier as the individual does. We find that such network externality may prohibit competition in the telecommunication market when termination-based pricing is prevailing. When termination-based pricing is prohibited, carriers cannot take advantage of network externality. We characterize the conditions such that without termination-based pricing, carriers become more competitive and consumers benefit more than with termination-based prices. Our study provides insightful implication on how to effectively impose the mobile number portability policy to improve competition in the telecommunication market.
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Languages : en
Pages :
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Book Description
We attempt to analyze why the adoption of the mobile number portability policy incurs no (or very little) effect in encouraging competition in the telecommunication market. The cause is related to network externality. The level of network externality can be characterized by the proportion of any individual friends who are also adopting in the same carrier as the individual does. We find that such network externality may prohibit competition in the telecommunication market when termination-based pricing is prevailing. When termination-based pricing is prohibited, carriers cannot take advantage of network externality. We characterize the conditions such that without termination-based pricing, carriers become more competitive and consumers benefit more than with termination-based prices. Our study provides insightful implication on how to effectively impose the mobile number portability policy to improve competition in the telecommunication market.
Author: Sam LaMartina
Publisher:
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Category :
Languages : en
Pages : 33
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Author: Lee, In
Publisher: IGI Global
ISBN: 1605661953
Category : Technology & Engineering
Languages : en
Pages : 1211
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"This book provides original, in-depth, and innovative articles on telecommunications policy, management, and business applications"--Provided by publisher.
Author: Imran Hameed Khaliq
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
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Pakistan's mobile phone market is one of the world's fastest growing markets with a subscriber base of 137 million users. Competition in the country's telecommunication industry is dominated by four players and customer demand is high. In addition, Pakistan is the first country in South Asia to have implemented Mobile Number Portability (MNP) in March 2007. MNP is a facility that allows mobile subscribers to switch between service providers without changing their existing phone numbers. Mobile phone service provider's selection may be influenced by various factors. Therefore, this research was undertaken to explore factors affecting MNP and to determine which factors were most influential in the selection of mobile phone service providers in a developing economy like Pakistan. Moreover, the study also probed into differences in customer perceptions between pre-paid and post-paid customers. This exploratory study is based on primary data collected from 300 customers using services of different cellular companies who had experienced MNP facility. Factor analysis was carried out on obtained data and reliability of the resultant scale was verified to achieve the objectives of the study. The outcome of this research provided a concise framework of the various dimensions of customer choice. Contrary to previous researches, the result of this study indicated that infrastructural services, customer relationships, call quality and promotional packages were the most important factors affecting MNP. However, price of services was found less important factor in selection of telecommunication service providers. This study also showed that pre-paid and post-paid customers can be significantly different for many value-added services and promotional tools.
Author: Muralidhara B. Ramesh
Publisher: LAP Lambert Academic Publishing
ISBN: 9783847301899
Category :
Languages : de
Pages : 80
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The Study "Impact of Mobile Number Portability (MNP) on telecom services" attempts to analyse the impacts of MNP on all stake holders especially customers. Study is limited to City of Bangalore and cities nearby. This research is particularly interested in investigating subscribers' behaviours and perceptions such as motivations of changing or remaining with mobile carriers (operators) with the introduction of MNP. The availability of MNP has been thought to bring substantial benefits to subscribers: lower price, greater choice, higher quality and a greater range of services The outcome of our study - In India Mobile number portability (MNP) won't impact much on telecom industry because as per the survey only 5% to 10% are willing to opt for MNP.
Author: Justus Haucap
Publisher:
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Category :
Languages : en
Pages : 0
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This paper analyzes how competition works in mobile telecommunications markets and, based on this analysis, we discuss whether regulatory intervention in mobile telephone markets is justified from an economic perspective. Starting point of our analysis is the observation that an evaluation of regulatory interventions into mobile telecommunications markets cannot be made without a deeper understanding for competitive processes in mobile telephony. What is of decisive relevance for understanding competition in mobile telephony, is the fact that building a mobile telephone network requires highly specific investments, which take place under significant uncertainty, as investments in 3G networks such as UMTS illustrate. An inevitable consequence of specific investments are sunk costs. Hence, one can only expect firms to extensively invest and innovate if firms can hold a justified expectation to work profitably after they have invested. To cover their capital costs, which are largely fixed and not avoidable, firms need to follow a pricing policy that involves prices above incremental costs. Hence, a key determinant for mobile operators' price policy lies in their cost structure, which is characterized by high fixed and common costs that are also sunk and relatively low incremental costs. In such situations, efficiency demands so-called Ramsey pricing structures, which involves different mark-ups for different services. In contrast, a situation with uniform mark-ups will generally be inefficient. Instead, services with an inelastic demand should carry relatively high prices, while services, for which the demand is rather elastic, should be priced close to marginal costs. Exactly such a pricing structure results when unregulated firms are left to maximize their profits. Hence, the factor that prices and mark-ups differ between different services and markets is an efficiency imperative and not a sign for market failure. Nevertheless the necessity of interconnection and fixed-to-mobile termination may give rise to competition problems. As we argue in this paper, closer analysis shows that these problems do not automatically imply that sector specific regulation is warranted. The same hold for the question of regulated mobile number portability. Instead, an ex post introduction of sector specific regulation can be regarded as a breach of the implicit regulatory contract by the State. This Government hold-up socializes and redistributes operators' profits, while the operators carried the initial investment risk. Such a Government hold-up reduces firms' incentives for investment and innovation and, thereby, also harms consumers in the long run. In addition, there is a real risk of regulatory failure, as empirical evidence demonstrates. Based on these considerations, this paper fiercely advises against sector specific regulation of mobile telephone markets. The social welfare loss that would arise from such regulations are estimated to be enormous.
Author: Mihir Dash
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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The Indian telecommunications sector is an example of successful deregulation, having witnessed fundamental structural and institutional reforms in the post-Liberalisation period. India has emerged in recent times as one of the fastest growing telecommunications markets in the world, particularly by the unprecedented growth in mobile telephony. Mobile Number Portability (MNP) allows any subscriber to change his service provider without changing his mobile phone number. MNP was launched in India in Nov. 2010-Jan. 2011. The introduction of MNP was expected to promote more competition in the sector, and force service providers to improve service quality and reduce prices. The present study examines the effect of MNP on the student segment. The primary objectives of the study are to study the awareness level of MNP among the students, to explore the brand-switching behaviour of mobile users by accessing MNP, and to understand the factors influencing consumers towards MNP. The study shows that, though there is a very high level of awareness amongst students on MNP, there is not much response in terms of increasing the intension to switch service providers. In fact, the introduction of MNP has made the student segment more price- and quality-sensitive. As a result, service providers must offer better service at reduced prices in order to retain and expand its customer base.
Author: Irene Wu
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Languages : en
Pages : 0
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Out of around 200 countries in the world, only 75 have number portability. What explains the speed and pattern of diffusion of this regulatory issue? Research on policy diffusion offers several explanations: constructivist, coercion, competition, and learning. Constructivists argue that countries adopt a policy, sometimes even before they are ready, in order to appear modern and forward-looking. Coercive explanations argue that countries adopt policies because they are forced to through bilateral or multilateral agreements, for example. Competition explanations suggest that countries adopt policies in order to make them more comparatively attractive, to foreign investors, for example. Finally, the learning explanation suggests that governments' beliefs about policies change over time. They learn when observing other countries implement a policy and monitoring its effectiveness. All of these explanations apply to diffusion of some policies internationally. The challenge is to understand which explanations apply more aptly under what kind of conditions and for what kinds of policies. To see which of these explanations applies to the global diffusion of number portability regulation, and through this single issue a view to the diffusion of communications regulation more broadly, first, I have collected data on number portability, the start of fixed line phone competition, and the start of mobile phone competition in countries around the world. This global data set, centered on three regulatory issues, provides some clues as to the pace and pattern of regulatory diffusion in the communications arena. Second, I have collected qualitative information on number portability discussions in five regional organizations - Asia-Pacific Economic Cooperation (APEC), Inter-American Telecommunications Commission under the Organization of American States (CITEL), European Union, Economic Community of West African States (ECOWAS), and Common Market for Eastern and Southern Africa (COMESA). These documents show which and when countries were interested in number portability. These qualitative data reveal patterns and links not evident in the global quantitative datasets. Finally, the paper concludes that examining regulatory diffusion through the lens of number portability suggests that Asia, Americas, and Europe are the three regions that innovate first; Middle East and Africa follow later on. Further, that in Asia and Americas, certain countries are pioneers, while others wait to see results before proceeding; learning appears to explain the diffusion pattern in these regions. In contrast , in Europe, regulatory diffusion begins early and proceeds rapidly, without the lag time observed in Asia and Americas, very likely because of the leadership and enforcement powers of the European Union, a coercive explanation among member states and a competitive one among non-member states. The data also make it possible to identify which countries often lead in regulatory innovation; conclusions that can be tested as more data on regulatory diffusion is collected for other communications issues. This is usable knowledge that can be applied to following the current diffusion of regulatory innovations across the world.
Author: Jean-Jacques Laffont
Publisher: MIT Press
ISBN: 9780262621502
Category : Business & Economics
Languages : en
Pages : 340
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Book Description
The authors analyze regulatory reform and the emergence of competitionin network industries using the state-of-the-art theoretical tools ofindustrial organization, political economy, and the economics ofincentives.
Author: Minjung Park
Publisher:
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Category :
Languages : en
Pages : 0
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This paper examines the price response of wireless carriers to the introduction of number portability in the U.S. I find that wireless prices decreased in response to number portability, but not uniformly across plans. Average prices for the plans with the fewest minutes decreased by only $0.19/month (0.97%), but average prices for medium and high-volume plans decreased by $3.64/month (4.84%) and $10.29/month (6.81%), respectively. The results suggest that higher-volume users in the wireless market benefited more from the policy-induced reduction in switching costs.
