Abstract

VENTOSA-SANTAULARIA, Daniel; ELBITTAR, Alexander; MATIAS, Pedro  and  AGUILAR HUERTA, Carlos. Saturation levels of mobile telecommunication markets and optimal termination rates. Estud. Econ. (México, D.F.) [online]. 2020, vol.35, n.2, pp.331-355.  Epub Oct 22, 2020. ISSN 0186-7202.  https://doi.org/10.24201/ee.v35i2.406.

This paper analyzes the how the two main mobile telecommunication payment regimes, receiving party pays (RPP) and calling party pays (CPP), impact mobile telecommunication diffusion patterns; and provides evidence that a quadratic and concave relationship exists between mobile termination rate and the level of penetration of mobile telecommunications. We also find significant evidence that competition, political regime and internet use affect the saturation rate as well. Finally, we find that the global behavior of telecommunication markets has contributed to a reduction in the gap between the optimal and actual mobile termination rates in most countries.

Keywords : mobile markets and diffusion; saturation levels; mobile termination rate; L1; L5; L96.

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