The impact of regulation on the retail prices in fixed-line telephony across the European Union

Abstract :

This paper estimates reduced-form models for incumbent prices in the fixed telecommunications industry using data for European Union (EU) countries from 1998 to 2002. The regulation of fixed-line telephony has a significant impact on prices for residential consumers. Liberalization of the telecommunications industry decreased retail prices by about 8.2%. The introduction of carrier pre-selection and number portability had a negative impact on price levels. The estimation results also suggest that a 1% decrease in termination charges on the incumbent network led on average to a 0.17% decrease in the cost of usage basket for residential consumers. Furthermore, in the pricing regressions for incumbent local and national calls at peak and off-peak times interconnection charges are significant only in the estimation of national peak prices. A 1% decrease in single transit interconnection charges on the incumbent network led to a 0.31% decrease in incumbent national prices at peak times, as calculated for the average prices in the EU in 2002.

Keywords : L13 L43 L5 L96
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https://hal.telecom-paristech.fr/hal-02286635
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Submitted on : Friday, September 13, 2019 - 3:58:42 PM
Last modification on : Thursday, October 17, 2019 - 12:36:49 PM

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  • HAL Id : hal-02286635, version 1

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Citation

L. Grzybowski. The impact of regulation on the retail prices in fixed-line telephony across the European Union. Telecommunications Policy, 2008, 32 (2), pp.131-144. ⟨hal-02286635⟩

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