Saturation levels of mobile telecommunications markets and optimal termination rates
Daniel Ventosa-Santaulària y Alexander Elbittar, Profesores Investigadores Titulares de la División de Economía, junto con Pedro Matías y Carlos Aguilar Huerta, escribieron: Saturation levels of mobile telecommunications markets and optimal termination rates en la revista Estudios Económicos.
Abstract
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.
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