Type of Resource:
Journal

Year of Publication:
2017

Indicators:
- Enablers
- Solutions or Strategies
- Trends


Themes:
- Internet Governance

Author(s): SafieddineBouali

This research studies the interplay between interconnection rates for mobile call termination and the retail price competition for prepaid SIM cards, predominantly chosen by Tunisian consumers. We show that the duopoly was practicing “price alignment” for off-net calls, and that subsequently, the third provider entering the market sparked a decisive initial price drop associated with the non-reciprocal rate it enjoyed. However, the price war, which benefited consumers, only occurred when the Regulatory Body eliminated differential tariffs between on and off-net calls in the retail market. It follows that, everything else being equal, an interconnection rate drop alone will not lead to a decrease in retail prices.

URL
https://www.sciencedirect.com/science/article/abs/pii/S0308596117302628

Region of Study:
West Africa,

Country of Study:


Study Quality
High