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Regulated termination rates and competition among Tunisian mobile network operators. Barriers, bias, and incentives

Type of Resource:

Year of Publication:

- Enablers
- Solutions or Strategies
- Trends

- 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.


Region of Study:
West Africa,

Country of Study:

Study Quality