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The potential for mobile networks to use differential call charges as a means of foreclosure

In many countries mobile-to-mobile (M2M) access charges are set above cost; and the price of mobile phone calls to subscribers on different mobile networks ("off-net" calls) is higher than calls to other subscribers on the same network ("on-net" calls). This raises questions about the incentives on mobile network operators (MNOs) in setting M2M access charges and the relative position of large and small networks. Frontier's modelling work challenges the regulatory view that large operators may use high charges to foreclose their competitors.