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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29490
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| Title: | Market Penetration and Late Entry in Mobile Telephony |
| Authors: | Hoernig, Steffen - Universidade Nova de Lisboa |
| Keywords: | Mobile Telephony, Entry, Penetration, Mobile termination rates |
| Issue Date: | 2008 |
| Series/Report no.: | Net Institute Working Paper;08-38 |
| Abstract: | We consider some two dynamic models of entry in mobile telephony, with
and without strategic pricing, and taking into account market
penetration at entry, locked-in consumers and tariff-mediated network
externalities. We show that on/off-net differentials may reduce the
possibility of entry if incumbents are large, while they have no
long-run effects if there are no locked-in consumers, or reduce the
difference in subscriber numbers in their presence. Asymmetric fixedto-
mobile or mobile-to-mobile termination rates increase (decrease) market
share and profit of the network with the higher (lower) rate. While the
fixed-to-mobile waterbed effect is not full at the network level, it
will be full in the aggregate. |
| URI: | http://hdl.handle.net/2451/29490 |
| Appears in Collections: | NET Institute Working Papers Series
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