Economic Framework of Tariffs’ Determination in Telecommunication Services: a Digital Business in an "Analogue" Environment?

2019 ◽  
Vol 2019 (6) ◽  
pp. 79-98
Author(s):  
Natalya Pavlova ◽  
Andrey Shastitko ◽  
Karina Ionkina

The article analyses the economic aspects of the application of antitrust legislation in the context of abuse of dominant position prohibition (primarily in the form of setting excessive prices) in industries that are characterized by a complexity of services both on the production side and on the demand side. Evidence from several recent antitrust cases against mobile network operators in Russia has shown that the analysis of prices for individual mobile services is incorrect outside the context of complex pricing under high joint fixed costs. The aim of this article is to explain the economic basis for changing the tariffs of telecommunication services in terms of antitrust legislation requirements. The article presents a direction for assessing the state of competition and the corresponding behavior of market participants (for example, attributes of determining excessive prices) taking into account the characteristics of the telecommunications industry, specially, the mobile services industry. Moreover, it is shown that mobile services exhibit the effects of active competition: a high quality of communication, high rates of innovative activity in the industry as a whole, as well as low prices.

Author(s):  
Benjamin Enahoro Assay

This chapter examines regulatory compliance, ethical behaviour and sustainable growth in Nigeria's telecommunications industry. It provides perspectives on the vexed issues of poor quality of service (QoS) that seems to have defied all practical solutions, unsolicited messages and the fleecing of subscribers by the mobile network operators, and other unfair business practices pervading the industry. The chapter wades through the controversy surrounding regulations and sanctions, and condemns the flagrant disregard for industry regulations by the mobile network operators whose actions are propelled by the runaway profit, which currently drives the stiff competition in the telecommunications industry. Based on the issues and problems articulated in this work, the chapter recommended among others, that the regulator should continue to engage the mobile network operators and other stakeholders in a robust dialogue aimed at finding lasting solution to the challenges impeding the growth of the telecommunications industry in Nigeria.


Author(s):  
Jarkko Vesa

On New Year’s Day 1985, Ernie Wise made Britain’s first cellphone call. Now, less than two decades later, most people in this country have a mobile and every sixth person in the world owns one. They have launched revolutions, saved lives, destroyed relationships and, of course, spawned a whole new genre of utterly pointless communication. (The Guardian, November 11, 2002) The UK mobile market is one of the most advanced — if not the most advanced — mobile market in Europe. This is understandable when keeping in mind the long tradition of wireless communications in the country already in the analog era of mobile telephony. The UK was also among the first countries in Europe to open up the competition for mobile services, and to implement mobile number portability, which was introduced in early 1999 (Oftel, 2001). Mobile telephony services are also widely adopted in the UK. According to official statistics, more than 70 percent of the population used mobile phones in 2002. However, according to more recent estimates, mobile phone penetration is almost 100 percent in the UK (M-Commerce Chasm, Sept 27, 2004, p. 1). The competition in the UK is extremely intense as the five mobile operators (Vodafone, Orange, T-Mobile, mmO2, and the 3G-only operator Hutchison Whampoa) are trying to attract both new customers and to entice customers away from their current operators (Olla and Patel, 2002). Even Oftel, the regulatory authority in the UK, decided to remove the last remaining mobile telecom sector specific regulation in fall 2003, as there was no longer a need for regulation to promote competition in the mobile market: Consumers (due to the intensifying competition) got increasingly better deals and none of the five mobile network operators had significant market power in the UK market. Therefore, Octel removed the restrictions that were imposed on Vodafone and O2 to provide interconnection services (http://www.cellular.co.za, October 15, 2003).


Author(s):  
Femi Ekanoye ◽  
Temitope Olokunde ◽  
Victor Mbarika ◽  
Philip Musa

Mobile Virtual Network Operators (MVNOs) are of immense value to the mobile telecommunications industry as they provide services at an affordable rate to customers and work with Mobile Network Operators (MNOs) who own the telecommunication infrastructure. This is because Mobile Network Operators sell airtime at wholesale rates to Mobile Virtual Network Operators. The Mobile Virtual Network Operators retain their brand name whilst having an arrangement with their host who is the Mobile Network Operator (MNO). This article therefore identifies the bottlenecks experienced by MNOs in establishing relationships with MVNOs in Nigeria. The article also covers the various forms of MVNO business models available in the industry and the types of policies that support the MVNO success and sustainability.


2021 ◽  
Vol 12 (2) ◽  
pp. 157-163
Author(s):  
Ukoette Jeremiah Ekah ◽  
Chibuzo Emeruwa

The increase in the number of mobile subscribers, coupled with the increase in mobile services is enough reason to monitor the QoS of mobile network operators frequently. This work looks into the QoS of network operators in Calabar, Nigeria, taking into consideration some KPIs ((CSSR, DCR, CST, HOSR, and network quality and network coverage). Analysis of data obtained after a benchmarking drive test shows that Globacom network was within NCC performance threshold for all network KPIs monitored. Also, MTN network performed poorly in HOSR but met the minimum benchmark in other network KPIs. Airtel network failed in the required DCR benchmark but was within the minimum benchmark for other KPIs while 9mobile failed in CSSR and DCR performance threshold but met the performance threshold for other KPIs. This result will be useful to the regulatory body, NCC, those in academic, RF engineers, network subscribers and especially, the network operators which we expect, will optimize their networks immediately.


2009 ◽  
pp. 696-711
Author(s):  
Jarkko Vesa

This chapter introduces a novel analytical framework called Mobile Services Matrix (MOSIM), which is used as the basis of a comparative analysis between the Japanese and the Finnish mobile services markets. The results indicate that as the mobile industry shifts from highly standardized voice services towards more complex mobile data services, the vertical/integrated market configuration (i.e., the Japanese model) appears to be more successful than the horizontal/modular configuration (i.e., the Finnish model). A brief overview of the UK market shows that the leading UK mobile network operators are transforming the industry towards a more vertical, operator-driven market configuration. The role of national regulatory framework in this industry evolution process is discussed.


2011 ◽  
pp. 253-269
Author(s):  
Jarkko Vesa

This chapter introduces a novel analytical framework called Mobile Services Matrix (MOSIM), which is used as the basis of a comparative analysis between the Japanese and the Finnish mobile services markets. The results indicate that as the mobile industry shifts from highly standardized voice services towards more complex mobile data services, the vertical/integrated market configuration (i.e., the Japanese model) appears to be more successful than the horizontal/modular configuration (i.e., the Finnish model). A brief overview of the UK market shows that the leading UK mobile network operators are transforming the industry towards a more vertical, operator-driven market configuration. The role of national regulatory framework in this industry evolution process is discussed.


SIMULATION ◽  
2017 ◽  
Vol 94 (3) ◽  
pp. 195-212 ◽  
Author(s):  
David Bell ◽  
Chidozie Mgbemena

Customer retention is a critical concern for mobile network operators because of the increasing competition in the mobile services sector. Such unease has driven companies to exploit data as an avenue to better understand changing customer behavior. Data-mining techniques such as clustering and classification have been widely adopted in the mobile services sector to better understand customer retention. However, the effectiveness of these techniques is debatable due to the constant change and increasing complexity of the mobile market itself. This design study proposes an application of agent-based modeling and simulation (ABMS) as a novel approach to understanding customer behavior through the combination of market and social factors that emerge from data. External forces at play and possible company interventions can then be added to data-derived models. A dataset provided by a mobile network operator is utilized to automate decision-tree analysis and subsequent building of agent-based models. Popular churn modeling techniques were adopted in order to automate the development of models, from decision trees, and subsequently explore possible customer churn scenarios. ABMS is used to understand the behavior of customers and detect reasons why customers churned or stayed with their respective mobile network operators. A CART decision-tree method is presented that identifies agents, selects important attributes, and uncovers customer behavior – easily identifying tenure, location, and choice of mobile devices as determinants for the churn-or-stay decision. Word of mouth between customers is also explored as a possible influence factor. Importantly, methods for automating data-driven agent-based simulation model generation will support faster exploration and experimentation – including with those determinants from a wider market or social context.


2018 ◽  
Vol 10 (10) ◽  
pp. 3626 ◽  
Author(s):  
Yousaf Zikria ◽  
Sung Kim ◽  
Muhammad Afzal ◽  
Haoxiang Wang ◽  
Mubashir Rehmani

The Fifth generation (5G) network is projected to support large amount of data traffic and massive number of wireless connections. Different data traffic has different Quality of Service (QoS) requirements. 5G mobile network aims to address the limitations of previous cellular standards (i.e., 2G/3G/4G) and be a prospective key enabler for future Internet of Things (IoT). 5G networks support a wide range of applications such as smart home, autonomous driving, drone operations, health and mission critical applications, Industrial IoT (IIoT), and entertainment and multimedia. Based on end users’ experience, several 5G services are categorized into immersive 5G services, intelligent 5G services, omnipresent 5G services, autonomous 5G services, and public 5G services. In this paper, we present a brief overview of 5G technical scenarios. We then provide a brief overview of accepted papers in our Special Issue on 5G mobile services and scenarios. Finally, we conclude this paper.


2021 ◽  
Vol 45 (3) ◽  
pp. 102086
Author(s):  
William Lehr ◽  
Fabian Queder ◽  
Justus Haucap

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