Upstream regulation in mature network industry: evidence from Nordic mobile telecommunications markets

Jooyong Jun, Jeong Wook Byun, Eunjung Yeo

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This article investigates the effects of upstream regulation that aims to create niches and attract new type of entrants on the competitive environment of downstream markets. Using unique cross-country data of Nordic mobile telecommunications markets, we show that upstream regulation leads to (i) increases in both number and aggregate market share of service-based providers in the downstream market, (ii) an increase in the number of service-based providers, thus increasing their aggregate market share, but no opposite direction of results and (iii) a lower retail price level, proxied by average revenue per user. Our findings imply that upstream regulation may be able to achieve better outcomes when the policy objectives are to revitalize mature network industries and to enhance consumer welfare.

Original languageEnglish
Pages (from-to)1230-1236
Number of pages7
JournalApplied Economics Letters
Volume25
Issue number17
DOIs
StatePublished - 7 Oct 2018

Keywords

  • access regulation
  • market structure
  • retail competition
  • Vertical restraints

Fingerprint

Dive into the research topics of 'Upstream regulation in mature network industry: evidence from Nordic mobile telecommunications markets'. Together they form a unique fingerprint.

Cite this