Better regulation of mobile telecommunications

Abstract:

New research shows that competition in mobile telecommunications is unlikely to be effective without
regulation. The competition problems can be expected to prevail also in the long run, even if
consumers have the opportunity to choose between many different networks and switching is easy.
Some form of regulation is thus necessary to secure continued low call prices. Based on this research,
we propose a structural form of regulation which is powerful enough to remove the obstacles
to competition, but which at the same time is simple to implement. Structural regulation is also
more transparent, which should reduce regulatory uncertainty and promote investments in a sector
which is of great importance for economic growth.