Should regulators set rates to terminate cells on moblie network

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Should regulators set rates to terminate cells on moblie network

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network ory Sidak21 Yale J. ON R£G. 261Copyright c 2004 by the Yale Journal on Regulation, Yale Law School, 401A Yale Station, New Haven, Connecticut 06520. P

hone: (203)432-4861onic copyShould Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. Crandall1J. Gregory SidakưWhen a person uses t Should regulators set rates to terminate cells on moblie network

he traditional wireline telephone network to call another person on his cell phone, the fixed network must transfer the call to the mobile network to

Should regulators set rates to terminate cells on moblie network

which the recipient subscribes. The fixed network provides originating access for the call, and the mobile network provides terminating access. This p

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network alling party pays (“CPP") for mobile network operators to place downward pressure on termination rates. Cellular telephone use in the United States an

d Canada has continued to increase at a significant pace despite the MPP regime and now far exceeds mobile telephone use in countries with CPP regimes Should regulators set rates to terminate cells on moblie network

.Multiple factors, including substitution possibilities for the callers of mobile subscribers, constrain the market power of mobile operators in setti

Should regulators set rates to terminate cells on moblie network

ng mobile termination rates under CPP regimes. It is unrealistic for regulators to attempt to set mobile rates, including termination rates, at margin

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network feasible. Also, the value to callers of being able to reach mobile subscribers justifies mobile termination charges that exceed marginal cost because

of network externalities in mobile telecommunications. Finally, mobile termination rates that exceed marginal cost (or its proxy, long-run average inc Should regulators set rates to terminate cells on moblie network

remental cost) are consistent with Ramsey (quasi-efficient) pricing. To the extent that high termination rates are a problem in countries that have em

Should regulators set rates to terminate cells on moblie network

braced CPP. it is because customers are poorly informed of the charges they pay for their terminating calls. Consumer education would solve the potent

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network ...........263I.The Global Movement To Regulate Mobile Termination Rates.....266A.The Theory That CPP Gives MNOs Market Powerover Mobile Termination R

ates..........................267B.Examples of Countries That Have Embraced thet Senior Fellow, The Brookings Institution■ft F.K. Weyerhaeuser Fellow Should regulators set rates to terminate cells on moblie network

in Law and Economics Emeritus, American Enterprise Institute for Public Policy Research. We thank Nigel Attenborough. Richard Feasey. Keiko Halts. Cha

Should regulators set rates to terminate cells on moblie network

rles L Jackson. David Jepjwen, Jean lx Roux. Makoto Kojo. Tasuruhiko Nambu, Reinhard Schu, Hal J. Singer, Leonard Wavcrman. and Takao Yoshida for comm

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network kings Institution Of the American Enterprise Institute, neither of which takes institutkmal positions on specific legislative, regulatory, adjudicator

y, or executive matters.Copyright © 2004 by Yale Journal on RegulationYale Journal on RegulationVol. 21:261, 2004CPP Regime........................... Should regulators set rates to terminate cells on moblie network

................ 2691Australia..........................................2702United Kingdom.....................................2713European Commissio

Should regulators set rates to terminate cells on moblie network

n................................2744Other National Regulatory AuthoritiesandNational Competition Authorities within theEuropean Union................

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego

Should regulators set rates to terminate cells on moblie network munications Commission and U.S. Trade Representative's Support for Regulation of Mobile Termination Rates Outsidethe United States....................

..................278D.Both Parties Pay for Mobile Calls in the UnitedStates.................................................2811MPP and Reciprocal Co Should regulators set rates to terminate cells on moblie network

mpensation Agreements Obviate the Regulation ofMobile Termination Rates...........................281

Yale Journal on Regulation Volume 21, Number 2 Summer 2004Should Regulators Set Rates to Terminate Calls on Mobile Networks?Robert w. CrandallJ. Grego