0000000000222220
AUTHOR
Kjetil Andersson
showing 3 related works from this author
Mobile Telephony in Emerging Markets: The Importance of Multi-Simming Customers
2015
Rapidly increasing sales of multi-SIM phones, mobile penetration rates above 100% and reported customer behavior all point to the fact that a signicant share of mobile customers in emerging markets tend to use more than one SIM card. A primary motive for this is to avoid making expensive o-net calls. We add a segment of exible prepaid customers, who choose to "multi-sim" in equilibrium, to the seminal model of competing telephone networks a la Laont,
Mobile telephony in emerging markets: The importance of dual-SIM phones
2020
Abstract A substantial share of customers in emerging markets use dual-SIM phones and subscribe to two mobile networks. A primary motive for so called multi-simming is to take advantage of cheap on-net services from both networks. In our modelling effort, we augment the seminal model of competing telephone networks á la Laffont, Rey and Tirole (1998b) by a segment of flexible price hunters that may choose to multi-sim. According to our findings, in equilibrium, the networks set a high off-net price in the linear tariffs to achieve segmentation. This induces the price hunters to multi-sim. We show that increased deployment of dual-SIM phones may induce a mixing equilibrium with high expected…
Empirical Evidence on the Relationship between Mobile Termination Rates and Firms' Profits
2015
The theoretical literature on mobile termination rates (MTRs) is inconclusive on how the level of MTRs affects overall consumer charges and firms' profits. We show that when firms offer bundles with fixed included usage – a tariff structure that has become more common in recent years – an identical change in all MTRs does not affect firms' retail prices or profits. We use a panel dataset from saturated European markets to estimate the effect of MTRs on mobile operators' profits. As predicted by the theoretical model, we cannot reject the fact that firms' profits are unaffected by an identical change in all MTRs.