In Europe Mobile Termination Rates (MTR) are being subject to reduction to reflect actual costs, marginal or incremental, of calls termination in mobiles nets. This is considered as an intermediate step to adopt the "bill-and-keep" system. Other countries around the globe, such as New Zealand, are following this example. In Mexico MTRs are still high, which is a barrier for an efficient price setting in these markets and for the promotion of a competitive market. We review the European case and the construct a model to analyze welfare gains for the Mexican case. Our results suggest that the adoption of the European price policy in the mobile market would increase the welfare in Mexico.
|Number of pages||36|
|Publication status||Published - 2013|