Aimene, Louise, Guiffard, Jean-Baptiste, Ivaldi, Marc and Liang, Julienne (2023) Welfare Cost of Mobile Spectrum (Mis)allocation. TSE Working Paper, n. 23-1407, Toulouse

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Conditions under which spectrum is allocated are significant in determining the market structure in the telecom sector which in turn affects the prices and the quality of mobile services. In a more concentrated market, the quantity of spectrum is less diluted, and operators can offer higher quality to their customers; In a more competitive market, consumers can benefit from a lower price but at the expense of less quality for each operator. To address this trade-off, we first fit a demand model of mobile telecommunications services on a unique panel database of 23 European MNOs; we then conduct counterfactual simulations to measure the effect on consumer surplus of different schemes of spectrum allocation in Germany. Reallocating additional spectrum to three instead of four operators is consumer welfare improving as increasing prices is compensated by larger improvement in quality.

Item Type: Monograph (Working Paper)
Language: English
Date: February 2023
Place of Publication: Toulouse
Uncontrolled Keywords: spectrum allocation, network investment, market structure, investment and, competition
JEL Classification: L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L40 - General
L96 - Telecommunications
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 09 Feb 2023 13:47
Last Modified: 16 Feb 2024 12:36
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