Dr. Jonathan Sandbach, Head of Regulatory Economics, Group External Affairs, Vodafone
Tuesday, March 9th 2010 17:00pm
Room 5.09, 5th floor, North Tower, Instituto Superior Técnico
Abstract:
This paper estimates the impact of telecommunications policies on mobile penetration and usage across developed and emerging markets. The analysis takes into account non-policy drivers and the interaction different policies have on each other. Our analysis shows that explicit policy decisions such as the level of mobile termination rate (MTRs) and taxation rate on profits have large and significant effects on penetration. Mobile usage, on the other hand, is poorly explained by the observed policy variables. As such, policies designed to increase usage would likely be ineffective. These findings are important as we see pressure worldwide for an acceleration of reduction in the level of MTRs and an increasing trend of higher taxation on mobile operators. Both of these policies are likely to lead to a lower level of mobile penetration than would otherwise be the case.
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