The Impact of Telecommunication Regulatory Policy on Mobile Retail Price in Sub-Saharan African Countries

7 February 2017
Publication Type: Working Paper
Economic Theme: Public Finance
JEL Code: L31, L43, L52, L96
This paper examines the e ect of regulatory policies on mobile retail prices. Using quarterly data for 8 African countries for the period 2010:Q4 to 2014:Q4 we estimate structural demand and supply equations. We nd that mobile termination rates (MTR) have significant positive impact on mobile retail prices. A decline in average MTR of 10% decreases average mobile retail prices by 2.5%. On the other hand, mobile number portability (MNP) has an insigni cant e ect on price and subscriptions in selected African countries. This may be due to inadequate implementation of MNP and consecutively low demand for porting numbers. The average market conduct in mobile telecommunications industry for selected African countries can be approximated by Cournot Nash equilibrium, while price elasticity of demand is on average -0.27.
Working paper 662
1 February 2017