Regulation of mobile termination rates /

Official URL: http://risc01.sabanciuniv.edu/record=b1150165 (Table of Contents)

Mobile market has grown very fast during the last decade and revenues from mobile telephony have increased. The sudden growth in mobile telephony market revealed regulatory needs in particular services. The crucial service that regulators mainly focus was Mobile Termination service since it was identified that operators have monopoly power in termination service. By this identification, a debate on whether mobile termination rates need to be regulated arose. This master thesis exemines the debate in detail. Some argue that mobile termination rates are high and high termination rates may cause some market failures. To understand whether mobile termination rates are high, the incentives of the mobile operator: are discussed. Mobile operators have different incentives to set high termination charges for fixed-to-mobile (FTM) and mobile-to-mobile (MTM) calls. Therefore, it is plausible to examine termination issue separately in FTM and MTM markets. The thesis illustrates that while FTM termination rates need to the regulated since incentives are strong, MTM termination charges are less likely to be regulated. However, termination charges are high not only for FTM, but they are also high for MTM in many countries. Therefore, countries regulate termination rates in both FTM and MTM markets. The issue of mobile termination in Turkey is discussed and compared to the Europe. The regulatory procedures in mobile termination rates in Turkey seem to be the opposite of those in Em-ope: while FTM termination rates are not regulated. MTM termination rates are regulated.