1 AIT Asian Institute of Technology

The impact of fixed mobile interconnection on retail call prices and subsidies

AuthorCugnini, Giacomo
Call NumberAIT RSPR no.TC-01-10
NoteA research study submitted in partial fulfilment of the requirement for the degree of Master of Engineering
PublisherAsian Institute of Technology
AbstractAsian developing countries are experiencing an impressive growth of telecommunication infrastructure. The privatisation of telecommunication services leads to important changes in the regulatory approach. Interconnection between fixed and mobile network is a crucial topic in the worldwide telecommunication regulatory process. Most of the Asian developing countries seem not to have implemented frameworks to address price setting for retail and wholesale market. Comparative data on interconnection rates are extremely useful especially for benchmarking purpose. The goal of this study is to analyse the fixed mobile interconnection fees and retail prices in selected Asian developing countries in order to address future regulatory action to promote fairness in the price setting process. The study collected the current prices for mobile and fixed telecommunication services, both for wholesale and retail market, in nine Asian developing countries and analysed them by comparing with data from six selected European countries. The result of the study shows that the fixed mobile interconnection in Asian developing countries is dominated by bilateral agreements. No extensive cost analyses have been conducted in the Asian scenario reflecting a widespread inconsistency between interconnection fees and retail prices. In Asian developing countries the incumbent operator retain dominance in the telecommunication market undermining the effectiveness of competition in a liberalised environment. European countries, instead, seem to face the urgent problem of a mobile market failure, which contribute in high termination fees for fixed operators in the mobile network. In Europe national and regional regulatory agencies have been established. They have initiate an important pricing restructuring process. This study point out the need of an independent regulatory agency in the Asian region as well as more efficient national authorities.
Year2001
Corresponding Series Added Entry
TypeResearch Study Project Report (RSPR)
SchoolSchool of Advanced Technologies (SAT)
DepartmentDepartment of Information and Communications Technologies (DICT)
Academic Program/FoSTelecommunications (TC)
Chairperson(s)Ahmed, Kazi M.
Examination Committee(s)Erke, Tapio ;Teerapat Sanguankotchakorn
Scholarship Donor(s)European Commission DGI
DegreeResearch Studies Project Report (M. Eng.) - Asian Institute of Technology, 2001


Usage Metrics
View Detail0
Read PDF0
Download PDF0