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Are telecommunications regulators correct in their beliefs that network size affects origination/termination?
Telecommunications Policy ( IF 5.9 ) Pub Date : 2021-03-01 , DOI: 10.1016/j.telpol.2020.102078
Steve G. Parsons , Kevin T. Duffy-Deno

Abstract Some telecommunications regulators in calling-party pays (CPP) regimes have asserted that network operator size itself affects the ratio of (off-net originating minutes)/(off-net terminating minutes) (abbreviated in future references as “O/T”). This implies that being a large operator itself causes the operator to be a net terminator of traffic and to be a net receiver of call termination payments. For convenience, we will describe this notion as the “regulators' proposition.” This notion could have been a motivation for regulators: to establish asymmetric mobile call termination rates (MTRs) (higher termination rates for smaller operators); or to reduce symmetrical MTRs. We begin with a simple mathematical description of calling between networks that indicates that size does not affect O/T. We also use a unique panel data set from eight mobile operators in Colombia that includes a measure of operator size, a off-net price variable, and two proxies for the proportion of low-income subscribers (one for originating minutes and one for terminating minutes). We do not find empirical support for the regulators' proposition. Operator size is statistically insignificant (and has the incorrect sign – to support the regulator's proposition - in some specifications to). Off-net price and income (rather than network size) variables are significant in explaining O/T. The off-net price variable has the expected negative sign and is significant at the 5% level or better. The income variables have the expected signs and are generally significant at the 5% level. Belief in the regulators' proposition could also, unwittingly, accentuate the urban-rural divide and reduce service to low-income customers, particularly in less-developed countries.

中文翻译:

电信监管机构对网络规模影响发起/终止的看法是否正确?

摘要 主叫方付费 (CPP) 制度中的一些电信监管机构断言,网络运营商的规模本身会影响(网外发起分钟数)/(网外终接分钟数)(在以后的参考文献中缩写为“O/T” )。这意味着作为大型运营商本身会导致运营商成为流量的净终止者和呼叫终止支付的净接收者。为方便起见,我们将这个概念描述为“监管者的提议”。这个想法可能是监管者的动机:建立非对称移动呼叫终止率 (MTR)(较小运营商的终止率更高);或减少对称的 MTR。我们从网络之间调用的简单数学描述开始,表明大小不影响 O/T。我们还使用了来自哥伦比亚八家移动运营商的独特面板数据集,其中包括运营商规模的衡量标准、网外价格变量和低收入用户比例的两个代理(一个用于发起分钟,一个用于终止分钟) )。我们没有找到对监管机构提议的实证支持。运营商规模在统计上是微不足道的(并且在某些规范中具有不正确的符号 - 以支持监管机构的主张)。网外价格和收入(而不是网络规模)变量在解释 O/T 方面很重要。网外价格变量具有预期的负号,并且在 5% 或更高的水平上显着。收入变量具有预期的迹象,通常在 5% 的水平上显着。相信监管机构的提议也可能在不知不觉中
更新日期:2021-03-01
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