The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey Cover Image

Mobil Telekomünikasyon Piyasalarında Regülasyonun Ekonomik Etkileri: Türkiye’de Numara Taşınabilirliği Örneği
The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey

Author(s): Mikail Kar
Subject(s): ICT Information and Communications Technologies
Published by: Adem Anbar
Keywords: Regulation; Switching Costs; Mobile Number Portability; Mobile Telecommunications Market; Cointegration with Structural Breaks;

Summary/Abstract: The aim of this study is to analyze the economic effects of regulation in mobile telecommunications markets with the example of Number Portability in Turkey. In this study, switching costs as a factor preventing competition and mobile number portability as an example of regulation are taken into consideration. Switching costs affect the price elasticity of the consumer negatively and the loyalty of the customer positively, creating dependence and inertia, directing the consumer to buy again from the same firm, even if they are not satisfied with the current situation. Regulatory authorities in mobile telecommunications markets where these costs are observed are seeking to reduce these costs by implementing mobile number portability and create a more competitive structure. Examples from the world show that the effects of this regulation vary from country to country. In the empirical analysis, the long-term relationship between price and quantity in the Turkish Mobile Telecommunications Market is determined by cointegration with structural breaks analysis and the effect of the regulation on this relationship is examined. Considering the cost and goals, it was concluded that the regulation in Turkey creates a positive effect as a right and policy that promotes competition, but does not achieve its purpose.

  • Issue Year: 10/2019
  • Issue No: 2
  • Page Range: 357-372
  • Page Count: 16
  • Language: Turkish