Competitive Dynamics between MNOs in the Mobile Telecommunications Single Market: Lessons from the U.S. Experience

Abstract

Within the framework of the Digital Single Market, the European Commission is paving the way for a Single Market in the European mobile telecommunications services by, among others, studying how to reduce regulation heterogeneity in the 27 fragmented national markets. This article aims to complement this initiative by analyzing the U.S. experience and drawing lessons that the potential unified European mobile market can benefit from regarding the small operators in the market. Three major points are identified in order to create an internal market for mobile telecommunications with high competitive dynamics: to prevent market consolidation by a limited number of large operators, to block practices that raise barriers to competition by the dominant operators such as exclusive handset arrangements, and finally, to adopt harmonized and favorable measures to include second-mover operators in the competition.

Keywords: single market, competitive dynamics, harmonisation, main mobile groups, telecommunication services

JEL Classification: L96, L51, L13, K2