HomeInsightsOfcom publishes study on mobile pricing.

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Ofcom has published an econometric analysis of the effect of disruptive businesses on mobile pricing.

The study looks at how mobile prices differ between countries, looking at two factors in particular: (i) the number of operators in the market; and (ii) whether one of these is a “disruptive” business that looks to use innovative strategies to disturb the existing market.

Ofcom examined mobile prices across 25 countries, from 2010 to 2015.  The findings suggest that disruptive businesses reduce overall prices in the markets in which they operate.  They also suggest that greater competition, delivered by a greater number of players, has a positive effect on pricing.

The study shows that, on average, mobile prices could be between 17.2% and 20.5% lower in countries where there are four or more mobile operators, and a disruptive business is present.  To access the study, click here.

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