Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201929 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7703
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly unequal country, South Africa. Using six waves of a consumer survey of over 134,000 individuals between 2009-2014, we estimate a discrete-choice model allowing for individual-specific price-responsiveness and preferences for network operators. Next, we use a demand and supply equilibrium framework to simulate prices and the distribution of welfare without entry and mobile termination rate regulation. We find that regulation benefits consumers significantly more than entry does, and that high-income consumers and city-dwellers benefit more in terms of increased consumer surplus.
Subjects: 
mobile telecommunications
competition
entry
discrete choice
inequality
JEL: 
L13
L40
L50
L96
Document Type: 
Working Paper
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