International Journal of Communications Law & Policy

MOBILE INTERCONNECTION
By Philipp Lust

Download the Paper in PDF Format: IJCLP Web-Doc 7-7-2003

Abstract

Calling mobile phones tends to be far more expensive than calling subscribers connected to fixed lines. The reason for this discrepancy is rooted in the currently rather over-priced interconnection fees in the mobile sector. In order to find some explanations and to address this problem more carefully in the future, this paper tries to present and assess the technical, economic and legal framework of mobile telecommunications. Since interconnection may be of rising importance in a future of multiple communication networks, this paper sets out a clear economic understanding of interconnection as well as the relevant rules of the current as well as the future legal framework on European Community level (section C.). Thereafter, a section on pricing issues (section D.) points out the risk of collusion in mobile interconnection. Since issues of price regulation tend to be controversial in the entire communications sector but often do not distinguish between one-sided access and mutual interconnection, a general description of price regulation methods is provided before conclusions for the appropriate method for interconnection are drawn. Although this paper’s focus is as far as possible on two-way interconnection, the general issues of this section sometimes draw attention to one-sided access as well, in order to provide a more complete view of the pricing problematic. Finally, regulatory practices at national level, which contribute to continuing high price levels for calls to mobile networks, and their consequences are shown up (section E.).

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