The impact of the regulatory framework on fixed-mobile interconnection settlements: the case of China and Hong Kong

Network interconnection is one of the most critical issues in the process of telecommunications deregulation. An improperly interconnected new network is not dissimilar to an isolated network, while network externality remains a concern for subscribers who are searching for demand-side economies of scope. Traditional studies mainly focus on formal mechanisms of setting an interconnection price, while this study indicates that an appropriate regulatory framework is also one of the most important factors in settling effective network interconnection arrangements.