Firms in mobile telephone markets charge one another for delivering calls to subscribers. These so-called termination charges are controversial from a policy perspective since they are fairly high and stable. We present a model of consumer and firm behavior in mobile markets in order to identify...

In this paper, we study how access pricing affects network competition when subscription demand is elastic and each network uses non-linear prices and can apply termination-based price discrimination. In the case of a fixed per minute termination charge, we find that a reduction of the...