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Revenue-Sharing and Interconnection in the Wireless Internet

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Publisher Hansung University
Publisher Registration Direct Access
Topics Mobile - Wireless Communications, Wireless Internet Date added 14 Jan 2004
Downloads 83 Format 232.2KB PDF

This paper provides a framework within which the wireless Internet market can be analyzed both in the case of nonstandardization and in the case of standardization. First, the paper shows that the choice of a revenue-sharing ratio between a network operator (NO) and a content provider (CP) has no real effect on prices, market shares nor social welfare in the case of nonstandardization. This implies that the ratio cannot be used as a policy variable. Second, it is demonstrated that, in the case of standardization, the collusive interconnection charge is lower than the socially optimal level as far as the population mass of CPs is less dense than the population of Internet users.

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