Title: Modelling the competition of an HNO versus an MVNO in the mobile telecommunications industry

Authors: Livio Cricelli, Michele Grimaldi, Nathan Levialdi Ghiron

Addresses: Dipartimento di Meccanica, Strutture, Ambiente e Territorio, Universita degli Studi di Cassino, Via G. Di Biasio 43, 03043 Cassino (FR), Italy. ' Dipartimento di Meccanica, Strutture, Ambiente e Territorio, Universita degli Studi di Cassino, Via G. Di Biasio 43, 03043 Cassino (FR), Italy. ' Dipartimento di Ingegneria dell'Impresa, Universita degli Studi di Roma 'Tor Vergata', Viale del Politecnico 1, 00133 Rome, Italy

Abstract: This paper analyses the relationship between a Mobile Virtual Network Operator (MVNO) and its Hosting Network Operator (HNO) in the mobile telecommunications industry. A model is defined to analyse the competition and strategic interactions between the two players and their economic consequences. Two different scenarios are envisaged to observe the effects when varying the interconnection charges and structural characteristics of the operators. The analysis of the results obtained from the model focuses on retail price strategies and on market shares and profits in an attempt to provide recommendations which may be utilised in the decision-making process.

Keywords: mobile telecommunications; mobile virtual network operators; MVNOs; hosting network operators; HNOs; competition model; interconnection charges; modelling; strategic interactions; economic impact; retail pricing strategies; market share; profits.

DOI: 10.1504/IJTPM.2009.028919

International Journal of Technology, Policy and Management, 2009 Vol.9 No.3, pp.277 - 295

Published online: 11 Oct 2009 *

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