Market Power and Competition Effect on Termination Rate: Econometric Analysis of the Tunisian Case

Abstract

Econometric analysis can be mobilized by the regulator to set cost-oriented prices. Indeed, the regulator can influence the market structure to lower these rates. Our work is to estimate, econometrically, the effect of variables related to market structure and competition on mobile termination rate evolution .The variable of market power will be estimated, based on the work of Parker Roller and the assumption "Balanced Balling Pattern". The “conduct parameter” measuring the intensity of competition is not null during the period (1993-2011), in this situation interconnection price is not oriented to marginal cost. Econometric model will be based on Ordinary Least Squares method during the period (1993, 2011).