Regulatory Institutions and Economic Performance: Wireless Communications in Middle-Income Developing Nations

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Coase Conference: Markets, Firms and Property Rights: A Celebration of the Research of Ronald Coase, University of Chicago Law School.  Roger Noll, Professor of Economics Emeritus at Stanford University and a Senior Fellow at the Stanford Institute for Economic Policy Research.

Wireless Success Story: Over 4 billion wireless subscribers worldwide in 2009 (compared to 1.3 billion wire lines) Wireless penetration in developing nations around 50% of population, over 100% in some middle income nations (several higher than US = 90%) 2. Generally good1 policies in nations not noted for good economic policies Mostly privatized Multiple firms (3+ in most nations) Permit foreign ownership Narrow, targeted regulation Licenses transferable. Dimensions of Wireless Policy. 1. Spectrum Allocation and Assignment a. Definition of Right b. Amend Definition of Right c. Number of Licenses c. Selection of License Holder 2. Method of Regulation. a. Regulator: Ministry, Independent b. Role of Competition Policy 3. Scope of Regulation. a. On-network Prices b. Physical Interconnection Rules c. Roaming Rules d. Interconnection/Termination Prices e. Universal Service.

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