Report on Large-Screen Mobile Broadband Prices in the EU – 2016

As a sequel to the 2015 study, Infrapont prepared a comprehensive quantitative analysis of large-screen mobile broadband prices in Europe for 2016. The research was conducted in March 2016 and covers all publicly advertised post-paid contracts offered to residential customers in the 28 EU member states plus Norway and Switzerland, totaling 331 publicly available offers made by 96 European mobile network operators.

The aim was to draw a comparative picture of large-screen mobile broadband prices in the EU. The report presents the data on the availability of offers with various data allowances and other features of the large-screen mobile broadband plans alongside with the changes from the previous year. In addition to the depiction of the European landscape, a more elaborate comparison, based on the Large-Screen Mobile Broadband Comparative Price Index, is presented and discussed.

Based on the data from the previous years, the changes in the relative positions of the member states are also presented, especially for the group of countries where a market entry or a merger occurred during these years.

The abstract of the study with purchase information is available for download at the following link:
Abstract of the 2016 Large Screen Mobile Broadband Report

Analysis of Large-Screen Mobile Broadband Prices in the EU – 2015

As a sequel to the 2014 study, Infrapont prepared a comprehensive quantitative analysis of large-screen mobile broadband prices in Europe for 2015. The report is based on primary data collection that took place for the third time in March 2015. Our research covers plans offered by all mobile network operators in the 28 EU member states and all large-screen mobile broadband post-paid plans which were publicly advertised on operators’ websites. In total, 314 large-screen packages offered by 92 mobile network operators are examined.

The report only concerns the standalone offers for large-screen devices, laptops, notebooks with mobile sticks and data modems. Small-screen (smartphone) internet plans, which are typically offered in a package together with voice services, are not covered, as these are part of a different market segment of mobile broadband. The study does not cover services which were not advertised publicly, offers aimed at business users, prepaid plans and the offers of MVNOs and resellers.

The central theme of the study is the international comparison of large-screen mobile broadband prices in the EU. The study present results concerning the availability of offers with various data allowances and other features of the large-screen mobile broadband plans. In addition to the description of the European landscape, a more elaborate comparison based on the Large-Screen Mobile Broadband Comparative Price Index is presented and discussed.

Data from the previous two years also gives us the opportunity to examine the changes in the relative positions of the member states.

The abstract of the study with purchase information is available for download at the following link:
Abstract of the 2015 Large Screen Mobile Broadband Report

Study on European Large Screen Mobile Broadband Prices – 2014

As a sequel to the 2013 study, Infrapont prepared a comprehensive quantitative analysis of large screen mobile broadband prices in the European Union for 2014. The research was conducted in March 2014 and covers all publicly advertised post-paid contracts offered to residential customers in the 27 European member states, totaling 331 publicly available offers made by 90 European mobile network operators.

The main focus of the study is to present a detailed analysis of price levels and the relative position of European countries with respect to these prices. Comparison occur by using representative baskets for different consumption patterns based on the analysis of the main features of European mobile operators’ large screen mobile broadband offers. The study shows the results of simple basket price comparisons based on both the lowest and the average prices on each national market. Then the Large Screen Mobile Broadband Price Index, developed by Infrapont is introduced, based on the representative baskets’ prices which provide a sound basis for cross-country comparisons. Finally, the results of an econometric analysis examining the relationships between the price levels and several other key factors are presented.

The analysis shows that differences in large screen mobile broadband prices cannot be explained by a single factor, especially not by structural measures of mobile broadband market, like the number or presence of special types of operators. Differences in economic development (macroeconomic indicators) and technological characteristics of mobile markets can have a larger explanatory power in understanding price differences. This study also reveals that simplistic analyses failing to control for these other factors may lead to misleading interpretations and hence wrong policy conclusions.

The abstract of the study with purchase information is available for download at the following link:
Abstract of the 2014 Large Screen Mobile Broadband Report

The 2013 study is available for download at the following link:
2013 Large Screen Mobile Broadband Report

Presentation at the 2013 ITS conference

Following the presentations at the CRESSE and EARIE conferences, Zoltán Pápai and Gergely Csorba presented their paper “Does one more or one less mobile operator affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets” at the ITS (International Telecommunications Society) in Florence.

The paper is available here.

The presentation is available here.

Presentation at the 2013 EARIE conference

Following the presentation in July at the CRESSE conference, Zoltán Pápai and Gergely Csorba, colleagues of the Infrapont team are going to present their paper “Does one more or one less mobile operator affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets” at the EARIE (European Association for Research in Industrial Economics) in Évora.

The paper is available here.

The presentation is available here.

Study Published on European Large Screen Mobile Broadband Prices – 2013

Infrapont prepared a comprehensive quantitative analysis of large screen mobile broadband prices in the European Union. The research was conducted in March 2013 and covers all publicly advertised post-paid contracts offered to residential customers in the 27 European member states, totaling 331 publicly available offers made by 90 European mobile network operators.

The main focus of the study is to present a detailed analysis of price levels and the relative position of European countries with respect to these prices. Comparison occur by using representative baskets for different consumption patterns based on the analysis of the main features of European mobile operators’ large screen mobile broadband offers. The study shows the results of simple basket price comparisons based on both the lowest and the average prices on each national market. Then the Large Screen Mobile Broadband Price Index, developed by Infrapont is introduced, based on the representative baskets’ prices which provide a sound basis for cross-country comparisons. Finally, the results of an econometric analysis examining the relationships between the price levels and several other key factors are presented.

The analysis shows that differences in large screen mobile broadband prices cannot be explained by a single factor, especially not by structural measures of mobile broadband market, like the number or presence of special types of operators. Differences in economic development (macroeconomic indicators) and technological characteristics of mobile markets can have a larger explanatory power in understanding price differences. This study also reveals that simplistic analyses failing to control for these other factors may lead to misleading interpretations and hence wrong policy conclusions.

The study is available for download at the following link:
Large Screen Mobile Broadband Report

Presentation at the 2013 CRESSE conference

The paper entitled “Does one more or one less mobile operator affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets” written by Gergely Csorba and Zoltán Pápai will be presented at the Competition and Regulation European Summer School and Conference (CRESSE) in July 2013.

The paper can be downloaded from here.

Presentation can be downloaded from here.

 

Abstract
This paper estimates the impact of entries and mergers on the price of mobile voice services in a panel database of 27 European Member States between 2003 and 2010. Our difference-in-differences econometric methodology exploits the variance in different structural changes between countries to separate the respective effects. Our results show that the effect of entry crucially depends on the number of active operators and the type of entrant, and not controlling for these differences might lead to misleading conclusions. We find no robust evidence that entry has a price-decreasing effect on markets with originally 2 operators. However, the entry of a 4th operator does have a significant price-decreasing effect, but with different dynamics concerning the entrant’s type. When we separate entry effects for the subsequent years, we show that the significant price-decreasing effects for local operators entering occur only in the first year after entry, while the significant price-decreasing effects for multinational entries are present in the long-run. Last, we find no price-increasing effects of mergers, independently whether they reduced the number of operators to 4 or 3.