Reddy, Mahendra (2013) Telecommunications market in a Small Economy: Is there a Need for Price Control? Asian Economic and Financial Review”, 3(7):843-857., 3 (7). pp. 843-857. ISSN 2222-6737
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Abstract
Telecommunications and ICT sector in general is one of the most rapidly growing sectors in the
world. The state and level of the technological development of ICT infrastructure plays a very
important and critical role in the growth and development of contemporary economies. Countries
who do not have the required level and technology of ICT infrastructure are struggling to keep
pace with the rapidly changing market economies and thus have difficulty in maintaining their
competitive edge in the global market.In this paper, we examined whether network operators in
Fiji’s Telecommunications market held SMP and thus have been abusing their market power to the
detriment of the economy. Based on the analysis presented in the paper, we can consider the
cumulative effect of all the factors analyzed justifies the conclusion that the three network
operators in Fiji, that operate in the mobile and fixed line voice call termination markets, hold
SMP in relation to those networks, and such SMP will in all likelihood be maintained in the short
to medium term.Given the disparity in the market share, with VFL having 76% of the market share
in the mobile market and Digicel having 24% of the market share and TFL having the smallest
number of fixed line subscribers, it is quite likely that market power could be abused should there
not be a Price Control Order
| Item Type: | Journal Article |
|---|---|
| Uncontrolled Keywords: | Telecommunications Market, Substantial Market Power, Countervailing Power, Call Termination Rates, Imperfect Markets |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce |
| Divisions: | Faculty of Business and Economics (FBE) > Graduate School of Business |
| Depositing User: | Mahendra Reddy |
| Date Deposited: | 31 Jan 2025 03:18 |
| Last Modified: | 31 Jan 2025 03:18 |
| URI: | https://repository.usp.ac.fj/id/eprint/14489 |
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