The Norwegian and the German mobile telecommunication sectors : what explains the higher German end prices the last five years?
Abstract
The per-unit end prices in the German mobile telecommunication sector are now at Norwegian level, after being about twice as high as the Norwegian per-unit end prices in 2010. By analysing the mobile telecommunication sectors in the two countries, two probable causes of the end price differences the last five years are found. One is the demand side differences between the two countries, causing slower development towards higher revenue per user and lower per-unit end prices in Germany. The other is the static competition in the German market during the period of on-net/off-net price discrimination, caused by Deutsche Telekom and Vodafone’s joint market share and the possible tacit collusion between them.