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Unclassified DSTI/ICCP/TISP(99)11/FINAL Unclassified DSTI/ICCP/TISP(99)11/FINAL Organisation de Coopération et de Développement Economiques OLIS : 16-May-2000 Organisation for Economic Co-operation and Development Dist. : 19-May-2000 __________________________________________________________________________________________ Or. Eng. DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY Unclassified DSTI/ICCP/TISP(99)11/FINAL COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Working Party on Telecommunication and Information Services Policies CELLULAR MOBILE PRICING STRUCTURES AND TRENDS Or. Eng. 91220 Document complet disponible sur OLIS dans son format d’origine Complete document available on OLIS in its original format DSTI/ICCP/TISP(99)11/FINAL FOREWORD In November 1999, this report was presented to the Working Party on Telecommunications and Information Services Policy (TISP) and was recommended to be made public by the Committee for Information, Computer and Communications Policy (ICCP). The report was prepared by Dr. Sam Paltridge of the OECD’s Directorate for Science, Technology and Industry. It is published on the responsibility of the Secretary-General of the OECD. Copyright OECD, 2000 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Service, OECD, 2, rue André-Pascal, 75775 Paris Cedex 16, France. 2 DSTI/ICCP/TISP(99)11/FINAL TABLE OF CONTENTS MAIN POINTS............................................................................................................................................... 6 CELLULAR MOBILE PRICING STRUCTURES AND TRENDS.............................................................. 8 Introduction................................................................................................................................................. 8 MOBILE PENETRATION RATES............................................................................................................. 14 CHANGING MARKET STRUCTURE.......................................................................................................16 Market structure and growth ..................................................................................................................... 17 PRICING TRENDS...................................................................................................................................... 22 Roaming Prices ......................................................................................................................................... 23 Pre-paid cards and roaming................................................................................................................... 25 INTUG Survey of roaming prices ......................................................................................................... 27 CONVERGENCE WITH FIXED NETWORK PRICING........................................................................... 29 Local mobile and local fixed network pricing .......................................................................................... 32 CALLING PARTY AND RECEIVER PARTY PAYS ............................................................................... 35 Receiving party pays and growth rates ..................................................................................................... 39 Impact of change from RPP to CPP in Mexico..................................................................................... 40 Calling opportunities and pricing structures.......................................................................................... 41 THE PRICE OF FIXED NETWORK TO MOBILE NETWORK CALLS ................................................. 44 Fixed to mobile network pricing in countries with calling party pays...................................................... 45 Fixed to mobile pricing and competition............................................................................................... 46 Regulatory action in CPP markets ............................................................................................................ 47 Transparency and fixed to mobile pricing ................................................................................................ 49 Fixed network to mobile network interconnection rates...........................................................................50 TROMBONING ........................................................................................................................................... 53 PRE-PAID CARDS...................................................................................................................................... 56 Pre-paid card pricing structures ................................................................................................................ 57 Pricing of pre-paid card service ................................................................................................................ 58 Card validity.............................................................................................................................................. 60 Pre-paid cards, called and receiving party pays ........................................................................................ 61 SHORT MESSAGE SERVICE.................................................................................................................... 63 SMS Pricing .............................................................................................................................................. 64 SMS Pricing: comparisons and implications ............................................................................................ 65 International SMS and roaming............................................................................................................. 67 3 DSTI/ICCP/TISP(99)11/FINAL SMS and the Internet............................................................................................................................. 67 SMS and access......................................................................................................................................... 69 IMT-2000 LICENSING UPDATE............................................................................................................... 70 Commencement of service .................................................................................................................... 70 Number of operators.............................................................................................................................. 70 Method of allocating licences................................................................................................................ 71 NOTES ......................................................................................................................................................... 97 Tables Table 1. Comparison between CPP and RPP..........................................................................................37 Table 2. Prepaid users in selected Europe mobile operators, June 1999 ................................................ 72 Table 3. Mobile cellular subscribers in OECD countries ....................................................................... 73 Table 4. Mobile subscribers per 100 inhabitants in OECD countries.................................................... 74 Table 5. Mobile subscriber increase per 100 inhabitants per annum, 1991-1998................................... 75 Table 6. Number of mobile operator equivalents in OECD countries.................................................... 76 Table 7. OECD mobile subscriber penetration rankings, 1990-June 1998............................................. 77 Table 8. Personal basket of digital cellular service, August 1999 .......................................................... 79 Table 9. Business basket for digital mobile service................................................................................ 80 Table 10. INTUG Survey of European roaming prices, 1999 .............................................................. 81 Table 11. Fixed network pricing in Denmark, July 1999 ..................................................................... 81 Table 12. Mobile subscribers as a percentage of access lines .............................................................. 82 Table 13. Cellular mobile growth in Mexico........................................................................................ 83 Table 14. Network calling opportunities .............................................................................................. 83 Table 15. Price of calls between fixed and mobile networks................................................................ 84 Table 16. Interconnection charges between fixed and mobile networks in OECD countries............... 85 Table 17. Mobile pricing and service innovation ................................................................................. 86 Table 18. Prepaid card pricing in OECD countries .............................................................................. 87 Table 19. Selected mobile card conditions and duration ...................................................................... 89 Table 20. SMS growth in Europe ......................................................................................................... 91 Table 21. Short message service (SMS) pricing in OECD countries ..................................................
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