Roaming charges for customers of cellular-wireless entrant and incumbent providers

摘要

We consider a simple two-player game involving a large incumbent and smallentrant into a cellular wireless access provider marketplace. The entrant'scustomers must pay roaming charges. We assume that the roaming charges areregulated, because if they are dictated by the incumbent then they could be setso high so as to be a barrier to entry in the marketplace. The game is studiedat its Nash equilibrium. A roaming charge is identified that is arguably fairin the sense that revenues for the access providers are proportionate to theirinfrastructure costs.