Volume 22, Issue 1

Access to the internet is critical for participating in modern society, and yet many Americans lack access to high-speed internet. A key objective of U.S. telecommunications policy is to promote policies that advance the availability of quality telecommunications services, with the goal of universal service. I develop a dynamic model of internet service providers’ entry, exit, and upgrade decisions. Estimating this model reveals the determinants of profits and variation in firms’ costs. I then use this information to simulate a variety of subsidy policies, and explore how the use of targeted subsidies can improve high-speed internet access.

In this paper, we investigate the effects of non-exclusive agreements between networks of mobile money agents on mobile network operator choices, using survey data from Tanzania conducted in 2017. By combining survey responses with geo-location data and information on agent proximity, we employ discrete choice models to analyze consumers’ decisions in subscribing to mobile network operators and their corresponding mobile money providers. Our findings highlight the significant influence of the distance to mobile money agents on consumers’ subscription choices. To explore the impact of interoperability (non-exclusivity) at the mobile money agent level, where consumers can use the nearest agent from any mobile money provider, we assess its effects on market shares of mobile network operators. Our results indicate that interoperability at the agent level has only a minor impact on market shares. Smaller operators experience marginal gains as their consumers can now utilize agents of larger providers, which are often closer in proximity. In conclusion, we find that interoperability at the agent level does not considerably alter the market structure in the context Tanzania during the period under consideration.