Abstract
Mobile virtual network operators (MVNOs) offer mobile telecommunication services by purchasing capacity from mobile network operators (MNOs) and competing with each other at the retail market. The purpose of this study is to examine national data in order to identify possible impact mobile virtual operators (MVNOs) on the mobile market and consumers.
While the opening of the wholesale market for MVNOs is relatively widespread in European countries, evidence of its impact on end consumers is limited due to a lack of previous research. For this purpose, the market entry of MVNOs in the Czech Republic in 2013 is analysed to estimate the impact on consumers.
The results, based on standard difference-in-differences, suggest that the market entry of MVNOs leads to a decrease in the price of calls and a decrease in the monthly ARPU of operators relative to the control countries. This results also imply an appropriate policy to promote MVNO diffusion.