Regulation of international mobile roaming in the Southern African Development Community

Abstract

The Southern African Development Community (SADC) experiences high levels of cross border human traffic due to trade, cultural and language links across the fifteen countries. Technological advances and increased domestic competition have contributed to lower domestic retail tariffs for mobile cellular services. Unfortunately, this has not extended to international mobile roaming (IMR) retail tariffs which remain unacceptably high. These high tariffs have attracted harsh criticism from commentators and prompted calls for regulatory intervention. This study investigates the level of international mobile roaming (IMR) retail tariffs, usage and demand elasticity. It further considers whether competition or regulation play a greater role in reducing these tariffs and whether regulatory intervention is likely to reduce competition. The research took the form of a quantitative study and used an online survey questionnaire as the data collection tool. The results of the study confirmed that international mobile roaming (IMR) retail tariffs are indeed high, resulting in poor uptake by cost conscious travellers who pay for their own cellular usage. The finding that competition plays a greater role than regulation in reducing IMR retail tariffs is not significant. It was concluded that neither competition nor regulation are sufficient on their own to provide increased social welfare. The best result is obtained when competition is allowed to flourish, underpinned by an enabling regulatory framework. Copyright