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Measurement of Competitiveness in the Colombian Mobile Telecommunications Market based on the Linda Index

Authors:
Cesar Augusto Hernandez Suarez
Ernesto Cadena
Luis Fernando Pedraza Martinez

Keywords: competition; linda's index; market concentration; measurement; mobile internet; revenue; telecommunications market

Abstract:
The mobile telecommunications services market has great relevance in the socioeconomic growth of a country and the reduction of the digital divide. However, the high demand for these mobile telecommunications services has produced a high concentration in this market, which can lead to an oligopoly or even a market monopoly. In order to prevent this, the state must generate adequate policies for the measurement and monitoring of market concentration levels. This article aims to measure concentration in the Colombian mobile telecommunications market. To achieve the above, the databases of mobile internet revenues, traffic, and accesses of the telecommunications companies operating in Colombia from 2012 to 2022, both for postpaid (fixed charge) and prepaid (on demand), provided by the Communications Regulatory Commission, were used, and through the Linda index, the corresponding measurement of the concentration indexes was made. In terms of the overall revenue (prepaid plus postpaid) of the telecommunications companies, the main result was that, in the case of the Colombian mobile telecommunications services market, there is a moderate concentration.

Pages: 10 to 15

Copyright: Copyright (c) IARIA, 2023

Publication date: November 13, 2023

Published in: conference

ISSN: 2163-9027

ISBN: 978-1-68558-099-5

Location: Valencia, Spain

Dates: from November 13, 2023 to November 17, 2023