Networking

The Economic Impact of Wireless Number Portability

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Executive Summary

This paper examines the price response of wireless carriers to the introduction of number portability. The authors find that wireless prices decreased in response to number portability, but not uniformly across plans. Average prices for the plans with the fewest minutes decreased by only $0.19/month (0.97%), but average prices for medium- and high-volume plans decreased by $3.64/month (4.84%) and $10.29/month (6.81%), respectively. The results suggest that the policy increased competition in the wireless market and that the competitive impact of the policy was larger for higher-volume users.

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