Bundling, Phones, and Mobile Plans: New Paper by TPI’s Sarah Oh

Bundling, Phones, and Mobile Plans: New Paper by TPI’s Sarah Oh

June 5, 2018 – Recent research by TPI Research Fellow Sarah Oh finds that regulations preventing mobile providers from bundling handsets with service reduces the rate of service adoption. The paper, co-authored with Clemson’s Thomas Hazlett and George Mason’s Brent Skorup and just published in the Journal of Competition Law & Economics, provides new evidence on some of the benefits that can arise from vertical integration.

Today’s concerns about vertical integration in telecommunications markets are not new. In the early 2000s, when 3G first appeared, regulators worried about vertical integration in mobile subscription plans. Hoping to protect consumers, the Finnish regulator barred wireless carriers from bundling handset sales with mobile service plans.

But 3G adoption lagged, and the Finnish regulators reversed course in early 2006, when carriers were permitted sell both phones and cellular services together. This change made possible empirical comparisons. Using an S-curve model for diffusion of new technology, the authors compare quarterly uptake rates in Finland with European averages for 3G subscriptions from 2006 to 2012. After the Finnish regulator allowed bundling, 3G handset adoption exceeded European averages, a dramatic switch from the pre-deregulation situation.

This study is an important contribution to the competition literature on vertical integration. Lagging 3G uptake in Finland’s early days of 3G may have been explained, in part, by ill-formed competition policy.

To request a copy of this publication, please contact [email protected]. For more insights in competition policy, consider attending TPI’s Aspen Forum! August 19-21. Register today.

Contact: Chris McGurn, 202-828-4405, [email protected]

The Technology Policy Institute

The Technology Policy Institute is a non-profit research and educational organization that focuses on the economics of innovation, technological change, and related regulation in the United States and around the world. More information is available at https://techpolicyinstitute.org/.

+ posts

Share This Article

View More Publications by

Recommended Reads

TPI Aspen Discussion Recap: The Supreme Court in an Era of Political Polarization

TPI Aspen Discussion Recap: AI Finds the Flaws. Can We Fix Them Fast Enough?

Digital Crossroads, From Telecom to Big Tech. TPI Aspen Discussion Recap

Explore More Topics

Antitrust and Competition 194
Artificial Intelligence 50
Broadband 401
Content Moderation 15
Economics and Methods 43
Evidence-Based Policy 19
Free Speech 23
Intellectual Property 56
Miscellaneous 338
Privacy and Security 154
Regulation 30
Trade 3

Related Articles

TPI Aspen Discussion Recap: The Supreme Court in an Era of Political Polarization

TPI Aspen Discussion Recap: AI Finds the Flaws. Can We Fix Them Fast Enough?

Digital Crossroads, From Telecom to Big Tech. TPI Aspen Discussion Recap

Video Now Available: Shane Greenstein on Data Center Economics from TPI Aspen

TPI Aspen 2026 Videos Now Available

TPI Aspen Forum 2026: The Supreme Court in an Era of Political Polarization

TPI Aspen Forum 2026: Meeting AI’s Power Demand: Who Pays and Who Builds

TPI Aspen Forum 2026: Digital Crossroads, From Telecom to Big Tech

SIGN UP FOR UPDATES

"(Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

Secret Link