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2019 | OriginalPaper | Chapter

2. What Is the Effect of Bundling in Telecom?

Author : V. Sridhar

Published in: Emerging ICT Policies and Regulations

Publisher: Springer Singapore

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Abstract

Bundling is a pricing and marketing strategy by firms that combine products or services together in order to sell them as a single combined unit for a special price. Bundling allows the convenient purchase of several related products and/or services from one firm. Bundling is a strategy used by wireline providers to combine their voice and broadband service offerings; by mobile operators to provide one-stop shopping for handsets and their mobile services; and by broadcasters to provide a bouquet of their channels. However, bundling may have anticompetitive and anticonsumer consequences such as firms’ leveraging their dominant position in one product to subvert competition in another product; engaging in predatory pricing; not being transparent in providing the information on bundles to consumers, to name a few. In this chapter, specific cases of bundling in the telecom domain are discussed. The difference between wholesale and retail bundling is described. The corresponding regulatory implications and possible interventions are detailed out. Specific questions that are addressed in this chapter are as follows:
  • What is bundling in telecom and how does it affect competition?
  • What are the regulatory interventions needed to handle bundling?

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Footnotes
1
Partly based on article that appeared in FINANCIAL EXPRESS on March 8, 2018, with the permission of The Indian Express (P) Limited.
 
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Metadata
Title
What Is the Effect of Bundling in Telecom?
Author
V. Sridhar
Copyright Year
2019
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-32-9022-8_2

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