Consumer Switching Costs in Mobile Telecommunications

In this thesis I investigate the effectiveness of promoting competition through a reduction in consumer switching costs in the mobile telecommunications market. I modify an analytical model by Shi et al. (2006) to determine whether a reduction in switching costs can stimulate competition in Canada’s wireless telecommunications market. More specifically, I use the example of eliminating fees for unlocking mobile phones. Given the results of the analytical model, I survey the empirical research of switching costs in mobile telecommunications and find evidence that supported the conclusions of our model. From this evidence I am able to make several policy suggestions for future consideration.