Technical innovation to overcome regulation - use case: Terminating fees in mobile communication

Regulation is an issue controversial discussed among economists themselves and the companies affected by regulatory policies. But regulation and technical innovation, even if it is temporarily causing a dominant market position, do not have to be oppositional things. This paper aims to show incentives how companies could be pushed to implement technical innovation as a means to overcome regulatory restrictions. This is shown using the example of regulated terminating fees in mobile communication and how inter-provider Handover can lead to contestable markets.