The Welfare Effects of Mobile Internet Access: Evidence from Roam-Like-at-Home

Abstract

We evaluate the welfare effects of the Roam-Like-At-Home regulation, which has drastically reduced the price of accessing the mobile Internet for residents of the European Economic Area (EEA) when travelling abroad in the EEA. Our estimates using individual-level consumption data suggest that consumer surplus increased by around € 2.44 per user and travel day. We show that around 40% of the consumer surplus gains originated from a reduction in deadweight loss, that is, new users accessing the mobile Internet. We also highlight that the regulation had a heterogeneous impact on consumers, varying with usage intensity and the reason for travel (business vs. leisure).