{"title":"The effects of banning permanence clauses in mobile phone markets","authors":"Renzo Clavijo","doi":"10.1016/j.telpol.2025.103141","DOIUrl":null,"url":null,"abstract":"<div><div>Permanence clauses are a widespread tool used by mobile operators to keep consumers subscribed to their network. This type of contract imposes switching costs on consumers, typically through a minimum contract duration before the subscriber can leave the network or a penalty to be paid by the user if leaving before the minimum permanence expires. A ban on permanence clauses was ruled by 2014-Q3 by the regulator in Colombia. This paper proposes a difference-in-differences approach to gather reduced-form evidence about the effect of the ban on the Colombian mobile voice market. Evidence shows that the average revenue per user significantly drops by 30.92% due to the ban.</div></div>","PeriodicalId":22290,"journal":{"name":"Telecommunications Policy","volume":"50 3","pages":"Article 103141"},"PeriodicalIF":6.4000,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Telecommunications Policy","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0308596125002381","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/12/23 0:00:00","PubModel":"Epub","JCR":"Q1","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 0
Abstract
Permanence clauses are a widespread tool used by mobile operators to keep consumers subscribed to their network. This type of contract imposes switching costs on consumers, typically through a minimum contract duration before the subscriber can leave the network or a penalty to be paid by the user if leaving before the minimum permanence expires. A ban on permanence clauses was ruled by 2014-Q3 by the regulator in Colombia. This paper proposes a difference-in-differences approach to gather reduced-form evidence about the effect of the ban on the Colombian mobile voice market. Evidence shows that the average revenue per user significantly drops by 30.92% due to the ban.
期刊介绍:
Telecommunications Policy is concerned with the impact of digitalization in the economy and society. The journal is multidisciplinary, encompassing conceptual, theoretical and empirical studies, quantitative as well as qualitative. The scope includes policy, regulation, and governance; big data, artificial intelligence and data science; new and traditional sectors encompassing new media and the platform economy; management, entrepreneurship, innovation and use. Contributions may explore these topics at national, regional and international levels, including issues confronting both developed and developing countries. The papers accepted by the journal meet high standards of analytical rigor and policy relevance.