Impacts of Regulatory Frameworks on Mobile Network Quality (Nr. 539)

This study examines whether coverage obligations in spectrum licensing affect mobile service quality. It analyses user-generated data for 112 operators in 32 EU and OECD countries from 2019 to 2025, aiming to isolate the effect of these obligations from other factors.

Two methods are applied: Difference-in-Differences (DiD) isolates the impact of obligation stringency while controlling for country- and operator-specific characteristics. Data Envelopment Analysis (DEA) measures operator efficiency. As indicators for mobile quality, download and upload speed, gaming experience, and voice quality in apps are used.

The results show a slightly positive, statistically significant link between stricter coverage obligations and better mobile service quality, particularly for upload speed, gaming experience, and voice quality. No significant effects are found for download speed. Robustness checks confirm that alternative classifications of obligations do not change the findings, and the combined methodological approach strengthens validity.

Because coverage obligations mainly target geographic or population coverage, while quality data are user-generated and capacity-related, a discrepancy exists between the dependent variable (quality) and the explanatory variable (obligations).

Still, the study reveals spillover effects: stricter obligations correlate with quality improvements, suggesting that they trigger additional investment benefiting even regions not directly targeted by the requirements. No negative crowding-out effects, i.e. deterioration in urban quality in favour of rural areas, are detected. Urban coverage remains stable or improves slightly, while rural regions gain from the obligations.