Classroom Companion: Business

 
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Questions
1. Is there a link between human rights and net neutrality?
2. What are the incentives for self-regulation in the mobile market based on 
Lessig’s theory?
 
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Answers
1. Net neutrality is not stated as an explicit human right but is regarded as a must 
for the implementation of rights such “freedom of speech.” The weaker 
requirement “right to Internet access” is a non-binding resolution of the 
United Nations Human Rights Council.
2. Incentives:
(a) Law: penalties for not obeying national regulation legislation.
(b) Market: the most important motive is to make the total market pie as large 
as possible by accurately designing the system in accordance with a com-
mon standard. This also maximizes the market for each operator both 
with regard to own customers and visiting customers (roaming). The mar-
ketplace then becomes a common in which providers can compete on price 
and customer care to attract and keep customers.
(c) Technology: the cost of development of the technology is reduced for each 
operator if they collaborate to develop a common standard. If there are 
more than one incompatible standard, then a standards war is likely, and, 
in the long run, one of the standards will win the war. Building backward 
compatibility into the technology both in the mobile phones and the net-
work ensures a smooth evolution of the technology.
(d) Society: Word of mouth may increase the business of the MNO that offer 
the best and cheapest service.
 
Chapter 22 · Digital Regulation

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References
Audestad, J. A., & Gaivoronski, A. (2001). Option pricing of mobile virtual network operators. 
Telektronikk, No. 4.
Black, C., & Srivastava, L. (Eds.). (2011). Telecommunications regulation handbook (Tenth 
Anniversary ed.). The International Bank for Reconstruction and Development / The World 
Bank, InfoDev, and The International Telecommunication Union.
Borsook, P. (2001). Cyberselfish: Revers, guilders, cyberpunks, and other silicon valley lifeforms. Yale 
Journal of Law and Technology, 3.
Decisions on designation of providers with significant market power and imposition of specific obli-
gations in the markets for wholesale voice call termination on individual mobile networks 
(Market 2). Norwegian Communications Authorities (Nkom). 2017.
General Data Privacy Regulation. (2018). Intersoft consulting.
Lessig, L. (1997). Code and other laws of cyberspace. Basic Books.
References

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© The Editor(s) (if applicable) and The Author(s), under exclusive 
license to Springer Nature Switzerland AG 2021
H. Øverby, J. A. Audestad, Introduction to Digital Economics, 
Classroom Companion: Business,
https://doi.org/10.1007/978-3-030-78237-5