Mobile termination rates and the receiver-pays regime

► This paper examines competition in mobile telephony under the receiver-pays regime. ► Callers and receivers can determine the length of a call by hanging up. ► Firms charge call reception when the access charge is below cost. ► Profit is neutral to access charges, socially optimal access charge is below cost. ► 'Bill-and-Keep' is socially optimal if the call externality is strong.