The evolution of the mobile telephony market in Albania shows a transition from an initial monopoly, towards a phase of dynamic competition, and then towards a concentrated oligopoly, where consumer benefits have diminished despite technological development. Market practice shows elements of open coordination between the two operators, reducing the positive effects of competition on price and service quality, despite the formal liberalization of the market and the harmonization of the legal framework with European Union standards.The study aims to assess which economic and regulatory model appears most suitable for improving the functioning of the Albanian mobile telephony market, based on the theory of oligopoly (Cournot and Bertrand models). The methodology includes a combined approach of reviewing theoretical and institutional literature, analysis of official reports of AKEP and the Competition Authority and studies by foreign authors on this problem.The expected results show that the addition of new operators to the market does not necessarily guarantee a sustainable reduction in prices, due to structural barriers, high entry costs and customer loyalty to existing operators. In this context, a hybrid approach, which combines elements of Bertrand-type competition with active regulatory intervention, tariff transparency and the promotion of alternative models of competition, such as virtual mobile network operators (MVNOs) and infrastructure sharing, turns out to be more effective.The study also argues that corporate social responsibility (CSR) can play a complementary role in mitigating the social effects of oligopoly, contributing to consumer protection, increasing public trust and improving market ethics. In conclusion, the study suggests that resolving the current situation in the Albanian mobile telephony market requires a combination of competitive policies, economic regulation and social engagement of operators, rather than simply increasing the number of operators in the market.
Kotollaku et al. (Sat,) studied this question.
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