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Competition In Mobile Telephony In France And Germany

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  • LUKASZ GRZYBOWSKI
  • CHIRAZ KARAMTI

Abstract

This paper analyses the development of mobile telephony in France and Germany in 1998-2002. We conduct this analysis in relation to the antitrust investigation initiated by the French competition authority in 2002 due to exchange of strategic information and a share-fixing agreement between network operators. The results suggest a significant difference between price elasticities of demand in these two countries. Moreover, consumers perceive mobile telephony as a substitute for fixed-line connection in France and as a complement in Germany. In the time period of the share-fixing agreement among French network operators there were no adverse shifts in the levels of prices and subscriptions. Copyright � 2010 The Authors. The Manchester School � 2010 Blackwell Publishing Ltd and The University of Manchester.

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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 78 (2010)
Issue (Month): 6 (December)
Pages: 702-724

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Handle: RePEc:bla:manchs:v:78:y:2010:i:6:p:702-724

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References

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  1. Rodini, Mark & Ward, Michael R. & Woroch, Glenn A., 0. "Going mobile: substitutability between fixed and mobile access," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 457-476, June.
  2. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
  3. Cadima, Nuno & Pita Barros, Pedro Luis, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
  4. Doganoglu, Toker & Grzybowski, Lukasz, 2007. "Estimating network effects in mobile telephony in Germany," Information Economics and Policy, Elsevier, vol. 19(1), pages 65-79, March.
  5. Lukasz Grzybowski & Pedro Pereira, 2006. "Simulation of Merger in Mobile Telephony in Portugal," Working Papers 06-22, NET Institute, revised Oct 2006.
  6. Gruber, Harald & Verboven, Frank, 1999. "The Diffusion of Mobile Telecommunications Services in the European Union," CEPR Discussion Papers 2054, C.E.P.R. Discussion Papers.
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Cited by:
  1. Chiraz Karamti & Lukasz Grzybowski, 2010. "Hedonic study on mobile telephony market in France: pricing–quality strategies," Netnomics, Springer, vol. 11(3), pages 255-289, October.
  2. Lukasz Grzybowski & Frank Verboven, 2013. "Substitution and Complementarity between Fixed-line and Mobile Access," Working Papers 13-09, NET Institute.
  3. Lukasz Grzybowski, 2012. "Fixed-to-Mobile Substitution in the European Union," Working Papers 271, Economic Research Southern Africa.

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