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Fixed and mobile competition in transition economies

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  • Vagliasindi, Maria
  • Güney, Izzet
  • Taubman, Chris
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    Abstract

    The main aim of this paper is to explore the competition between traditional fixed line and mobile services across Eastern Europe and the Former Soviet Union. Whilst there have been some pioneer studies in the US, empirical evidence for other regions is very limited. Transition countries witnessed important trends in the mobile segment of the market. First, mobile penetration rates have been growing at exponential rates, whereas fixed line penetration rates have at best stagnated. The present analysis is based on empirical evidence based on country level data and case studies, as well as enterprise level data based on major surveys that the EBRD and the World Bank undertook in 2002 across all transition economies. Econometric analysis at the enterprise level shows some interesting results, including evidence of strong network externalities and fixed to mobile substitution effects at the country level.

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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 30 (2006)
    Issue (Month): 7 (August)
    Pages: 349-367

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    Handle: RePEc:eee:telpol:v:30:y:2006:i:7:p:349-367

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    Related research

    Keywords: Mobile Fixed-line Eastern Europe Competition Penetration;

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    Cited by:
    1. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    2. Wolfgang Briglauer & Anton Schwarz & Christine Zulehner, 2011. "Is fixed-mobile substitution strong enough to de-regulate fixed voice telephony? Evidence from the Austrian markets," Journal of Regulatory Economics, Springer, vol. 39(1), pages 50-67, February.
    3. Pratompong Srinuan & Chalita Srinuan & Erik Bohlin, 2011. "The Mobile Broadband and Fixed Broadband Battle in Swedish Market: Complementary or substitution?," RSCAS Working Papers 2011/36, European University Institute.
    4. Bölcskei, Vanda, 2010. "A távbeszélő-szolgáltatások keresleti modelljeinek áttekintése - különös tekintettel a vezetékes és mobilszolgáltatások közötti helyettesítés becslésére
      [A review of the demand
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 517-535.

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