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Does the growth of mobile markets cause the demise of fixed networks? Evidence from the European Union

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  • Barth, Anne-Kathrin
  • Heimeshoff, Ulrich

Abstract

The increasing usage of mobile communication and the declining demand for fixed line telephony in Europe make the analysis of substitutional effects between fixed and mobile networks a key aspect for future telecommunication regulation. Using a unique dataset which contains information on all 27 European Union members from 2003 to 2009, we analyze substitutability between fixed and mobile telecommunications services in Europe by applying dynamic panel data techniques. We find strong empirical evidence for substitution from fixed to cellular networks throughout Europe. In addition, the article reveals resulting policy implications. --

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Bibliographic Info

Paper provided by International Telecommunications Society (ITS) in its series 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues with number 52144.

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Date of creation: 2011
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Handle: RePEc:zbw:itse11:52144

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Web page: http://www.itseurope.org/

Related research

Keywords: Dynamic Panel Model; Fix-Mobile Substitution; Telecommunication Markets;

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  16. Ward, Michael R. & Woroch, Glenn A., 2010. "The effect of prices on fixed and mobile telephone penetration: Using price subsidies as natural experiments," Information Economics and Policy, Elsevier, Elsevier, vol. 22(1), pages 18-32, March.
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Citations

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Cited by:
  1. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2012. "How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 European countries," DICE Discussion Papers 49, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2012. "Der angemessene Kostenmaßstab für Terminierungsentgelte - "Pure LRIC" vs. "KeL"," DICE Ordnungspolitische Perspektiven 29, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  3. Liangy, Julienne & Petulowa, Marc, 2012. "Mobile only users powered by fixed-mobile substitution," 23rd European Regional ITS Conference, Vienna 2012 60363, International Telecommunications Society (ITS).

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