The relationship between mobile and fixed-line communications: A survey
The dramatic worldwide increase in mobile communication that has led to more than 4 billion users has over the last few years been accompanied in wealthy countries by a significant decline in fixed network subscriptions. Such fixed-to-mobile substitution (FMS) is at the center of this literature survey. Theoretical models explaining FMS are scarce and are inconclusive regarding the balance between substitution and complementarity of the fixed and mobile sectors. Empirical explanations hinge on the interaction of positive cross-elasticities of demand and reductions in mobile relative to fixed communications prices. FMS is also supported by relative declines in mobile network costs, network effects in demand and quality improvements of mobile services. The policy consequences of FMS stem from the potential reductions in market power of operators in fixed-line markets and from the ability of mobile operators to enable universal service. The survey reveals ample opportunity for further empirical and theoretical research in the area of FMS.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Buehler, Stefan & Haucap, Justus, 2003.
"Mobile Number Portability,"
17/2003, Helmut Schmidt University, Hamburg.
- Liikanen, Jukka & Stoneman, Paul & Toivanen, Otto, 2004. "Intergenerational effects in the diffusion of new technology: the case of mobile phones," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1137-1154, November.
- Reiffen, David & Schumann, Laurence & Ward, Michael R, 2000. "Discriminatory Dealing with Downstream Competitors: Evidence from the Cellular Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 253-86, September.
- Jang, Show-Ling & Dai, Shau-Chi & Sung, Simona, 2005. "The pattern and externality effect of diffusion of mobile telecommunications: the case of the OECD and Taiwan," Information Economics and Policy, Elsevier, vol. 17(2), pages 133-148, March.
- Wright, Julian, 2002. "Access Pricing under Competition: An Application to Cellular Networks," Journal of Industrial Economics, Wiley Blackwell, vol. 50(3), pages 289-315, September.
- Loomis, David G. & Swann, Christopher M., 2005. "Intermodal competition in local telecommunications markets," Information Economics and Policy, Elsevier, vol. 17(1), pages 97-113, January.
- Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
- Garbacz, Christopher & Thompson Jr, Herbert G., 2007. "Demand for telecommunication services in developing countries," Telecommunications Policy, Elsevier, vol. 31(5), pages 276-289, June.
- Daniel Birke & G. Swann, 2006. "Network effects and the choice of mobile phone operator," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 65-84, April.
- 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.
- Muttur Ranganathan Narayana, 2008. "Substituability between Mobile and Fixed Telephones: Evidence and Implications for India," CIRJE F-Series CIRJE-F-550, CIRJE, Faculty of Economics, University of Tokyo.
- Paul Zimmerman, 2008. "Strategic incentives under vertical integration: the case of wireline-affiliated wireless carriers and intermodal competition in the US," Journal of Regulatory Economics, Springer, vol. 34(3), pages 282-298, December.
- Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, vol. 13(1), pages 19-34, March.
- Dewenter Ralf & Haucap Justus, 2008.
"Demand Elasticities for Mobile Telecommunications in Austria,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
De Gruyter, vol. 228(1), pages 49-63, February.
- Dewenter, Ralf & Haucap, Justus, 2007. "Demand Elasticities for Mobile Telecommunications in Austria," Ruhr Economic Papers 17, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Heli Koski & Tobias Kretschmer, 2005.
"Entry, standards and competition : firm strategies and the diffusion of mobile telephony,"
LSE Research Online Documents on Economics
801, London School of Economics and Political Science, LSE Library.
- Heli Koski & Tobias Kretschmer, 2004. "Entry, Standards and Competition: Firm Strategies and the Diffusion of Mobile Telephony," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(1), pages 89-113, November.
- Koski, Heli & Kretschmer, Tobias, 2002. "Entry, Standards and Competition : Firm Strategies and the Diffusion of Mobile Telephony," Discussion Papers 824, The Research Institute of the Finnish Economy.
- William Reece, 2007. "Household mobility and cellular telephone demand," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 321-326.
- Armstrong, Mark, 1997. "Mobile telephony in the UK," MPRA Paper 35405, University Library of Munich, Germany.
- Foreman, R Dean & Beauvais, Edward, 1999. "Scale Economies in Cellular Telephony: Size Matters," Journal of Regulatory Economics, Springer, vol. 16(3), pages 297-306, November.
- Ingo Vogelsang, 2003. "Price Regulation of Access to Telecommunications Networks," Journal of Economic Literature, American Economic Association, vol. 41(3), pages 830-862, September.
- Dipak C. Jain & Eitan Muller & Naufel J. Vilcassim, 1999. "Pricing Patterns of Cellular Phones and Phonecalls: A Segment-Level Analysis," Management Science, INFORMS, vol. 45(2), pages 131-141, February.
- Grzybowski, Lukasz & Pereira, Pedro, 2008.
"The complementarity between calls and messages in mobile telephony,"
Information Economics and Policy,
Elsevier, vol. 20(3), pages 279-287, September.
- Lukasz Grzybowski & Pedro Pereira, 2007. "The Complementarity between Calls and Messages in Mobile Telephony," Working Papers 27, Portuguese Competition Authority.
- Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 1-54.
- Lukasz Grzybowski, 2005. "Regulation of Mobile Telephony across the European Union: An Empirical Analysis," Journal of Regulatory Economics, Springer, vol. 28(1), pages 47-67, 07.
- Vagliasindi, Maria & Güney, Izzet & Taubman, Chris, 2006. "Fixed and mobile competition in transition economies," Telecommunications Policy, Elsevier, vol. 30(7), pages 349-367, August.
- 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.
- Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
- Gruber, H. & Verboven, F.L., 1998. "The Diffusion of Mobile Telecommunications Services in the European Union," Discussion Paper 1998-138, Tilburg University, Center for Economic Research.
- GÃ¼nter Knieps & Ingo Vogelsang, 2007. "Digital economy and regulatory issues. Introduction," International Economics and Economic Policy, Springer, vol. 4(2), pages 101-107, August.
- 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.
- Madden, Gary G & Coble-Neal, Grant & Dalzell, Brian, 2004.
"A dynamic model of mobile telephony subscription incorporating a network effect,"
10829, University Library of Munich, Germany.
- Madden, Gary & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," Telecommunications Policy, Elsevier, vol. 28(2), pages 133-144, March.
- Gabrielsen, Tommy Staahl & Vagstad, Steinar, 2008. "Why is on-net traffic cheaper than off-net traffic Access markup as a collusive device," European Economic Review, Elsevier, vol. 52(1), pages 99-115, January.
- Spulber,Daniel F. & Yoo,Christopher S., 2009.
"Networks in Telecommunications,"
Cambridge University Press, number 9780521857109, December.
- Andersson, Kjetil & Foros, Øystein & Steen, Frode, 2006.
"Text and Voice: Complements, Substitutes or Both?,"
CEPR Discussion Papers
5780, C.E.P.R. Discussion Papers.
- Oecd, 1995. "Mobile and PSTN Communication Services: Competition or Complementarity?," OECD Digital Economy Papers 13, OECD Publishing.
- Hoernig, Steffen, 2006.
"On-Net and Off-Net Pricing on Asymmetric Telecommunications Networks,"
CEPR Discussion Papers
5588, C.E.P.R. Discussion Papers.
- Hoernig, Steffen, 2007. "On-net and off-net pricing on asymmetric telecommunications networks," Information Economics and Policy, Elsevier, vol. 19(2), pages 171-188, June.
- Mark Armstrong & Julian Wright, 2009. "Mobile Call Termination," Economic Journal, Royal Economic Society, vol. 119(538), pages F270-F307, 06.
- McKenzie, David J & Small, John P, 1997. "Econometric Cost Structure Estimates for Cellular Telephony in the United States," Journal of Regulatory Economics, Springer, vol. 12(2), pages 147-57, September.
- 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.
- Doyle, Chris & Smith, Jennifer C., 1998. "Market structure in mobile telecoms: qualified indirect access and the receiver pays principle," Information Economics and Policy, Elsevier, vol. 10(4), pages 471-488, December.
- D. Kennet & Eric Ralph, 2007. "Efficient interconnection charges and capacity-based pricing," International Economics and Economic Policy, Springer, vol. 4(2), pages 135-158, August.
- Barros, Pedro Luis Pita & Cadima, Nuno, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
- Hodge, James, 2005. "Tariff structures and access substitution of mobile cellular for fixed line in South Africa," Telecommunications Policy, Elsevier, vol. 29(7), pages 493-505, August.
- Banerjee, Aniruddha & Ros, Agustin J., 2004. "Patterns in global fixed and mobile telecommunications development: a cluster analysis," Telecommunications Policy, Elsevier, vol. 28(2), pages 107-132, March.
- Nakil Sung & Yong-Hun Lee, 2002. "Substitution between Mobile and Fixed Telephones in Korea," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(4), pages 367-374, June.
- Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
- Carlo Cambini & Tommaso M. Valletti, 2008. "INFORMATION EXCHANGE AND COMPETITION IN COMMUNICATIONS NETWORKS -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 56(4), pages 707-728, December.
- Cremer, Helmuth & Ivaldi, Marc & Turpin, Etienne, 1996.
"Competition in Access Technologies,"
IDEI Working Papers
60, Institut d'Économie Industrielle (IDEI), Toulouse.
- Gans, Joshua S. & King, Stephen P., 2000.
"Mobile network competition, customer ignorance and fixed-to-mobile call prices,"
Information Economics and Policy,
Elsevier, vol. 12(4), pages 301-327, December.
- Gans, J.S. & King, S.P., 2000. "Mobile Network Competition, Customer Ignorance and Fixed-to-Mobile Call Prices," Department of Economics - Working Papers Series 734, The University of Melbourne.
- Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
- Meghan R. Busse, 2000. "Multimarket Contact and Price Coordination in the Cellular Telephone Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(3), pages 287-320, 06.
- Ahn, Hyungtaik & Lee, Myeong-Ho, 1999. "An econometric analysis of the demand for access to mobile telephone networks," Information Economics and Policy, Elsevier, vol. 11(3), pages 297-305, September.
- Andre Bonfrer & Ernst R. Berndt & Alvin Silk, 2006. "Anomalies in Estimates of Cross-Price Elasticities for Marketing Mix Models: Theory and Empirical Test," NBER Working Papers 12756, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:22:y:2010:i:1:p:4-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.