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Ex-post Analysis of the TeliaSonera-Chess 2005 Merger

Author

Listed:
  • Norbert Maier

    (Copenhagen Economics)

  • Julie Runge Jørgensen

    (Copenhagen Economics)

  • Asger Lunde

    (Copenhagen Economics
    Aarhus Universitet)

  • Otto Toivanen

    (Aalto University)

Abstract

We provide an ex-post analysis of the 2005 TeliaSonera-Chess merger in the Norwegian mobile telecommunication market. Applying a difference-in-difference approach and a synthetic control group method we find little evidence of price increase in the Norwegian mobile telecom market after the merger. Possible explanations for these findings include that Chess was a small player in the market without its own physical network, with a market share of 8% at the time of the merger and no spectrum license, and that by taking Chess on board moving it from Telenor’s network, TeliaSonera could better exploit potential economies of scale related to the operation of its physical network and spectrum.

Suggested Citation

  • Norbert Maier & Julie Runge Jørgensen & Asger Lunde & Otto Toivanen, 2021. "Ex-post Analysis of the TeliaSonera-Chess 2005 Merger," De Economist, Springer, vol. 169(2), pages 141-178, May.
    • Handle: RePEc:kap:decono:v:169:y:2021:i:2:d:10.1007_s10645-020-09381-y
    DOI: 10.1007/s10645-020-09381-y
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    More about this item

    Keywords

    Telecommunications; Merger control; MNO; MVNO; Ex-post studies;
    All these keywords.

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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