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Fixed-Mobile Integration

  • Bourreau, Marc
  • Cambini, Carlo
  • Hoernig, Steffen

Often, fixed-line incumbents also own the largest mobile network. We consider the effect of this joint ownership on market outcomes. Our model predicts that while fixed-to-mobile call prices to the integrated mobile network are more efficient than under separation, those to rival mobile networks are distorted upwards, amplifying any incumbency advantage. As concerns potential remedies, a uniform off-net pricing constraint leads to higher welfare than functional separation and even allows to maintain some of the efficiency gains.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9361.

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Date of creation: Feb 2013
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Handle: RePEc:cpr:ceprdp:9361
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