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The Mobile Broadband and Fixed Broadband Battle in Swedish market: Exploring complementary or substitution

Author

Listed:
  • Srinuan, Chalita
  • Srinuan, Pratompong
  • Bohlin, Erik

Abstract

The mobile broadband (MBB) in Swedish market has become a more attractive opportunity for service providers, with growing demand for ubiquitous broadband connectivity after the mobile operators got 3G license in 2000. MBB seems to have more advantage compare to Fixed broadband (FBB) in term of mobility, compatibility and quality of service. This paper aims to explore the current broadband situation in Swedish market, in particular whether the mobile broadband is a complementary or substitute by using descriptive analysis. The data is collected from the Post- och telestyrelsen (PTS) Survey and the secondary data from PTS during 2002-2009. The findings indicate that the MBB and FBB subscribers remain growing, but the issue of complementary and substitution between MBB and FBB cannot be given an answer at this stage. The crucial problem of comparing MBB and FBB is the different units of measurement. Also, the potential of avoiding regulation by service providers is discussed since the market participants in FBB and MBB services are the same players. The rapid growth of MBB together with a lower degree of regulation in mobile services may attract the market player to put their effort more in MBB market. Moreover, the gap between broadband infrastructure coverage and the usage of this service is huge. Thus, the inefficiency of BB infrastructure utilization becomes another issue that NRAs could consider.

Suggested Citation

  • Srinuan, Chalita & Srinuan, Pratompong & Bohlin, Erik, 2010. "The Mobile Broadband and Fixed Broadband Battle in Swedish market: Exploring complementary or substitution," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 33, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse10:33
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    References listed on IDEAS

    as
    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. Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
    3. Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Mobile broadband; Fixed broadband; Complementary; Substitution;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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