Fixed and Mobile Networks: Substitution, Complementarity and Convergence

Oecd

No 206, OECD Digital Economy Papers from OECD Publishing

Abstract: This report examines the convergence of fixed and mobile (wireless) networks and services. It considers these developments against a long standing question of whether they are complementary or competitive. The report concludes that they are both. Mobile providers have garnered a very large share of traditional services, such as telephony, over the past decade. Nevertheless, mobile networks are dependent on fixed networks and could not efficiently meet the rapidly expanding demand of users without the contributions made by fixed broadband networks. Managing the differences between networks, and their respective strengths and limitations, is one reason there is still tremendous differences in the pricing of some communication services on these networks.

Date: 2012-10-08
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