Fixed-mobile integration

Steffen Hoernig, Marc Bourreau and Carlo Cambini

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: 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.

Keywords: Network competition; on/off-net pricing; integration; call externality (search for similar items in EconPapers)
JEL-codes: L51 L92 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013
New Economics Papers: this item is included in nep-com, nep-net and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Fixed-mobile integration (2014)
Working Paper: Fixed-mobile integration (2014)
Working Paper: Fixed-Mobile Integration (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:unlfep:wp574

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