Fixed-to-mobile substitution in Turkey: a policy perspective

Yavuz Göktaylar and Mehmet Bilal Ünver

International Journal of Management and Network Economics, 2011, vol. 2, issue 2, 177-196

Abstract: The usage of mobile telephony has rapidly exceeded that of the fixed telephony in the last decade, and this was echoed with the widespread recognition of fixed-to-mobile substitution (FMS). FMS, denoting changes in market and consumer behaviour, creates new challenges for policy makers. This study first elaborates the plausible fact of FMS in Turkey in terms of both penetration rate and traffic and then concludes that there may be traffic substitution, but the existence of access substitution is questionable. In particular, this study proposes that policy makers should be aware of the unintended results and dilemmas of regulatory interventions, and they should adopt a more pragmatic approach, which would be the key to a successful policy response to FMS.

Keywords: fixed-to-mobile substitution; mobile phones; cell phones; price regulation; telecommunications policy; Turkey; universal service. (search for similar items in EconPapers)
Date: 2011
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