Deregulating fixed voice services? Empirical evidence from the European Union
Amela Šaric and
Mirjam Lange ()
25th European Regional ITS Conference, Brussels 2014 from International Telecommunications Society (ITS)
This paper deals with the relationship between the traditional fixed-line, mobile and Voice over IP telephony in the EU.We estimate the supply and demand for fixed-line telephony using data on 25 EU member states for the 2006:Q2 - 2011:Q4 period. Employing instrumental variable approach, we obtain the following results. First, lower prices of Voice over IP and mobile reduce the demand for fixed-line telephony. This indicates some demand-side substitution. Second, we find no relationship between Voice over IP and fixed-line prices. Third, there is a positive and significant relationship between mobile and fixed-line prices. Estimated own- and cross-price elasticities are in the inelastic range. Hence, calls to deregulate fixed-line telephony may be too premature.
Keywords: Fixed networks; Mobile services; Market definition; Hypothetical monopolist test; (De)regulation (search for similar items in EconPapers)
JEL-codes: C23 L43 L51 L96 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-eur and nep-reg
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Working Paper: Deregulating fixed voice services? Empirical evidence from the European Union (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse14:101385
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