Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101385
Authors: 
ŠŠaric, Amela
Lange, Mirjam R. J.
Year of Publication: 
2014
Series/Report no.: 
25th European Regional Conference of the International Telecommunications Society (ITS), Brussels, Belgium, 22-25 June 2014
Abstract: 
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.
Subjects: 
Fixed networks
Mobile services
Market definition
Hypothetical monopolist test
(De)regulation
JEL: 
C23
L43
L51
L96
Document Type: 
Conference Paper

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