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Is Fixed-Mobile Substitution strong enough to de-regulate Fixed Voice Telephony? Evidence from the Austrian Markets.

Briglauer, Wolfgang and Schwarz, Anton and Zulehner, Christine (2009) Is Fixed-Mobile Substitution strong enough to de-regulate Fixed Voice Telephony? Evidence from the Austrian Markets. Working Papers / Research Institute for Regulatory Economics, 2009,2. Forschungsinstitut für Regulierungsökonomie, WU Vienna University of Economics and Business, Vienna.

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Abstract

We estimate own-price elasticities for fixed network voice telephony access and (national) calls services for private users and cross-price elasticities to mobile using time series data from 2002-2007 from the Austrian market. Using instrumental variable estimates and taking into account the possibility of cointegration we find that access is inelastic while calls are elastic. We conclude that the retail market for national calls of private users can probably be deregulated due to sufficient competitive pressure from mobile. Access-substitution on the other hand does not seem to be strong enough to justify de-regulation.

Item Type: Paper
Keywords: fixed-mobile substitution / market definition / hypothetical monopolist test / (de-)regulation / fixed networks / voice telephony
Classification Codes: RVK QR 300, QR 720 ; JEL C 32, L 43, L 51, L 96
Divisions: Forschungsinstitute > Regulierungsökonomie
Depositing User: Repository Administrator
Date Deposited: 14 Jan 2010 10:40
Last Modified: 19 Sep 2017 13:27
URI: http://epub.wu.ac.at/id/eprint/1216

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