Fixed-Mobile Substitution and Termination Rates

Hoernig, Steffen; Bourreau, Marc; Cambini, Carlo

http://hdl.handle.net/10362/82841

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Autores

Hoernig, Steffen

Bourreau, Marc

Cambini, Carlo

Resumo(s)

This paper studies the effect of termination rates on substitution between fixed and mobile calls and access, in a model where heterogeneous consumers can subscribe to one or both types of offers. Simulations show that each (fixed or mobile) termination rate has a positive effect on the take-up of the corresponding service, via the waterbed effect, and lowers subscriptions to the other service, via a cost effect. The prevailing asymmetric regulation, with very low fixed and higher mobile termination rates, corresponds to the social optimum. However, the interests of the mobile operators and of the different customer groups do not coincide.

Palavras-chave

Network competition Fixed-mobile substitution Termination rates

URI

http://hdl.handle.net/10362/82841

Citação

Hoernig, Steffen, Bourreau, Marc and Cambini, Carlo, Fixed-Mobile Substitution and Termination Rates (July, 2014). FEUNL Working Paper Series No. 588

Editora

Nova SBE

Coleções

NSBE - Working Paper Series

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