Is Fixed-Mobile Substitution strong enough to de-regulate Fixed Voice Telephony? Evidence from the Austrian Markets
نویسندگان
چکیده
In this paper, we estimate own-price elasticities for fixed network voice telephony access and national calls services for private users as well as cross-price elasticities to mobile services using time series data from 2002-2007 from the Austrian market. Using instrumental variable estimates and considering 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.
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