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

Wolfgang Briglauer, Anton Schwarz, Christine Zulehner

Publikation: Working/Discussion PaperWU Working Paper

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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.

Publikationsreihe

ReiheWorking Papers / Research Institute for Regulatory Economics
Nummer2009,2

WU Working Paper Reihe

  • Working Papers / Research Institute for Regulatory Economics

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