Going Mobile: Substitutability between Fixed and Mobile Access
University of California, Berkeley - Department of Economics
Michael R. Ward
University of Texas at Arlington - College of Business Administration - Department of Economics
Glenn A. Woroch
University of California, Berkeley
May 21, 2012
Telecommunications Policy, Volume 27, Issues 5–6, June–July 2003, Pages 457–476
We empirically estimate the substitutability of fixed and mobile services for telecommunications access using a large, U.S. household survey conducted over the period 2000-2001. Estimated cross-price elasticities confirm that second fixed line and mobile services are substitutes for one another. The extent of fixed-mobile substitution has important implications for policy toward fixed network unbundling, fixed-mobile vertical separation, and universal service.
Keywords: substitution, substitutability, telecommunications demand analysis, cellular telephone service
JEL Classification: D12, L96
Date posted: May 30, 2003 ; Last revised: May 22, 2012
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