Fixed-Mobile Integration

26 Pages Posted: 26 Feb 2013

See all articles by Marc Bourreau

Marc Bourreau

Telecom ParisTech

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Steffen Hoernig

Nova SBE, Universidade Nova de Lisboa

Multiple version iconThere are 2 versions of this paper

Date Written: February 2013

Abstract

Often, fixed-line incumbents also own the largest mobile network. We consider the effect of this joint ownership on market outcomes. Our model predicts that while fixed-to-mobile call prices to the integrated mobile network are more efficient than under separation, those to rival mobile networks are distorted upwards, amplifying any incumbency advantage. As concerns potential remedies, a uniform off-net pricing constraint leads to higher welfare than functional separation and even allows to maintain some of the efficiency gains.

Keywords: Call externality, Integration, Network competition, On/off-net pricing

JEL Classification: L51, L92

Suggested Citation

Bourreau, Marc and Cambini, Carlo and Hoernig, Steffen, Fixed-Mobile Integration (February 2013). CEPR Discussion Paper No. DP9361, Available at SSRN: https://ssrn.com/abstract=2224286

Marc Bourreau (Contact Author)

Telecom ParisTech ( email )

46, rue Barrault
Paris Cedex 13, F-75634
France

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation ( email )

Corso Duca degli Abruzzi, 24
Torino, Torino 10129
Italy
+390115647292 (Phone)
+390115647299 (Fax)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Steffen Hoernig

Nova SBE, Universidade Nova de Lisboa ( email )

Campus De Carcavelos
Rua Da Holanda 1
Carcavelos, 2775-405
Portugal
+351-213801600 (Phone)

HOME PAGE: http://https://www2.novasbe.unl.pt/en/faculty-research/faculty/faculty-detail/id/46/steffen-hoernig

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