Going Mobile: Substitutability between Fixed and Mobile Access
Haas School of Business, Center for Research on Telecommunications Policy Working Paper CRTP-58
31 Pages Posted: 30 May 2003
Date Written: December 2002
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
Suggested Citation: Suggested Citation