Are Fixed and Cell Phones Substitutes or Compliments? The Case of Brazil

27 Pages Posted: 31 May 2006

See all articles by Cristina Lohmann Couri

Cristina Lohmann Couri

Brazilian Institute of Geography and Statistics - National School of Statistics

Jorge Arbache

University of Brasilia - Department of Economics

Date Written: May 2006

Abstract

This paper investigates whether the growth of cell telephony in Brazil after privatization is taking place at the expense of the fixed telephony. We use national household surveys and find that first, despite the rapid growth in cell telephony, complementarity between both types of telephony is still dominant at the household level; second, phone subscription is strongly determined by income, demographic and regional characteristics; and third, cell telephony plays a substitutive role with respect to fixed telephony in rural areas, but a complementary one in urban areas.

Keywords: fixed telephony, cell telephony, substitute, complementary, Brazil

JEL Classification: D12, L96, L98

Suggested Citation

Couri, Cristina Lohmann and Arbache, Jorge, Are Fixed and Cell Phones Substitutes or Compliments? The Case of Brazil (May 2006). Available at SSRN: https://ssrn.com/abstract=905125 or http://dx.doi.org/10.2139/ssrn.905125

Cristina Lohmann Couri

Brazilian Institute of Geography and Statistics - National School of Statistics ( email )

Rio de Janeiro
Brazil

Jorge Arbache (Contact Author)

University of Brasilia - Department of Economics ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil
+ 55 61 8194 4529 (Phone)

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