L43

Legal Monopolies and Regulation or Deregulation

Substitution between fixed and mobile data amidst high levels of poverty and inequality

Ryan Hawthrone and Lukasz Grzybowski

Mobile broadband is the main means of connecting to the internet in developing countries, where fixed-line coverage is typically limited or non-existent. As a result, governments in developing countries are seeking means by which mobile broadband penetration might be increased.

Narrowing the ‘digital divide’: the role of complementarities between fixed and mobile data in South Africa

We study substitution between fixed and mobile broadband services in South Africa using survey data on 134,000 individuals between 2009 and 2014. In our discrete-choice model, individuals choose fixed or mobile and data services in a framework that allows them to be substitutes or complements. We find that voice services are complements on average but data services are substitutes. However, many consumers see data services as complements.

The Impact of Telecommunication Regulatory Policy on Mobile Retail Price in Sub-Saharan African Countries

This paper examines the eect of regulatory policies on mobile retail prices. Using quarterly data for 8 African countries for the period 2010:Q4 to 2014:Q4 we estimate structural demand and supply equations. We nd that mobile termination rates (MTR) have significant positive impact on mobile retail prices. A decline in average MTR of 10% decreases average mobile retail prices by 2.5%.

Fixed-to-Mobile Substitution in the European Union

This paper analyzes substitution between access to fixed-line and mobile telephony in the European Union. We estimate a structural model of household's demand for: (i) fixed-line only; (ii) mobile only; (iii) and both fixed-line and mobile access. We find that decreasing prices for mobile services increase the share of 'mobile only' households and decrease shares of 'fixed only' and 'fixed + mobile' households which suggests substitution between fixed-line and mobile connections.

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