Fixed-Mobile Integration

Abstract

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

Fixed-mobile substitution and termination rates

“…The …xed network is independent of the mobile networks, that is, …xed-mobile integration is not considered. SeeHoernig et al (2014) for an analysis of this issue.…”