2013
DOI: 10.1007/s11149-013-9230-y
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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¢… Show more

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Cited by 4 publications
(1 citation statement)
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References 18 publications
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“…Assuming a fixed network monopoly, HOERNIG, BOURREAU and CAMBINI (2013) show that FMI leads to more efficient internal FTM prices, while external FTM prices are distorted upwards, amplifying the incumbency advantage of the integrated operator. These properties extend to the case of more than one fixed operator, suggesting that all fixed (mobile) operators should want to be associated with a mobile (fixed) operator.…”
Section: Geographic Differentiation Of Wholesale Access Regulationmentioning
confidence: 97%
“…Assuming a fixed network monopoly, HOERNIG, BOURREAU and CAMBINI (2013) show that FMI leads to more efficient internal FTM prices, while external FTM prices are distorted upwards, amplifying the incumbency advantage of the integrated operator. These properties extend to the case of more than one fixed operator, suggesting that all fixed (mobile) operators should want to be associated with a mobile (fixed) operator.…”
Section: Geographic Differentiation Of Wholesale Access Regulationmentioning
confidence: 97%