Discussion paper

DP9361 Fixed-Mobile Integration

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


Hoernig, S and C Cambini (2013), ‘DP9361 Fixed-Mobile Integration‘, CEPR Discussion Paper No. 9361. CEPR Press, Paris & London. https://cepr.org/publications/dp9361