Home > News > Product News > Substitutability Between Mobil.....


Substitutability Between Mobile And Fixed Telephones: Evidence And Implications For India

  • Author:Tyminphone
  • Source:www.tyminphone.com
  • Release on:2016-10-27

Substitutability Between Mobile And Fixed Telephones: Evidence And Implications For India

Substitutability between mobile and fixed phones has become an important consequence of telecom sector deregulation in India since 1991. This paper estimates the socio-economic determinants of household demand for mobile and fixed phones, and tests for substitutability between mobile and fixed phones, based on a binary logit model and using a small sample survey data from the Karnataka State in South India. The results show that the nature and magnitude of determinants are different between mobile and fixed phones. Estimated cross price elasticity offers empirical evidence for substitutability rather than complementarity between fixed and mobile phone services. This evidence is symmetric in mobile and fixed phone models. The empirical results are shown to have implications for policy discussion on subsidization by the Access Deficit Charge and bases for Universal Service Obligation. In view of rapid changes in the telecom market, a periodic nationally representative survey may be necessary to generalize the conclusions and implications of this paper.

"The direction of empirical studies reflects a trend from complementarity toward substitution between retail mobile and fixed-line broadband services. Fixed and mobile networks have become substitutes as a result of technological improvements of mobile services and increasing use of mobile networks in recent years


Tymin Industries Limited founded in 2003, is a leading telecommunication products manufacturer and OEM/ODM electronic products manufacturer in China. Our main products are corded phones, SOS emergency phone, call blocker, key finder, fixed wireless phone and GPS tracker. Making communication simpler, safer and healthier is our mission! The following images is part of our company's products. For more details for our products, please just feel free to contact us.