Description
The main purpose of this thesis is to estimate the demand for fixed and mobile services in the Economic and Monetary Union, for a sample of 12 developed countries, including Portugal, between 2008 and 2013.The first demand estimates in the telecommunications sector date back to the early 70’s, in the US and Canada, where the incumbent firms used estimated price elasticities to set the prices of local calls. The structural changes that have occurred in the sector attracted the attention of researchers to estimate demand in the telecommunications sector. The literature spread on a global scale and currently is possible to find several studies that estimate the demand for telecommunications in many countries, developed and developing.
Regarding the main conclusions of this thesis, it is important to highlight the prices exogeneity of fixed-line and mobile services, as well as the substitution relation between the two services. The monthly charge of fixed-line service is statistically significant, which points to an effective subsidization of universal service in the countries that constitute the sample. Important determinants, such as per capita income, education level and population density does not affect the subscription of both services. Finally, it is also important to highlight that the off-net prices of mobile service are not statistically significant, which may be explained by the convergence that has occurred between on-net and off-net prices in the countries of the sample.
| Period | Sept 2014 → 18 Dec 2015 |
|---|---|
| Held at | University of Porto, Portugal |
| Degree of Recognition | Master |
Keywords
- Fixed-line service
- Mobile service
- Demand models
- Regulation.