In this paper, we estimate own-price elasticities for fixed network voice telephony access and national calls services for
private users as well as cross-price elasticities to mobile services using time series data from 2002 to 2007 from the Austrian
markets. Using instrumental variable estimates and considering cointegration, we find that access is inelastic while calls
are elastic. We conclude that the retail market for national calls of private users can probably be deregulated due to sufficient
competitive pressure from mobile. Access-substitution on the other hand does not seem to be strong enough to justify de-regulation.
Research group:Labour Economics, Income and Social Security
