On-net price plan as an instrument to create network externalities: Swedish Mobile Industry

摘要: This paper studies network effect induced by the on-net price plan and handset subsidy in evolving Swedish mobile market from 2002 to 2007. An econometric model predicts probability that subscribers will stay with their current operators. The results show large operators gain benefit size if they offer lower subsidy. Thus, regulator should pay more attention discrimination between on- off-net calls set since it affect competition market.