Fixed and mobile broadband substitution in Sweden

Abstract

This paper aims to investigate whether mobile broadband (MB) is a complementary or substitute service to fixed broadband (FB) by examining survey data collected by the Post-och telestyrelsen (PTS) in 2009. These data are supplemented with provider broadband service price data. Study findings indicate that price and housing mode are important determinants for broadband connections. In addition, the living area and service provider affect the probability of broadband access. In particular, the own-price and cross-price elasticities show that MB is substitute service to FB in most geographic area of Sweden.