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DOES OWNERSHIP, SIZE OR COMPETITION MATTER? THE EFFECTS OF TELECOMMUNICATIONS REFORM ON PRICING IN GREECE
Last modified: 2015-09-15
Abstract
This paper explores the effects of liberalization in the Greek telecommunication market on pricing for the period 1992- 2005. In particular, we examine the implications of privatization, competition and regulation in fixed telephony, mobile telephony and the internet markets and we investigate a) whether the sector’s reform influenced services pricing (descriptive analysis), b) the possible explanatory factors of these dependent variable (econometric analysis - Panel Feasible Generalised Least Squares – FGLS-). The data refers to 44 of the most prominent companies of fixed telephony, mobile telephony and internet services and was compiled by means of interviews with the help of a questionnaire. Our descriptive analysis concluded that liberalization of the telecommunication market induced price cuts. The main conclusion of econometric research is that a large market share provides in the companies the capability of cutting the prices of their services. In this way, the present article offers useful information about a field that continues to be characterized by a vast researching deficit
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