Fixed to mobile substitution in Turkish voice market

The conventional telecommunication services are given place to modern telecommunications services those have a more sophisticated structure. The substantial structural changes have occured in the telecommunication markets in terms of the development of technologies, tends of product differentiation, price competitions, reasearch and development policies. The rapid techological progress and the significant increase on quality of services have emerged in the last decade. As a result of this process, decreasing prices have underlied the industry. Thereby, the mobile telecommunication services have been indicated an exceeding structure the fixed telecommunication services in terms of the number of subscribers, revenues and volume of traffics. The services that have different infrastructure features whether they are complementarity or substitutability are deeply important in terms of market definition. The mobile telecommunication had emerged as a complement of fixed telecommunications in the early stage of the industry. By years, in conjunction with technological development process, mobile telecommunication services have become a close substitute of fixed telecommunication services. Firstly, the regulation requirements are dwell on by determining the general characteristics of the industry.The affects of ruling out of variables are stated over the analysis process and results. Futhermore, the existence of natural monopoly market power in the fixed telecommunication market is restricted by mobil mobile telecommunication market. The aim of this study is, by determining the market structure in both fixed and mobile voice markets by years, indicated that defined as compliment but would be substitute two different services effect on market definition and structure. Keywords : Telecommunications, mobile telecommunications, fixed telecommunications, fixed to mobile substitution, market, market definition, competition, market concentration, regulation, switching cost, network externalities.