The dubious consolidation economics of Frontier Economics
In its report ‘Assessing the case for in-country mobile consolidation’, prepared for the GSMA, Frontier Economics claimed “...that there is no evidence that prices increased following the merger” in Austria.
According to Frontier’s dubious methodology unit prices fall even when consumers are asked to pay more Euros every month to purchase the same amount of goods.
The fact is that before the merger, in December 2012, Austrian consumers paid €11 to purchase a smartphone plan with at least 1,000 minutes/SMS and 2 gigabytes. By February 2015 the price has doubled to €22.
Post-consolidation price hike in Austria
In this flash report we follow up on our EU27 mobile data cost competitiveness report May 2013 by reflecting on three recent market developments: consolidation in Austria (prices went up by over 60% on average), the planned acquisition of KPN E-Plus in Germany and EU's single telecom market regulation.