The dubious consolidation economics of Frontier Economics
In its report ‘Assessing the case for in-country mobile consolidation’
, prepared for the GSMA (link to the report
), Frontier Economics claimed “...that there is no evidence that prices increased following the merger”
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.
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