Modeling the complementarity between mobile and fixed networks through predator–prey dynamics

Abstract Since the arrival of mobile technologies, analyses of the competitive landscape between fixed and mobile services have been a focal point for scholars, policymakers, and regulators. To examine the dynamics between mobile and fixed services we have applied Lotka–Volterra, or predator–prey models, analyzing various access and application-related variables to understand their interplay. Our findings generally support the dominance of mobile networks; however, the impact of substitution varies between voice and data services and is powerfully influenced by the technological innovations and the resulting shifts in customers’ demand and perception. Two historical game-changers profoundly shaped the evolution of communication services over the past three decades: The “personal” character of mobile services (as opposed to the “local” character of fixed) and the advent of broadband applications. Our investigation sheds light on how these developments have redefined the concept of communication services, the evolution of communication markets, and the primary infrastructures that support them.