More Firms, More Competition: Is It Certain? The Case of the Fourth Operator in France's Mobile Telephony

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Executive Summary

To increase competition in France's mobile phone market, the French GSM, the government plans to authorize the entry of a fourth operator alongside the existing three - Orange (formerly the state-owned concern France Telecom, the oldest-established operator), SFR and Bouygues Telecom. Some commentators suggest the new entrant could be the Internet provider Free, but nothing is sure. The point of introducing a fourth operator is debated in the industry but it seems no economic studies have been published on the topic. It is worthwhile, then, examining what will happen to the market with the entry of an additional firm.

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