Considering Fixed-Mobile Convergence Service as a Two-Sided Market

This paper considers the rapidly developing Fixed-Mobile Convergence (FMC) service as a two-sided market and analyzes the price structure a la Bertrand-Nash based on revealed preference data. The price structure is calculated such that the price-cost margin is higher for NTT's relatively advantageous fixed-line Internet service and lower for NTT's relatively disadvantageous mobile phone service, both of which have the largest market shares in their respective markets.