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The Determinants of the Global Mobile Telephone Deployment: An Empirical Analysis

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  • Sheikh Taher ABU

    ()

  • Masatsugu TSUJI

    ()

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    Abstract

    This study aims to analyze the global mobile phones by examining the instruments stimulating the diffusion pattern. A rigorous demand model is estimated using global mobile telecommu-nications panel dataset comprised with 51 countries classified in order to World Bank income categories from 1990-2007. In particular, the paper examines what factors contribute the most to the deployment of global mobile telephones. To construct an econometric model, the number of subscribers to mobile phone per 100 inhabitants is taken as dependent variable, while the following groups of variables (1) GDP per capita income and charges, (2) competition policies (3) telecom infrastructure (4) technological innovations (5) others are selected as independent variables. Estimation results report the presence of substantial disparity among groups. Additionally GDP per capita income and own-price elasticity comprised with call rate, subscription charges, are reported. The analysis of impulse responses for price, competition policies, and technological innovations such as digitalization of mobile network, mobile network coverage indicates that substantial mobile telephone growth is yet to be realized especially in developing countries. A new and important empirical finding is that there are still many opportunities available for mobile phone development in the world pro-poor nations by providing better telecom infrastructure.

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    File URL: http://revistaie.ase.ro/content/55/1002%20-%20Sheikh%20Taher%20Abu.pdf
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    Bibliographic Info

    Article provided by Academy of Economic Studies - Bucharest, Romania in its journal Informatica Economica.

    Volume (Year): 14 (2010)
    Issue (Month): 3 ()
    Pages: 21-33

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    Handle: RePEc:aes:infoec:v:14:y:2010:i:3:p:21-33

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    Related research

    Keywords: Mobile Phone Adoption; 3G; Technological Innovations; Competition Policy; Panel Data Analysis; Digital Divide;

    References

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    1. Banerjee, Aniruddha & Ros, Agustin J., 2004. "Patterns in global fixed and mobile telecommunications development: a cluster analysis," Telecommunications Policy, Elsevier, vol. 28(2), pages 107-132, March.
    2. Li, Wei & Xu, Lixin Colin, 2004. "The Impact of Privatization and Competition in the Telecommunications Sector around the World," Journal of Law and Economics, University of Chicago Press, vol. 47(2), pages 395-430, October.
    3. Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, vol. 13(1), pages 19-34, March.
    4. Minkyu Lee & Youngsang Cho, 2007. "The diffusion of mobile telecommunications services in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 14(7), pages 477-481.
    5. Koski, Heli & Kretschmer, Tobias, 2002. "Entry, Standards and Competition : Firm Strategies and the Diffusion of Mobile Telephony," Discussion Papers 824, The Research Institute of the Finnish Economy.
    6. Madden, Gary & Coble-Neal, Grant, 2004. "Economic determinants of global mobile telephony growth," Information Economics and Policy, Elsevier, vol. 16(4), pages 519-534, December.
    7. Garbacz, Christopher & Thompson Jr, Herbert G., 2007. "Demand for telecommunication services in developing countries," Telecommunications Policy, Elsevier, vol. 31(5), pages 276-289, June.
    8. Minges, Michael, 1999. "Mobile cellular communications in the Southern African region," Telecommunications Policy, Elsevier, vol. 23(7-8), pages 585-593, August.
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    Cited by:
    1. Sheikh Taher ABU, 2014. "Competition and Innovation in Telecom Sector: Empirical Evidence from OECD Countries," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 18(1), pages 27-39.

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