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Market structure, regulation and the speed of mobile network penetration

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  • Li, Yan
  • Lyons, Bruce
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    Abstract

    The speed of market penetration (i.e. diffusion) is an important summary measure of how well the market works for potential consumers of a new product. This paper identifies the structural features associated with rapid diffusion of mobile telephony. We use a sample of thirty countries over the 16years in which average penetration rose from 2% to 97% of the population (earlier studies observed only the initial years of diffusion during which there was typically only one or two networks). We find that both the number of networks and the history of market structures matter for the speed of consumer uptake. The market structure effect does not appear to work exclusively through the level of prices. Digital technology, standardization, privatization and independent regulation are also important positive factors, and we identify the speed and dimensions of catch-up.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 30 (2012)
    Issue (Month): 6 ()
    Pages: 697-707

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    Handle: RePEc:eee:indorg:v:30:y:2012:i:6:p:697-707

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    Web page: http://www.elsevier.com/locate/inca/505551

    Related research

    Keywords: Competition; Market structure; Privatization; Independent regulator; Mobile network; Diffusion;

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    Cited by:
    1. Csorba, Gergely & Pápai, Zoltán, 2013. "Does one more or one less mobile opertor affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets," 24th European Regional ITS Conference, Florence 2013 88503, International Telecommunications Society (ITS).

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