Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market
AbstractThe paper analyzes the demand and supply characteristics of the Indian telecommunications market, with the aim of contributing to the debate on the effectiveness of universal access policies in developing countries. The discussion is supported by some empirical evidence derived from a small time-series-cross-section dataset, containing mainly information on the fixed-lines segment of the market. The analysis suggests that the price elasticity of demand for fixed lines might be sensibly higher than the levels usually found in developed countries, while the crucial role of income and other sociodemographic variables seems to be confirmed. The paper also studies the impact of cellular penetration on fixed-lines diffusion. The results suggest the existence of a (positive) network effect in low penetration areas, while substitution (displacement) seems to arise in the most developed ones. Finally, the paper analyzes the supply side of the market, to assess the impact of market competition on investment. Competition seemingly helps stimulating investment in the most developed areas, but does not seem to have a significant impact in the less developed ones.
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Bibliographic InfoArticle provided by Elsevier in its journal Telecommunications Policy.
Volume (Year): 35 (2011)
Issue (Month): 3 (April)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description
Other versions of this item:
- Sara Biancini, 2010. "Behind the Scenes of the Telecommunications Miracle: An Empirical Analysis of the Indian Market," CESifo Working Paper Series 3286, CESifo Group Munich.
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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