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Econometric Evidence on the Impacts of Privatization, New Entry, and Independent Industry Regulator on Mobile Network Penetration and Expansion

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Author Info
Yan Li () (Centre for Competition Policy, University of East Anglia)
Abstract

This study examines the impacts of reforms – privatization, new entry and independent regulatory authority – on mobile network penetration and expansion using a new and hitherto unused panel dataset for 30 national mobile markets (i.e. 29 OECD countries and China) over the time period 1991-2006 under a 3-equation econometric framework. The estimation results confirm that introducing new entry is, in general, positively correlated with mobile network penetration and expansion; and in particular, the third entry brings many more benefits than the second one. The results also highlight the crucial role of an independent regulator in privatized mobile markets. Especially, the dynamic estimation results suggest that without an independent regulator, privatization is, on average, negatively correlated with mobile network expansion, even in certain competitive market environments.

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Publisher Info
Paper provided by Centre for Competition Policy, University of East Anglia in its series Working Papers with number 08-35.

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Length: 29 pages
Date of creation: Dec 2008
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Handle: RePEc:ccp:wpaper:wp08-35

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Related research
Keywords: New entry; privatization; independent regulator; mobile network; econometric analysis;

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Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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    Other versions:
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  13. Hausman, Jerry A, 1975. "An Instrumental Variable Approach to Full Information Estimators for Linear and Certain Nonlinear Econometric Models," Econometrica, Econometric Society, vol. 43(4), pages 727-38, July. [Downloadable!] (restricted)
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  15. David Parker & Colin Kirkpatrick, 2005. "Privatisation in Developing Countries: A Review of the Evidence and the Policy Lessons," The Journal of Development Studies, Taylor and Francis Journals, vol. 41(4), pages 513-541, May. [Downloadable!] (restricted)
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  16. Maiorano, Federica & Stern, Jon, 2007. "Institutions and telecommunications infrastructure in low and middle-income countries: The case of mobile telephony," Utilities Policy, Elsevier, vol. 15(3), pages 165-181, September. [Downloadable!] (restricted)
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