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The Impact of Mobile Phone Diffusion on the Fixed-Link Network

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Author Info
Cadima, Nuno
Pita Barros, Pedro Luis

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Abstract

There is currently little knowledge on the consequences of diffusion of cellular technology on the incumbent fixed-link telephony service. We address this issue by estimation of diffusion curves for both technologies, allowing for potential cross-effects, using data from a small European economy. Our main findings are a negative effect of the mobile phone diffusion on the fixed-link telephony penetration rate. The effect is, roughly, a ten percent decrease in the fixed-link penetration rate (in comparison with the absence of mobile phones). No effect on the reverse direction seems to exist. Mobile phone market growth seems to be determined essentially by technological advances.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2598.

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Date of creation: Oct 2000
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Handle: RePEc:cpr:ceprdp:2598

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Related research
Keywords: Mobile Phone Diffusion; Telecommunications;

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Find related papers by JEL classification:
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

References listed on IDEAS
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  1. Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer. [Downloadable!] (restricted)
  2. Barros, Pedro P. & Seabra, M. Carmo, 1999. "Universal service: does competition help or hurt?," Information Economics and Policy, Elsevier, vol. 11(1), pages 45-60, March. [Downloadable!] (restricted)
  3. Ahn, Hyungtaik & Lee, Myeong-Ho, 1999. "An econometric analysis of the demand for access to mobile telephone networks," Information Economics and Policy, Elsevier, vol. 11(3), pages 297-305, September. [Downloadable!] (restricted)
  4. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Gruber, Harald & Verboven, Frank, 2000. "The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications," CEPR Discussion Papers 2440, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Jha, Raghbendra & Majumdar, Sumit K., 1999. "A matter of connections: OECD telecommunications sector productivity and the role of cellular technology diffusion," Information Economics and Policy, Elsevier, vol. 11(3), pages 243-269, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lukasz Grzybowski & Pedro Pereira, 2006. "Simulation of Merger in Mobile Telephony in Portugal," Working Papers 06-22, NET Institute, revised Oct 2006. [Downloadable!]
  2. Tom Björkroth, 2002. "Market Structure and Welfare in the Finnish Market for Long-Distance Telecommunications," Finnish Economic Papers, Finnish Economic Association, vol. 15(2), pages 87-101, Autumn. [Downloadable!]
  3. Kris De Jaegher, 2008. "Asymmetric substitutability: theory and some applications," Working Papers 08-02, Utrecht School of Economics. [Downloadable!]
    Other versions:
  4. Michal Grajek & Tobias Kretschmer, 2007. "Usage and Diffusion of Cellular Telephony, 1998-2004," ESMT Research Working Papers ESMT-07-003, ESMT European School of Management and Technology. [Downloadable!]
    Other versions:
  5. Anabela Botelho & Ligia Costa Pinto, 2000. "Has Portugal gone wireless? Looking back, Looking ahead," Working Papers 5, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
  6. Luis Fernando Gamboa & Jesus Otero, 2008. "An Estimation Of The Pattern Of Diffusion Of Mobile Phones: The Case Of Colombia," DOCUMENTOS DE TRABAJO 005149, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
  7. Krzysztof Dzieciolowski & John Galbraith, 2004. "Indicators of wireline/wireless competition in the market for telecommunication services," CIRANO Project Reports 2004rp-21, CIRANO. [Downloadable!]
  8. Philippe Gagnepain & Pedro Pereira, 2005. "Entry, Costs Reduction, and Competition in the Portuguese Telephony Industry," Working Papers 05, Portuguese Competition Authority. [Downloadable!]
  9. Gagnepain, Philippe & Pereira, Pedro, 2005. "Entry, Cost Reduction and Competition in The Portuguese Mobile Telephone Industry," CEPR Discussion Papers 4993, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Duarte Brito & Pedro Pereira, 2006. "Some Investment and Competition Implications of the Ownership Structure of Overlapping Networks," Working Papers 11, Portuguese Competition Authority. [Downloadable!]
  11. Duarte Brito & Pedro Pereira, 2005. "Ownership Structure of Cable Networks and Competition in Local Access," Industrial Organization 0507002, EconWPA. [Downloadable!]
    Other versions:
  12. Heli Koski & Tobias Kretschmer, 2004. "Entry, Standards and Competition: Firm Strategies and the Diffusion of Mobile Telephony," Review of Industrial Organization, Springer, vol. 26(1), pages 89-113, November. [Downloadable!] (restricted)
    Other versions:
  13. Lukasz Grzybowski & Pedro Pereira, 2007. "Merger Simulation in Mobile Telephony in Portugal," Review of Industrial Organization, Springer, vol. 31(3), pages 205-220, November. [Downloadable!] (restricted)
    Other versions:
  14. Madden, Gary G & Coble-Neal, Grant, 2004. "Economic determinants of global mobile telephony growth," MPRA Paper 10828, University Library of Munich, Germany. [Downloadable!]
  15. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2002. "An assessment of telecommunications reform in developing countries," Policy Research Working Paper Series 2909, The World Bank. [Downloadable!]
    Other versions:
  16. Harbord, David & Pagnozzi, Marco, 2008. "On-Net/Off-Net Price Discrimination and 'Bill-and-Keep' vs. 'Cost-Based' Regulation of Mobile Termination Rates," MPRA Paper 14540, University Library of Munich, Germany. [Downloadable!]
  17. Andersson, Kjetil & Foros, Øystein & Steen, Frode, 2006. "Text and Voice: Complements, Substitutes or Both?," CEPR Discussion Papers 5780, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  18. Pedro Pereira & José C. Pernías-Cerrillo, 2005. "The Diffusion of Cellular Telephony in Portugal before UMTS: A Time Series Approach," Working Papers 08, Portuguese Competition Authority. [Downloadable!]
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