The Impact of Mobile Phone Diffusion on the Fixed-Link Network
AbstractThere 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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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2598.
Date of creation: Oct 2000
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Find related papers by JEL classification:
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
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