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Usage and diffusion of cellular telephony, 1998-2004

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  • Michal Grajek

    (ESMT European School of Management and Technology)

  • Tobias Kretschmer

    (Ludwig-Maximilians-Universität)

Abstract

We study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. Specifically, we address two questions: First, can we draw conclusions about the underlying drivers of technology diffusion by studying usage intensity? Second, what is the effect of high penetration of previous generations and competing networks on network usage intensity? Using an operator-level panel covering 41 countries with quarterly data over 6 years, we find that heterogeneity among adopters dominates network effects and that different technological generations are complements in terms of usage, but substitutes in terms of subscription.

Suggested Citation

  • 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.
    • Handle: RePEc:esm:wpaper:esmt-07-003
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    More about this item

    Keywords

    Cellular telephony; diffusion; usage intensity; network effects; consumer heterogeneity; fixed-mobile substitutability;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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