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Usage and Diffusion of Cellular Telephony, 1998-2004

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Author Info

  • Michal Grajek

    () (Wissenschaftszentrum Berlin (WZB) and Humboldt University)

  • Tobias Kretschmer

    () (Institute for Communication Economics, University of Munich and Centre for Economic Performance, LSE)

Abstract

In this paper, we study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. We address two specific questions: First, does information about usage intensity over time allow us to draw conclusions about the underlying drivers of technology diffusion? Second, what effect does the existence and penetration of previous generations and other networks in the same generation 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.

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File URL: http://www.netinst.org/Grajek-Kretschmer.pdf
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Bibliographic Info

Paper provided by NET Institute in its series Working Papers with number 06-21.

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Length: 42 pages
Date of creation: Oct 2006
Date of revision: Oct 2006
Handle: RePEc:net:wpaper:0621

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Web page: http://www.NETinst.org/

Related research

Keywords: Cellular telephony; diffusion; usage intensity; network effects; consumer heterogeneity; fixed-mobile substitutability;

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References

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Citations

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Cited by:
  1. Claussen, Jörg & Kretschmer, Tobias & Mayrhofer, Philip, 2010. "Private Regulation by Platform Operators – Implications for Usage Intensity," Discussion Papers in Business Administration 11374, University of Munich, Munich School of Management.
  2. Daniel Birke, 2008. "The economics of networks - A survey of the empirical literature," Occasional Papers 22, Industrial Economics Division.
  3. 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.
  4. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2009. "Broadband Infrastructure and Economic Growth," CESifo Working Paper Series 2861, CESifo Group Munich.
  5. Michal Grajek & Tobias Kretschmer, 2008. "Estimating Critical Mass in the Global Cellular Telephony Market," ESMT Research Working Papers ESMT-08-004 (R1), ESMT European School of Management and Technology, revised 15 Apr 2010.
  6. Karaçuka, Mehmet & Çatik, A. Nazif & Haucap, Justus, 2012. "Consumer choice and local network effects in mobile telecommunications in Turkey," DICE Discussion Papers 70, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  7. Koski, Heli & Kretchmer, Tobias, 2009. "The Role of Product Innovation on the Diffusion of Mobile Telephone," Discussion Papers 1200, The Research Institute of the Finnish Economy.
  8. Nina Czernich, 2011. "The emergence of broadband internet and consequences for economic and social development," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 37, March.
  9. Claussen, Jörg & Kretschmer, Tobias & Mayrhofer, Philip, 2010. "Incentives for Quality over Time – The Case of Facebook Applications," Discussion Papers in Business Administration 12500, University of Munich, Munich School of Management.
  10. JP Eggers & Michal Grajek & Tobias Kretschmer, 2011. "Performance implications of core and complementary pre-entry experience: The role of consumer heterogeneity in mobile telephony," ESMT Research Working Papers ESMT-11-03 (R2), ESMT European School of Management and Technology, revised 29 May 2012.

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