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A dynamic model of mobile telephony subscription incorporating a network effect

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  • Madden, Gary G
  • Coble-Neal, Grant
  • Dalzell, Brian

Abstract

This study examines the growth of global mobile telephony and the economic factors that affect this growth. Mobile telephony has exhibited substantial growth in the decade to 2000 and this growth is expected to continue with the introduction of technically advanced mobile cellular networks. A dynamic demand model is estimated by using global telecommunications panel data comprised of 56 countries. Results from the estimation are provided along with elasticity estimates and impulse response functions for price and income.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10829.

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Date of creation: 2004
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Handle: RePEc:pra:mprapa:10829

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Keywords: Mobile telephony; fixed line telephony; network effect; substitution; global analysis;

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References

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  1. World Bank, 2000. "World Development Indicators 2000," World Bank Publications, The World Bank, number 13828, August.
  2. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, Elsevier, vol. 29(4-5), pages 603-625, April.
  3. Foreman, R Dean & Beauvais, Edward, 1999. "Scale Economies in Cellular Telephony: Size Matters," Journal of Regulatory Economics, Springer, Springer, vol. 16(3), pages 297-306, November.
  4. Gruber, H. & Verboven, F.L., 1998. "The Diffusion of Mobile Telecommunications Services in the European Union," Discussion Paper, Tilburg University, Center for Economic Research 1998-138, Tilburg University, Center for Economic Research.
  5. Ahn, Hyungtaik & Lee, Myeong-Ho, 1999. "An econometric analysis of the demand for access to mobile telephone networks," Information Economics and Policy, Elsevier, Elsevier, vol. 11(3), pages 297-305, September.
  6. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, Econometric Society, vol. 46(6), pages 1251-71, November.
  7. 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, Elsevier, vol. 11(3), pages 243-269, September.
  8. Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, Elsevier, vol. 13(1), pages 19-34, March.
  9. Parker, Philip M., 1994. "Aggregate diffusion forecasting models in marketing: A critical review," International Journal of Forecasting, Elsevier, Elsevier, vol. 10(2), pages 353-380, September.
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Citations

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Cited by:
  1. Takanori Ida & Toshifumi Kuroda, 2009. "Discrete choice model analysis of mobile telephone service demand in Japan," Empirical Economics, Springer, Springer, vol. 36(1), pages 65-80, February.
  2. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, Springer, vol. 11(3), pages 205-220, October.
  3. Daniel Birke, 2008. "The economics of networks - A survey of the empirical literature," Occasional Papers, Industrial Economics Division 22, Industrial Economics Division.
  4. Gagnepain, Philippe & Pereira, Pedro, 2005. "Entry, Cost Reduction and Competition in The Portuguese Mobile Telephone Industry," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4993, C.E.P.R. Discussion Papers.
  5. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, Elsevier, vol. 22(1), pages 4-17, March.
  6. Jerry Hausman & Agustin Ros, 2013. "An econometric assessment of telecommunications prices and consumer surplus in Mexico using panel data," Journal of Regulatory Economics, Springer, Springer, vol. 43(3), pages 284-304, June.
  7. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers, NET Institute 08-19, NET Institute, revised Sep 2008.
  8. Thierry PENARD & Nicolas POUSSING & Gabriel ZOMO YEBE & Philémon NSI ELLA, 2012. "Comparing the Determinants of Internet and Cell Phone Use in Africa: Evidence from Gabon," Communications & Strategies, IDATE, Com&Strat dept., IDATE, Com&Strat dept., vol. 1(86), pages 65-83, 2nd quart.
  9. PENARD Thierry & POUSSING Nicolas & MUKOKO Blaise & TAMOKWE Georges Bertrand, 2013. "Internet adoption and usage patterns in Africa: Evidence from Cameroon," CEPS/INSTEAD Working Paper Series 2013-22, CEPS/INSTEAD.
  10. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, Elsevier, vol. 30(1), pages 46-63, February.
  11. Chen-Ju Lin & Ci-Rong Li & Chih-Peng Chu, 2011. "The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry," Quality & Quantity: International Journal of Methodology, Springer, Springer, vol. 45(4), pages 829-843, June.
  12. PENARD Thierry & POUSSING Nicolas & ZOMO YEBE Gabriel & NSI ELLA Philémon, 2012. "Usage d'Internet et du téléphone mobile en Afrique : une comparaison des déterminants d'adoption sur données gabonaises," CEPS/INSTEAD Working Paper Series 2012-15, CEPS/INSTEAD.

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