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Diffusion of Digital Mobile Telephony - Are Devoloping Countries Different?

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  • Rouvinen, Petri

Abstract

Factors determining the diffusion of digital mobile telephony across developed and developing countries are studied with the aid of a Gompertz model. After controlling for other factors, the speed of diffusion per se is not significantly different between the two groups of countries. Standards competition hinders and market competition promotes diffusion in both groups. Various factors are, however, more important in a developing country context: having a large potential user base, accumulating network effects, being open, commanding a high (non-telecom) technological level, and introducing innovation(s) complementing mobile telephony. Late entrants experience faster diffusion promoting cross-country convergence.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 901.

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Length: 17 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:rif:dpaper:901

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Keywords: mobile telephony; technology diffusion; Gompertz model; developing countries;

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References

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  1. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
  2. Abid A. Burki & Shirin Aslam, 2000. "The Role of Digital Technology and Regulations in the Diffusion of Mobile Phones in Asia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 741-750.
  3. Kiiski, Sampsa & Pohjola, Matti, 2001. "Cross-country Diffusion of the Internet," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  5. Madden, Gary & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," Telecommunications Policy, Elsevier, vol. 28(2), pages 133-144, March.
  6. Koski, Heli & Kretschmer, Tobias, 2002. "Entry, Standards and Competition : Firm Strategies and the Diffusion of Mobile Telephony," Discussion Papers 824, The Research Institute of the Finnish Economy.
  7. Liikanen, Jukka & Stoneman, Paul & Toivanen, Otto, 2004. "Intergenerational effects in the diffusion of new technology: the case of mobile phones," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1137-1154, November.
  8. Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, vol. 13(1), pages 19-34, March.
  9. 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.
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Cited by:
  1. Mehmet KARACUKA & A.Nazif CATIK, 2012. "Diffusion of Telecommunication Services in Turkey," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 12(4), pages 497-510.
  2. Towhidul Islam & Nigel Meade, 2011. "Detecting the impact of market factors on sales takeoff times of analog cellular telephones," Marketing Letters, Springer, vol. 22(2), pages 197-212, June.
  3. Biancini, Sara, 2011. "Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market," Telecommunications Policy, Elsevier, vol. 35(3), pages 238-249, April.
  4. Sheikh Taher ABU, 2014. "Competition and Innovation in Telecom Sector: Empirical Evidence from OECD Countries," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 18(1), pages 27-39.
  5. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
  6. 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., vol. 1(86), pages 65-83, 2nd quart.
  7. 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.
  8. Wu, Feng-Shang & Chu, Wen-Lin, 2010. "Diffusion models of mobile telephony," Journal of Business Research, Elsevier, vol. 63(5), pages 497-501, May.

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