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Three Private Firms and an Independent Regulator are Sufficient for Rapid Mobile Network Penetration

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Listed:
  • Yan Li

    (Oxford Brookes Business School)

  • Bruce Lyons

    (Centre for Competition Policy and School of Economics, UEA)

Abstract

The speed of market penetration (i.e. diffusion) is an important summary measure of how well the market works for potential consumers of a new product. This paper identifies the structural features associated with rapid diffusion of mobile telephony. We use a sample of thirty countries over the sixteen years in which average penetration rose from 2% to 97% of the population (earlier studies observed only the initial years of diffusion during which there was typically only one or two networks). We find a non-monotonic effect of market structure, with three firms maximising consumer uptake. Privatization and independent regulation are also important positive factors. Further results show that the market structure effect works only partially through the level of prices.

Suggested Citation

  • Yan Li & Bruce Lyons, 2011. "Three Private Firms and an Independent Regulator are Sufficient for Rapid Mobile Network Penetration," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2011-01, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2011_01
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    References listed on IDEAS

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    Cited by:

    1. Richard Cadman, 2012. "Invention, Innovation and Diffusion of Local Loop Unbundling in the UK," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-08, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    2. Yan Li & Catherine Waddams Price, 2012. "Effect of Regulatory Reform on the Efficiency of Mobile Telecommunications," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-01, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    3. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, vol. 37(11), pages 1150-1165.

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    More about this item

    Keywords

    competition; market structure; privatization; independent regulator; mobile network; diffusion;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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