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The Determinants of the Global Mobile Telephone Deployment: An Empirical Analysis

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  • Sheikh Taher ABU
  • Masatsugu TSUJI

Abstract

This study aims to analyze the global mobile phones by examining the instruments stimulating the diffusion pattern. A rigorous demand model is estimated using global mobile telecommu-nications panel dataset comprised with 51 countries classified in order to World Bank income categories from 1990-2007. In particular, the paper examines what factors contribute the most to the deployment of global mobile telephones. To construct an econometric model, the number of subscribers to mobile phone per 100 inhabitants is taken as dependent variable, while the following groups of variables (1) GDP per capita income and charges, (2) competition policies (3) telecom infrastructure (4) technological innovations (5) others are selected as independent variables. Estimation results report the presence of substantial disparity among groups. Additionally GDP per capita income and own-price elasticity comprised with call rate, subscription charges, are reported. The analysis of impulse responses for price, competition policies, and technological innovations such as digitalization of mobile network, mobile network coverage indicates that substantial mobile telephone growth is yet to be realized especially in developing countries. A new and important empirical finding is that there are still many opportunities available for mobile phone development in the world pro-poor nations by providing better telecom infrastructure.

Suggested Citation

  • Sheikh Taher ABU & Masatsugu TSUJI, 2010. "The Determinants of the Global Mobile Telephone Deployment: An Empirical Analysis," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 14(3), pages 21-33.
    • Handle: RePEc:aes:infoec:v:14:y:2010:i:3:p:21-33
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    References listed on IDEAS

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    Cited by:

    1. Simplice A. Asongu & Jacinta C. Nwachukwu & Aqsa Aziz, 2018. "Determinants of Mobile Phone Penetration: Panel Threshold Evidence from Sub-Saharan Africa," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 21(2), pages 81-110, April.
    2. Simplice A. Asongu, 2018. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 81-135, March.
    3. Rafiy, M. & Ernawati & Adam, P. & Rostin, 2016. "The Demand of Services for Information Technology Industry in Indonesia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(4), pages 1-8, December.
    4. Abu-Shanab, Emad A. & Abu-Baker, Ala'a N., 2014. "Using and buying mobile phones in Jordan: Implications for future research and the Development of New Methodology," Technology in Society, Elsevier, vol. 38(C), pages 103-110.
    5. 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.

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