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Economic determinants of global mobile telephony growth


  • Madden, Gary
  • Coble-Neal, Grant


This study examines the substitution effect between fixed-line and mobile telephony while controlling for the consumption externality associated with telephone networks. A dynamic demand model is estimated using a global telecommunications panel dataset comprised of 56 countries from 1995–2000. Estimation results show the presence of a substantial substitution effect. Additionally income and own-price elasticities are reported. Analysis of impulse responses for price, income and network size indicate substantial mobile telephone growth is yet to be realised. However, price ceilings imposed in the fixed-line network can retard the growth of the mobile network.
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  • Madden, Gary & Coble-Neal, Grant, 2004. "Economic determinants of global mobile telephony growth," Information Economics and Policy, Elsevier, vol. 16(4), pages 519-534, December.
  • Handle: RePEc:eee:iepoli:v:16:y:2004:i:4:p:519-534

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    References listed on IDEAS

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    Cited by:

    1. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2012. "How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 European countries," DICE Discussion Papers 49, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    3. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2011. "Does the growth of mobile markets cause the demise of fixed networks? Evidence from the European Union," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52144, International Telecommunications Society (ITS).
    4. Asongu, Simplice, 2015. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," MPRA Paper 70235, University Library of Munich, Germany, revised Sep 2015.
    5. 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.
    6. Akematsu, Yuji & Shinohara, Sobee & Tsuji, Masatsugu, 2012. "Empirical analysis of factors promoting the Japanese 3G mobile phone," Telecommunications Policy, Elsevier, vol. 36(3), pages 175-186.
    7. Shinohar, Sobee & Akematsu, Yuji & Tsuji, Masatsugu, 2012. "Migration factors among broadband services: Panel data analysis," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72543, International Telecommunications Society (ITS).
    8. Akematsu, Yuji & Abu, Sheikh Taher & Tsuji, Masatsugu, 2010. "Empirical Study of Effect of Deregulation, Competition, and Contents on Mobile Phone Diffusion: Case of the Japanese 3G Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 1, International Telecommunications Society (ITS).
    9. Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
    10. 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.
    11. 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.
    12. Oğuz, Fuat & Akkemik, K. Ali & Göksal, Koray, 2015. "Toward a wider market definition in broadband: The case of Turkey," Utilities Policy, Elsevier, vol. 37(C), pages 111-119.
    13. Asongu, Simplice & Nwachukwu, Jacinta, 2016. "Determinants of Mobile Phone Penetration: Panel Threshold Evidence from Sub-Saharan Africa," MPRA Paper 77308, University Library of Munich, Germany.
    14. Barth, Anne-Kathrin & Heimeshoff, Ulrich, 2014. "What is the magnitude of fixed–mobile call substitution? Empirical evidence from 16 European countries," Telecommunications Policy, Elsevier, vol. 38(8), pages 771-782.
    15. Andonova, Veneta & Diaz-Serrano, Luis, 2009. "Political institutions and telecommunications," Journal of Development Economics, Elsevier, vol. 89(1), pages 77-83, May.
    16. Meade, Nigel & Islam, Towhidul, 2015. "Forecasting in telecommunications and ICT—A review," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1105-1126.
    17. Wolfgang Briglauer & Anton Schwarz & Christine Zulehner, 2011. "Is fixed-mobile substitution strong enough to de-regulate fixed voice telephony? Evidence from the Austrian markets," Journal of Regulatory Economics, Springer, vol. 39(1), pages 50-67, February.

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    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications


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