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Market structure, regulation and the speed of mobile network penetration

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  • Li, Yan
  • Lyons, Bruce

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 16years 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 that both the number of networks and the history of market structures matter for the speed of consumer uptake. The market structure effect does not appear to work exclusively through the level of prices. Digital technology, standardization, privatization and independent regulation are also important positive factors, and we identify the speed and dimensions of catch-up.

Suggested Citation

  • Li, Yan & Lyons, Bruce, 2012. "Market structure, regulation and the speed of mobile network penetration," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 697-707.
  • Handle: RePEc:eee:indorg:v:30:y:2012:i:6:p:697-707
    DOI: 10.1016/j.ijindorg.2012.08.004
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    Cited by:

    1. Agiakloglou, Christos & Polemis, Michael, 2017. "Evaluating the liberalization process on Telecommunications services for EU countries," MPRA Paper 85119, University Library of Munich, Germany.
    2. Leo Van Hove, 2016. "Measuring the value of mobile telecommunications networks," Netnomics, Springer, vol. 17(3), pages 191-222, November.
    3. Christos Genakos & Tommaso Valletti & Frank Verboven, 2017. "Evaluating Market Consolidation in Mobile Communications," CEP Discussion Papers dp1486, Centre for Economic Performance, LSE.
    4. Halkos, George & Polemis, Michael, 2016. "Examining the impact of financial development on the environmental Kuznets curve hypothesis," MPRA Paper 75368, University Library of Munich, Germany.
    5. Csorba, Gergely & Pápai, Zoltán, 2013. "Does one more or one less mobile opertor affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets," 24th European Regional ITS Conference, Florence 2013 88503, International Telecommunications Society (ITS).
    6. repec:kap:jincot:v:18:y:2018:i:2:d:10.1007_s10842-017-0261-4 is not listed on IDEAS
    7. repec:bla:ecinqu:v:55:y:2017:i:1:p:281-304 is not listed on IDEAS
    8. Fonseca, Miguel A. & Li, Yan & Normann, Hans-Theo, 2018. "Why factors facilitating collusion may not predict cartel occurrence: Experimental evidence," DICE Discussion Papers 289, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    9. Gergely Csorba & Zoltan Papai, 2015. "Does one more or one less mobile operator affect prices? A comprehensive ex-post evaluation of entries and mergers in European mobile telecommunication markets," IEHAS Discussion Papers 1541, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    10. Arturo Basaure & Varadharajan Sridhar & Heikki Hämmäinen, 2016. "Adoption of dynamic spectrum access technologies: a system dynamics approach," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 63(2), pages 169-190, October.

    More about this item

    Keywords

    Competition; Market structure; Privatization; Independent regulator; Mobile network; Diffusion;

    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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