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A dynamic model of mobile telephony subscription incorporating a network effect

Author

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  • Madden, Gary G
  • Coble-Neal, Grant
  • Dalzell, Brian

Abstract

This study examines the growth of global mobile telephony and the economic factors that affect this growth. Mobile telephony has exhibited substantial growth in the decade to 2000 and this growth is expected to continue with the introduction of technically advanced mobile cellular networks. A dynamic demand model is estimated by using global telecommunications panel data comprised of 56 countries. Results from the estimation are provided along with elasticity estimates and impulse response functions for price and income.

Suggested Citation

  • Madden, Gary G & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," MPRA Paper 10829, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10829
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    2. PENARD Thierry & POUSSING Nicolas & MUKOKO Blaise & TAMOKWE Georges Bertrand, 2013. "Internet adoption and usage patterns in Africa: Evidence from Cameroon," LISER Working Paper Series 2013-22, LISER.
    3. 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.
    4. Gagnepain, Philippe & Pereira, Pedro, 2007. "Entry, costs reduction, and competition in the Portuguese mobile telephony industry," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 461-481, June.
    5. Daniel Birke, 2009. "The Economics Of Networks: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 762-793, September.
    6. Jerry Hausman & Agustin Ros, 2013. "An econometric assessment of telecommunications prices and consumer surplus in Mexico using panel data," Journal of Regulatory Economics, Springer, vol. 43(3), pages 284-304, June.
    7. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, vol. 30(1), pages 46-63, February.
    8. Yamakawa, Peter & Rees, Gareth H. & Manuel Salas, José & Alva, Nikolai, 2013. "The diffusion of mobile telephones: An empirical analysis for Peru," Telecommunications Policy, Elsevier, vol. 37(6), pages 594-606.
    9. Sangwon Lee & Justin S. Brown, 2008. "The Diffusion of Fixed Broadband: An Empirical Analysis," Working Papers 08-19, NET Institute, revised Sep 2008.
    10. Benseny, Jaume & Finley, Benjamin & Hämmäinen, Heikki, 2016. "Bottleneck Analysis of the Mobile Internet Diffusion in Emerging Markets," 27th European Regional ITS Conference, Cambridge (UK) 2016 148658, International Telecommunications Society (ITS).
    11. Casey, Thomas R. & Töyli, Juuso, 2012. "Mobile voice diffusion and service competition: A system dynamic analysis of regulatory policy," Telecommunications Policy, Elsevier, vol. 36(3), pages 162-174.
    12. 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.
    13. Ramos, Boris & Saeed, Khalid & Pavlov, Oleg, 2010. "The impact of Universal Service Obligations and International Cross-subsidies on the dispersion of telephone services in developing countries," Socio-Economic Planning Sciences, Elsevier, vol. 44(2), pages 57-72, June.
    14. 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.
    15. Zhang, Xiaoqun, 2013. "Income disparity and digital divide: The Internet Consumption Model and cross-country empirical research," Telecommunications Policy, Elsevier, vol. 37(6), pages 515-529.
    16. 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," LISER Working Paper Series 2012-15, LISER.
    17. Zaber, Moinul & Sirbu, Marvin, 2012. "Impact of spectrum management policy on the penetration of 3G technology," Telecommunications Policy, Elsevier, vol. 36(9), pages 762-782.
    18. Christiaan Hogendorn, 2012. "Spillovers and Network Neutrality," Chapters,in: Regulation and the Performance of Communication and Information Networks, chapter 8 Edward Elgar Publishing.
    19. Chen-Ju Lin & Ci-Rong Li & Chih-Peng Chu, 2011. "The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(4), pages 829-843, June.
    20. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    21. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
    22. Takanori Ida & Toshifumi Kuroda, 2009. "Discrete choice model analysis of mobile telephone service demand in Japan," Empirical Economics, Springer, vol. 36(1), pages 65-80, February.
    23. repec:spr:lsprsc:v:11:y:2018:i:2:d:10.1007_s12076-018-0212-7 is not listed on IDEAS
    24. Ward, Michael R. & Zheng, Shilin, 2012. "Mobile and fixed substitution for telephone service in China," Telecommunications Policy, Elsevier, vol. 36(4), pages 301-310.

    More about this item

    Keywords

    Mobile telephony; fixed line telephony; network effect; substitution; global analysis;

    JEL classification:

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

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