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Bottleneck Analysis of the Mobile Internet Diffusion in Emerging Markets

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  • Benseny, Jaume
  • Finley, Benjamin
  • Hämmäinen, Heikki

Abstract

According to the ITU, in 2013, only 6% of the population in developing countries had access to broadband Internet. Nevertheless, mobile Internet penetration rates have already exceeded those of fixed telecommunication services and may help in bridging the digital divide. To understand this phenomenon, we model the mobile Internet diffusion process via a system dynamics model that includes user competence, data price, and mobile network capacity as the main contributors to consumer utility and consequently, the main mobile Internet diffusion bottlenecks. The links that connect the system dynamics model variables are evaluated through a linear regression analysis that includes, for the first time, actual mobile capacity measurements from 17 metropolitan areas in emerging markets. The results suggest that market competition and mobile capacity are the main mobile Internet diffusion bottlenecks in emerging markets.

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:itse16:148658
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    References listed on IDEAS

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    3. Kiiski, Sampsa & Pohjola, Matti, 2002. "Cross-country diffusion of the Internet," Information Economics and Policy, Elsevier, vol. 14(2), pages 297-310, June.
    4. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, vol. 30(1), pages 46-63, February.
    5. Antero Kivi, 2010. "Diffusion of mobile data in Finland," Netnomics, Springer, vol. 11(3), pages 243-254, October.
    6. Ishii, Kenichi, 2004. "Internet use via mobile phone in Japan," Telecommunications Policy, Elsevier, vol. 28(1), pages 43-58, February.
    7. 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.
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    Keywords

    Mobile Internet; Emerging Markets; System Dynamics; Mobile Capacity;

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