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Usage and diffusion of cellular telephony, 1998-2004

Michal Grajek and Tobias Kretschmer

No ESMT-07-003, ESMT Research Working Papers from ESMT European School of Management and Technology

Abstract: We study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. Specifically, we address two questions: First, can we draw conclusions about the underlying drivers of technology diffusion by studying usage intensity? Second, what is the effect of high penetration of previous generations and competing networks on network usage intensity? Using an operator-level panel covering 41 countries with quarterly data over 6 years, we find that heterogeneity among adopters dominates network effects and that different technological generations are complements in terms of usage, but substitutes in terms of subscription.

Keywords: Cellular telephony; diffusion; usage intensity; network effects; consumer heterogeneity; fixed-mobile substitutability (search for similar items in EconPapers)
JEL-codes: L1 L52 O38 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2007-09-27
New Economics Papers: this item is included in nep-ict and nep-net
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Published in International Journal of Industrial Organization 27(2): 238–249 .

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Related works:
Journal Article: Usage and diffusion of cellular telephony, 1998-2004 (2009) Downloads
Working Paper: Usage and Diffusion of Cellular Telephony, 1998-2004 (2006) Downloads
Working Paper: Usage and Diffusion of Cellular Telephony, 1998-2004 (2006) Downloads
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