Assessing the Significance of Telecommunication Deregulation on the Growth of Japan's Mobile Phone Market

Yuqing Xing

No EMS_2001_02, Working Papers from Research Institute, International University of Japan

Abstract: This paper analyzes the development of Japan's mobile phone market. Specifically, it focuses on the regulatory reforms of Japan's mobile communication sector and their impact on the growth of the market. The analysis based on a monopolistic competition model shows that the deregulation policies perform an essential role in fostering the rapid expansion of Japan's mobile phone market. Using quarterly data from 1991 to 1999, the paper tests the significance of the telecommunication deregulation on both the price and the demand of mobile phone services. The empirical results suggest that the significant price declination and the rapid growth of mobile phone market in the last decade were largely attributed to the regulatory reforms, which abolished the entry barriers, phased out the mobile phone rental system, and simplified the mobile communication rate setting procedure. In addition, the demand curve of model phone service was estimated. The estimated demand function indicates that the demand for mobile phone service is highly price elastic. The price elasticity was as high as 6.4 and decreased to 2.1 by 1999 as the market became saturated.

Pages: 20 pages
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2001_02.pdf First version, 2001 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iuj:wpaper:ems_2001_02

Access Statistics for this paper

More papers in Working Papers from Research Institute, International University of Japan 777 Kokusai-cho, Minami Uonuma0-shi, Niigata 949-7277 JAPAN. Contact information at EDIRC.
Bibliographic data for series maintained by Kazumi Imai, Office of Academic Affairs ().