Economic determinants of global mobile telephony growth

Gary Madden and Grant Coble-Neal

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the substitution effect between fixed-line and mobile telephony while controlling for the consumption externality associated with telephone networks. A dynamic demand model is estimated using a global telecommunications panel dataset comprised of 56 countries from 1995–2000. Estimation results show the presence of a substantial substitution effect. Additionally income and own-price elasticities are reported. Analysis of impulse responses for price, income and network size indicate substantial mobile telephone growth is yet to be realised. However, price ceilings imposed in the fixed-line network can retard the growth of the mobile network.

Keywords: Telecommunications; fixed-line; mobile telephony (search for similar items in EconPapers)
JEL-codes: L96 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (33)

Published in Information Economics and Policy 16 (2004): pp. 519-534

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Journal Article: Economic determinants of global mobile telephony growth (2004)
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