Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- List of abbreviations and acronyms
- 1 Introduction
- 2 Stylised features of the mobile telecommunications industry
- 3 The evolution of national markets for cellular mobile telecommunications services
- 4 The determinants of the diffusion of cellular mobile telecommunications services
- 5 Market conduct and pricing issues in mobile markets
- 6 Issues in radio spectrum management
- 7 The evolution of market structure in mobile telecommunications markets
- Appendix
- Bibliography
- Index
4 - The determinants of the diffusion of cellular mobile telecommunications services
Published online by Cambridge University Press: 22 September 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- List of abbreviations and acronyms
- 1 Introduction
- 2 Stylised features of the mobile telecommunications industry
- 3 The evolution of national markets for cellular mobile telecommunications services
- 4 The determinants of the diffusion of cellular mobile telecommunications services
- 5 Market conduct and pricing issues in mobile markets
- 6 Issues in radio spectrum management
- 7 The evolution of market structure in mobile telecommunications markets
- Appendix
- Bibliography
- Index
Summary
Introduction
This chapter, based on Gruber and Verboven (2001b), provides an econometric analysis of the determinants of the diffusion of cellular mobile telecommunications. Whereas in chapter 3 the emphasis was on a description of the idiosyncrasies of national markets in the evolution of the mobile telecommunications market, the aim is now to find some statistical trends concerning the driving forces for market growth. Several econometric studies have considered the cellular mobile industry in an individual country or a restricted number of countries, focusing on market conduct (Ruiz, 1995; Parker and Röller, 1997; Nattermann, 1999), or on the role of country characteristics for diffusion (Dekimpe, Parker and Sarvary 1998). The hypothesis that firms in this industry have market power is well supported by the data, but this has not yet been linked up with the diffusion literature This chapter illustrates the role of regulatory decisions, in particular on entry and setting of standards, and other market parameters for the diffusion of cellular mobile telecommunications. The aim of this chapter is therefore to unravel the effects of entry regulation and standard setting on the evolution of a specific industry, that of worldwide cellular mobile telecommunications services.
The chapter is organised as follows. Section 4.2 provides a brief survey of the issues and presents some diffusion models. Section 4.3 describes the econometric model. Section 4.4 presents and discusses the empirical results. Section 4.5 draws some brief conclusions and discusses implications for public policy.
- Type
- Chapter
- Information
- The Economics of Mobile Telecommunications , pp. 144 - 170Publisher: Cambridge University PressPrint publication year: 2005