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Patterns in global fixed and mobile telecommunications development: a cluster analysis

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  • Banerjee, Aniruddha
  • Ros, Agustin J.

Abstract

In recent years, global mobile telephony has experienced spectacular demand growth that is unmatched by anything in the long history of fixed network-based telecommunications. The International Telecommunications Union estimates that, in 2002, the number of mobile subscribers worldwide (over 1.15 billion) surpassed the number of fixed main lines in service (nearly 1.13 billion) for the first time. Yet, as recently as 1991, there were only 16 million mobile subscribers as compared to 546 million fixed main lines worldwide, a ratio of 1-to-34. Are there patterns to the spread of mobile telephony, alongside conventional fixed telephony, in different parts of the world? In this paper, cluster analysis and related statistical techniques are used on a panel of 61 countries (representing different regions and levels of socio-economic development) to answer that question. The paper concludes that technological substitution in some countries, and economic substitution in others, may explain the observed patterns of development in global fixed and mobile telephony.

Suggested Citation

  • Banerjee, Aniruddha & Ros, Agustin J., 2004. "Patterns in global fixed and mobile telecommunications development: a cluster analysis," Telecommunications Policy, Elsevier, vol. 28(2), pages 107-132, March.
    • Handle: RePEc:eee:telpol:v:28:y:2004:i:2:p:107-132
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    Cited by:

    1. Karamti, Chiraz, 2019. "Lopsided effects of telecom reforms on mobile markets in the enlarged EU: Evidence from dynamic quantile model," Telecommunications Policy, Elsevier, vol. 43(3), pages 238-261.
    2. Ünver, Mehmet Bilal & Göktaylar, Yavuz & Tezel, Fatih, 2015. "Regulatory Implications of FMS for Voice Services in Turkey: Analysis of Recent Regulatory Acts on Deregulation and Margin Squeeze," 26th European Regional ITS Conference, Madrid 2015 127186, International Telecommunications Society (ITS).
    3. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    4. Lima, Jinyang & Nama, Changi & Kimb, Seongcheol, 2012. "A new regional classification for mobile telecommunications diffusion policy in China: Using the innovation and imitation coefficients," 23rd European Regional ITS Conference, Vienna 2012 60358, International Telecommunications Society (ITS).
    5. Lim, Jinyang & Nam, Changi & Kim, Seongcheol & Lee, Euehun & Lee, Hongkyu, 2015. "A new regional clustering approach for mobile telecommunications policy in China," Telecommunications Policy, Elsevier, vol. 39(3), pages 296-304.
    6. Jinsoo Bae & Yun Jeong Choi & Jong-Hee Hahn, 2014. "Fixed and mobile broadband; Are they substitutes or complements?," Working papers 2014rwp-68, Yonsei University, Yonsei Economics Research Institute.
    7. Gamboa, Luis Fernando & Otero, Jesús, 0. "An estimation of the pattern of diffusion of mobile phones: The case of Colombia," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 611-620, November.
    8. Madden, Gary & Morey, Aaron & Theoharakis, Bill, 2012. "On the statistical identification of technology disruption," Telecommunications Policy, Elsevier, vol. 36(1), pages 82-90.
    9. Sang Lee & Shakil Quayes, 2005. "When is privatization better facilitated? Global evidence from the telecom sector," Global Economic Review, Taylor & Francis Journals, vol. 34(1), pages 119-127.
    10. Hübler, Michael, 2016. "Does Migration Support Technology Diffusion in Developing Countries?," World Development, Elsevier, vol. 83(C), pages 148-162.
    11. Sheikh Taher ABU, 2014. "Competition and Innovation in Telecom Sector: Empirical Evidence from OECD Countries," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 18(1), pages 27-39.
    12. de Kervenoael, Ronan & Palmer, Mark & Hallsworth, Alan, 2013. "From the outside in: Consumer anti-choice and policy implications in the mobile gaming market," Telecommunications Policy, Elsevier, vol. 37(6), pages 439-449.
    13. repec:ebl:ecbull:v:12:y:2008:i:30:p:1-10 is not listed on IDEAS
    14. Hübler, Michael, 2015. "Labor mobility and technology diffusion: A new concept and its application to rural Southeast Asia," Journal of Asian Economics, Elsevier, vol. 39(C), pages 137-151.
    15. Sang Lee, 2008. "Market liberalization and ownership status of incumbent telecom enterprises: global evidence from the telecom sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-10.
    16. Lucio Fuentelsaz & Elisabet Garrido & Juan P. Maicas, 2015. "Incumbents, technological change and institutions: How the value of complementary resources varies across markets," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1778-1801, December.
    17. Buys, Piet & Dasgupta, Susmita & Thomas, Timothy S. & Wheeler, David, 2009. "Determinants of a Digital Divide in Sub-Saharan Africa: A Spatial Econometric Analysis of Cell Phone Coverage," World Development, Elsevier, vol. 37(9), pages 1494-1505, September.
    18. Akematsu, Yuji & Abu, Sheikh Taher & Tsuji, Masatsugu, 2010. "Empirical Study of Effect of Deregulation, Competition, and Contents on Mobile Phone Diffusion: Case of the Japanese 3G Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 1, International Telecommunications Society (ITS).
    19. Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
    20. Andonova, Veneta & Diaz-Serrano, Luis, 2009. "Political institutions and telecommunications," Journal of Development Economics, Elsevier, vol. 89(1), pages 77-83, May.
    21. Symeou, Pavlos C. & Pollitt, Michael G., 2014. "Fixed voice telephony in economies of different sizes: When industry policy meets technological change," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 273-286.
    22. Ward, Michael R. & Zheng, Shilin, 2012. "Mobile and fixed substitution for telephone service in China," Telecommunications Policy, Elsevier, vol. 36(4), pages 301-310.
    23. Vélez-Velásquez, Juan Sebastián, 2019. "Merger effects with product complementarity: Evidence from Colombia’s telecommunications," Information Economics and Policy, Elsevier, vol. 49(C).
    24. Sang Lee & Shakil Quayes, 2006. "A duration analysis of privatization in the telecom sector," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(2), pages 225-239, June.
    25. Sheikh Taher ABU & Masatsugu TSUJI, 2010. "The Determinants of the Global Mobile Telephone Deployment: An Empirical Analysis," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 14(3), pages 21-33.

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