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Income distribution and the diffusion of networks: An empirical study of Brazilian telecommunications

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  • Bohman, Helena

Abstract

Telecommunications is often considered to be an important contributor to economic growth, and most countries have therefore adopted several initiatives to improve coverage of fixed as well as mobile telephones. This paper focuses on the role of income distribution on the diffusion of fixed telecommunications in Brazil. The focus is on how the distribution of income may affect affordability and thereby the market size. The result is that an uneven income distribution may result in higher coverage for the poorest municipalities in the study since the uneven distribution allows for at least some consumers to reach the critical level of income. For municipalities above a certain average income level, the effect is reversed and coverage will be adversely affected by high inequality. The findings are robust to different measures of inequality.

Suggested Citation

  • Bohman, Helena, 0. "Income distribution and the diffusion of networks: An empirical study of Brazilian telecommunications," Telecommunications Policy, Elsevier, vol. 32(9-10), pages 600-614, October.
    • Handle: RePEc:eee:telpol:v:32:y::i:9-10:p:600-614
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    Cited by:

    1. Corrado Benassi & Marcella Scrimitore, 2017. "Income Distribution in Network Markets," Journal of Industry, Competition and Trade, Springer, vol. 17(3), pages 251-271, September.
    2. Kyriakidou, Vagia & Michalakelis, Christos & Sphicopoulos, Thomas, 2013. "Assessment of information and communications technology maturity level," Telecommunications Policy, Elsevier, vol. 37(1), pages 48-62.

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