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Usage and Diffusion of Cellular Telephony, 1998-2004

Author

Listed:
  • Michal Grajek

    (Wissenschaftszentrum Berlin (WZB) and Humboldt University)

  • Tobias Kretschmer

    (Institute for Communication Economics, University of Munich and Centre for Economic Performance, LSE)

Abstract

In this paper, we study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. We address two specific questions: First, does information about usage intensity over time allow us to draw conclusions about the underlying drivers of technology diffusion? Second, what effect does the existence and penetration of previous generations and other networks in the same generation on network usage intensity? Using an operator-level panel covering 41 countries with quarterly data over 6 years, we find that heterogeneity among adopters dominates network effects and that different technological generations are complements in terms of usage, but substitutes in terms of subscription.

Suggested Citation

  • Michal Grajek & Tobias Kretschmer, 2006. "Usage and Diffusion of Cellular Telephony, 1998-2004," Working Papers 06-21, NET Institute, revised Oct 2006.
    • Handle: RePEc:net:wpaper:0621
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    More about this item

    Keywords

    Cellular telephony; diffusion; usage intensity; network effects; consumer heterogeneity; fixed-mobile substitutability;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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