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Economic determinants of global mobile telephony growth

Author

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  • Madden, Gary G
  • Coble-Neal, Grant

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.

Suggested Citation

  • Madden, Gary G & Coble-Neal, Grant, 2004. "Economic determinants of global mobile telephony growth," MPRA Paper 10828, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10828
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Telecommunications; fixed-line; mobile telephony;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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