IDEAS home Printed from https://ideas.repec.org/p/zbw/itse18/184949.html
   My bibliography  Save this paper

Mobile investment and traffic per capita tend to increase with license duration

Author

Listed:
  • Jeanjean, Francois
  • Lebourges, Marc
  • Liang, Julienne

Abstract

Using source WCIS (World Cellular Information Service) for the tangible investments of mobile operators and mobile spectrum licenses, we are able to build a database matching the level of investment per capita with average license duration for 14 countries (representing more than 75% of the number of mobile subscribers of the EEA area) during 15 years. The statistical analysis of the data base proves a strong positive correlation between license average duration and tangible investment per capita. More precisely, we observe an increase of 5.36 e in average investment per capita per year for each additional year of license duration. This feature also holds at operator level. Using Data traffic from Telecom Market Matrix at country level, we also observe that each additional year of license duration corresponds to about 10% additional yearly growth of data traffic.

Suggested Citation

  • Jeanjean, Francois & Lebourges, Marc & Liang, Julienne, 2018. "Mobile investment and traffic per capita tend to increase with license duration," 29th European Regional ITS Conference, Trento 2018 184949, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse18:184949
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/184949/1/Jeanjean-et-al.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ingersoll, Jonathan E, Jr & Ross, Stephen A, 1992. "Waiting to Invest: Investment and Uncertainty," The Journal of Business, University of Chicago Press, vol. 65(1), pages 1-29, January.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    3. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    4. Gruber, Harald, 2001. "Spectrum limits and competition in mobile markets: the role of licence fees," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 59-70, February.
    5. Lhost Jonathan & Pinto Brijesh & Sibley David, 2015. "Effects of Spectrum Holdings on Equilibrium in the Wireless Industry," Review of Network Economics, De Gruyter, vol. 14(2), pages 111-155, June.
    6. Simon Loertscher & Leslie Marx, 2014. "An Oligopoly Model for Analyzing and Evaluating (Re)-Assignments of Spectrum Licenses," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(3), pages 245-273, November.
    7. François Jeanjean, 2015. "What causes the megabyte price drop in the mobile industry?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 277-296, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeanjean, Francois & Lebourges, Marc & Liang, Julienne, 2019. "The impact of license duration on tangible investments of mobile operators," Telecommunications Policy, Elsevier, vol. 43(9).
    2. Sandri, Serena & Schade, Christian & Mußhoff, Oliver & Odening, Martin, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 30-44, October.
    3. Rose Neng Lai & Lawrence Hoc Nang Fong, 2021. "Development Strategies in a Market of High Vacancies and Sticky Rates – The Case of the Hotel Industry," International Real Estate Review, Global Social Science Institute, vol. 24(3), pages 363-383.
    4. Masci, Martín Ezequiel, 2012. "Irreversibilidad e incertidumbre de las decisiones financieras en i&d [Irreversibility and uncertainty of the financial investments on r&d]," MPRA Paper 40970, University Library of Munich, Germany.
    5. Mankan M. Koné & Carl Gaigné & Lota Tamini, 2017. "Duopolistic Competition and Optimal Switching Time from Export to FDI in Uncertainty," CIRANO Working Papers 2017s-23, CIRANO.
    6. Christian Bender, 2011. "How to provide access to next generation networks? The effect of risk allocation on investment and cooperation incentives," MAGKS Papers on Economics 201149, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Radu Tunaru & Ephraim Clark & Howard Viney, 2005. "An option pricing framework for valuation of football players," Review of Financial Economics, John Wiley & Sons, vol. 14(3-4), pages 281-295.
    8. Sawadogo, Fayçal, 2021. "Demand price elasticity of mobile voice communication: A comparative firm level data analysis," Information Economics and Policy, Elsevier, vol. 57(C).
    9. Ralf Dewenter & Ulrich Heimeshoff, 2012. "Erfahrungen und Herausforderungen der Telekommunikationsregulierung in Deutschland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 81(1), pages 9-22.
    10. Tirtiroglu, Dogan & Bhabra, Harjeet S. & Lel, Ugur, 2004. "Political uncertainty and asset valuation: Evidence from business relocations in Canada," Journal of Banking & Finance, Elsevier, vol. 28(9), pages 2237-2258, September.
    11. Ahsan Abbas & Eatzaz Ahmed & Fazal Husain, 2019. "Political and Economic Uncertainty and Investment Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(3), pages 307-331.
    12. Georgi Lachov, 2008. "Evaluation of Corporative Value in Case of Insecurity: Determinants and Models," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 89-106.
    13. Chen, Yu-Fu & Funke, Michael, 2003. "Option Value, Policy Uncertainty, and the Foreign Direct Investment Decision," HWWA Discussion Papers 234, Hamburg Institute of International Economics (HWWA).
    14. Cavallo, Eduardo & Daude, Christian, 2011. "Public investment in developing countries: A blessing or a curse?," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 65-81, March.
    15. Calcagnini, Giorgio & Saltari, Enrico, 2000. "Real and Financial Uncertainty and Investment Decisions," Journal of Macroeconomics, Elsevier, vol. 22(3), pages 491-514, July.
    16. Kim, Bongsun & Kim, Eonsoo & Miller, Douglas J. & Mahoney, Joseph T., 2016. "The impact of the timing of patents on innovation performance," Research Policy, Elsevier, vol. 45(4), pages 914-928.
    17. Lander, Diane M. & Pinches, George E., 1998. "Challenges to the Practical Implementation of Modeling and Valuing Real Options," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(3, Part 2), pages 537-567.
    18. Luis H.R. Alvarez E., 2006. "Irreversible Investment, Incremental Capital Accumulation, and Price Uncertainty," Discussion Papers 4, Aboa Centre for Economics.
    19. Shu Feng & Chun-Yu Ho, 2016. "The real option approach to adoption or discontinuation of a management accounting innovation: the case of activity-based costing," Review of Quantitative Finance and Accounting, Springer, vol. 47(3), pages 835-856, October.
    20. Godwin Olasehinde-Williams & Oktay Özkan, 2022. "Is interest rate uncertainty a predictor of investment volatility? evidence from the wild bootstrap likelihood ratio approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(3), pages 507-521, July.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:itse18:184949. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itseurope.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.