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The Impact of Mobile Phone Diffusion on the Fixed-Link Network

Author

Listed:
  • Barros, Pedro
  • Cadima, Nuno
Abstract
There is currently little knowledge on the consequences of diffusion of cellular technology on the incumbent fixed-link telephony service. We address this issue by estimation of diffusion curves for both technologies, allowing for potential cross-effects, using data from a small European economy. Our main findings are a negative effect of the mobile phone diffusion on the fixed-link telephony penetration rate. The effect is, roughly, a ten percent decrease in the fixed-link penetration rate (in comparison with the absence of mobile phones). No effect on the reverse direction seems to exist. Mobile phone market growth seems to be determined essentially by technological advances.

Suggested Citation

  • Barros, Pedro & Cadima, Nuno, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2598
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    References listed on IDEAS

    as
    1. Gruber, Harald & Verboven, Frank, 2001. "The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1189-1212, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mobile phone diffusion; Telecommunications;

    JEL classification:

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

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