Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets

The author studies the determinants of the diffusion of mobile telecommunications in Africa in a fixed effects model. He uses data from 1987-2000 on 41 African countries that have adopted cellular telecommunications technologies. He finds that competition is the driving force behind the mobile telecommunications explosion in Africa. Duopoly and triopoly markets grow significantly faster than monopoly markets, although growth does not appear to differ between the first two markets. Evidence of preemptive behavior is found in competitive sequential entries into the market, but the major effect of competition on diffusion occurs after the actual year of entry. The introduction of digital technology has a positive and significant effect on the diffusion of mobile phones. The presence of an incumbent-owned cellular operator has a negative effect on the diffusion of mobiles, suggesting an abuse of a dominant position by the incumbent fixed-line operator. However, privatization of the incumbent fixed-line cellular operator accelerates mobile growth and mitigates that negative effect.

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Bibliographic Details
Main Author: Gebreab, Frew Amare
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, D.C. 2002-06
Subjects:CAPITAL CITIES, COMPETITION POLICY, COMPETITIVE MARKETS, CONVENTIONAL WISDOM, COUNTRY CHARACTERISTICS, DEVELOPING COUNTRY CONTEXT, DUOPOLY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIES OF SCALE, EMPIRICAL EVIDENCE, FOREIGN EXCHANGE, GDP, GDP PER CAPITA, GROWTH RATE, GROWTH RATES, INCOME, INEFFICIENCY, INTERNATIONAL TELECOMMUNICATIONS, MACROECONOMIC VARIABLES, MULTINATIONAL INSTITUTIONS, NATURAL MONOPOLY, NETWORK EXTERNALITIES, OIL, OWNERSHIP STRUCTURE, PER CAPITA INCOME, PHONES, POLICY MAKERS, POLICY RESEARCH, POOR MANAGEMENT, PRIVATE SECTOR, REAL GDP, REAL GROSS DOMESTIC PRODUCT, REGULATORY CAPTURE, REGULATORY REGIMES, TECHNOLOGICAL CHANGE, TELECOMMUNICATIONS, TELECOMMUNICATIONS INDUSTRY, TELECOMMUNICATIONS INFRASTRUCTURE, TELECOMMUNICATIONS NETWORKS, TELECOMMUNICATIONS PENETRATION, TELECOMMUNICATIONS SECTOR, TELECOMMUNICATIONS SERVICES, TELECOMMUNICATIONS TECHNOLOGIES, TRANSACTION COSTS, UNDERDEVELOPMENT, URBAN AREAS, URBAN CENTERS, URBANIZATION TELECOMMUNICATIONS TECHNOLOGY, TELECOMMUNICATIONS EQUIPMENT, MARKET COMPETITION, CELLULAR MOBILE PHONES, CELLULAR TELEPHONE, PREEMPTION, DIFFUSION OF TECHNOLOGY, DIFFUSION PROCESSES, DIGITAL TELECOMMUNICATION SYSTEMS, OPERATORS, MARKET PENETRATION, REGULATORY FRAMEWORK, OWNERSHIP, SUBSCRIBERS,
Online Access:http://documents.worldbank.org/curated/en/2002/06/1953634/getting-connected-competition-diffusion-african-mobile-telecommunications-markets
http://hdl.handle.net/10986/14261
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