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 comp...

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Bibliographic Details
Main Author: Gebreab, Frew Amare
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
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
id okr-10986-14261
recordtype oai_dc
spelling okr-10986-142612021-04-23T14:03:20Z Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets Gebreab, Frew Amare 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 COMPETITION MARKET PENETRATION REGULATORY FRAMEWORK OWNERSHIP SUBSCRIBERS 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. 2013-06-27T19:56:50Z 2013-06-27T19:56:50Z 2002-06 http://documents.worldbank.org/curated/en/2002/06/1953634/getting-connected-competition-diffusion-african-mobile-telecommunications-markets http://hdl.handle.net/10986/14261 English en_US Policy Research Working Paper;No.2863 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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 COMPETITION
MARKET PENETRATION
REGULATORY FRAMEWORK
OWNERSHIP
SUBSCRIBERS
spellingShingle 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 COMPETITION
MARKET PENETRATION
REGULATORY FRAMEWORK
OWNERSHIP
SUBSCRIBERS
Gebreab, Frew Amare
Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
geographic_facet Africa
relation Policy Research Working Paper;No.2863
description 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.
format Publications & Research :: Policy Research Working Paper
author Gebreab, Frew Amare
author_facet Gebreab, Frew Amare
author_sort Gebreab, Frew Amare
title Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
title_short Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
title_full Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
title_fullStr Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
title_full_unstemmed Getting Connected: Competition and Diffusion in African Mobile Telecommunications Markets
title_sort getting connected: competition and diffusion in african mobile telecommunications markets
publisher World Bank, Washington, D.C.
publishDate 2013
url 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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