Consumer choice and local network effects in mobile telecommunications in Turkey

Karaçuka, Mehmet; Çatık, Abdurrahman Nazif; Haucap, Justus

doi:10.1016/j.telpol.2012.10.005

Cited by 37 publications

(17 citation statements)

References 44 publications

(8 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Beyond this level, the marginal value of cellular penetration leads to diminishing returns, causing the complementarity between cellular penetration and income to be retarded. This refutes the existence of network effects in MENA countries (Daganoglu and Grzybowski, 2007;Maicas et al, 2009;Karacuka et al, 2013) and could possible arise because of already high levels of mobile penetration in several MENA economies.…”

Section: Baseline Regressionssupporting

confidence: 52%

How important is mobile telephony for economic growth? Evidence from MENA countries

Ghosh

2016

INFO

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The explosion of mobile telephony in recent times has led to the emergence of a significant volume of literature. One area that has been relatively under-researched has been the role of mobile telephony in impacting economic growth and the relevance of financial inclusion in this respect. Using data on MENA countries during 2001-2012, this paper aims to examine this issue within an empirical framework. Design/methodology/approach -The analysis is based on longitudinal data for the period 2001-2012 and examines the interrelationships among per capita income, financial inclusion and mobile telephony.To take on board this interrelationship, the authors use a simultaneous equation model. In contrast to the ordinary least squares, 3SLS exploits the information that the disturbance terms in the two structural terms are contemporaneously correlated, thereby producing consistent estimates. Findings -The analysis suggests a significant relationship among these variables. In particular, a 1 per cent increase in the fraction of population using mobile telephony improves incomes by roughly 0.3 per cent points, whereas a similar 1 per cent increase in financial inclusion has double the impact on income. The findings also support a convex, non-linear relationship between income and cellular penetration. Robustness tests lend credence to these findings. Originality/value -Although there are several studies on mobile telephony and growth, this paper provides a completely original contribution in the area of financial inclusion, linking the development of access to mobile communication to new channels for the unbanked population in the Arab economies.

show abstract

Section: Baseline Regressionssupporting

confidence: 52%

How important is mobile telephony for economic growth? Evidence from MENA countries

Ghosh

2016

INFO

View full text Add to dashboard Cite

show abstract

“…More specifically, a 10% increase in mobile telephony is associated with a 0.9% point improvement in economic growth, after taking into account other factors that are deemed relevant in influencing growth. The findings also provide evidence in support of non-linear effects, wherein increases in mobile penetration lowers income growth up to a threshold, beyond which increases in mobile penetration exerts a positive impact on economic growth (Karacuka, CAtiK, & Haucap, 2013;Maicas, Polo, & Sese, 2009). In addition, the results suggest that mobile telephony and fixed landlines are complements, with each reinforcing the other.…”

Section: Discussionmentioning

confidence: 66%

“…Column 5 examines possible non-linearities in cellular penetration, what is popularly known as network effects (Daganoglu & Grzybowski, 2007;Karacuka, CAtiK & Haucap, 2013;Kathuria et al, 2009;Roller & Waverman, 2001). To test this aspect, we include squared term of CELLULAR among the independent variables.…”

Section: Mobile Telephony and Economic Growthmentioning

confidence: 99%

Does mobile telephony spur growth? Evidence from Indian states

Ghosh

2016

Telecommunications Policy

View full text Add to dashboard Cite

“…When doing so, the consumer in fact considers a series of different direct and indirect network effects; from network size, offered service to social network -albeit often with a poor understanding of their significance or value (Karacuka et al, 2013;Zaimovic & Avdic 2014;Basaran et al, 2014). To this end, analyses of network effects in Bosna telecommunications market was conducted with principal question to investigate to what extent traditional network effects play a role in consumer decision-making and loyalty in developing telecommunication market 4 4 The research sample was 2,500 individuals covering proportionally different entities, regions, municipalities, ethnic groups, gender, as well as urban/rural areas in BiH.…”

Section: Consumer's Perspective -A Snapshot At Mobile Service Provisionmentioning

confidence: 99%

Bosnia and Herzegovina Telecommunication Sector Outlook

Zaimović

Arnela

2015

Procedia - Social and Behavioral Sciences

View full text Add to dashboard Cite

The upcoming privatization of two remaining telecom operators in Bosnia, and not so recent privatization of one of the incumbent, will create dynamic and changing sector environment for all participants. At the same time the investors are scanning the sector trying to find the right approach and the market niche for more competitive start. In our overview we have looked at regulatory status, core services figures, followed by financial overview for incumbent operators in the past decade, as well as mobile users' attitudes in carrier section. What we will show is that sector development and the expansion of consumers' base is far from over. The services offered are still at rudimental level, and the potential owners of incumbent operators as well as new entrants will have considerable room for development. Financial analysis has shown that revenue for all three incumbent operators is stagnating in the last years, while the small private operators are experiencing steady growth. Although BH Telecom is still the largest company in the sector, it dose face slight decline in net profit while its biggest competitor -Telecom Srpske in 2013 had biggest ROE. We find that BH Telecom and Telecom Srpske had unexploited franchise growth and competiveness potential. We assessed the intrinsic value of all three companies stocks by application of Franchise Factor Model and find that BH Telecom stock price is in equilibrium, Telecom Srpske stock is underpriced and Croatian Telecom is stock strongly overpriced. Finally, the analyses of consumers' perspective have revealed existence of network effect in mobile market and the strong competition between two market leaders. In all, BiH telecommunication sector is still in its expanding phase and the potential owners of state operators as well as new entrants will have competitive well regulated market.

show abstract

Consumer choice and local network effects in mobile telecommunications in Turkey

Cited by 37 publications

References 44 publications

How important is mobile telephony for economic growth? Evidence from MENA countries

How important is mobile telephony for economic growth? Evidence from MENA countries

Does mobile telephony spur growth? Evidence from Indian states

Bosnia and Herzegovina Telecommunication Sector Outlook

Contact Info

Product

Resources

About