Usage and diffusion of cellular telephony, 1998–2004

Abstract

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Estimating network effects and compatibility: Evidence from the Polish mobile market

“…In other words, consumers seem to perceive competing mobile phone networks as incompatible despite full interconnection. Grajek and Kretschmer's (2009a) finding that mobile phone use in a given network does not respond to growth in the installed bases of competing networks corroborates this result. 3 Similar examples are to be found in other markets.…”

The relationship between mobile and fixed-line communications: A survey

“…Relating mobile usage to mobile and fixed-line penetration and to fixed-line prices Grajec and Kretschmer (2009) show fixed and mobile to be complements in usage intensity (negative cross-price effects), with evidence of becoming substitutes with higher mobile penetration (after the inflection point of the diffusion curve). They also find evidence that mobile usage is higher when there is low fixed-line penetration.…”

“…However, Grajec and Kretschmer (2009) show that network effects may be 16 Jain et al (1999) show that under competition the price of mobile calls may stay high, while the price of handsets falls. 17 For the theory behind the waterbed effect, see Schiff (2008) who defines it as the phenomenon in which 'regulation of one of the prices charged by a multiproduct firm will result in a change of the firm's other unregulated price(s).'…”

An estimation of the pattern of diffusion of mobile phones: The case of Colombia

“…Illustrative examples of country-case studies are Barros and Caddima (2000), Botelho and Costa Pinto (2004) and Carvalho (2006) for Portugal; Michalakelis, Varoutas, and Sphicopoulos (2008) for Greece; Singh (2008) for India; Doganoglu and Grzybowski (2007) for Germany ;Chu, Wu, Kao, and Yen (2009) Jang, Dai, and Sung (2005) for OECD countries and Taiwan; and Gruber and Verboven (2001) for the 15 members states of the European Union. Massini (2004) distinguishes between short-run and long-run effects in the diffusion process of mobile phones in Italy and the United Kingdom and finds that handset prices, tariffs and consumption expenditures affect diffusion speed and saturation levels, while Grajek and Kretschmer (2009) examine the dynamics of usage intensity in 41 countries using quarterly data over a period of six years. A salient common feature of these studies is that the sample size available for estimation purposes is small; in most cases it is lower than 20 (quarterly or yearly) observations.…”

“…Two exceptions are the recent papers by Mariscal (2007) and Grajek and Kretschmer (2009). Mariscal (2007) analyses the pattern of expansion that the mobile telephony sector has experienced in Mexico in the context of the Latin American region, although the specification and estimation of S-shaped growth curves is not considered in that paper.…”