A dynamic model of mobile telephony subscription incorporating a network effect

This study examines the growth of global mobile telephony and the economic factors that affect this growth. Mobile telephony has exhibited substantial growth in the decade to 2000 and this growth is expected to continue with the introduction of technically advanced mobile cellular networks. A dynamic demand model is estimated by using global telecommunications panel data comprised of 56 countries. Results from the estimation are provided along with elasticity estimates and impulse response functions for price and income.