The Determinants of the Global Mobile Telephone Deployment: An Empirical Analysis

This study aims to analyze the global mobile phones by examining the instruments stimulating the diffusion pattern. A rigorous demand model is estimated using global mobile telecommu-nications panel dataset comprised with 51 countries classified in order to World Bank income categories from 1990-2007. In particular, the paper examines what factors contribute the most to the deployment of global mobile telephones. To construct an econometric model, the number of subscribers to mobile phone per 100 inhabitants is taken as dependent variable, while the following groups of variables (1) GDP per capita income and charges, (2) competition policies (3) telecom infrastructure (4) technological innovations (5) others are selected as independent variables. Estimation results report the presence of substantial disparity among groups. Additionally GDP per capita income and own-price elasticity comprised with call rate, subscription charges, are reported. The analysis of impulse responses for price, competition policies, and technological innovations such as digitalization of mobile network, mobile network coverage indicates that substantial mobile telephone growth is yet to be realized especially in developing countries. A new and important empirical finding is that there are still many opportunities available for mobile phone development in the world pro-poor nations by providing better telecom infrastructure.