We analyze demand for prepaid cellular voice and short message service (SMS) in South Africa by means of a demand-and-supply structural model based on a multinomial specification fitted to a cross-sectional data set on Vodacom customers collected in 2005. We find that consumers are very...

This paper provides some estimates of demand elasticity for prepaid cellular voice and short message service (SMS) in South Africa by fitting a structural discrete consumer choice model to a cross-sectional data set on Vodacom customers collected in 2005. We find higher price elasticities than...

Mobile networks have developed rapidly in recent years in areas previously unserved Africa. Alongside the European Orange, Vodafone and Tigo (Millicom), there is South Africa's MTN and Zain and Moov from Middle East. Their strategy aims at reducing prices to increase market share, even though...