Competition and Mobile Penetration in SubSaharan Africa
Abstract
This paper examines the impact of competition on mobile penetration in 35
Sub-Saharan African (SSA) countries between 2000 and 2006. We examine
both the impact of introducing competition and the role of intensity of
competition on mobile penetration in these countries. Different specifications
with different measures of competition that reflecteither the introduction or
intensity of competition on the sector have been used in the analysis.
Controlling for various sector characteristics and macro-economic indicators,
we apply panel data regression analysis with fixed effects. For the most part,
the results in this study are consistent with the existing literature, and confirm
that the introduction of competition in the mobile market is strongly and
positively associated with mobile penetration. Furthermore, the results of this
study indicate that promoting effective competitionplays a significant role in
increasing mobile penetration.
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References
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performance improvement in the global telecommunications
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Market Structure and Performance in Telecommunications
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Competition in Asia’, II MA Working Papers 2005-06-01, India,
Indian Institute of Management Ahmadabad, Research and
Publication Department.
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Garbacz, Christopher and Thompson, Herbert.(2007).Demand
for telecommunication services in developing countries’,
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diffusion of mobile telecommunications in Central and Eastern
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Telecommunications Economics, Volume I, Edited by (2002):
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determinants of global mobiletelephony growth’ MPRA Paper
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Sherer, F.M. (1980). Industrial Market Structure and Economic
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(2002) ‘Telecommunications Infrastructure and Economic
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Privatization, and Regulation in Africa and Latin America’.
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Wallsten, Scott J. (2001) .An Econometric Analysis of Telecom
Competition, Privatization, and Regulation in Africa and Latin
America. Journal of Industrial Economics, Volume XLIX
March 2001 No. 1.
Wallsten, Scott (2002) ‘Does sequencing matter? regulation and
privatization in telecommunications reforms’, Technical report,
Development Research Group, The World Bank.
Wallsten, Scott (2003) ‘Telecommunications Privatization in
developing Countries: The Real Effects of Exclusivity Periods’.
Working Paper and AEI-Brookings Joint Center for Regulatory
Studies, url: http://aeibrookings.org/admin/pdffiles/phpq5.pdf.
Waverman, Leonard, Meschi, Meloria and Fuss, Melvyn(2005)
‘The Impact of Telecoms on Economic Growth in Developing
Countries. Africa: The Impact of Mobile Phones.’ The Vodafone
Public Policy PaperSeries No. 2: 10-23.
Wooldridge, J. M. (2002) .Econometric Analysis of Cross
Section and Panel Data: Cambridge: MA MIT Press.
analysis of the demand for access to mobile telephone networks.
Elsevier Science B.V., Information Economics and Policy
, pp. 297–305.
Baltagi, Badi H. 2005. Analysis of Panel Data (3rd ed). Sussex:
John Wiley & Sons Ltd.
Becker, G. (1997) ‘There’s nothing natural about “natural”
monopolies’, Business Week, October 6, 1997.
Birkenes, Turid, ,et al (2001). The regulator’s dilemma:
Competition versus monopoly?’ Norwegian Post and
Telecommunications Authority, PT.
Bortolotti, Bernard ,et al (2002). Privatization and the sources of
performance improvement in the global telecommunications
industry. Telecommunications Policy, Vol. 26 pp.243-68.
Boylaud, Olivier and Nicolett, Giuseppe (2000). Regulation,
Market Structure and Performance in Telecommunications
Organization for Economic Co-operation and Development.
Economics Department Working PapersNo. 237.
Chakravarty, Sujoy (2005).Determinants of Cellular
Competition in Asia’, II MA Working Papers 2005-06-01, India,
Indian Institute of Management Ahmadabad, Research and
Publication Department.
Fink,Carsten; Mattoo Aaditya, and Rathindran, Randeep (2002).
An Assessment of Telecommunications Reform in Developing
Countries. Policy Research Working Paper Series 2909. The
World Bank.
Garbacz, Christopher and Thompson, Herbert.(2007).Demand
for telecommunication services in developing countries’,
Elsevier Science B.V, Telecommunications Policy31 (2007) pp.
–289.
Gruber, Harald (2000).Competition and innovation: The
diffusion of mobile telecommunications in Central and Eastern
Euro. European Investment Bank.
Gujarati, Damodar. 2004. Basic Econometrics. (4
ed). New York: McGraw-Hill.
Haucap, Justus (2003) ‘The Economics of Mobile Telephone
Regulation’ Department of Economics, University of the
Federal Armed Forces Hamburg: Discussion Paper No.4.
Hausman, Jerry A. 2002. “Mobile Telephone”. In M.E. Cave et
al, eds. Massachusetts Institute of Technology Handbook of
Telecommunications Economics, Volume I, Edited by (2002):
pp. 563-604.
International Telecommunication Union. (2007a) ICT Indicator
Database, http://www.itu.int/ITU-D/ict/statistics/index.html
International Telecommunication Union. (2007b). Regulatory
Database, http://www.itu.int/ITU-D/icteye/Default.aspx
International Telecommunication Union (2008) World
Telecommunication/ICT Indicators Database, CD-ROM.
Katz, Diane (2004). A Telecommunications Policy Primer: 20
Comprehensive Answers to 20 Basic Questions. Michigan: The
Mackinac Center for Public Policy.
Li, Wei and Lixin Colin Xu (2004) .The Impact of Privatization
and Competition in the Telecommunications Center around the
World. Journal of Law and Economics, vol. 47,University of
Chicago.
Li, Yan (2008) ‘Econometric Evidence on the Impacts of
Privatization, New Entry, and Independent Industry Regulator
on Mobile Network Penetration and Expansion’, ESRC Centre
for Competition Policy, University of East Anglia, CCP
Working Paper 08-35.
Madden, Gary G and Coble-Neal, Grant (2004) ‘Economic
determinants of global mobiletelephony growth’ MPRA Paper
No. 10828.
Maiorano, Federica & Stern, Jon (2007). ‘Institutions and
Infrastructure Investment in Low and Middle-Income Countries:
The Case of Mobile Communications’, City University
Economics Discussion Papers 07/06, Department of Economics,
City University, London.
McNary, Robert. The Network Penetration Effects of
Telecommunications Privatization and Competition. Honors
thesis, Stanford University, USA,2001
Mureithi, Muriuki (2005). Evolution of telecommunications
policy reforms in East Africa: Setting new policy strategies to
anchor benefits of policy reforms. Nairobi: Summit Strategies
Ltd. Kenya.
Noll, Roger. (1999) Telecommunications Reform in Developing
Countries.SIEPR Policy Paper: Stanford.
Petrazzini, Ben (1995) The Political Economy of
Telecommunications Reform in Developing Countries:
Privatization and Liberalization in Perspective’, Connecticut and
London: Praeger, Westport,
Portio Research Limited (2006) .‘Opportunities in the African
MobileSector’.AMarketstudy
(ttp://www.portioresearch.com/opinion2_africa.html.)
Ros, Agustin J. (1999). Does Ownership or Competition Matter?
The Effects of Telecommunications Reform on Network Expansion and Efficiency. Journal of Regulatory Economics, 15:1, pp. 65-92.
Ros, Agustin J., Aniruddha Banerjee (2000).
Telecommunications privatization and tariff rebalancing:
evidence from Latin America. National Economic Research
Associates.
Shy, Oz. (2001) The Economics of Network Industries.
Cambridge University Press.
Sherer, F.M. (1980). Industrial Market Structure and Economic
Performance. Chicago: Rand McNally.
Torero, Maximo, Chowdhury, Shyamal and Arjun S. Bedi
(2002) ‘Telecommunications Infrastructure and Economic
Growth: A Cross-Country Analysis’ Information and
Communication Technology for Development and Poverty
Reduction.Washington DC: Johns Hopkins University Press.
Wallsten, Scott (1999) ‘An Empirical Analysis of Competition,
Privatization, and Regulation in Africa and Latin America’.
Working Paper, Stanford University and TheWorld Bank. url:
http://econ.worldbank.org/docs/553.pdf.
Wallsten, Scott J. (2001) .An Econometric Analysis of Telecom
Competition, Privatization, and Regulation in Africa and Latin
America. Journal of Industrial Economics, Volume XLIX
March 2001 No. 1.
Wallsten, Scott (2002) ‘Does sequencing matter? regulation and
privatization in telecommunications reforms’, Technical report,
Development Research Group, The World Bank.
Wallsten, Scott (2003) ‘Telecommunications Privatization in
developing Countries: The Real Effects of Exclusivity Periods’.
Working Paper and AEI-Brookings Joint Center for Regulatory
Studies, url: http://aeibrookings.org/admin/pdffiles/phpq5.pdf.
Waverman, Leonard, Meschi, Meloria and Fuss, Melvyn(2005)
‘The Impact of Telecoms on Economic Growth in Developing
Countries. Africa: The Impact of Mobile Phones.’ The Vodafone
Public Policy PaperSeries No. 2: 10-23.
Wooldridge, J. M. (2002) .Econometric Analysis of Cross
Section and Panel Data: Cambridge: MA MIT Press.
Published
2010-04-12
Section
Articles