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.