The Diffusion of Mobile Telecommunications Services in the European Union

11 Pages Posted: 25 May 1999

See all articles by Harald Gruber

Harald Gruber

European Investment Bank

Frank Verboven

Catholic University of Leuven (KUL) - Department of Applied Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: January 1999

Abstract

We study the determinants of the diffusion of mobile telecommunications services in the European Union in a logistic model of technology diffusion. We find that the transition from the analogue to the digital technology during the early nineties, and the corresponding increase in spectrum capacity, has had a major impact on the diffusion of mobile telecommunications. The impact of introducing competition was also significant, during both the analogue and the digital period, though the effect was proportionately smaller. Finally, we find that countries which granted first licenses at later points in time, show a significant catching-up effect, though international convergence may be expected only by the year 2006. The empirical results remain robust when other possible determinants of diffusion are included, such as the size of the fixed network and GDP per capita.

JEL Classification: L1, O3, L86

Suggested Citation

Gruber, Harald and Verboven, Frank, The Diffusion of Mobile Telecommunications Services in the European Union (January 1999). Available at SSRN: https://ssrn.com/abstract=154808 or http://dx.doi.org/10.2139/ssrn.154808

Harald Gruber (Contact Author)

European Investment Bank ( email )

Projects Directorate 100 Boulevard Adenauer
L-2950
Luxembourg
+352 43798606 (Phone)
+352 43798831 (Fax)

Frank Verboven

Catholic University of Leuven (KUL) - Department of Applied Economics ( email )

Leuven, B-3000
Belgium
+32 1 632 6944 (Phone)
+32 1 632 6732 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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