A Cross-National Analysis of the Effect of Spectrum Management Policy on the Penetration of 3G Technology

29 Pages Posted: 23 Dec 2011

See all articles by Moinul Zaber

Moinul Zaber

University of Dhaka; LIRNEasia

Marvin A. Sirbu

Carnegie Mellon University - Engineering and Public Policy (EPP); Carnegie Mellon University - David A. Tepper School of Business

Date Written: December 23, 2011

Abstract

Adoption of 3G cellular technology varies widely across countries and regions. Past scholarly works have shown that lower levels of adoption of previous technology and higher levels of income are significant factors in accelerating the take up of new technology in mobile telephony. This apart, spectrum management policy also plays a significant role in shaping 3G diffusion. Regulatory policies regarding spectrum management include standardization of band and technology and decisions to hold spectrum auctions. Our econometric analysis over a multi-country panel dataset shows that these spectrum management policies do have significant influence on the take up of 3G. Findings suggest that presence of multiple technologies for previous generation may delay the rollout. Mandating band can promote faster roll out, but in the long run can slow down the growth. We also find that auctions cause the countries to reach inflection point earlier but do not affect growth significantly. Insights gained from this study of the 2G to 3G transition can provide guidance to regulators now contemplating the transition to the newer generations.

Suggested Citation

Zaber, Moinul and Sirbu, Marvin A., A Cross-National Analysis of the Effect of Spectrum Management Policy on the Penetration of 3G Technology (December 23, 2011). Available at SSRN: https://ssrn.com/abstract=1976118 or http://dx.doi.org/10.2139/ssrn.1976118

Moinul Zaber (Contact Author)

University of Dhaka ( email )

University of Dhaka
Ramna, Dhaka, 1000
Bangladesh

LIRNEasia ( email )

12 Balcombe Place
Colombo, 08
Sri Lanka

Marvin A. Sirbu

Carnegie Mellon University - Engineering and Public Policy (EPP) ( email )

Pittsburgh, PA 15213
United States

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

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