Mobile Investment and Traffic Per Capita Tend to Increase with License Duration

17 Pages Posted: 11 Jun 2018 Last revised: 3 Sep 2018

Date Written: June 18, 2018

Abstract

Using source WCIS (World Cellular Information Service) for the tangible investments of mobile operators and mobile spectrum licenses, we are able to build a database matching the level of investment per capita with average license duration for 14 countries (representing more than 75% of the number of mobile subscribers of the EEA area) during 15 years. The statistical analysis of the data base proves a strong positive correlation between license average duration and tangible investment per capita. More precisely, we observe an increase of 5.36 e in average investment per capita per year for each additional year of license duration. This feature also holds at operator level. Using Data traffic from Telecom Market Matrix at country level, we also observe that each additional year of license duration corresponds to about 10% additional yearly growth of data traffic.

Keywords: Spectrum licenses, Investment, Wireless industry

JEL Classification: L50, L96

Suggested Citation

Jeanjean, François and Lebourges, Marc and Liang, Julienne, Mobile Investment and Traffic Per Capita Tend to Increase with License Duration (June 18, 2018). Available at SSRN: https://ssrn.com/abstract=3184200 or http://dx.doi.org/10.2139/ssrn.3184200

François Jeanjean (Contact Author)

Orange ( email )

6, place d'Alleray
Paris, 75015
France

Marc Lebourges

France Telecom ( email )

France

Julienne Liang

France Telecom ( email )

France

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