The Economics of Network Industries
The Economics of Network Industries
How the mobile communication markets differ in China, the U.S., and Europe
Communications of the ACM - The disappearing computer
An estimation of the pattern of diffusion of mobile phones: The case of Colombia
Telecommunications Policy
Impact of spectrum management policy on the penetration of 3G technology
Telecommunications Policy
Diffusion of mobile handset features: Analysis of turning points and stages
Telecommunications Policy
The diffusion of mobile telephones: An empirical analysis for Peru
Telecommunications Policy
An integrated model for analyzing the development of the 4G telecommunications market in Taiwan
Telecommunications Policy
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Mobile telephony penetration is a major indicator of mobile telephony diffusion. Taiwan had a mobile telephony penetration of 108% in 2002, ranking first in the world. This study analyzes this accelerated diffusion in terms of growth model and determinants of the diffusion rate. To eliminate the inherent uncertainty associated with choosing the optimal growth model, this study compares the performance of three conventional models, namely Gompertz, Logistic and Bass, to identify the most appropriate model, and to distinguish the forces driving the diffusion rate. Empirical results indicate that the most appropriate model is the Logistic model. Network externalities, which this study shows to be the same as the imitation effect in the Bass model, explain the superiority of the Logistic model. Moreover, market competition, which markedly reduces service prices, is identified as a primary driver of the diffusion rate of mobile telephony in Taiwan. Economic conditions, technological innovation and number of operators are insignificant factors. Finally, mobile telephony is a substitute for fixed-line telephony in Taiwan.