Investigation of factors affecting the diffusion of mobile telephone services: An empirical analysis for Vietnam

  • Authors:

  • Junseok Hwang;Youngsang Cho;Nguyen Viet Long

  • Affiliations:

  • Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, Gwanak 599, Gwanak-ro, Gwanak-gu, Seoul 151-742, Republic of Korea;Institute of Industrial Management Research , School of Management, Inje University, 607 Eobang-dong, Gimhae-si, Gyeongsangnam-do, 621-749, Republic of Korea;Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, Gwanak 599, Gwanak-ro, Gwanak-gu, Seoul 151-742, Republic of Korea

  • Venue:
  • Telecommunications Policy
  • Year:
  • 2009

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Abstract

This paper analyzes the diffusion of mobile telecommunications services in Vietnam and examines how telecommunications regulation and potential substitute/complement services affect the growth of the number of mobile telephone subscribers. Using a logistic diffusion model, it is found that fixed telephone services are a complement while data services have a negative relation to mobile telephone services in Vietnam. As for regulation, the policy of introducing competition has been found to be the most effective in influencing the adoption of mobile services. Another important result is that the estimated potential market is roughly 76% of the total population. The findings suggest that suitable regulation that guarantees competition in the mobile telecommunications market in a developing country such as Vietnam is one of the most important factors for a positive diffusion process.