Substitution between fixed and mobile data amidst high levels of poverty and inequality

Ryan Hawthrone and Lukasz Grzybowski

Mobile broadband is the main means of connecting to the internet in developing countries, where fixed-line coverage is typically limited or non-existent. As a result, governments in developing countries are seeking means by which mobile broadband penetration might be increased.

Narrowing the ‘digital divide’: the role of complementarities between fixed and mobile data in South Africa

We study substitution between fixed and mobile broadband services in South Africa using survey data on 134,000 individuals between 2009 and 2014. In our discrete-choice model, individuals choose fixed or mobile and data services in a framework that allows them to be substitutes or complements. We find that voice services are complements on average but data services are substitutes. However, many consumers see data services as complements.

Benefits of regulation vs competition where inequality is high: The case of mobile telephony in South Africa

We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly unequal country, South Africa. Using six waves of a consumer survey of over 134,000 individuals between 2009-2014, we estimate a discrete-choice model allowing for individual-specific price-responsiveness and preferences for network operators. Next, we use a demand and supply equilibrium framework to simulate prices and the distribution of welfare without entry and mobile termination rate regulation.

The Impact of Telecommunication Regulatory Policy on Mobile Retail Price in Sub-Saharan African Countries

This paper examines the eect of regulatory policies on mobile retail prices. Using quarterly data for 8 African countries for the period 2010:Q4 to 2014:Q4 we estimate structural demand and supply equations. We nd that mobile termination rates (MTR) have significant positive impact on mobile retail prices. A decline in average MTR of 10% decreases average mobile retail prices by 2.5%.

The role of network effects and consumer heterogeneity in adoption of mobile phones: evidence from South Africa

In this paper we analyze the role of network effects and consumer heterogeneity in the adoption of mobile phones. We estimate the decision to adopt a mobile phone using panel survey data of South African households between the years 2008 and 2012, which includes interviews with all adult household members.

Estimating broadband diffusion in the EU using NUTS1 regional data

In this paper we use panel data on NUTS 1 regional data for 27 EU countries in the years 2006-2010 to analyze determinants of broadband diffusion. We estimate both linear demand specification and the logistic diffusion function. We find that, after controlling for regional differences due to socioeconomic factors, inter-platform competition approximated by an inter-platform Herfindahl index has a significant positive impact on broadband diffusion.

Fixed-to-Mobile Substitution in the European Union

This paper analyzes substitution between access to fixed-line and mobile telephony in the European Union. We estimate a structural model of household's demand for: (i) fixed-line only; (ii) mobile only; (iii) and both fixed-line and mobile access. We find that decreasing prices for mobile services increase the share of 'mobile only' households and decrease shares of 'fixed only' and 'fixed + mobile' households which suggests substitution between fixed-line and mobile connections.

Asymmetry and discrimination in internet peering evidence from the LINX

Is the quality of interconnection between Internet operators affected by their asymmetry? While recent game theoretic literature provides contrasting answers to this question, there is a lack of empirical research. We introduce a novel dataset based on Internet routing policies, and study the interconnection decisions amongst the Internet Service Providers (ISPs) members of the London Internet Exchange Point (LINX). Our results show that interconnection quality degradation can be significantly explained by asymmetry between providers.

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