2015
DOI: 10.1080/00036846.2015.1005816
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Government policy, network externalities and mobile telecommunication services: evidence from OECD countries

Abstract: This article analyses the effect of government policy on the diffusion of mobile telecommunication services in member countries of the Organization for Economic Cooperation and Development (OECD). Specifically, we examine how the competition in and standard policies of each country affect cellular diffusion through interactions with positive and negative network externalities. The empirical analysis shows that significant network externality effects exist in a cellular market. Although the positive effects dom… Show more

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Cited by 7 publications
(3 citation statements)
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“…Therefore, price liberalization could acelerate the development of the telecommunications network led by the private sector [14]. Chung and Yoo [15] analyse the effect of government policy on the diffusion of mobile telecommunication services in member countries of the Organization for Economic Cooperation and Development (OECD). They examine how the competition in and standard policies of each country affect cellular diffusion through interactions with positive and negative network externalities.…”
Section: Literature Reviewmentioning
confidence: 99%
See 1 more Smart Citation
“…Therefore, price liberalization could acelerate the development of the telecommunications network led by the private sector [14]. Chung and Yoo [15] analyse the effect of government policy on the diffusion of mobile telecommunication services in member countries of the Organization for Economic Cooperation and Development (OECD). They examine how the competition in and standard policies of each country affect cellular diffusion through interactions with positive and negative network externalities.…”
Section: Literature Reviewmentioning
confidence: 99%
“…In particular, a single standard policy and the speed of technological innovation combined with the penetration rate generate a positive network externality on the diffusion of mobile telecommunications. However, a competition policy increases the rate of new subscriptions but does not generate any interacting effects [15]. The latest research in this field deals with issues related to externalities between on-line contents drive telecom operators' incentives to provide quality open internet through neutral network [16].…”
Section: Literature Reviewmentioning
confidence: 99%
“…The market of these services, in particular the market of mobile communication services, is a network market [14]. This fact is of a significant importance for the formation of the usefulness of the telecommunication services.…”
Section: The Types Of Telecommunication Service Productsmentioning
confidence: 99%