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1 – 10 of over 1000The explosion of mobile telephony in recent times has led to the emergence of a significant volume of literature. One area that has been relatively under-researched has been the…
Abstract
Purpose
The explosion of mobile telephony in recent times has led to the emergence of a significant volume of literature. One area that has been relatively under-researched has been the role of mobile telephony in impacting economic growth and the relevance of financial inclusion in this respect. Using data on MENA countries during 2001-2012, this paper aims to examine this issue within an empirical framework.
Design/methodology/approach
The analysis is based on longitudinal data for the period 2001-2012 and examines the interrelationships among per capita income, financial inclusion and mobile telephony. To take on board this interrelationship, the authors use a simultaneous equation model. In contrast to the ordinary least squares, 3SLS exploits the information that the disturbance terms in the two structural terms are contemporaneously correlated, thereby producing consistent estimates.
Findings
The analysis suggests a significant relationship among these variables. In particular, a 1 per cent increase in the fraction of population using mobile telephony improves incomes by roughly 0.3 per cent points, whereas a similar 1 per cent increase in financial inclusion has double the impact on income. The findings also support a convex, non-linear relationship between income and cellular penetration. Robustness tests lend credence to these findings.
Originality/value
Although there are several studies on mobile telephony and growth, this paper provides a completely original contribution in the area of financial inclusion, linking the development of access to mobile communication to new channels for the unbanked population in the Arab economies.
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Florin Bonciu and Howard Williams
The purpose of this paper is to review the ways in which the regulation of the telecommunications sector has contributed to the economic development of the Romanian economy (as an…
Abstract
Purpose
The purpose of this paper is to review the ways in which the regulation of the telecommunications sector has contributed to the economic development of the Romanian economy (as an example of a transition economy).
Design/methodology/approach
The paper takes a case study approach, considering Romanias's transition to a market economy, a description of the telecommunications market, and demand characteristics of the mobile market.
Findings
The paper highlights the significant role that has been played by the mobile sector in terms of providing basic telephony services and in developing innovative services. The paper links the growth in the SME sector to the growth in the provision of mobile services. The paper also discusses the issue of a failed incumbent operator and how delays in embracing tariff reform in an increasing competitive environment have hindered the ability of the incumbent to compete and reform its activities.
Research limitations/implications
The paper highlights the advantages that liberalization can deliver in a transition economy. The paper also suggests that allowing the incumbent to adopt a reform agenda ultimately is beneficial to the economy and the firm itself.
Practical implications
The paper suggests that liberalization measures produce significant economic benefits in transition economies.
Originality/value
The paper provides original material on the telecommunications reform process in Romania, as an example of a transition economy.
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Veneta Andonova, Antonio Ladrón de Guevara and Eric Brousseau
The purpose of this paper is to examine how the market potential for internet services interacted historically with the diffusion process of fixed line and mobile telephony.
Abstract
Purpose
The purpose of this paper is to examine how the market potential for internet services interacted historically with the diffusion process of fixed line and mobile telephony.
Design/methodology/approach
The authors evaluate the historical interactions between internet, fixed line and mobile telephony using the International Telecommunications Union data set from 1991 until 2003 for 214 countries.
Findings
It was found that between 1991 and 2003 mobile and internet services were fully complementary; fixed line facilitated the diffusion of internet service, but internet diffusion did not affect fixed line telephony. The authors discuss the implications of these results in the light of current developments of the telecommunications industry.
Research limitations/implications
Internet adoption should be analysed in close relation to the adoption of other telecommunication services, such as fixed line and mobile telephony.
Originality/value
The paper shows the interconnectivity of the internet with other telecommunication services and emphasizes the asymmetric nature of these interactions. Telecommunication services interactions are discussed in the light of recent industry developments.
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Sven Lindmark, Erik J. Andersson, Erik Bohlin and Mattias Johansson
To analyse the evolution of the Swedish telecommunications sector (1970‐2003), with a focus on barriers and drivers of innovative activity.
Abstract
Purpose
To analyse the evolution of the Swedish telecommunications sector (1970‐2003), with a focus on barriers and drivers of innovative activity.
Design/methodology/approach
Developing a functional approach to innovation systems analysis, where six basic interdependent functions need to be served for a new technology to be developed and diffused and for a supporting industry to evolve. The sector is divided into four major sub‐sectors: traditional fixed telecom; mobile telephony; fixed data communications (including internet); and mobile data communications (including mobile internet).
Findings
Relate to two questions: first, how did it happen that Sweden developed a leading innovation system for mobile telephony but not for data communication; and second, what are the strengths and weaknesses of the innovation system for mobile data communications? Findings include that early developments mattered, innovative search direction is crucial as are the provision of incentives for innovative activity.
Research limitations/implications
Functional analysis of innovation systems useful for guiding policy actions, which should have the purpose of strengthening weak functions, removing bottlenecks and stimulating inducement mechanisms, in particular if used to stimulate the transition from one phase to another. It needs further development, in particular with respect to the understanding of diffusion processes.
Practical implications
The stimulation of innovation in, and diffusion of, mobile and broadband data services is crucial to development of the innovation system, globally, in Europe and in Sweden. An innovation system which allows for entrepreneurial experimentation should be fostered. Early stage financing and diffusion of services are major system weaknesses. Regulatory authorities should consider addressing innovation explicitly.
Originality/value
New (adapted) approach for guiding policy action. Better understanding of dynamics in the telecom sector, and the comparative success and failure of Swedish industry in sub‐sectors.
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This paper aims to offer an analysis of the market structure in the mobile telephony market in Latin America and its impact on its development. Given the importance of mobile…
Abstract
Purpose
This paper aims to offer an analysis of the market structure in the mobile telephony market in Latin America and its impact on its development. Given the importance of mobile services as a mean of ICT access to low income groups, the objective behind this analysis is to understand how the trend in market structure may impact the use of mobiles by low‐income sectors of the population in Latin America.
Design/methodology/approach
The paper analyses the process of consolidation that the region experiences today in the mobile market and identifies the effect this concentration has had on mobile welfare indicators such as penetration. It examines the links between variables associated with market concentration and known to influence mobile penetration such as tariffs, pricing strategies and spectrum allocation.
Findings
The results do not identify a strong association between market concentrations and pricing, which appears to contradict standard textbook reasoning. However, there appears to be a strong correlation between prices and radio spectrum allocation; countries that have a very low spectrum allocation are the ones that have the highest prices.
Originality/value
The value of this analysis lies in the identification of a straightforward regulatory policy suggestion that supports results form other empirical studies; regulators need to allocate more spectrum in order to promote competition.
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The purpose of the paper is to understand the interlinkage with financial inclusion and how it interacts with biometric identification. To investigate this in detail, the authors…
Abstract
Purpose
The purpose of the paper is to understand the interlinkage with financial inclusion and how it interacts with biometric identification. To investigate this in detail, the authors employ household-level data on India to examine the interlinkage among Prime Minister Jan Dhan Yojana (PMJDY) account, Aadhaar card and mobile telephony.
Design/methodology/approach
Given the survey data, the authors employ 3 stage least squares (3SLS) methodology to explore the association among these key variables, while controlling for other household, district and economy-wide factors.
Findings
The findings provide strong evidence of complementarity among these variables, with each tending to reinforce the other. This complementarity is reflected primarily in respect of PMJDY and Aadhaar, but much less so with regard to mobile telephony. Additionally, this complementarity is manifest more prominently in the long run, although it is much less so in the short run.
Originality/value
To the best of the authors’ knowledge, this is one of the earliest studies for India to systematically examine the Jan-Dhan-Aadhaar-Mobile (JAM) trinity.
Frank Elter, Paul N. Gooderham and Inger G. Stensaker
A number of prominent European multinational mobile telephony companies (MNMTCs) have their origins in state-owned monopolies that successfully undertook radical transformation in…
Abstract
A number of prominent European multinational mobile telephony companies (MNMTCs) have their origins in state-owned monopolies that successfully undertook radical transformation in the late 1980s to late 1990s. Not only did they face liberalization of their domestic markets but they also moved from fixed-line telephony to mobile telephony prior to rapid expanded overseas. This study focuses on Telenor whose operations currently span the Nordic region and Southeast Asia. Like other MNMTCs, Telenor currently faces another period of radical change as global digital services providers are set to ride on the connectivity MNMTCs supply thereby reducing them to “dumb-pipes.” This study indicates that Telenor has abandoned radical transformation for “modernization” of its extant operations. For an understanding of why this second radical change is proving arduous for MNMTCs, the authors argue that there is a need to take into consideration institutional change.
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Emerging literature from developing countries speak volumes of innovative application of mobile telephones to support the economic activities of the micro and small enterprises…
Abstract
Purpose
Emerging literature from developing countries speak volumes of innovative application of mobile telephones to support the economic activities of the micro and small enterprises (MSEs). Invariably the technology is improving the efficiency of these operatives and boosting their competitiveness. The purpose of this paper is to analyze the contributions of mobile telephones to the development of micro and small enterprises in less urban and rural areas of Ghana.
Design/methodology/approach
The methodology used was basically questionnaire administration and was augmented by focus group discussions to collect data from MSEs in six locations in the country. The sample size was 600 enterprises and the selection was based on the International Standard Industrial Code.
Findings
The majority of the respondents were positive about the impact of mobile telephones on their businesses in terms of ease of contact with customers and suppliers, reduced cost of transportation and profitability. However, there is the urgent need for the development of innovative services to meet the changing needs of the enterprises.
Originality/value
Generally, these findings will contribute to the emerging empirical evidence of the strategic role mobile telephones are playing in the economies of developing countries.
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José Laurindo de Almeida and Helder Ferreira de Mendonça
The purpose of this paper is to contribute to the empirical literature that analyzes the effect of the core infrastructure (telecommunication, electricity and transportation) and…
Abstract
Purpose
The purpose of this paper is to contribute to the empirical literature that analyzes the effect of the core infrastructure (telecommunication, electricity and transportation) and indirect taxation on economic growth.
Design/methodology/approach
The authors present empirical evidence through panel data analysis based on a comprehensive sample of countries (96) over a long period of time (1976 to 2014).
Findings
The findings confirm the assumption that the core of infrastructure is essential to promote economic growth. Furthermore, indirect taxation is not a tool capable of stimulating growth. In particular, new sectors of the core of infrastructure, such as the internet and mobile telephony, are capable of expanding the effect of infrastructure on growth.
Originality/value
Based on a sample of 74 countries, we include new infrastructure sectors into the analysis (transportation, fixed telephony, mobile telephony and internet), and verify changes from the 1990s.
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Past research has demonstrated that industrial customers can, in effect, bring about product innovation among their suppliers. However, little seems to be known as to whether…
Abstract
Past research has demonstrated that industrial customers can, in effect, bring about product innovation among their suppliers. However, little seems to be known as to whether consumers are also potential inventors of new services. Presents results from an empirical study with the objective of exploring whether ordinary users can contribute novel service ideas regarding mobile telephony. An experimental approach was used to compare the characteristics of new services suggested by ordinary users with services suggested by professional developers. It was found that the service innovations suggested by the users were more creative and useful than those suggested by the professionals. On the other hand, the suggestions of the professionals were deemed easier to produce. Concludes with a discussion on the contributions and limitations of user involvement, wherein the organisational role of the users involved is discussed. Also makes a proposal regarding how to further investigate the potential of the user as a co‐worker in the innovation process.
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