Competition and innovation. The diffusion of mobile telecommunications in Central and Eastern Europe

Abstract

The paper unravels the determinants of the diffusion of mobile telecommunications in Central and Eastern Europe. About 20% of the population will adopt mobile telecommunications. The diffusion speed is faster in countries that have adopted mobile telecommunications late, implying a pattern of convergence in the diffusion levels. The speed of diffusion increases with the number of firms. Simultaneous entry is more effective than sequential entry in accelerating the diffusion speed. Diffusion speed increases with the size of the fixed telecommunications network and the length of the waiting list. Policy recommendations derived from these results permit to further qualify popular views on the sector. © 2001 Elsevier Science B.V. All rights reserved.