Empirical Study of Effect of Deregulation, Competition, and Contents on Mobile Phone Diffusion: Case of the Japanese 3G Market

The Japanese mobile market has recently shown a remarkable growth in the last decade, with more than 106.2 million 3G (3rd Generation, or W-CDMA) subscribers and 4.4 million 2G (2nd Generation, or PDC) as of December 2009. This paper attempts to analyze factors promoting Japanese mobile phone, focusing on 3G technologies. Factors promoting it can be summarized as follows: (1) deregulations by government, such as MNP (Mobile Number Portability) and collocation; (2) competition among carriers, such as introduction of new charge plans; (3) technological development, such as connection speed; and (4) contents and applications. This paper utilizes the panel data of three main carriers of the mobile phone market, namely, NTTdocomo, au (KDDI), and Softbank. As for a model for estimation, we apply that of Madden and Coble-Neal [2004] which studied the relationship between fixed and mobile phone with the panel data by the dynamic random effects estimation. Dynamic models are based not only on the assumption such that carriers do not instantaneously adjust to satisfy their long-term demand but also on network externalities. Besides, the paper applies a dynamic panel data model in order to take care of the endogeneity problem. This paper deals with this problem rigorously by applying Arellano-Bond estimator (Arellano and Bond [1991] and Arellano and Bover [1995]) which estimates exogeneous or predetermined variables, in addition to instrumental variables, using the two-step generalized method of moments (GMM). Based on this framework, this paper identifies service innovations such as entertainment, flat rate charges are found significant for the 3G mobile phone diffusion. --dynamic panel data analysis,competition policy,network externalities,endogeneity,m-commerce,e-entertainment,MNP

Nexo TIC-finanzas-crecimiento: hallazgos empíricos de los países de los Próximos 11

This study assesses the causal relationship between information and communication technology (ICT) penetration, financial development, and economic growth in Next-11 countries between 1961 and 2012. A panel vector auto-regressive (VAR) model is used to detect the direction of causality between ICT, financial sector development and economic growth for these countries. The results reveal that there is Granger-causality among the variables both in the short run and in the long run, although the exact nature of the results varies by the ICT penetration indicators for the sample countries. Empirical results from this study provide valuable insights on policies pertaining to ICT penetration, financial sector development and economic growthEl presente estudio evalúa la relación causal entre la penetración de las tecnologías de la información y comunicación (TIC), el desarrollo financiero y el crecimiento económico en los Próximos 11 entre 1961 y 2012. Se utilizó un modelo de panel de vectores autorregresivos países para detectar la dirección de causalidad entre las TIC, el desarrollo del sector financiero y el crecimiento económico para estos países. Los resultados revelan que existe una causalidad de Granger entre las variables tanto a corto como a medio plazo, si bien la naturaleza exacta de los hallazgos varía conforme a los indicadores de penetración de las TIC para los países dela muestra. Los resultados empíricos de este estudio suponen una valiosa perspectiva a cerca de las políticas de penetración de las TIC, el desarrollo del sector financiero y el crecimiento económic

Global Innovation Policy Index

Ranks fifty-five nations' strategies to boost innovation capacity: policies on trade, scientific research, information and communications technologies, tax, intellectual property, domestic competition, government procurement, and high-skill immigration

Rational Regulatory Policy for the Digital Economy: Theory and EU Policy Options

Telecommunications is a key element of the ICT sector which has been shaped by strong innovation dynamics since the 1990s. Market dynamics in selected OECD telecommunications markets are analyzed. We present new ideas about efficient regulation, emphasizing the need to adopt a broader international perspective. Analytical innovations also include the discussion of an adequately-modified Hitch-Sweezy oligopoly model. Moreover, we suggest differentiated two-part tariffs as an ideal welfare-maximizing approach in both wholesale and end-product markets. From a theoretical point-of-view, the need to avoid regulatory uncertainty is also emphasized. Theoretical progress is contrasted with regulations in the EU and the US. The EU offers a broad range of different regulatory approaches where the link between framework regulation and national regulation is rather complex. The internationalization of telecommunications requires a broader cooperation among regulators in the OECD.Digital Economy, Regulatory Policy, European Union

The Mobile Generation: Global Transformations at the Cellular Level

Every year we see a new dimension of the ongoing Digital Revolution, which is enabling an abundance of information to move faster, cheaper, in more intelligible forms, in more directions, and across borders of every kind. The exciting new dimension on which the Aspen Institute focused its 2006 Roundtable on Information Technology was mobility, which is making the Digital Revolution ubiquitous. As of this writing, there are over two billion wireless subscribers worldwide and that number is growing rapidly. People are constantly innovating in the use of mobile technologies to allow them to be more interconnected. Almost a half century ago, Ralph Lee Smith conjured up "The Wired Nation," foretelling a world of interactive communication to and from the home that seems commonplace in developed countries today. Now we have a "Wireless World" of communications potentially connecting two billion people to each other with interactive personal communications devices. Widespead adoption of wireless handsets, the increasing use of wireless internet, and the new, on-the-go content that characterizes the new generation of users are changing behaviors in social, political and economic spheres. The devices are easy to use, pervasive and personal. The affordable cell phone has the potential to break down the barriers of poverty and accessibility previously posed by other communications devices. An entire generation that is dependant on ubiquitous mobile technologies is changing the way it works, plays and thinks. Businesses, governments, educational institutions, religious and other organizations in turn are adapting to reach out to this mobile generation via wireless technologies -- from SMS-enabled vending machines in Finland to tech-savvy priests in India willing to conduct prayers transmitted via cell phones. Cellular devices are providing developing economies with opportunities unlike any others previously available. By opening the lines of communication, previously disenfranchised groups can have access to information relating to markets, economic opportunities, jobs, and weather to name just a few. When poor village farmers from Bangladesh can auction their crops on a craigslist-type service over the mobile phone, or government officials gain instantaneous information on contagious diseases via text message, the miracles of mobile connectivity move us from luxury to necessity. And we are only in the early stages of what the mobile electronic communications will mean for mankind. We are now "The Mobile Generation." Aspen Institute Roundtable on Information Technology. To explore the implications of these phenomena, the Aspen Institute Communications and Society Program convened 27 leaders from business, academia, government and the non-profit sector to engage in three days of dialogue on related topics. Some are experts in information and communications technologies, others are leaders in the broader society affected by these innovations. Together, they examined the profound changes ahead as a result of the convergence of wireless technologies and the Internet. In the following report of the Roundtable meeting held August 1-4, 2006, J. D. Lasica, author of Darknet and co-founder of Ourmedia.org, deftly sets up, contextualizes, and captures the dialogue on the impact of the new mobility on economic models for businesses and governments, social services, economic development, and personal identity

The coherence of EU trade, competition, and industry policies in the high tech sector : the case of the telecommunications services sector

We analyze the coherence existing among European Union competition, industry, and trade policies in the high tech sector in general terms focusing on its specific features (externalities, fast progress) and their effects on the emergence and treatment of policy consistency and conflicts. Second, this analysis is applied to the European telecommunications services sector. The examination of this sector and the relevant EU policies reveals a consensus on giving priority to competition. However structural factors prevent policy implementation to reflect much liberalization and harmonization and business responses to trade globalization challenge effective competition. The potential, important role of standardization is shown.economics of technology ;

(De)convergence in TV: a comparative analysis of the development of Smart TV

Against the backdrop of media convergence, Smart TVs are developing rapidly in large parts of the world. Smart TV refers to the integration of broadband Internet and social media features into TV sets. From a media business perspective, the proliferation of Smart TV services may put pressure on the market structure of the TV landscape, and urge for new business models in order to capture the dynamics of media convergence. By means of a comparative analysis in four European markets (Belgium, Germany, the Netherlands and the United Kingdom), the development of Smart TV is sketched in terms of viewing patterns, business models and standardization. The conclusion is that national TV markets are evolving quite differently, so that service providers must adapt their marketing strategies to reflect local market conditions. Hence, the success of Smart TV ultimately depends on the local package of value-added services and the amount of strategic partnerships with content owners, TV broadcasters and pay-TV operators

Information and Communication Technology: Dynamics, Integration and Economic Stability

Information and Communication Technology (ICT) has become a major driver of investment and growth in OECD countries. The analysis puts the focus on key developments in the ICT sector and international outsourcing dynamics as well as the specific role of ICT in the financial sector. One can show that the expansion of ICT is not only contributing to national and international outsourcing but to insourcing as well. Furthermore, ICT affects regional integration. In the context of a modified Dornbusch model – including foreign direct investment – the impact of ICT on output and the exchange rate are discussed. The risk of overshooting in foreign exchange markets is likely to be reduced through the expansion of ICT which allows a more pro-active monetary policy.Integration, ICT, Growth, Foreign Exchange Markets, Stability

Innovation and Dynamism: Interaction between Systems and Technical Progress

Literature on post-socialist transformation usually deals with the political, economic and social sides of it, although there have also been important changes in the field of technical advance in the last 20 years. One of capitalism’s main virtues is the strong incentive it gives to dynamism, enterprise and the innovation process. Every revolutionary new product (for civilian use) has been brought about by the capitalist system. The socialist system was capable, at most, of developing new military products. The article analyzes how far the radical difference can be explained by the innate tendencies and basic attributes of the two systems. Our daily lives have been transformed by these new products (for instance, the sphere of information and communications by the computer, the mobile phone and the internet). While many people see all these as favorable changes, fewer discern the causal relation between the capitalist system and rapid technical progress. Yet the usual syllabus of microeconomics does not enlighten students on this important virtue of capitalism, which is not adequately emphasized in the statements of leading politicians either.systems, capitalist system, socialist system, innovation, technical progress, Schumpeterian entrepreneurship