The Impact of Competition on Mobile Penetration in Sub-Saharan Africa

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Relying inanely on a recently published data of the International Telecommunication Union (ITU), World Telecommunications/lCT Indicators (2008) and on a global database of mobile market information-Wireless Intelligence, we investigate the impact of competition on mobile penetration in 35 Sub Saharan African countries for the period 2000-2006. This study examines not only the impact of introduction of competition but also the role of intensity of competition on mobile penetration in the region. To this effect, we use different equations with different measures of competition that reflect either the introduction or intensity of competition on the sector. Thereafter, controlling various sector characteristics and macroeconomic indicators, we apply panel data regression analysis with fixed effects. Besides, we test potential endogeneity problems and use appropriate estimation technique as necessary. For the most part, the results of this study come out consistent with the existing literature. That is, estimation results confirm that introduction of competition in the mobile market is strongly and positively associated with mobile penetration. Furthermore, the results of this study indicate that promoting effective competition plays a significant role in increasing mobile penetration



Sub-Saharan Africa, Mobile Penetration