European Economic Review vol:45 issue:3 pages:577-588
We study the technological and regulatory determinants of the diffusion of mobile telecommunications services in the European Union, using a logistic model of diffusion. We find that the transition from the analogue to the digital technology during the early 1990s, and the corresponding increase in spectrum capacity, had a major impact on the diffusion of mobile telecommunications. Countries which granted first licenses at later points in time show a significant but slow catching-up effect, implying international convergence only by around 2006. The impact of introducing competition has also been significant, during both the analogue and the digital period, though the effect was smaller than the technology effect. (C) 2001 Elsevier Science B.V. All rights reserved. JEL classification: L1; L86; O3.