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An analysis of spectrum allocation for the mobile phone services

This paper investigates the relationship between the spectrum allocation policy and the mobile broadband cost in 135 countries between 2012 and 2019, with a particular focus on developing countries. We construct a panel data collected from various sources such as World Development Indicator (WDI), I...

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Main Author: Bahar, Tadjadine Hisseine
Other Authors: Grzybowski, Lukasz
Format: Thesis
Language:English
Published: School of Economics 2022
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access_status_str Open Access
author Bahar, Tadjadine Hisseine
author2 Grzybowski, Lukasz
author_browse Bahar, Tadjadine Hisseine
Grzybowski, Lukasz
author_facet Grzybowski, Lukasz
Bahar, Tadjadine Hisseine
author_sort Bahar, Tadjadine Hisseine
collection Thesis
description This paper investigates the relationship between the spectrum allocation policy and the mobile broadband cost in 135 countries between 2012 and 2019, with a particular focus on developing countries. We construct a panel data collected from various sources such as World Development Indicator (WDI), International Telecommunication Union (ITU) - ICT Price Baskets (IPB), Global Mobile Frequencies Database of Spectrum Monitoring Technology Advisors databases and other additional sources to conduct our empirical analysis. We estimate a system of equations - demand and supply for mobile broadband services with the following findings. First, demand for mobile Internet is negatively impacted by the price of 1GB of mobile broadband, as suggested by economic theory. Second, GDP per capita has a positive impact on the mobile broadband penetration. In the pricing equation, 79% of overall variation in mobile broadband price is explained by the list of exogenous variables included in our model specification. We find that the mobile broadband price is decreasing with population density which is an indication of economies of scale. Moreover, the price of mobile broadband increases with Herfindahl-Hirschman Index. Also, prices decrease when the market structure changes from monopoly to competition. The price of mobile broadband decreases for a greater volume of radio spectrum available to all the operators within country. Moreover, auction mechanism of spectrum allocation reduces the mobile broadband price. Our results imply that the regulatory authority and policy makers need to promote access of radio spectrum for mobile services. Moreover, a spectrum assignment mechanism based on auctions contributes to the economic efficiency by reducing marginal cost and prices of mobile broadband services.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:31:34.243Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2022
publishDateRange 2022
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publisher School of Economics
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spelling oai:open.uct.ac.za:11427/35684 An analysis of spectrum allocation for the mobile phone services Bahar, Tadjadine Hisseine Grzybowski, Lukasz Economics Science This paper investigates the relationship between the spectrum allocation policy and the mobile broadband cost in 135 countries between 2012 and 2019, with a particular focus on developing countries. We construct a panel data collected from various sources such as World Development Indicator (WDI), International Telecommunication Union (ITU) - ICT Price Baskets (IPB), Global Mobile Frequencies Database of Spectrum Monitoring Technology Advisors databases and other additional sources to conduct our empirical analysis. We estimate a system of equations - demand and supply for mobile broadband services with the following findings. First, demand for mobile Internet is negatively impacted by the price of 1GB of mobile broadband, as suggested by economic theory. Second, GDP per capita has a positive impact on the mobile broadband penetration. In the pricing equation, 79% of overall variation in mobile broadband price is explained by the list of exogenous variables included in our model specification. We find that the mobile broadband price is decreasing with population density which is an indication of economies of scale. Moreover, the price of mobile broadband increases with Herfindahl-Hirschman Index. Also, prices decrease when the market structure changes from monopoly to competition. The price of mobile broadband decreases for a greater volume of radio spectrum available to all the operators within country. Moreover, auction mechanism of spectrum allocation reduces the mobile broadband price. Our results imply that the regulatory authority and policy makers need to promote access of radio spectrum for mobile services. Moreover, a spectrum assignment mechanism based on auctions contributes to the economic efficiency by reducing marginal cost and prices of mobile broadband services. 2022-02-09T11:27:55Z 2022-02-09T11:27:55Z 2021 2022-02-08T08:25:01Z Master Thesis Masters MCom http://hdl.handle.net/11427/35684 eng application/pdf School of Economics Faculty of Commerce
spellingShingle Economics Science
Bahar, Tadjadine Hisseine
An analysis of spectrum allocation for the mobile phone services
thesis_degree_str Master's
title An analysis of spectrum allocation for the mobile phone services
title_full An analysis of spectrum allocation for the mobile phone services
title_fullStr An analysis of spectrum allocation for the mobile phone services
title_full_unstemmed An analysis of spectrum allocation for the mobile phone services
title_short An analysis of spectrum allocation for the mobile phone services
title_sort analysis of spectrum allocation for the mobile phone services
topic Economics Science
url http://hdl.handle.net/11427/35684
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