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Paper Information

Journal:   JOURNAL OF ECONOMIC RESEARCH AND POLICIES   WINTER 2011 , Volume 19 , Number 60; Page(s) 161 To 183.
 
Paper: 

ESTIMATION OF MOBILE DEMAND FUNCTION OF HAMRAH-E AVAL WITH EMPHASIS ON ENTERING THE NEW OPERATOR INTO THE MARKET

 
 
Author(s):  MIRZAEE NEJAD MOHAMAD REZA, SEYED SHOKRI KHASHAYAR, PALANGI PEGAH
 
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Abstract: 

Expansion of telecommunication networks and its impact on various aspects of human life, including economic one has increasingly drawn the attentions to the mobile system of communication. Therefore, in this paper the demand for mobile phones (MCI) and the impact of several variables such as the numbers of immobile phones, BTS antenna, operator SIM card price index, GDP per capita, are investigated. The data measured annually, are collected from 28 provinces for the period of 2000-2008. New operator variable was entered into the model as a dummy variable. Data were gathered from Iran Communication Co. and Iran Statistics Center. At first, the model was estimated for 2000-2005 period. (Irancell entered to the market in 2006). Then estimation was done for 2006-2008 with no second operator. Finally, estimation was conducted for 2000-2008, with inclusion of the second operator. In continuation, a suitable pattern was selected for estimation, using Limer and Hausman tests. The model was estimated by fixed effects method for 2000-2005 and by random effects method for 2000-2008. The results showed that there is a positive and significant relationship between entering the new operator and the demand for the services of Hamrah-e Aval Co. (MCI), and this demand was increased by entering the new operator. Also, price elasticity of demand for MCI is low and therefore it's services are considered as essential goods.

 
Keyword(s): MOBILE DEMAND, NEW OPERATOR, PANEL DATA
 
References: 
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