In this paper, the affecting factors of the access demand for the cellular service are derived, and the access demand function of the cellular service is estimated.
The results obtained in this study are as follows: First, the price(access charge) an...
In this paper, the affecting factors of the access demand for the cellular service are derived, and the access demand function of the cellular service is estimated.
The results obtained in this study are as follows: First, the price(access charge) and the income elasticities of cellular services are higher than those of PSTN. Second, like other telecommunication services there exists a network externality in cellular communication services. Third, the technological capability of the service provider has played an essential role in expanding the size of subscribers. Fourth, the access demand of cellular communication service is not sensitive to the usage charge.
According to the above results, it can be inferred that if the access charge is lowered, the number of subscribers will increase to the critical mass, and then the cellular communication market will grow up to a saturation point naturally.