Competition and mobile penetration in sub-Saharan Africa

Abstract

This paper examines the impact of competition on mobile penetration in 35 Sub-Saharan African (SSA) countries between 2000 and 2006. We examine both the impact of introducing competition and the role of intensity of competition on mobile penetration in these countries. Different specifications with different measures of competition that reflect either the introduction or intensity of competition on the sector have been used in the analysis.
Controlling for various sector characteristics and macro-economic indicators, we apply panel data regression analysis with fixed effects. For the most part, the results in this study are consistent with the existing literature, and confirm that the 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.