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1 Panel Data Analysis of the Factors behind Mobile Broadband Adoption in Six Major OECD Countries C ABSTRACT The adoption of broadband is a major policy issue for all countries. The objective of this paper is to identify factors which lie behind mobile broadband diffusion (3G + 4G mobile phones) by focusing on smartphones. Broadband consists of fixed and mobile (or wireless), and the former consists of DSL, cable modem, and FTTH. His paper focuses on the latter. In so doing, among 34 OECD member countries, the US, UK, France, Germany, Korea, and Japan are selected, since these six countries represent more than 50% of the total population and the number of mobile handsets in these 34 countries. Based on the data from 2000 to 2012, panel data analysis is employed. Estimates from the results of this analysis show that the introduction of smartphone, competion in the market in terms of HHI, and FTTH diffusion are factors in mobile broadband adoption. In particular, the result for HHI can be applied to the current issue of consolidation, namely the merger of mobile carriers. The result indicates that consolidation should not be approved by regulators. * Sobee SHINOHARA ** Hiroyuki MORIKAWA *** Masatsugu TSUJI Vol.32 No.4 (2015) 45

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4 iphone Android 120% 100% 80% 60% 40% 20% 0% G

5 iphone Android 120% 100% 80% 60% 40% 20% 0% G 2G 3G 4G Vol.32 No.4 (2015) 49

6 0% 20% 40% 60% 80% 100% 120% G 2G 3G 4G iphone Android 0% 20% 40% 60% 80% 100% 120% G 2G 3G 4G iphone Android 50

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8 Subscriber = HHI Subscriber Price(Data) / Speed + FTTH 2 + Price(Voice) j 7 j Z, 4 Income Factor j

9 Vol.32 No.4 (2015) 53

10 ó ó 54

11 Ahn, H. and Lee, M. (1999) An Econometric Analysis of the Demand for Access to Mobile Telephone Networks, Information Economics and Policy, Vol. 11, Issue 3, pp Akematsu, Y., Shinohara, S. and Tsuji, M. (2012) Empirical Analysis of Factors Promoting the Japanese 3G Mobile Phone, Telecommunications Policy, vol. 36, Issue 3, pp Baliamoune-Lutz, M. (2003) An Analysis of the Determinants and Effects of ICT Diffusion in Developing Countries, Information Technology for Development, Vol. 10, Issue 3, pp Clarke, R. N. (2013) "Expanding mobile wireless capacy: The challenges presented by technology and economics," Telecommunications Policy, Vol. 38, Issues 8-9, pp Crandall, R. W., Crandall, J. A. E. and Allan, T. (2013) "The long-run effects of copper-loop unbundling and the implications for fiber," Telecommunications Policy Vol. 37, Issues 4-5, pp Gerpott, T. J. (2010) Impacts of mobile Internet use intensy on the demand for SMS and voice services of mobile network operators: An empirical multi-method study of German mobile Internet customers, Telecommunications Policy, Vol. 34, Issue 8, pp Gerpott, T. J., Thomas, S., and Weichert M. (2013) Characteristics and mobile Internet use intensy of consumers wh different types of advanced handsets: An exploratory empirical study of iphone, Android and other web-enabled mobile users in Germany, Telecommunications Policy, Vol. 37, Issue 4-5, pp Gruber, H. (2001) Competion and Innovation: The Dif- Vol.32 No.4 (2015) 55

12 fusion of Mobile Telecommunications in Central and Eastern Europe, Information Economics and Policy, Vol.13, Issue 1, pp Ida, T. and Kuroda, T. (2009) Discrete Choice Model Analysis of Mobile Telephone Service Demand in Japan, Empirical Economics, Vol. 36, No. 1, pp Iimi, A. (2005) Estimating Demand for Cellular Phone Services in Japan, Telecommunications Policy, Vol. 29, Issue 1, pp Kamssu, A. J. (2005) Global Connectivy thorough Wireless Network Technology: A Possible Solution for Poor Countries, International Journal of Mobile Communications, Vol. 3, No. 3, pp Kim, Y. (2005) Estimation of Consumer Preferences on New Telecommunications Services: IMT-2000 Service in Korea, Information Economics and Policy, Vol. 17, Issue 1, pp Kshetri, N. and Cheung, M. (2002) What Factors are Driving China s Mobile Diffusion? Electronic Markets, Vol. 12, Issue 1, pp Madden, G. and Coble-Neal (2004) Economic Determinants of Global Mobile Telephony Growth, Information Economics and Policy, Vol. 16, Issue 4, pp Minges, M. (1999) Mobile Cellular Communications in the Southern African Region, Telecommunications Policy, Vol. 23, Issue 7-8, pp Nakamura, A. (2010) Changes in Consumers Behavior When a Vertically Integrated Service is Separated - The Case of Japanese Mobile Phone Services, Economics Bulletin, Vol. 30, Issue 1, pp Rouvinen, P. (2006) Diffusion of Digal Mobile Telephony: Are Developing Countries Different? Telecommunications Policy, Vol. 30, Issue 1, pp Ward, M. R., and Zheng, S. (2012) Mobile and fixed substution for telephone service in China, Telecommunications Policy, Vol. 36, Issue 4, pp Whalley, J. and Peter, C. (2012) "Incumbency and market share whin European mobile telecommunication networks," Telecommunications Policy, Vol. 36, Issue 3, pp Yamakawa, P., Rees, G. H., Salas, J. M. and Alva N. (2013) The diffusion of mobile telephones: An empirical analysis for Peru, Telecommunications Policy, Vol. 37, Issue 6-7, pp

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