Abstract

The purpose of this paper is to analyze the effects of the determinants of mobile number portability in telecommunication industry. Applying the basic theoretical framework of a general equilibrium migration model in local public finance, we employed simple time series analysis based on the Seemingly Unrelated Regression(SUR) model. According to the empirical analysis of the SUR model, we could find some meaningful relationship among the dependents and explanatory variables. The number of mobile users(the size effect), the subsidy payment per mobile users(inducement cost effect per new entrant), the subsidy payment difference(competition effect) and moving cost(cost effect) variables have been proved to influence meaningfully in the determinant of mobile number portability. The estimates from impulse response and variance decomposition analysis reveal that subsidy difference has been proved to be the most important factor contributing to the variance of the mobile number portability.

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