Diffusion of mobile telephony in India: An empirical study

Abstract

Diffusion of new technology is an important driver of economic growth. In this paper, diffusion of mobile telephony in India is studied. There is a vast diffusion potential in this country which needs to be exploited efficiently and in a rational way. This paper investigates the social, technological, economical and political (STEP) factors that have influenced the diffusion process of mobile telephony especially the diffusion speed. The epidemic model, which is widely employed in the diffusion studies of mobile telephony, is used for the study. The data is fitted into logistic, gompertz, and bass models by nonlinear least squares and it is found that gompertz model best describes the diffusion process of mobile telephony in India. The study reveals that competition and government intervention played a significant role in accelerating the diffusion speed of mobile telephony by making the technology affordable. It is found that mobile telephony is a substitute for fixed line telephony in India. The findings will be useful in taking managerial decisions with respect to factors in forecasting and controlling the diffusion process of emerging technologies.