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The Telecom Revolution in IndiaTechnology, Regulation, and Policy$
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Varadharajan Sridhar

Print publication date: 2011

Print ISBN-13: 9780198075530

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198075530.001.0001

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Network Economics in Telecom

Network Economics in Telecom

Chapter:
(p.1) 1 Network Economics in Telecom
Source:
The Telecom Revolution in India
Author(s):

Varadharajan Sridhar

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198075530.003.0001

This chapter investigates the characteristics of the telecom industry. The applicability of network externalities is very much evident in mobile services in India. The growth of Internet connectivity, and the openness of the Internet, is driven by an inexorable economic logic. The four main elements in the diffusion process of telecom services are innovation, communication channels, time, and the social system. There are typically two models which are used to model the growth of telecommunication and Internet services and are explained: logistic model and Gompertz model. All types of telecom services exhibit network externality characteristics and their adoption pattern conforms to the S-curve model. However, the different services differ in the critical issues that govern their growth. It concludes that most of the diffusion models do not take into consideration environment effects including regulations. Finally, an overview of the chapters included in this book is presented.

Keywords:   telecom, network economics, logistic model, Gompertz model, network externalities, India, telecommunication, Internet services, regulations

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