Abstract
This chapter extensively discusses the process of ICT diffusion across 12 Asia-Pacific economies, between 1990 and 2017. It provides a detailed analysis of country-specific ICT diffusion curves with respect to four core ICT indicators: mobile-cellular telephony, fixed-broadband and active mobile-broadband networks, and Internet users. It shows the unique features of this process in each of examined economies; it demonstrates its dynamic and specific patterns. It also briefly discusses the emerging technological substitution process, which demonstrates gradual switching from “old” technology to “new” technology. All data used in this chapter are exclusively extracted from World Telecommunications/ICT Indicators database 2017 and 2018.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
For detailed explanation of ICT indicators, see Appendix A.
- 2.
The case of people sharing one household is a good example.
- 3.
Authors’ calculations.
- 4.
More empirical evidence on technological substitution may be traced in works of, inter alia, Gruber (2001), Sung and Lee (2002), Hamilton (2003), Rodini et al. (2003 and 2004), Banerjee and Ros (2004), Garbacz and Thompson (2005 and 2007), Gunasekaran and Harmantzis (2007), Narayana (2010), Briglauer et al. (2011), Grzybowski (2011), Ward and Zheng (2012), Srinuan et al. (2012), Wulf et al. (2013), Lechman (2016), and Lechman (2017a, b).
- 5.
See Appendix B, Method 3.
- 6.
Data available between 1990 and 2011, but with gaps.
- 7.
Data available between 2005 and 2017, but with gaps.
- 8.
Data available between 2012 and 2017, but with gaps.
- 9.
For detailed definitions, see Appendix A.
- 10.
Data available between 2002 and 2017, but with gaps.
- 11.
- 12.
“Mobile-cellular sub-basket refers to the price of a standard basket of 30 outgoing calls per month (on-net/off-net to a fixed line and for peak and off-peak times, in predetermined ratios), plus 100 SMS messages. It is calculated as a percentage of a country’s average monthly GNI per capita, and also presented in USD and PPP$. The mobile-cellular sub-basket is based on prepaid prices, although postpaid prices are used for countries where prepaid subscriptions make up less than 2 per cent of all mobile-cellular subscriptions” (see Measuring Information Society Report 2016, p.105).
- 13.
“Fixed-broadband sub-basket refers to the price of a monthly subscription to an entry-level fixed-broadband plan. It is calculated as a percentage of a country’s average monthly GNI per capita, and also presented in USD and PPP$. For comparability reasons, the fixed-broadband sub-basket is based on a monthly data usage of (a minimum of) 1 Gigabyte (GB). For plans that limit the monthly amount of data transferred by including data volume caps below 1 GB, the cost for the additional bytes is added to the sub-basket. The minimum speed of a broadband connection is 256 kbit/s” (see Measuring Information Society Report 2016, p.117).
- 14.
In nominal terms.
- 15.
References
Ayanso, A., & Lertwachara, K. (2015). An analytics approach to exploring the link between ICT development and affordability. Government Information Quarterly, 32(4), 389–398.
Baliamoune-Lutz, M. (2003). An analysis of the determinants and effects of ICT diffusion in developing countries. Information Technology for Development, 10(3), 151–169.
Banerjee, A., & Ros, A. J. (2004). Patterns in global fixed and mobile telecommunications development: a cluster analysis. Telecommunications Policy, 28(2), 107–132.
Baraldi, A. L. (2012). The size of the critical mass as a function of the strength of network externalities: A mobile telephone estimation. Economics of Innovation and New Technology, 21(4), 373–396.
Bass, F. M. (1969). A new product growth for model consumer durables. Management Science, 15(5), 215–227.
Bass, F. M. (1980). The relationship between diffusion rates, experience curves, and demand elasticities for consumer durable technological innovations. Journal of Business, 53, S51–S67.
Bergek, A., Jacobsson, S., & Sandén, B. A. (2008). ‘Legitimation’ and ‘development of positive externalities’: Two key processes in the formation phase of technological innovation systems. Technology Analysis & Strategic Management, 20(5), 575–592.
Briglauer, W., Schwarz, A., & Zulehner, C. (2011). Is fixed-mobile substitution strong enough to de-regulate fixed voice telephony? Evidence from the Austrian markets. Journal of Regulatory Economics, 39(1), 50–67.
Cabral, L. M. (2006). 15. Equilibrium, epidemic and catastrophe: diffusion of innovations with network effects. New Frontiers in the Economics of Innovation and New Technology: Essays in Honour of Paul A. David, 427.
Cairncross, F. (1999). The death of distance: how the communication revolution will change our lives. American Quarterly-Minneapolis, 51, 160–160.
Comin, D., & Hobijn, B. (2011). Technology diffusion and postwar growth. In NBER Macroeconomics Annual 2010 (Vol. 25, pp. 209–246). Chicago: University of Chicago Press.
Comin, D., Hobijn, B., & Rovito, E. (2006). Five facts you need to know about technology diffusion (No. w11928). Cambridge, MA: National Bureau of Economic Research.
Cusumano, M. A., Mylonadis, Y., & Rosenbloom, R. S. (1992). Strategic maneuvering and mass-market dynamics: The triumph of VHS over Beta. Business history review, 66(01), 51–94.
Economides, N. (1996). The economics of networks. International Journal of Industrial Organization, 14(6), 673–699.
Farrell, J., & Saloner, G. (1985). Standardization, compatibility, and innovation. The Rand Journal of Economics, 16, 70–83.
Fisher, J. C., & Pry, R. H. (1972). A simple substitution model of technological change. Technological Forecasting and Social Change, 3, 75–88.
Garbacz, C., & Thompson, H. G., Jr. (2005). Universal telecommunication service: A world perspective. Information Economics and Policy, 17(4), 495–512.
Garbacz, C., & Thompson, H. G., Jr. (2007). Demand for telecommunication services in developing countries. Telecommunications Policy, 31(5), 276–289.
Geroski, P. A. (2000). Models of technology diffusion. Research Policy, 29(4), 603–625.
Grajek, M. (2010). Estimating network effects and compatibility: Evidence from the Polish mobile market. Information Economics and Policy, 22(2), 130–143.
Granovetter, M. (1978). Threshold models of collective behavior. American Journal of Sociology, 83, 1420–1443.
Gruber, H. (2001). Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe. Information Economics and Policy, 13(1), 19–34.
Gruber, H., & Verboven, F. (2001). The evolution of markets under entry and standards regulation—the case of global mobile telecommunications. International Journal of Industrial Organization, 19(7), 1189–1212.
Grzybowski, L. (2011). Fixed-to-mobile substitution in the European Union. Working Paper, University of Cape Town, South Africa.
Gunasekaran, V., & Harmantzis, F. C. (2007). Emerging wireless technologies for developing countries. Technology in Society, 29(1), 23–42.
Hamilton, J. (2003). Are main lines and mobile phones substitutes or complements? Evidence from Africa. Telecommunications Policy, 27(1), 109–133.
Hoy, M., & Polborn, M. K. (2015). The value of technology improvements in games with externalities: A fresh look at offsetting behavior. Journal of Public Economics, 131, 12–20.
ITU. (2016). Measuring Information Society Report 2016. Geneva: ITU.
ITU. (2017). Measuring Information Society Report 2017. Geneva: ITU.
Jaffe, A. B., Newell, R. G., & Stavins, R. N. (2005). A tale of two market failures: Technology and environmental policy. Ecological Economics, 54(2), 164–174.
Katz, M. L., & Shapiro, C. (1985). Network externalities, competition, and compatibility. The American Economic Review, 75(3), 424–440.
Koski, H., & Kretschmer, T. (2005). Entry, standards and competition: Firm strategies and the diffusion of mobile telephony. Review of Industrial Organization, 26(1), 89–113.
Lechman, E. (2016). ICT Diffusion in Developing Countries. SPRINGER INTERNATIONAL PU.
Lechman, E. (2017a). Technological substitution in Asia. London, Routledge.
Lechman, E. (2017b). The diffusion of information and communication technologies. London, Routledge.
Lee, M., Kim, K., & Cho, Y. (2010). A study on the relationship between technology diffusion and new product diffusion. Technological Forecasting and Social Change, 77(5), 796–802.
Marchetti, C., & Nakicenovic, N. (1980). The dynamics of energy systems and the logistic substitution model. Laxenburg: International Institute for Applied Systems Analysis.
Markus, M. L. (1987). Toward a “critical mass” theory of interactive media universal access, interdependence and diffusion. Communication Research, 14(5), 491–511.
Nakicenovic, N. (1987). Technological substitution and long waves in the USA. In The long-wave debate (pp. 76–103). Berlin: Springer Berlin Heidelberg.
Narayana, M. R. (2010). Substitutability between mobile and fixed telephones: Evidence and implications for India. Review of Urban & Regional Development Studies, 22(1), 1–21.
OECD (2017). Opportunities and policy challenges of digitalization in Southeast Asia. OECD Southeast Asia Digital Forum, Sept 2017, Bangkok, Thailand.
Peres, R., Muller, E., & Mahajan, V. (2010). Innovation diffusion and new product growth models: A critical review and research directions. International Journal of Research in Marketing, 27(2), 91–106.
Rodini, M., Ward, M. R., & Woroch, G. A. (2003). Going mobile: Substitutability between fixed and mobile access. Telecommunications Policy, 27(5), 457–476.
Rohlfs, J. H. (2003). Bandwagon effects in high-technology industries. Cambridge, MA: MIT press.
Roper, S., Vahter, P., & Love, J. H. (2013). Externalities of openness in innovation. Research Policy, 42(9), 1544–1554.
Sedik, T. A. (2018). Asia’s digital revolution. Finance and Development IMF.
Srinuan, P., Srinuan, C., & Bohlin, E. (2012). Fixed and mobile broadband substitution in Sweden. Telecommunications Policy, 36(3), 237–251.
Stoneman, P. (2001). The economics of technological diffusion. Malden, MA: Wiley-Blackwell.
Sung, N., & Lee, Y. H. (2002). Substitution between mobile and fixed telephones in Korea. Review of Industrial Organization, 20(4), 367–374.
Ward, M. R., & Zheng, S. (2012). Mobile and fixed substitution for telephone service in China. Telecommunications Policy, 36(4), 301–310.
World Telecommunication/ICT Indicators Database 2017 (21st Edition).
World Telecommunication/ICT Indicators Database 2018 (22nd Edition).
Wulf, J., Zelt, S., & Brenner, W. (2013, January). Fixed and mobile broadband substitution in the OECD Countries--A quantitative analysis of competitive effects. In System Sciences (HICSS), 2013 46th Hawaii International Conference on (pp. 1454–1463). IEEE.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Marszk, A., Lechman, E., Kato, Y. (2019). ICT Deployment in the Asia-Pacific Countries: Eliminating Information Asymmetries. In: The Emergence of ETFs in Asia-Pacific. Springer, Cham. https://doi.org/10.1007/978-3-030-12752-7_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-12752-7_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-12751-0
Online ISBN: 978-3-030-12752-7
eBook Packages: Business and ManagementBusiness and Management (R0)