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RESEARCH PRODUCT

The Critical Mass of Wireless Communications

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The aim of this chapter is to identify and analyze the timing and level of critical mass in the development of market penetration for wireless communications. The authors assume that critical mass is fulfilled at the point when the acceleration of the diffusion process is at its maximum. In practice, this point is determined by estimating the diffusion function and calculating the second derivative with respect to time. The diffusion of mobile subscription is modelled using the Bass diffusion model. The penetration levels and points of time of critical mass of 209 countries or areas of the world are identified and subsequently subjected to regression analysis against population and economic characteristics. The findings suggest considerable differences between developing and developed countries.