I= COST EFFICIENCY OF CELLULAR MOBILE FIRMS IN PAKISTAN
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Title of Thesis
COST EFFICIENCY OF CELLULAR MOBILE FIRMS IN PAKISTAN

Author(s)
Mohammad Saleem
Institute/University/Department Details
Department of Economics/ Bahauddin Zakaria University Multan
Session
2005
Subject
Economics
Number of Pages
258
Keywords (Extracted from title, table of contents and abstract of thesis)
cellular mobile firms, pakistan, telecommunications, cost efficiency, high speed network, cellular subscribers, coverage, quality of service, mobile penetration

Abstract
Telecommunications services play a key role in the growth of an economy because they promote efficiency and growth across a wide range of user industries in any country. Modern telecommunication infrastructure and high speed network facilities internet penetration, cellular mobile subscription and spread of IT application, spur productive efficiency in an economy.

This thesis focuses on the evolution of cost efficiency in the cellular mobile industry of Pakistan over the period 1994-2001. It uses data Envelopment analysis ,a non-parametric approach that allows the measurement of the Malmquist total Factor Productivity (TFP) Index. It decomposes the changes in productivity into variations in efficiency and technical change. Computation of efficiency is among the most important factors in the analysis of performance of firms, industry sector, and the economy as a whole. One of the advantages of the non-parametric technique, based on linear programming, is that a priori specifications of functional form is not required

The cellular mobile firms were characterized by a weak process of catch-up in labor productivity. Since we have employed traditional DEA models, which assumes diminishing returns technology, our measure could underestimate efficiency in period close to major technological change. However the existence of increasing returns to scale technology could be, in its turn, offset by the presence of the market liberalization process. Technological developments and regulatory measures have improved the performance that found to have a significantly position effective on growth of cellular subscribers’ base, coverage, quality of service and labor productivity. Mobile penetration was positively affected by competition.

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2198.43 KB
S. No. Chapter Title of the Chapters Page Size (KB)
1 0 Contents
141.54 KB
2 1 Introduction 1
92.88 KB
3 2 Evolution of Mobile Fone 10
152.98 KB
  2.1 Radio BC-Before cellular 11
  2.2 The Birth of Radio 12
  2.3 Marconi-father of Radio 12
  2.4 Other pioneers 12
  2.5 Developments during the first world war 15
  2.6 New Application for Radio 16
  2.7 Private mobile Radio 19
  2.8 History of cellular 20
  2.9 Advanced systems (Cellular concept ) 22
  2.10 Introduction of Mobile telephone services in Europe 23
4 3 Technological aspects of cellular Mobile systems 26
363.69 KB
  3.1 Principles of operation 26
  3.2 Signaling 27
  3.3 Local registration 28
  3.4 Call setup 28
  3.5 In-call Handover 30
  3.6 Power control 31
  3.7 Radio planning 32
  3.8 Cell repeat pattern 32
  3.9 Co-Channel interference 34
  3.10 Radio propagation 35
  3.11 Practical radio planning 36
  3.12 Adding capacity 37
  3.13 Overview of systems 39
  3.14 AMPS 40
  3.15 TACS 42
  3.16 NMT 43
  3.17 C-450 44
  3.18 GSM 46
  3.19 GSM Architecture 46
  3.20 GSM Air Interface 48
  3.21 Speech coding and Channel coding 52
  3.22 SGM Signaling 54
  3.23 Security features 55
  3.24 GSM Services and features 56
  3.25 Roaming 57
  3.26 Services 57
  3.27 Supplementary Services 58
  3.28 Value Added Services 59
  3.29 Messaging Services 59
  3.30 Information Services 60
  3.31 Private Interconnect 60
  3.32 Data Services 60
  3.33 Futures developments 63
  3.34 Microcells 64
  3.35 Intelligent Networks 65
  3.36 Personal communication 65
5 4 Transition from2nd Generation to 3 rd Generation (IMT2000) 67
120.01 KB
  4.1 Generation of Mobile Net works 68
  4.2 Future market developments 70
  4.3 A look Ahead at IMT 2000 71
  4.4 HSCSD (High Speed Circuit Switched Data ) 75
  4.5 GPRS (General Packet Radio Service ) 75
  4.6 EDGE( Enhanced Data Rata for GSM Evolution 76
  4.7 IMT2000 technology 76
6 5 Cellular Mobile Growth 77
175.8 KB
  5.1 Mobile communications in LDCs 81
  5.2 Mobile revenues 84
  5.3 Cellular Mobile Industry in Pakistan 85
  5.4 Reasons for slower growth during 1990s 86
  5.5 Frequency Allocation 87
  5.6 Brief Description of cellular mobile firms in Pakistan 89
  5.7 Calling part Pays 91
7 6 Competition and Regulation 95
344.07 KB
  6.1 Market definition 96
  6.2 Market structure 98
  6.3 Benefits of competition policy 100
  6.4 Competition in fixed line telecommunications 103
  6.5 Competition in cellular Mobile communications 105
  6.6 Government Intervention to promote competition 105
  6.7 Justifications fro Telecommunications regulations 106
  6.8 Regulatory objectives 108
  6.9 Privatization of government owned Telecommunications operators 109
  6.10 Licensing regime 109
  6.11 Transparent regulatory procedures 110
  6.12 Interconnection 110
  6.13 Price regulations 111
  6.14 Universal Services obligations( USO) 111
  6.15 Regulatory process 112
  6.16 Principles of effective regulations 113
  6.17 Minimum Regulations in competitive Environment 113
  6.18 Harmonizing Regulatory Standards 114
  6.19 Transition from Monopoly to competition in telecommunications 114
  6.20 Ant-Competitive practice in Telecommunications 115
  6.21 Remedies against Anti-Competitive practices 126
8 7 Mobile Regulations 132
94.87 KB
  7.1 Regulations in Mobile cellular industry 133
  7.2 Licensing issues 135
  7.3 Number of operators 135
  7.4 Interconnection 136
  7.5 Calling party pays 137
  7.6 Roaming prices 138
  7.7 Mobile Number Portability 138
  7.8 Universal Services access Requirements 139
9 8 Measurement of efficiency: parametric and Non-Parametric Approach 142
208.27 KB
  8.1 Efficiency Concepts 142
  8.2 Definitions of efficiency in DEA Literature 145
  8.3 Methodological framework 151
  8.4 Non-Parametric approach 151
  8.5 Parametric approach 152
  8.6 History DEA and Recent Development 159
  8.7 Defining cellular mobile industry inputs and outputs 162
10 9 Efficiency and technical change 164
359.68 KB
  9.1 Introduction 164
  9.2 Stages in technological progress 165
  9.3 Technical Knowledge and production possibilities 167
  9.4 Measurement of technical change 170
  9.5 Induced and endogenous Technical change, diffusion of technology 179
  9.6 Industrial structure and total factor productivity 183
  9.7 Other shortcomings of measuring technical change using Neo-classical production function 184
  9.8 Embodied Hypothesis 191
  9.9 Vintage capital model 195
  9.10 Summary 205
11 10 Methodology 207
75.95 KB
  10.1 A Graphical representation of efficiencies 207
  10.2 Data envelopment analysis to frontier estimation 211
  10.3 Measuring total factor productivity growth 213
12 11 Data and construction of variables 216
45.71 KB
  11.1 Background 216
  11.2 Data source 216
  11.3 Configuration of data 219
13 12 Estimation and results 221
117.93 KB
  12.1 Measurement of mobile cellular efficiencies 221
  12.2 Yearly trend in efficiencies 231
14 13 The Malmquist productivity index 234
104.49 KB
15 14 Conclusion and policy recommendations 245
136.19 KB