D43 Oligopoly and Other Forms of Market Imperfection
A study on the impact of mobile telecommunication on the welfare of sub saharan african countries
Hauke Heinrich Friedrich Plambeck
- Africa: A continent is waking up. Not through aid or wealth from the exploitation of natural resources, but through a technological revolution. The access to affordable mobile telecommunication. Inspired by deregulation and pioneered by local champions who have taken a lead in what is today's fastest growing mobile market in the world. There is money to be made in these markets, attracting more and more operators from the northern hemisphere.
However positive the short term impact of this revolution may be, governments should try hard to assure a market of continued competition among network operators, as this competition is the source of a self propelled creation of welfare and new opportunities, motivated from within Africa.
Chapter 1 of this thesis highlights the positive impact of mobile telecommunication on the social and economic life in Sub Saharan Africa. Chapter 2 builds on the static as well as the dynamic version of the Network Pricing Game, a model developed by Dr. Carolyn Gideon, to stress the immanent threat of network markets turning into a monopoly. This theses ends in Chapter 3 with an brief outlook on further drivers of economic growth and opportunities awaiting Sub Saharan Africa in the coming decade.