The purpose of this paper is to examine how the market potential for internet services interacted historically with the diffusion process of fixed line and mobile telephony.
The authors evaluate the historical interactions between internet, fixed line and mobile telephony using the International Telecommunications Union data set from 1991 until 2003 for 214 countries.
It was found that between 1991 and 2003 mobile and internet services were fully complementary; fixed line facilitated the diffusion of internet service, but internet diffusion did not affect fixed line telephony. The authors discuss the implications of these results in the light of current developments of the telecommunications industry.
Internet adoption should be analysed in close relation to the adoption of other telecommunication services, such as fixed line and mobile telephony.
The paper shows the interconnectivity of the internet with other telecommunication services and emphasizes the asymmetric nature of these interactions. Telecommunication services interactions are discussed in the light of recent industry developments.
