Determinants of Mobile Phone Penetration Rates in Latin America and the Caribbean

Abstract

Using panel data analysis for Latin American and the Caribbean for 2001-2015, this paper studies the factors influencing the mobile phone subscription rates and its growth. The results suggest that GDP per capita, urbanization rate, total population, population growth rate and population density are significant drivers of mobile phone penetration rates. For the growth of mobile phone subscriptions, significant factors include GDP per capita and its growth rate, population and population density, and overall penetration level. The results confirm the S-shaped trajectory and place Latin America and the Caribbean countries farther along the diffusion curve where mobile phone subscriptions are increasing at a diminishing rate.