Determination of factors affecting market shares of mobile operators operating in turkey

With the effect of globalization, in addition to people's way of life their way of communication is also changed. A rapid change and developments for the growing needs from day to day have been taking place in the mobile telecommunications sector as a result of increasing interest and demands of customers. Operators providing services in the telecommunication sector are trying to get share as much as possible from this growing market. Mobile voice services -voice and data- have been widely adopted by consumers in Turkey. The total number of subscribers of GSM operators in Turkey is more than the number of population between the age 15 and 64 and the penetration rate of voice services is approximately 90%. In this research, we have aggregate monthly data which spans from January 2008 to December 2012 on voice services offered by mobile operators in Turkey. Our dataset includes subscription levels, the average revenue per user (ARPU), the average number of minutes of voice communication (MOU), churn rates and investment levels. We aim to investigate the factors influencing the demand for voice services. Similar to other researchers who analyzed demand for mobile services in other countires, following Berry (1994) we adopt a discrete-choice modeling approach to model demand for mobile services. Keywords: Mobile telecommunication; Demand estimation; Price elasticity; Network effects; Berry (1994) model