1. Waiting list for fixed line connection:
–> A high unsatisfied demand for phones might increase diffusion of mobile phones.
—> Yet, a low relative level of fixed line telephony might hinder diffusion (no-one to call).
Result: A large fixed-line waiting list initially lowers mobile penetration rates but leads to higher growth rates later on.
2. Large fixed network:
—> Might foster diffusion as the utility from owning a mobile phone is high even if the penetration of mobile phones is low.
—>Might hinder diffusion since the need for mobile phones is lower if everyone has a fixed line connection.
Result: A large fixed network has a positive impact on mobile phone diffusion.