Determinants of Aggregate Access Demand for Telecom Services in India : Evidence from a Regional Study

This paper argues that institutions in social and economic sectors are major creates of demand for telecommunication (or telecom) services. Using the panel data models, determinants of aggregate access demand (measured by teledensity) for telecom services are estimated by types and number of institutions in social and economic sectors and by employing district level data from Karnataka State (India). This approach is unconventional with no familiar income and price determinants. The estimation results offer evidence for positive and significant impact of number of industrial, educational, and financial institutions on aggregate access demand for telecom services. These results have implications for formulation of national and sub-national policies for promotion of access demand by both public and private providers of telecom services in India.