Exploring the Early Diffusion of Next Generation Mobile Communication Technology: Insights from an Emerging Economy

The Fourth and Fifth Generation (4G and 5G) Mobile Communication Technology (MCT) is a crucial development that is expected to bridge digital divides worldwide and has significant economic implications for nations. However, there is a lack of research regarding the interplay of market heterogeneities with the diffusion of such 4G and 5G MCTs, particularly in emerging economies. This study aims to fill this research gap by conducting a quantitative analysis, by taking the case of early diffusion of 4G MCT across the twenty-two administrative regions (aka telecom circles) of India, where a new Mobile Network Operator (MNO) had simultaneously launched the 4G service. Using the Diffusion of Innovations theory and the Heterogenous Markets Hypothesis, the study puts forth several propositions that emphasize the role of market heterogeneity in mobilizing different forces in diffusion, such as imitative influences through word of mouth, and the power of innovation to mobilize Innovators and Early movers.