Does Urban Fixed-Line Telecommunication Density Influence Profitability and Operational Efficiency in Greece's Telecommunications Industry?

Emmanouil Taxiarchis Gazilas

doi:10.37075/FABA.2024.2.11

Authors

Emmanouil Taxiarchis Gazilas Department of Economics, University of Piraeus, Greece https://orcid.org/0009-0003-0554-500X

DOI:

https://doi.org/10.37075/FABA.2024.2.11

Keywords:

Telecommunications, Financial Performance, Urban Density, Fixed-Line Services, Greece

Abstract

Purpose: This study investigates the influence of Urban Fixed-Line Telecommunication Density on financial performance in Greece's telecommunications industry, focusing on the nation’s three leading telecom companies.

Design/Methodology/Approach: Using a balanced panel dataset covering a ten-year period, the study employs fixed and random effects regression models to assess the impact of Urban Fixed-Line Telecommunication Density on key financial indicators. The Hausman test is applied to identify the most suitable model for each metric, while the Breusch-Pagan test evaluates the presence of heteroscedasticity.

Findings: The results reveal a substantial relationship between Urban Fixed-Line Telecommunication Density and financial performance, with fixed effects proving more suitable for certain indicators and random effects for others. Potential heteroscedasticity detected in several models suggests the need for robust estimations.

Practical Implications: This study underscores the importance of telecommunications infrastructure in supporting financial growth and operational efficiency, providing insight for policymakers and industry leaders on prioritizing infrastructure improvements.

Originality/Value: The research offers a unique perspective on the role of fixed-line telecommunication density in enhancing financial performance in a liberalized, competitive market, filling a gap in telecommunications and infrastructure research in Greece

Paper Type: Research Paper

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