Household mobility and cellular telephone demand

Cellular telephones are mobile, and this mobility is one of the key factors influencing the demand for cellular service. This article examines the household demand for cellular telephone and finds that the numbers of vehicles and drivers in the household strongly influence the demand for cellular telephones. Income has the strongest effect. We find some evidence that telephone landlines and cellular telephone service are substitutes. The results are based on data from the 2001 National Household Travel Survey conducted the US Department of Transportation.