Mobile-only consumers arise from heterogeneous valuation of fixed services

Marc Petulowa and Julienne Liang

27th European Regional ITS Conference, Cambridge (UK) 2016 from International Telecommunications Society (ITS)

Abstract: Mobile-only users are usually considered as a consequence of fixed-mobile substitution. Via a unique dataset based on a a large European country survey and consumers' invoice data, this study reveals heterogeneous preferences for fixed services among consumers. The data is fitted in a mixed logit model and willingness to pay (WTP) for fixed communications services are estimated. Results show that mobile-only consumers have a WTP for fixed services of 15 € per month, while the WTP of users of both fixed and mobile services is thrice higher. Considering that a typical monthly fee for fixed services is around 30 € the heterogeneous preferences for fixed services constitute an alternative explanation for the existence of mobile-only users, despite the complementarity of fixed and mobile broadband.

Keywords: fixed mobile dependence; heterogeneous preferences; substitution versus complementarity; mobile only (search for similar items in EconPapers)
JEL-codes: L43 L50 L96 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-dcm, nep-ict, nep-mkt and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse16:148699

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