Assessing the substitutability of mobile and fixed internet: The impact of 5G services on consumer valuation and price elasticity

Mikolaj Czajkowski, Wojciech Zawadzki, Grzegorz Bernatek and Maciej Sobolewski

Telecommunications Policy, 2024, vol. 48, issue 10

Abstract: In this study, we explore the dynamics of consumer choices in the Polish telecommunications market, focusing on preferences and valuations for home fixed, home mobile, and purely mobile Internet connections. Key attributes such as speed, latency, data limits, and cost are examined. Central to our research is the investigation of how the integration of 5G technology might influence demand elasticity. Using a detailed discrete choice experiment, we apply a mixed logit model with random parameters to analyze stated choice data, enabling us to unravel the complexities of demand elasticity, especially in terms of own and cross-price elasticities. This approach facilitates an assessment of the degree of substitutability between fixed and mobile Internet services.

Keywords: Fixed-mobile internet substitution; Consumer preferences in telecommunications; Mobile broadband access; Home internet connectivity; Discrete choice analysis; 5G network impact; Demand elasticity in internet services; Stated preference methodology; Telecommunications market analysis; Price elasticity in internet access (search for similar items in EconPapers)
Date: 2024
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Working Paper: Assessing the Substitutability of Mobile and Fixed Internet: The Impact of 5G Services on Consumer Valuation and Price Elasticity (2024)
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DOI: 10.1016/j.telpol.2024.102869

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