Consumer Preferences for Improvements in Mobile Telecommunication Services

Orhan Dağlı () and Glenn Jenkins ()

No 2015-05, Development Discussion Papers from JDI Executive Programs

Abstract: We employ a choice experiment in order to estimate consumers’ willingness to pay for improvements in mobile services, focusing on 4G upgrades and roaming services. The attributes of an improved mobile service that we investigate in our experiment are: increased mobile internet speed (possible with 4G), unlimited mobile internet use, improved quality (possible with 4G) and unrestrained use in two neighbouring countries (unrestrained roaming). The results indicate that people value unrestrained roaming services the most. Increased speed and unlimited use attributes are next, and are similarly significant at the 1% level. The impact of improved quality is statistically insignificant at the 5% level, suggesting that consumers are content with the current level of quality they receive with 3G. We conclude that bilateral roaming regulation between governments is more valuable than 4G investments.

Keywords: Mobile telecommunication services; choice experiment; willingness to pay; consumer preferences; 4G; roaming (search for similar items in EconPapers)
JEL-codes: C5 D12 L96 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-05
New Economics Papers: this item is included in nep-dcm, nep-ict and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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