Analysis on the New Competition in the Saturated Residential Broadband Access Market : Using Stated Preference Data in Korea

In this paper, we attempt to predict the future of broadband access market where new convergence access technologies and additional services are introduced, based on consumer preferences. Conjoint analysis and mixed logit model is used for estimation. From the results, consumers value convergence access technologies such as PLC and wireless LAN, and TV-related service. However, valuation on new beneficial features of convergence access technologies is not enough to overcome their technological inferiorities in data transfer speed and quality stability at current technological stage. Additionally, consumer preferences are so heterogeneous that differentiated business strategies are required. Finally, some managerial and policy implications are presented