Mobile-only consumers arise from heterogeneous valuation of fixed services

Marc Petulowa, Julienne Liang

Mobile-only users are usually considered as a consequence of fi xed-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 fi xed communications services are estimated. Results show that mobile-only consumers have a WTP for fixed services of 15 e 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 e, the heterogeneous preferences for fi xed services constitute an alternative explanation for the existence of mobile-only users, despite the complementarity of fixed and mobile broadband.

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Year of publication:	November 2015
Authors:	Petulowa, Marc ; Liang, Julienne
Published in:	The evolution of the north-south telecommunications divide : the role for Europe : Cambridge, UK, 7th - 9th September 2016
Publisher:	Cambridge : International Telecommunications Society
Subject:	fi xed mobile dependence \| heterogeneous preferences \| substitution versus complementarity \| mobile only \| Konsumentenverhalten \| Consumer behaviour \| Mobilkommunikation \| Mobile communications \| Präferenztheorie \| Theory of preferences \| Zahlungsbereitschaftsanalyse \| Willingness to pay