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An Analysis of Demand-based Factors for Broadband Migration

  • Manit Satitsamitpong

    ()

    (Doctoral Program, Graduate School of Global Information and Telecommunication Studies, Waseda University, Japan)

  • Tokio Otsuka

    ()

    (Institute for Digital Society, Waseda University, Japan)

  • Toshiya Jitsuzumi

    ()

    (Faculty of Economics, Kyushu University, Fukuoka, Japan)

  • Hitoshi Mitomo

    ()

    (Graduate School of Asia-Pacific Studies, Waseda University, Japan)

Registered author(s):

    This paper explores the factors that influence the users’ decision to migrate from narrowband to broadband services. Data used were obtained from web questionnaire surveys in Japan and the annual Internet User Profile Survey of the National Electronics and Computer Technology Center (NECTEC) in Thailand. The economic, technological and demographic factors were analyzed by using a mixed logit model. The results suggest that price, as a proxy for economic factor, is an important factor in a developing country. In Thai case, lowering the price of broadband services to 50% would increase the probability of the users migrating to broadband by more than 5%. Demographic factors including income, location, and internet experience also contribute to the decision, but their impacts are smaller than that of price. Contrary to previous studies, speed is not a statistically significant factor.

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    Article provided by Kasetsart University, Faculty of Economics, Center for Applied Economic Research in its journal Applied Economics Journal.

    Volume (Year): 19 (2012)
    Issue (Month): 2 (December)
    Pages: 1-17

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    Handle: RePEc:aej:apecjn:v:19:y:2012:i:2:p:1-17
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    1. Savage Scott J. & Waldman Donald M., 2004. "United States Demand for Internet Access," Review of Network Economics, De Gruyter, vol. 3(3), pages 1-20, September.
    2. Madden, Gary G & Simpson, Michael, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," MPRA Paper 11936, University Library of Munich, Germany.
    3. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
    4. Takanori Ida & Toshifumi Kuroda, 2006. "Discrete Choice Analysis of Demand for Broadband in Japan," Journal of Regulatory Economics, Springer, vol. 29(1), pages 5-22, 01.
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