IDEAS home Printed from https://ideas.repec.org/a/eee/iepoli/v11y1999i2p195-207.html

Subscriber churn in the Australian ISP market

Author

Listed:
  • Madden, Gary
  • Savage, Scott J.
  • Coble-Neal, Grant

Abstract

Rapid growth in Internet use, combined with easy market entry by Internet service providers (ISPs), has resulted in a highly competitive supply of Internet services. Australian ISPs range in size from a few large national operators to niche ISPs focused on specialised service. With many ISPs currently not profitable, subscriber retention is an important aspect of survival. This study develops a model which relates the probability of subscriber churn to various service attributes and subscriber characteristics. Estimation results show that churn probability is positively associated with monthly ISP expenditure, but inversely related to household income. Pricing also matters with subscribers preferring ISPs which offer flat-rate pricing arrangements.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 1999. "Subscriber churn in the Australian ISP market," Information Economics and Policy, Elsevier, vol. 11(2), pages 195-207, July.
    • Handle: RePEc:eee:iepoli:v:11:y:1999:i:2:p:195-207
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-6245(99)00015-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Katz, James E & Aspden, Philip, 1998. "Internet dropouts in the USA: The invisible group," Telecommunications Policy, Elsevier, vol. 22(4-5), pages 327-339, May.
    2. Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
    3. repec:aen:journl:1998v19-02-a12 is not listed on IDEAS
    4. Shane Greenstein, 1998. "Universal Service in the Digital Age: The Commercialization and Geography of U.S. Internet Access," NBER Working Papers 6453, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pereira, Pedro & Ribeiro, Tiago, 2011. "The impact on broadband access to the Internet of the dual ownership of telephone and cable networks," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 283-293, March.
    2. Hugo Ribeiro & Belem Barbosa & Antonio C. Moreira & Ricardo Rodrigues, 2024. "Customer Experience, Loyalty, and Churn in Bundled Telecommunications Services," SAGE Open, , vol. 14(2), pages 21582440241, April.
    3. Belloc, Filippo & Nicita, Antonio & Alessandra Rossi, Maria, 2012. "Whither policy design for broadband penetration? Evidence from 30 OECD countries," Telecommunications Policy, Elsevier, vol. 36(5), pages 382-398.
    4. Nakamura, A., 2011. "Estimating switching costs after introducing Fixed-Mobile Convergence in Japan," Information Economics and Policy, Elsevier, vol. 23(1), pages 59-71, March.
    5. Hoe Sang Chung, 2016. "Behavior-Based Price Discrimination with Experience Goods," Manchester School, University of Manchester, vol. 84(5), pages 675-695, September.
    6. Gans, Joshua S., 2000. "Network competition and consumer churn," Information Economics and Policy, Elsevier, vol. 12(2), pages 97-109, June.
    7. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2014. "An empirical analysis of multiple services and choices of consumer in the Swedish telecommunications market," Telecommunications Policy, Elsevier, vol. 38(5), pages 449-459.
    8. Capponi, Giovanna & Corrocher, Nicoletta & Zirulia, Lorenzo, 2021. "Personalized pricing for customer retention: Theory and evidence from mobile communication," Telecommunications Policy, Elsevier, vol. 45(1).
    9. Pflughoeft, Kurt A. & Butz, Nikolaus T. & Corbley, Alick, 2025. "Customer churn prediction for fixed wireless access: The case of a regional internet service provider," Telecommunications Policy, Elsevier, vol. 49(4).
    10. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2440, University Library of Munich, Germany.
    11. Ballings, Michel & Van den Poel, Dirk, 2015. "CRM in social media: Predicting increases in Facebook usage frequency," European Journal of Operational Research, Elsevier, vol. 244(1), pages 248-260.
    12. Jiban Khuntia & Raveesh Mayya & Sunil Mithas & Ritu Agarwal, 2021. "Managing Cellphone Services for Customer Satisfaction: Evidence from the Base‐of‐the‐Pyramid Markets," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 438-450, February.
    13. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2009. "Whither Broadband Policy? In Search of Selective Intervention," Department of Economics University of Siena 567, Department of Economics, University of Siena.
    14. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.
    15. Keesookpun, Chutipong & Mitomo, Hitoshi, 2013. "The determinants of mobile operator switching and policy implications in developing countries: A case study of Thailand," 24th European Regional ITS Conference, Florence 2013 88472, International Telecommunications Society (ITS).
    16. Hugo Ribeiro & Belém Barbosa & António Carrizo Moreira & Ricardo Gouveia Rodrigues, 2024. "Determinants of churn in telecommunication services: a systematic literature review," Management Review Quarterly, Springer, vol. 74(3), pages 1327-1364, September.
    17. Soumya Ray & Sung S. Kim & James G. Morris, 2012. "Research Note ---Online Users' Switching Costs: Their Nature and Formation," Information Systems Research, INFORMS, vol. 23(1), pages 197-213, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Srinuan, Chalita & Bohlin, Erik, 2013. "Analysis of fixed broadband access and use in Thailand: Drivers and barriers," Telecommunications Policy, Elsevier, vol. 37(8), pages 615-625.
    2. Mélisande Cardona & Anton Schwarz & B. Yurtoglu & Christine Zulehner, 2009. "Demand estimation and market definition for broadband Internet services," Journal of Regulatory Economics, Springer, vol. 35(1), pages 70-95, February.
    3. Takanori Ida & Shin Kinoshita & Masayuki Sato, 2008. "Conjoint analysis of demand for IP telephony: the case of Japan," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1279-1287.
    4. Pratompong Srinuan & Chalita Srinuan & Erik Bohlin, 2011. "The Mobile Broadband and Fixed Broadband Battle in Swedish Market: Complementary or substitution?," RSCAS Working Papers 2011/36, European University Institute.
    5. Srinuan, Chalita & Srinuan, Pratompong & Bohlin, Erik, 2011. "An analysis of mobile internet service in Thailand: Implications for bridging digital divide," 8th ITS Asia-Pacific Regional Conference, Taipei 2011: Convergence in the Digital Age 52326, International Telecommunications Society (ITS).
    6. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.
    7. Baranes, Edmond & Bourreau, Marc, 2005. "An Economist's Guide to Local Loop Unbundling," MPRA Paper 2510, University Library of Munich, Germany.
    8. Gruber, Harald & Koutroumpis, Pantelis, 2011. "Procompetitive infrastructure sector regulation and diffusion of innovation: The case of broadband networks," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52161, International Telecommunications Society (ITS).
    9. Meng Gao & Jiekun Huang & Itay Goldstein, 2020. "Informing the Market: The Effect of Modern Information Technologies on Information Production," The Review of Financial Studies, Society for Financial Studies, vol. 33(4), pages 1367-1411.
    10. Hee-Jong Yang & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Environmental Costs of Photovoltaic Power Plants in South Korea: A Choice Experiment Study," Sustainability, MDPI, vol. 9(10), pages 1-13, September.
    11. Kongaut, Chatchai & Bohlin, Erik, 2014. "Investigating mobile broadband adoption and usage: S case of smartphone in Sweden," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106848, International Telecommunications Society (ITS).
    12. Joseph Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Public Value of Marine Biodiesel Technology Development in South Korea," Sustainability, MDPI, vol. 10(11), pages 1-12, November.
    13. Sudtasan, Tatcha & Mitomo, Hitoshi, 2018. "The Internet of Things as an accelerator of advancement of broadband networks: A case of Thailand," Telecommunications Policy, Elsevier, vol. 42(4), pages 293-303.
    14. Juan Daniel Oviedo & Julian Hidalgo, 2014. "The impact of broadband quality standards on Internet services market structure In colombia," Documentos de Trabajo 12232, Universidad del Rosario.
    15. Carare, Octavian & McGovern, Chris & Noriega, Raquel & Schwarz, Jay, 2015. "The willingness to pay for broadband of non-adopters in the U.S.: Estimates from a multi-state survey," Information Economics and Policy, Elsevier, vol. 30(C), pages 19-35.
    16. Belloc, Filippo & Nicita, Antonio & Alessandra Rossi, Maria, 2012. "Whither policy design for broadband penetration? Evidence from 30 OECD countries," Telecommunications Policy, Elsevier, vol. 36(5), pages 382-398.
    17. Madden, Gary & Savage, Scott & Simpson, Michael, 1996. "Information Inequality and Broadband Network Access: An Analysis of Australian Household Data," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(4), pages 1049-1066.
    18. Manit Satitsamitpong & Tokio Otsuka & Toshiya Jitsuzumi & Hitoshi Mitomo, 2012. "An Analysis of Demand-based Factors for Broadband Migration," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 19(2), pages 1-17, December.
    19. Austan Goolsbee, 1998. "In a World Without Borders: The Impact of Taxes on Internet Commerce," NBER Working Papers 6863, National Bureau of Economic Research, Inc.
    20. S Howick & J Whalley, 2008. "Understanding the drivers of broadband adoption: the case of rural and remote Scotland," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(10), pages 1299-1311, October.

    More about this item

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:11:y:1999:i:2:p:195-207. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505549 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.