Market share model of rural telephone service
Premium telephone rates, population density, and the grade of telephone service that rural customers choose all vary with distance from the nearest urban center. A survey of 3800 rural subscribers determined their choice of service for alternative prices given the addition of a new service. A two-stage probit model was used to estimate the new market shares for a wide range of conditions. The model was applied, as part of a large-scale revenue/cost simulation system, to the current and forecasted distribution of customers to evaluate the economic impact of numerous pricing and provisioning possibilities.
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Volume (Year): 6 (1978)
Issue (Month): 1 ()
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