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Impacts of handset bundling on mobile data usage: The case of Finland

Author

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  • Tallberg, Mathias
  • Hämmäinen, Heikki
  • Töyli, Juuso
  • Kamppari, Sauli
  • Kivi, Antero

Abstract

Promotion of the adoption of new services has emerged as a possible driver for the regulation of handset bundling and subsidies. Handset bundling, however, has complex implications not only on mobile data service adoption, the focus of this research, but also more broadly on the mobile market dynamics. Due to the complexity, regulators have difficulties in anticipating the possible resulting impacts. Using a case study, expert interviews, and usage measurements as research method, an empirical framework was constructed to make the service usage impacts more explicit. The framework enables the identification of the regulator's steering options and their qualitative impacts. Results are based on observations before and after the change of law on handset bundling in the Finnish market. According to the findings, handset bundling regulation is a possible but risky tool for steering the market.

Suggested Citation

  • Tallberg, Mathias & Hämmäinen, Heikki & Töyli, Juuso & Kamppari, Sauli & Kivi, Antero, 0. "Impacts of handset bundling on mobile data usage: The case of Finland," Telecommunications Policy, Elsevier, vol. 31(10-11), pages 648-659, November.
    • Handle: RePEc:eee:telpol:v:31:y::i:10-11:p:648-659
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    Citations

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    Cited by:

    1. Kivi, Antero & Smura, Timo & Töyli, Juuso, 2012. "Technology product evolution and the diffusion of new product features," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 107-126.
    2. Vesselkova, Alexandr & Riikonena, Antti & Hämmäinena & Heikki, 2015. "Evolution of mobile handset feature dependences," 26th European Regional ITS Conference, Madrid 2015 127192, International Telecommunications Society (ITS).
    3. Basaure, Arturo & Suomi, Henna & Hämmäinen, Heikki, 2016. "Transaction vs. switching costs—Comparison of three core mechanisms for mobile markets," Telecommunications Policy, Elsevier, vol. 40(6), pages 545-566.
    4. Serna, Natalia & Riascos, Álvaro J. & Martin, Juan David, 2019. "Welfare effects of switching barriers through permanence clauses: Evidence from the mobiles market in Colombia," Telecommunications Policy, Elsevier, vol. 43(4), pages 310-323.
    5. Riikonen, Antti & Smura, Timo & Kivi, Antero & Töyli, Juuso, 2013. "Diffusion of mobile handset features: Analysis of turning points and stages," Telecommunications Policy, Elsevier, vol. 37(6), pages 563-572.
    6. Basaure, Arturo & Suomi, Henna & Hämmäinen, Heikki, 2014. "Effects of transaction and switching costs on mobile market performance," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106830, International Telecommunications Society (ITS).
    7. Heatley, David & Howell, Bronwyn, 2009. "The Brand is the Bundle - Strategies for the Mobile Ecosystem," Working Paper Series 4038, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Urueña López, Alberto & Gijón, Covadonga & Castro García-Muñoz, Raquel & Ureña Fernández, Olga & Feijóo, Claudio, 2015. "The drivers of the substitution of individual services for bundled services: The case of Spain," 26th European Regional ITS Conference, Madrid 2015 127187, International Telecommunications Society (ITS).
    9. Jan Becker & Martin Spann & Timo Schulze, 2015. "Implications of minimum contract durations on customer retention," Marketing Letters, Springer, vol. 26(4), pages 579-592, December.
    10. Casey, Thomas R. & Töyli, Juuso, 2012. "Mobile voice diffusion and service competition: A system dynamic analysis of regulatory policy," Telecommunications Policy, Elsevier, vol. 36(3), pages 162-174.
    11. Sheikh Taher ABU, 2014. "Competition and Innovation in Telecom Sector: Empirical Evidence from OECD Countries," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 18(1), pages 27-39.
    12. Shinohara, Sobee & Akematsu, Yuji & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2013. "Current issues of the Japanese mobile phone market caused by smartphones," 24th European Regional ITS Conference, Florence 2013 88528, International Telecommunications Society (ITS).
    13. Manisha Sangekar & Howell, Bronwyn, 2008. "Telecommunications Market Evolution in Finland and New Zealand: Unbundling the Differences," Working Paper Series 4001, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    14. Dave HEATLEY & Bronwyn HOWELL, 2009. "The Brand is the Bundle Strategies for the Mobile Ecosystem," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(75), pages 79-102, 3rd quart.
    15. Shinohara, Sobee & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2014. "Empirical analysis of mobile broadband adoption in major six countries from the view of competition policy," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106849, International Telecommunications Society (ITS).
    16. Arturo Basaure & Varadharajan Sridhar & Heikki Hämmäinen, 2016. "Adoption of dynamic spectrum access technologies: a system dynamics approach," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 63(2), pages 169-190, October.

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