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Consumer Preferences for Improvements in Mobile Telecommunication Services

Author

Listed:
  • Orhan Dagli

    () (Eastern Mediterranean University, North Cyprus)

  • Glenn P. Jenkins

    () (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus)

Abstract

We employ a choice experiment in order to estimate consumers’ willingness to pay for improvements in mobile services, focusing on 4G upgrades and roaming services. The attributes of an improved mobile service that we investigate in our experiment are: increased mobile internet speed (possible with 4G), unlimited mobile internet use, improved quality (possible with 4G) and unrestrained use in two neighbouring countries (unrestrained roaming). The results indicate that people value unrestrained roaming services the most. Increased speed and unlimited use attributes are next, and are similarly significant at the 1% level. The impact of improved quality is statistically insignificant at the 5% level, suggesting that consumers are content with the current level of quality they receive with 3G. We conclude that bilateral roaming regulation between governments is more valuable than 4G investments.

Suggested Citation

  • Orhan Dagli & Glenn P. Jenkins, 2015. "Consumer Preferences for Improvements in Mobile Telecommunication Services," Development Discussion Papers 2015-05, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:277
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    References listed on IDEAS

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    More about this item

    Keywords

    Mobile telecommunication services; choice experiment; willingness to pay; consumer preferences; 4G; roaming;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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