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The determinants of mobile operator switching and policy implications in developing countries: A case study of Thailand

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  • Keesookpun, Chutipong
  • Mitomo, Hitoshi

Abstract

This paper presents the analyses of the determinants of mobile carrier switching behaviour based on the idea that such the behaviour is the evidence of competition in the mobile market. Indeed, with the possibility to change a mobile service provider, there will be less concentration of customers towards any particular operator, and more distribution of market share among all competitors because the newcomer company can offer its competitive services and gain more subscribers. In order to extract the factors affecting switching decision, both quantitative and qualitative analyses are employed. Binary logit estimation is used as the quantitative method, while qualitative outcomes are derived from the composition of responses regarding carrier switching intention. This study uses a modified estimation model incorporating carrier-related switching costs inspired by Grzybowski (2008). Nevertheless, it is the analysis of a developing country in which Thailand is selected as ground for investigation. The data is collected from surveys randomly distributed within the whole country...

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:itse13:88472
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    1. Valletti, Tommaso M & Cave, Martin, 1998. "Competition in UK mobile communications," Telecommunications Policy, Elsevier, vol. 22(2), pages 109-131, March.
    2. 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.
    3. V. Brian Viard, 2007. "Do switching costs make markets more or less competitive? The case of 800-number portability," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 146-163, March.
    4. Kim, Hee-Su & Kwon, Namhoon, 2003. "The advantage of network size in acquiring new subscribers: a conditional logit analysis of the Korean mobile telephony market," Information Economics and Policy, Elsevier, vol. 15(1), pages 17-33, March.
    5. Lukasz Grzybowski, 2008. "Estimating Switching Costs in Mobile Telephony in the UK," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 113-132, June.
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