Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148699
Authors: 
Petulowa, Marc
Liang, Julienne
Year of Publication: 
2016
Series/Report no.: 
27th European Regional Conference of the International Telecommunications Society (ITS), Cambridge, United Kingdom, 7th - 9th September 2016
Abstract: 
Mobile-only users are usually considered as a consequence of fixed-mobile substitution. Via a unique dataset based on a a large European country survey and consumers' invoice data, this study reveals heterogeneous preferences for fixed services among consumers. The data is fitted in a mixed logit model and willingness to pay (WTP) for fixed communications services are estimated. Results show that mobile-only consumers have a WTP for fixed services of 15 € per month, while the WTP of users of both fixed and mobile services is thrice higher. Considering that a typical monthly fee for fixed services is around 30 € the heterogeneous preferences for fixed services constitute an alternative explanation for the existence of mobile-only users, despite the complementarity of fixed and mobile broadband.
Subjects: 
fixed mobile dependence
heterogeneous preferences
substitution versus complementarity
mobile only
JEL: 
L43
L50
L96
Document Type: 
Conference Paper

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