How can substitution and complementarity effects be leveraged for broadband internet services strategy?

Gwangjae Jung, Youngsoo Kim, Robert J. Kauffman

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

With growth in mobile Internet services, the relationship between mobile and fixed broadband has become an issue in telecom firm strategy. Previous research focused on aggregate penetration for mobile and fixed broadband services. Our research analyzes the economic relationship between mobile and fixed broadband services at the household level, as a basis for how senior managers should rethink their strategy approach. Using data on broadband services subscriptions, we examine how changes that occur for mobile broadband services bandwidth (MBB) affect changes in fixed broadband bandwidth (FBB) services subscriptions, inclusive of new subscriptions - and vice versa. We explore the different cross-effects and asymmetric patterns of event-driven bandwidth changes. Mobile and fixed broadband services are complementary: both affect the consumption of the other. Our findings offer useful information for marketing strategy and broadband services promotion, such as bundling strategy based on bandwidth changes, and segmentation based on the bandwidth changes in both services.

Original languageEnglish
Title of host publicationProceedings of the 47th Annual Hawaii International Conference on System Sciences, HICSS 2014
PublisherIEEE Computer Society
Pages4055-4063
Number of pages9
ISBN (Print)9781479925049
DOIs
StatePublished - 2014
Event47th Hawaii International Conference on System Sciences, HICSS 2014 - Waikoloa, HI, United States
Duration: Jan 6 2014Jan 9 2014

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)1530-1605

Conference

Conference47th Hawaii International Conference on System Sciences, HICSS 2014
Country/TerritoryUnited States
CityWaikoloa, HI
Period01/6/1401/9/14

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