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Retaining telecommunication services when universal service is defined by functionality: Japanese consumers' willingness-to-pay

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  • Nakamura, Akihiro

Abstract

This study uses contingent valuation to measure Japanese customers' willingness-to-pay to maintain combinations of five telecommunication services that are considered substitutes if universal service is defined on the basis of functionality. The analysis revealed the following results. First, consumers are more willing to pay to retain voice communication services than data transmission services. Second, customers accept Internet Protocol telephony as a substitute for plain old telephone service (POTS) as a universal service, and they are willing to pay much more than Japan's current Universal Service Fund charge. Third, even when mobile phone service (MOB) is available, consumers will pay to retain fixed-line voice services. Finally, consumers have an equal desire to keep fiber-to-the-home (FTTH) and fixed-line voice services, but it is less than the demand for MOB. Thus, under the present definition of POTS as a universal service, FTTH could be considered as a basic telecommunication service.

Suggested Citation

  • Nakamura, Akihiro, 2013. "Retaining telecommunication services when universal service is defined by functionality: Japanese consumers' willingness-to-pay," Telecommunications Policy, Elsevier, vol. 37(8), pages 662-672.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:8:p:662-672
    DOI: 10.1016/j.telpol.2012.12.008
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    Cited by:

    1. Mihaela STEFAN & Andreea MARIN-PANTELESCU & Mirela TÃœRKES, 2018. "Strategic Management Of The Romanian Telecommunication Services," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 451-461, November.

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