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Estimating the potential increase in consumer welfare from the introduction of Super Wi-Fi services in Korea

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  • Hong, Areum
  • Nam, Changi
  • Kim, Seongcheol

Abstract

With the increasing use of smart devices recently, mobile traffic has been increasing rapidly, which in turn has resulted in greater demand for frequency. Many countries have attempted to use the vacant frequencies known as television white space in an effort to solve the frequency problem. Super Wi-Fi, a wireless Internet service based on television white space, is one of the ways television white space is being utilized. This paper applies conjoint analysis to evaluate consumers’ willingness to pay for each of the attributes of a Super Wi-Fi service and estimates by how much consumer welfare could be increased by the introduction of a Super Wi-Fi service. The attributes of a Super Wi-Fi service are coverage, a reduction in communication expenses when using mobile data, the ability to use multiple screens, and a wide range of Wi-Fi service providers. The results based on user surveys indicated that the marginal willingness to pay per month for a Super Wi-Fi service is KRW 4717 (USD$4.6). Moreover, marginal willingness to pay in nonurban areas for this service is greater than that in urban areas, which implies that the introduction of a Super Wi-Fi service is expected to increase consumer welfare, especially in nonurban areas.

Suggested Citation

  • Hong, Areum & Nam, Changi & Kim, Seongcheol, 2016. "Estimating the potential increase in consumer welfare from the introduction of Super Wi-Fi services in Korea," Telecommunications Policy, Elsevier, vol. 40(10), pages 935-944.
    • Handle: RePEc:eee:telpol:v:40:y:2016:i:10:p:935-944
    DOI: 10.1016/j.telpol.2015.05.004
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    2. Kwak, So-Yoon & Yoo, Seung-Hoon, 2012. "Ex-ante evaluation of the consumers' preference for the 4th generation mobile communications service," Technological Forecasting and Social Change, Elsevier, vol. 79(7), pages 1312-1318.
    3. Kim, Yeonbae, 2005. "Estimation of consumer preferences on new telecommunications services: IMT-2000 service in Korea," Information Economics and Policy, Elsevier, vol. 17(1), pages 73-84, January.
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    Cited by:

    1. Kim, Yongwon & Kim, Yongkyu, 2020. "The Value of Wi-Fi as Entertainment: An Application to Free Wi-Fi in City Buses of Korea," ITS Conference, Online Event 2020 224863, International Telecommunications Society (ITS).

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