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Assessing the substitutability of mobile and fixed internet: The impact of 5G services on consumer valuation and price elasticity

Author

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  • Czajkowski, Mikołaj
  • Zawadzki, Wojciech
  • Bernatek, Grzegorz
  • Sobolewski, Maciej

Abstract

In this study, we explore the dynamics of consumer choices in the Polish telecommunications market, focusing on preferences and valuations for home fixed, home mobile, and purely mobile Internet connections. Key attributes such as speed, latency, data limits, and cost are examined. Central to our research is the investigation of how the integration of 5G technology might influence demand elasticity. Using a detailed discrete choice experiment, we apply a mixed logit model with random parameters to analyze stated choice data, enabling us to unravel the complexities of demand elasticity, especially in terms of own and cross-price elasticities. This approach facilitates an assessment of the degree of substitutability between fixed and mobile Internet services.

Suggested Citation

  • Czajkowski, Mikołaj & Zawadzki, Wojciech & Bernatek, Grzegorz & Sobolewski, Maciej, 2024. "Assessing the substitutability of mobile and fixed internet: The impact of 5G services on consumer valuation and price elasticity," Telecommunications Policy, Elsevier, vol. 48(10).
    • Handle: RePEc:eee:telpol:v:48:y:2024:i:10:s0308596124001666
    DOI: 10.1016/j.telpol.2024.102869
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