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Analysis of household broadband technology preferences in Slovenia

Author

Listed:
  • Matej Švigelj

    (University of Ljubljana)

  • Nevenka Hrovatin

    (University of Ljubljana)

Abstract

This paper empirically examines the factors broadband users take into account when choosing their fixed broadband access mode in Slovenia. The conditional logit model was employed incorporating the survey data. The results reveal that the socioeconomic characteristics of users (age, education, gender, presence of student/pupil in the household, living in the city, subscription to TV services, and preferences for speed) influence the choice between different broadband access modes. Contrary to our expectations, access mode characteristics (the price, the download speed) have no statistically significant impact on the choice of the broadband access mode. This may be attributed to the intense price competition among different broadband technologies resulting in the price convergence and behavior of users, which tend to use the internet mainly for basic services. The results of the analysis may hold important implications for internet service providers when identifying appropriate strategies to attract customers to subscribe to their broadband technologies.

Suggested Citation

  • Matej Švigelj & Nevenka Hrovatin, 2019. "Analysis of household broadband technology preferences in Slovenia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 407-422, December.
    • Handle: RePEc:spr:eurasi:v:9:y:2019:i:4:d:10.1007_s40821-019-00127-8
    DOI: 10.1007/s40821-019-00127-8
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    References listed on IDEAS

    as
    1. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2012. "Fixed and mobile broadband substitution in Sweden," Telecommunications Policy, Elsevier, vol. 36(3), pages 237-251.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    3. Takanori Ida & Toshifumi Kuroda, 2006. "Discrete Choice Analysis of Demand for Broadband in Japan," Journal of Regulatory Economics, Springer, vol. 29(1), pages 5-22, January.
    4. Hrovatin, Nevenka & Švigelj, Matej, 2013. "The interplay of regulation and other drivers of NGN deployment: A real-world perspective," Telecommunications Policy, Elsevier, vol. 37(10), pages 836-848.
    5. Sunada, Mitsuru & Noguchi, Masato & Ohashi, Hiroshi & Okada, Yosuke, 2011. "Coverage area expansion, customer switching, and household profiles in the Japanese broadband access market," Information Economics and Policy, Elsevier, vol. 23(1), pages 12-23, March.
    6. Mélisande Cardona & Anton Schwarz & B. Yurtoglu & Christine Zulehner, 2009. "Demand estimation and market definition for broadband Internet services," Journal of Regulatory Economics, Springer, vol. 35(1), pages 70-95, February.
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    Cited by:

    1. Ros, Agustin J., 2023. "Determinants of fixed and mobile broadband demand in Mexico using discrete choice exercises and logit and conditional logit models," Information Economics and Policy, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Broadband; Demand; Fibre; Conditional logit model;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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