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Usage of established and novel mobile communication services: Substitutional, independent or complementary?

Author

Listed:
  • Torsten J. Gerpott

    (University of Duisburg-Essen)

  • Sandra Thomas

    (BearingPoint GmbH, Communications & Content)

  • Michael Weichert

    (Vodafone D2 GmbH, Consumer Web)

Abstract

Past scholarly empirical work on consumption interrelationships between various categories of mobile network operator (MNO) services is mainly limited to established short message service (SMS) and voice calling. Research exploring the interplay between the consumption levels of these two MNO-provided services and the use intensity of the novel offering to access the Internet via cellular radio infrastructures (= mobile Internet [MI]) is scarce. This gap is addressed in the present article. Based on a review of theoretical perspectives on consumption relationships across mobile services a positive interdependence between the use intensities of the two traditional services and MI access is hypothesized. In addition, supplementary hypotheses and research questions on associations between personal background characteristics, device type and MI adoption time of cell customers on the one side and levels of SMS and voice service usage on the other are developed. “System-captured” measures on individual real service consumption behaviors and the remaining study variables are extracted from customer and billing data archives of the German subsidiary of a large international MNO. Regression analysis of data from 8,312 customers of this MNO indicates that MI use intensity (average monthly volume of mobile IP traffic generated by a subscriber in May and June 2011) is positively related to monthly number of SMS sent and outbound mobile voice minutes. The interrelationships are highly statistically significant but the absolute effect sizes are merely of “small” relevance. Age and male gender are strongly negatively related to SMS consumption. Subscription to an unmetered tariff scheme for SMS and voice has substantial influence both on SMS sent and outgoing voice minutes. SMS use intensity appears to be less price sensitive than outgoing voice minute quantities. The study variables explain only a negligibly small proportion of variance in incoming voice minutes. Practical implications for MNO and directions for future research are discussed.

Suggested Citation

  • Torsten J. Gerpott & Sandra Thomas & Michael Weichert, 2014. "Usage of established and novel mobile communication services: Substitutional, independent or complementary?," Information Systems Frontiers, Springer, vol. 16(3), pages 491-507, July.
    • Handle: RePEc:spr:infosf:v:16:y:2014:i:3:d:10.1007_s10796-012-9356-y
    DOI: 10.1007/s10796-012-9356-y
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    References listed on IDEAS

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    4. Jirakasem, Monarat & Mitomo, Hitoshi, 2018. "Substitution between mobile telephony and OTT communication services: the case of Thailand," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190338, International Telecommunications Society (ITS).

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