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Churn Management and Policy: Measuring the Effectiveness of Fixed-Mobile Bundling on Mobile Subscriber Retention

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  • Myengja Yang

Abstract

This article uses a Tobit regression model to investigate the factors affecting mobile subscriber retention in South Korea. The results show that fixed and mobile bundling plays a significant role in lengthening mobile subscriber retention, while its effectiveness varies depending on which fixed services are included in the bundle. The provision of 4G wireless broadband service (i.e., WiBro) in a bundle with 2G/3G mobile service showed a positive but insignificant relationship with mobile subscriber retention. In addition, previous relationship of a subscriber with an operator has a significant effect on mobile subscriber retention: Customers who recontracted remained longer with a contractor compared to those who changed operators. Monthly mobile payment has a significant but negative effect on mobile subscriber retention. Subsidy-bound contracts and gender had no effect on retaining mobile subscribers in the long term.

Suggested Citation

  • Myengja Yang, 2013. "Churn Management and Policy: Measuring the Effectiveness of Fixed-Mobile Bundling on Mobile Subscriber Retention," Journal of Media Economics, Taylor & Francis Journals, vol. 26(4), pages 170-185, December.
    • Handle: RePEc:taf:jmedec:v:26:y:2013:i:4:p:170-185
    DOI: 10.1080/08997764.2013.842920
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    References listed on IDEAS

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    1. Haucap, Justus & Heimeshoff, Ulrich, 2011. "Consumer behavior towards on-net/off-net price differentiation," Telecommunications Policy, Elsevier, vol. 35(4), pages 325-332, May.
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    1. Gerpott, Torsten J. & Ahmadi, Nima & Weimar, Daniel, 2015. "Who is (not) convinced to withdraw a contract termination announcement? – A discriminant analysis of mobile communications customers in Germany," Telecommunications Policy, Elsevier, vol. 39(1), pages 38-52.
    2. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2014. "An empirical analysis of multiple services and choices of consumer in the Swedish telecommunications market," Telecommunications Policy, Elsevier, vol. 38(5), pages 449-459.
    3. Sobolewski, Maciej & Kopczewski, Tomasz, 2017. "Estimating demand for fixed-line telecommunication bundles," Telecommunications Policy, Elsevier, vol. 41(4), pages 227-241.
    4. Gerpott, Torsten J. & Meinert, Phil, 2018. "Termination notice of mobile network operator customers after a tariff switch: An empirical study of postpaid subscribers in Germany," Telecommunications Policy, Elsevier, vol. 42(3), pages 212-226.
    5. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2017. "Determinants of the subscription to bundled services and their effect on customer retention in the Korean communications sector," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168501, International Telecommunications Society (ITS).
    6. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2019. "Determinants of subscriptions to communications service bundles and their effects on customer retention in Korea," Telecommunications Policy, Elsevier, vol. 43(9).

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