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Freemium Internet: Next Generation Business Model to connect next billion

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  • Esselaar, Steve
  • Song, Steve
  • Stork, Christoph

Abstract

This paper analyses a business model for providing free basic-rate Internet to everyone with a data capable phone, living in mobile coverage areas. The model is called Freemium Internet. The term "freemium" refers to a well-known business model for digital services, where free services or applications provide basic functions and more advanced functions are available by paying a fee. We examine the impact of applying the freemium business model to the provision of mobile Internet access and discuss net neutrality issues, mobile operator strategies, benefits for consumers, and the potential impact on government e-service programmes. The paper further investigates policy options and regulatory incentives to facilitate the adoption of Freemium Internet.

Suggested Citation

  • Esselaar, Steve & Song, Steve & Stork, Christoph, 2017. "Freemium Internet: Next Generation Business Model to connect next billion," 28th European Regional ITS Conference, Passau 2017 169459, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse17:169459
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    References listed on IDEAS

    as
    1. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
    2. Abeliansky, Ana L. & Hilbert, Martin, 2017. "Digital technology and international trade: Is it the quantity of subscriptions or the quality of data speed that matters?," Telecommunications Policy, Elsevier, vol. 41(1), pages 35-48.
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    Keywords

    Universal Service; Next Billion; business models;
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