An Analysis of Demand-based Factors for Broadband Migration

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Keywords:
broadband choice probability mixed logit model discrete choice modelJEL

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Manit Satitsamitpong
Graduate School of Global Information and Telecommunication Studies, Waseda University, Japan
Tokio Otsuka
Institute for Digital Society, Waseda University, Japan
Toshiya Jitsuzumi
Faculty of Economics, Kyushu University, Fukuoka, 812-8581, Japan
Hitoshi Mitomo
Graduate School of Asia-Pacific Studies, Waseda University, Japan

Abstract

Abstract

This paper explores the factors that influence the users’ decision to migrate from narrowband to broadband services. Data used were obtained from web questionnaire surveys in Japan and the annual Internet User Profile Survey of the National Electronics and Computer Technology Center (NECTEC) in Thailand. The economic, technological and demographic factors were analyzed by using a mixed logit model. The results suggest that price, as a proxy for economic factor, is an important factor in a developing country. In Thai case, lowering the price of broadband services to 50% would increase the probability of the users migrating to broadband by more than 5%. Demographic factors including income, location, and internet experience also contribute to the decision, but their impacts are smaller than that of price. Contrary to previous studies, speed is not a statistically significant factor.

Keywords : broadband, choice probability, mixed logit model, discrete choice modelJEL

Classification : C25, D12, L63

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How to Cite
Satitsamitpong, M., Otsuka, T., Jitsuzumi, T., & Mitomo, H. (2013). An Analysis of Demand-based Factors for Broadband Migration. Asian Journal of Applied Economics, 19(2), 1–17. Retrieved from https://so01.tci-thaijo.org/index.php/AEJ/article/view/10278
Issue
Vol. 19 No. 2 (2012): December
Section
Research Articles

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