Behavioral Bias in Choosing Between Post-Paid and Pre-Paid Mobile Internet Plans in Thailand
Abstract
A mobile Internet users’ survey for Over-the-Top (OTT) service in Thailand shows that most users choose a post-paid plan compared to a pre-paid plan, which contrasts with total mobile user preferences in the industry. The average revenue per user for post-paid users is also higher than for pre-paid users, but this is consistent with the industry overall. This information may reveal behavioral bias among Thai mobile Internet users. This research was undertaken to study the behavioral bias in choosing mobile Internet plans. The survey was conducted by Office of the National Broadcasting and Telecommunications Commission (NBTC) in 17 provinces, covering all regions in Thailand. Logit regression analysis shows that users have increased probability of choosing a post-paid plan. User behavior reveals a bias toward post-paid plans, which offer a flat rate. Two policy implications from this study are that inexpensive flat-rate plans can be used to promote growth in mobile Internet service, and that support for new entrants can be offered by providing plans that rely on user behavior.
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