Title: Analysis of mobile broadband competition: 3G vs. WiFi

Authors: Seungjae Shin, Martin B.H. Weiss

Addresses: Division of Business, Mississippi State University – Meridian, 1000 HWY 19N, Meridian, MS 39307, USA. ' School of Information Sciences, University of Pittsburgh, 135 N. Bellefield Ave. Pittsburgh, PA 15260, USA

Abstract: This paper analyses optimal pricing of two different platforms of broadband mobile internet access where one provider uses third generation (3G) and the other WiFi. The authors utilised a game theoretic competition model considering population density, user|s preference for bandwidth and coverage, user|s willingness-to-pay, the number of hot-spots, cost structure of deployment, and market penetration rate. The authors used both simulation and computation methods to find the market equilibrium point. Through the equilibrium analysis, the authors found that the 3G network is more profitable as WiFi coverage percentage increases, and 3G is more favourable in higher density areas.

Keywords: mobile broadband; 3G; third generation; WiFi; game theory; mobile communications; municipal wireless; optimal pricing; mobile internet access; competition modelling; population density; user preference; coverage; willingness-to-pay; hot spots; deployment cost structure; market penetration; market equilibrium.

DOI: 10.1504/IJMC.2010.034938

International Journal of Mobile Communications, 2010 Vol.8 No.5, pp.586 - 601

Published online: 31 Aug 2010 *

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