Title: Quantifying substitution of mVoIP for cellular telephony in Korea

Authors: Weonseek Kim; Hyunchul Kim; Minsoo Park

Addresses: School of Economics, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul, South Korea ' Department of Economics, Sungkyunkwan University, 25-2 Sungkyunkwan-ro, Jongno-gu, Seoul, South Korea ' Department of Economics, Sungkyunkwan University, 25-2 Sungkyunkwan-ro, Jongno-gu, Seoul, South Korea

Abstract: This study aims to estimate the substitutability between mVoIP and traditional cellular voice, and measure the impact of introducing mVoIP on MNO revenue. Using a conjoint analysis based on a survey experiment in the wireless communication market in Korea, we compute the probability of choosing mVoIP services conditional on the characteristics of payment plans and on the network environments that would support the use of mVoIP. We simulate the mobile plan substitution as a result of the use of mVoIP as well as call substitution between mVoIP and traditional cellular voice. Their simulation results, based on the estimates from a mixed logit model, show that the expected loss in MNO revenue may amount to as much as 17%.

Keywords: call substitution; choice experiment; mobile VoIP; voice over internet protocol; plan switching; mVoIP substitution; cellular telephony; South Korea; substitutability; wireless communications; simulation; mobile network operators; MNOs; MNO revenue; mobile networks; mobile services; m-services.

DOI: 10.1504/IJMC.2016.078721

International Journal of Mobile Communications, 2016 Vol.14 No.5, pp.454 - 471

Accepted: 03 Mar 2016
Published online: 03 Aug 2016 *

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