Optimal Bundle of Multimedia Services in Emerging Mobile Markets

Lee, ChanGi and Lee, SeongCheol and Lee, DeockHee and Lee, HyeongJik (2006): Optimal Bundle of Multimedia Services in Emerging Mobile Markets. Published in: International Journal of Digital Economics No. 63 (September 2006): pp. 33-49.

Abstract

Although various emerging technologies have been launched, they present limitations as far as offering full-scale ubiquitous services independently is concerned. In view of this fact, service providers are likely to provide bundled services among possible combinations of services. Indeed, making a timely decision regarding the value maximization of bundled service is directly related to service providers' future growth and success in the turbulent market environment. This paper aims to find the optimal service bundle among five emerging mobile services: T-DMB, S-DMB, WiBro, HSDPA, and Telematics. Considering what kinds of service features among the five emerging services offer differentiation to customers, we examine four attributes (TV, voice, portable wireless internet, and location-based services) using conjoint analysis to distinguish the service features. Our results show that TV service is the most favored among the attributes, followed by voice service in second position, and the internet and location-based service in third and fourth place respectively. Our result implies that mobile operators would be better off bundling HSDPA and S-DMB first, and then adding other services later, while fixed operators would be better off bundling WiBro and S-DMB first and other services later.

• Item Type: MPRA Paper
• Institution: COMMUNICATIONS & STRATEGIES
• Language: English
• Keywords: telecommunications and broadcasting convergence; emerging service; 4G Technology; T-DMB; S-DMB; WiBro; HSDPA; telematics; customer preference
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies; K - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust Law; L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications