Profile Analysis of Prospective Users for the Broadband Internet Services

Broadband internet service had an enormous impact on communications markets. Diffusion of the broadband internet service stimulates more demand of faster services for multimedia contents. The broadband internet service as an option to meet growing demand is provided on the platform for the future telecommunication network. Previous studies have focused mainly on the technological developments and the regulatory aspects of future network. There is little research on consumers’ characteristics of the broadband internet service, nor on the relationship between the existing and the broadband services. This study aims to determine the characteristics of the customers demanding broadband internet services. First, several features of the existing broadband internet services are tested as explanatory variables to develop demand for the broadband services. The relationship between the existing and the broadband services is examined and formalized as well. Using a survey in which 720 people in Korea participated, this study discovers factors influencing the willingness to subscribe to the broadband services. Results show that the customer who has a high demand for video services and who has spent more money on broadband internet services is more likely to subscribe to the broadband services. In this regard, telecommunications carriers have to demonstrate that the broadband internet service provides faster services with higher quality of service, in order to lure customers into the services.