Measuring the value of mobile telecommunication services using a choice-based approach

Consumer usage patterns in mobile telecommunication services are shifting from simple voice calls to data-centric services through mobile Internet. Broader usage of mobile telecommunication services has increased the value of these services. Thus, it is necessary to investigate the shift in consumer utility value along with changes in usage patterns. The purpose of this study is to objectively analyse the value of mobile telecommunication services to determine the role of mobile telecommunication services in the smartphone era. Specifically, we use a conjoint analysis to estimate the elasticity of demand through a consumer survey. Conjoint analysis measures the impact on consumer choice and calculates the utility of each service attribute. To accomplish this, we classify the types of current mobile telecommunication services into six categories: voice calls and text messages, information services, mobile SNS , mobile shop ping and commerce, mobile banking, and entertainment. We then quantify the value of mobile telecommunication services and the surplus from subscribing to a mobile service plan for each use by using data from a conjoint survey. We also find that this value and surplus are larger for relatively new services. The results imply that the value of mobile telecommunication services becomes multifaceted and higher as consumer usage of telecommunication services in everyday life increases significantly. Our results also offer insights into the drivers of telecommunication services with relevant implications.