Consumer choice and local network effects in the Colombian mobile telecommunications market
DOI:
https://doi.org/10.46661/revmetodoscuanteconempresa.3502Keywords:
mobile telecommunications, network effects, discrete choice analysis, consumer choiceAbstract
The objective of this article is to analyze the degree of network effects in the mobile telecommunications market in Colombia, and identify other determinants of consumer choice based on a survey of uses and habits carried out by the National Consulting Center for the Commission of Regulation of Communications in 2016. Based on this survey, this study was conducted which shows that there are no regional differences in the adoption of operators in Colombia, and that the attractiveness of the different operators depends on the total size of the operator to which the user wishes to subscribe. This finding means that consumers are not likely to be affected by other people's choices within their local area but rather by the overall size of the network. The relevant market must be defined at the national level and the pricing strategies of the operators must be national and not regional. It is also found that in the choice of operator key factors are gender, the age, the stratum, the monthly expenditure on mobile services, the type of plan and the number of calls made. Finally, users prefer the operator that offers them the greatest experience, which is why it is a key determinant to work for operators of mobile services in Colombia.
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