Pricing strategies and competition in the mobile broadband market

Calzada, Joan; Martínez-Santos, Fernando

doi:10.1007/s11149-016-9307-5

Cited by 10 publications

(6 citation statements)

References 40 publications

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“…In MacKie‐Mason and Varian, different conditions and pricing policies based on network traffic are given, while the special case for next‐generation access networks is presented in Domingo and Lehr . As FiWi networks consist of the wireless segment as well, pricing strategies and competition for mobile broadband market analyzed in Calzada and Martínez‐Santos also proved to be useful for our research.…”

Section: Related Workmentioning

confidence: 96%

“…These values are based on Next‐Generation Access Networks (NGAN) broadband pricing estimation that assumes revenues of between $30 to $70 (24 € to 56 €) per user per month that are able to support investment sufficient to recover the costs of a shared fiber NGAN network . Additionally, it is taken that for 10 Mbps increase in download speed, price on average rises for 2% …”

Section: Case Study For Network Traffic Optimization and Npv Calculationmentioning

confidence: 99%

“…28 Additionally, it is taken that for 10 Mbps increase in download speed, price on average rises for 2%. 29 In Table 1, approximated pricing per month is given for bandwidth increment of 100 Mbps.…”

Section: Npv Calculation Assumptionsmentioning

confidence: 99%

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Techno‐economic analysis of FiWi access networks based on optimized source packet traffic

Breskovic¹,

Begušić

2019

Int J Network Mgmt

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Summary Fiber wireless access networks (FiWi) are capable of providing broadband 100 Mbit/s services with acceptable costs and can be considered as a competitive alternative to fiber to the home (FTTH). Techno‐economic analysis of viable FiWi architectures is needed in order to obtain the most suitable solution taking into account both technical and economical viewpoints. In this paper, a new approach to techno‐economic analysis of the FiWi networks is proposed. The proposed approach is based on the net present value calculation with the source packet traffic generation rate and traffic intensity as input parameters. As a precondition to net present value calculation, a traffic optimization procedure that assures the quality of experience is performed. Case study results indicate the usability of the proposed method.

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Section: Related Workmentioning

confidence: 96%

Section: Case Study For Network Traffic Optimization and Npv Calculationmentioning

confidence: 99%

See 1 more Smart Citation

Techno‐economic analysis of FiWi access networks based on optimized source packet traffic

Breskovic¹,

Begušić

2019

Int J Network Mgmt

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“…Previous approaches to bundling in the airline industry have been limited to two products (Ødegaard and Wilson 2016;Wang et al 2021), approximate solutions (Ratliff and Gallego, 2013), or machine-learning approaches (Ettl et al 2020;Wang 2021). While quantitative evidence of bundle pricing is often seen in other industries, such as for theater tickets (Chu et al 2011), online music (Elberse 2010), and mobile phone plans (Calzada and Martinez-Santos 2016), these industries face the same issues and have not found more attractive solutions to the bundle pricing problem in general.…”

Section: Introductionmentioning

confidence: 99%

Dynamic offer creation for airline ancillaries using a Markov chain choice model

Wang

Wittman²,

Fiig³

2023

J Revenue Pricing Manag

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Customers have become accustomed to a highly streamlined and personalized experience when shopping online. While tech giants such as Apple, Amazon, and Netflix are experts in using customer information and shopping context to deliver relevant offers, airlines are falling behind in this regard with their static content and one-size-fits-all retailing approach. To meet the growing expectations of their customers, the airline industry has expressed a vision for dynamic offer creation, which will allow airlines to dynamically bundle and price a set of offers that is customized to the context of the shopping request. Realizing this vision requires significant advancements in both distribution and science. On the distribution side, these advancements will come with the adoption of the New Distribution Capability. On the science side, which is the focus of this paper, little progress has been made despite years of research. In particular, airlines still lack a tractable scientific model to dynamically create and price offer sets at scale. In this paper, we present a novel approach to solve the airline dynamic offer creation problem using a Markov chain choice model. Our model displays attractive qualitative properties—the resulting offers and prices are chosen in such a way as to discourage purchases of unprofitable offers and nudge customers towards more profitable ones. Our model naturally proposes offers that are relevant to the customer, as including irrelevant offers in the offer set leads to a reduction in revenue and ancillary purchase rates. In a simulation study with two customer segments, we find that our model significantly increases ancillary revenue over a naïve, unsegmented pricing model that mimics current state-of-the-art practice. While our studies are conducted under several idealized assumptions, they demonstrate a substantial revenue potential from dynamic offer creation in both unsegmented and segmented applications.

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“… See Ergas et al (2005), cited inDewenter and Haucap (2007) andKim et al (2011). Empirical studies which find that the presence, number, and/or non-discriminatory access of MVNOs affect mobile tariffs includeKim and Seol (2007),Calzada andMartí nez- Santos (2016), andJun et al (2018).24 Non-exhaustive enumeration. See also Berger-Ko gler (2013) on investment incentives in mobile network markets, andKim et al (2011) on the economic literature surrounding the relationship between competition and investment.25 SeeOfcom (2020a).…”

mentioning

confidence: 99%

Access-Based Competition and Investment in Mobile Network - Evidence from Germany and Spain

Frank,

Kleczka,

Shtjefanaku

2024

Preprint

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This article examines the effect of access obligation on mobile network investment. Access obligation is a form of regulated network access in wholesale markets that commits Mobile Network Operators (MNOs) to grant non-discriminatory access to Mobile Virtual Network Operators (MVNOs). While it is often claimed that such regulation might lower investment incentives of MNOs, this assertion has not yet been assessed by appropriate econometric methods. We implement an empirical Difference-in-Differences (DiD) framework to investigate the link between access obligation and mobile network investment in Germany, where access obligation had been implemented for the 3G technology (but not for 4G and 5G), and in Spain, where access obligation had been introduced as a remedy for joint significant market power. Contrary to common claims, our results show that access obligation has not lowered mobile network investment in Germany and indeed increased investment in Spain.

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Pricing strategies and competition in the mobile broadband market

Cited by 10 publications

References 40 publications

Techno‐economic analysis of FiWi access networks based on optimized source packet traffic

Techno‐economic analysis of FiWi access networks based on optimized source packet traffic

Dynamic offer creation for airline ancillaries using a Markov chain choice model

Access-Based Competition and Investment in Mobile Network - Evidence from Germany and Spain

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