Consumer preferences for wireless internet access networks and their affecting factors: a conjoint analysis

Abstract

This paper compares service characteristics and analyses consumer preferences between the two current wireless internet access alternatives: 3G cellular networks and public wireless Local Area Network (LAN). A conjoint analysis was employed to find significant service attributes behind consumers' preferences. Major findings of this study are twofold. First, there was a significant difference in consumer preferences among four wireless internet service categories consisting of three wireless LAN services and one 3G service. Secondly, consumers considered price and network speed more important than service coverage, which implies wireless LAN has an advantage over 3G as far as wireless internet access is concerned. These results are expected to be of help to both government policy makers and telecommunications service providers in designing and implementing industrial promotion and competition policies in the wireless industry. Furthermore, they can also shed light on the decision-making regarding the commercial introduction of the mobile broadband wireless services in the near future.