Abstract
The objective of this study is to investigate the impact of over-the-top (OTT) media streaming services on consumers' demand for fiber-to-the-home (FTTH) service. A double-hurdle model is applied to decompose consumers' willingness-to-adopt (WTA) and willingness-to-pay (WTP) for FTTH by OTT media streaming services, individual characteristics, experience of connection problem, and expectation of media consumption through the Internet. A respondent is allowed to express his or her WTP in an interval in order to truly reflect the willingness and flexibility to pay. The results show that consumers are willing to adopt and pay for FTTH for their quality of experience from OTT media streaming consumption, particularly movie services. This study contributes to the projection of market value and the effect of OTT media streaming services along the diffusion of the FTTH market. Policy implications are discussed to set regulations and incentives that increase broadband penetration at the right price.
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