Mobile Telecommunications Market Research Articles

Predictions from an Empirical Study in the Turkish Mobile Telecommunications Market on the Determinants of Mobile Customer Churn

Acquiring new customers compared to holding the existing ones is costlier and more troublesome for businesses, so customer retention is of great importance in today's intensely competitive environment. It is crucial in customer relations management to identify and analyse customers whose loyalty decreases and who tend to leave, and prevent churn through various methods under resource constraints. This issue is especially prominent in the mobile communication market. This paper uses a binomial logit model based on a survey with 637 mobile users in Turkey to determine the factors affecting customer churn and how they find their effect. Results indicate that, among various factors, network quality, billing, tariff level, tariff plan, and education level are the determinants affecting customer churn and associated with the intention to switch. Our findings demonstrate implications for both managers and rule-makers in the mobile telecommunications sector.

Concentration of the mobile telecommunications markets and countries’ competitiveness

This study examines how the level of concentration of a country’s mobile telecommunications market affects its competitiveness. We created a unique database with information on 59 countries, which we used to perform several estimations including an instrumental variable approach to explain the degree of concentration in mobile phone markets. Our first and direct estimation shows that the higher the concentration in this industry, the lower the countries’ competitiveness. In order to understand this positive correlation, we provide two additional estimations. First, using an instrumental variable, we find that the concentration in mobile telecommunications market explains the use of information and communications technology (ICT). Moreover, we also find that the use of ICT is positively correlated with countries’ competitiveness. Thus, our results confirm that the mobile phone industry has positive spillover effects on countries’ competitiveness and demonstrate the benefits of policies designed to reduce concentration and market power in the industry.

Market Entry, Fighting Brands, and Tacit Collusion: Evidence from the French Mobile Telecommunications Market

We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents’ fighting brand strategies are difficult to rationalize as unilateral best responses. Instead, their strategies are consistent with a breakdown of tacit semi-collusion: before entry, the incumbents could successfully coordinate on restricting product variety to avoid cannibalization; after entry, this outcome became harder to sustain because of increased business stealing incentives. Consumers gained considerably from the added variety and, to a lesser extent, from the incumbents’ price responses. (JEL L13, L21, L96, M31)

Customer retention: Exploring the effects of relationship layers and perceived indifference

AbstractInformed by the social orientation of loyalty, the study extends the current body of knowledge by integrating multiple relationship layers (i.e., personal loyalty, relationship with online consumption communities and local network effects) as antecedents of various states of firm‐customer interactions including habitual loyalty, fanaticism, and retaliation. Data collection was carried out in the mobile telecommunications market using a paper‐based survey. A total of 600 completed survey responses were collected. The respondents were 18 or older and had been mobile service users for at least 1 year. Overall, it was found that personal loyalty, relationship with online consumption communities and local network effects were significant antecedents of fanaticism. Personal loyalty and local network effects can reinforce habitual loyalty whereas the relationship with online consumption communities can increase retaliation. The role of relationship with online consumption communities becomes more significant as customers perceive a higher level of indifference among service providers. Further, local network effects were significantly and negatively related to retaliation. The findings of this study provide important theoretical and practical implications for academics and practitioners alike, especially in the contractual, network industries.

ANALYSIS OF CUSTOMER CHURN PREDICTION IN TELECOM INDUSTRY USING LOGISTIC REGRESSION

Customers plays an import role in industry to run industry. Churn of the customer may lead many consequences. Customer churn prediction must the important aspect of any company. This helps in the detection of customers who are likely to cancel a subscription to a service. Recently, the mobile telecommunication market has changed from a rapidly growing market into a state of saturation The focus of telecommunication companies is to shift from growing of large customer into keeping customers in house. For that reason, it is valuable to know which customers are likely to switch to a competitor in future. the model is proposed for churn prediction for telecommunication companies using machine learning techniques namely logistic regression. A comparison is done on the efficiency of the algorithm on the available dataset.

How Does Firm Scope Depend on Customer Switching Costs? Evidence from Mobile Telecommunications Markets

This paper examines the relative advantages of single-product and multiproduct firms following changes in customer switching costs. Whereas a single-product firm can closely tailor offerings to customers’ needs, a multiproduct firm can create value for customers in the form of flexibility, allowing them to change between product varieties as preferences evolve without needing to switch providers. We argue that this value-creation mechanism is more effective when customers face high switching costs and explore this prediction in the mobile telecommunications sector, using an exogenous policy change (mobile number portability) that suddenly decreases customer switching costs. Our results reveal that when customer switching costs fall, multiproduct firms see lower growth than single-product firms, and entry with a multiproduct offering becomes less frequent than before. The study highlights how customer switching costs can enable or inhibit choices of firm scope. This paper was accepted by Joshua Gans, business strategy.

Analysis of Effect of Capital Expense Efficiency, Operating Expense Efficiency and Exchange Rate Difference to Financial Performance in PT.Telkomsel

PT.Telekomunikasi Seluler (PT. Telkomsel) is one of the largest mobile telecommunications service providers and market leader in Indonesia. Competition in the cellular business is increasingly competitive, so companies must implement a variety of strategies and policies that are appropriate to keep the company growing and profitable. One of these things can be done by continuing to invest in developing networks and managing operational costs efficiently as well as carrying out appropriate policies in the purchase of equipment from overseas partners so that the effects of fluctuations in the exchange rate of the Rupiah against the Dollar can be minimized. The purpose of this study was to determine and analyze the effect of capital expenditure efficiency, operational cost efficiency and exchange rate differences to the financial performance of PT. Telkomsel. Financial performance is measured by profitability ratios such as net profit margin (NPM). There are three independent variables are capital expenditur efficiency (X1), operating expense efficiency (X2) and foreign exchange rate difference (X3). While the independent variable(Y) is net profit margin. Data collection in this study using the time series method by analyzing the quarterly financial statement data of PT. Telkomsel from 2012-2018. The results showed that 1) The efficiency of capital expenditure had a positive and significant effect to the financial performance of PT. Telkomsel. 2) The efficiency of operating expense has a positive and insignificant effect to the financial performance of PT. Telkomsel. 3) The exchange rate difference has a negative and significant effect to the financial performance of PT. Telkomsel.

Ex-post Analysis of the TeliaSonera-Chess 2005 Merger

We provide an ex-post analysis of the 2005 TeliaSonera-Chess merger in the Norwegian mobile telecommunication market. Applying a difference-in-difference approach and a synthetic control group method we find little evidence of price increase in the Norwegian mobile telecom market after the merger. Possible explanations for these findings include that Chess was a small player in the market without its own physical network, with a market share of 8% at the time of the merger and no spectrum license, and that by taking Chess on board moving it from Telenor’s network, TeliaSonera could better exploit potential economies of scale related to the operation of its physical network and spectrum.

Concentration of the Mobile Telecommunications Markets and Countries' Competitiveness

Developing a database that includes 59 countries, our study sheds light on the role of mobile telecommunications markets' concentration on countries' competitiveness. Performing several estimations and using an instrumental variable that aims to explain the degree of concentration in mobile phone markets, we find that the higher is the concentration in this industry, the lower is the use of the information technology and communication (ICT). On the other hand, we also find that the use of ITC is positively correlated to countries' competitiveness. Thus, our results reveal positive spillover effects of the mobile phone industry on countries' competitiveness and suggest that all policies that aim to reduce concentration and market power in the mobile phone industry is welcomed.

Market Frictions and Competitive Positions: Lessons from the Mobile Telecommunications Market

This study explores how multi-segment and single-segment competitive positions within an industry are affected by changes in market frictions. A multi-segment position can create value for customer...

Company Image as an Employer on Poland’s Mobile Telecommunication Market and Its Relationship with Consumer Recommendations

Company Image as an Employer on Poland’s Mobile Telecommunication Market and Its Relationship with Consumer Recommendations

Virtual network functions placement system for 5G mobile network architecture

The mobile telecommunications market is experiencing new trends taking advantage of network virtualisation and cloud computing techniques. This article advances one of the most crucial challenges which are the placement of virtual network functions over the cloud. In this vein, we propose a virtual network functions placement system which is designed to have the maximum level of flexibility for meeting the operators' preferences and adjusting to the users' behaviour. The system finds a fair solution respecting the constraints conforming to the 3GPP standards which are minimising serving gateways relocations cost and the cost of the path between packet data network gateways and eNodeB base stations. Furthermore, the system aims at reducing the incurred cost of virtual machines. The proposed approach to implement the system solver is constraint programming and is compared to Boolean satisfiability, and game theory approaches. The proposed system solver is evaluated through computer simulations, and encouraging results are obtained.

A Comparison of Fractional and Polynomial Models: Modelling on Number of Subscribers in the Turkish Mobile Telecommunications Market

A Comparison of Fractional and Polynomial Models: Modelling on Number of Subscribers in the Turkish Mobile Telecommunications Market

Virtual Network Functions Placement System for 5G Mobile Network Architecture

The mobile telecommunications market is experiencing new trends taking advantage of network virtualisation and cloud computing techniques. This article advances one of the most crucial challenges which are the placement of virtual network functions over the cloud. In this vein, we propose a virtual network functions placement system which is designed to have the maximum level of flexibility for meeting the operators' preferences and adjusting to the users' behaviour. The system finds a fair solution respecting the constraints conforming to the 3GPP standards which are minimising serving gateways relocations cost and the cost of the path between packet data network gateways and eNodeB base stations. Furthermore, the system aims at reducing the incurred cost of virtual machines. The proposed approach to implement the system solver is constraint programming and is compared to Boolean satisfiability, and game theory approaches. The proposed system solver is evaluated through computer simulations, and encouraging results are obtained.

Customer resistance to churn in a mature mobile telecommunications market

Effective customer retention is critical for company survival, especially in a mature mobile telecommunications market. To build on customer retention research, we propose an integrative model capturing the dual relational mechanisms that explain customer resistance to churn. We empirically test the model using data from 815 subscribers who have stayed with their mobile network operators for more than three years. The results show that two contrasting mechanisms, dedication-based and constraint-based relationships, simultaneously determine customer resistance to churn. The constraints of procedural, financial, and relational costs significantly influence perceived risk, while dedication factors of economy-based and identification-based trust significantly influence commitment.

Customer Resistance to Churn in a Mature Mobile Telecommunications Market

Effective customer retention is critical for company survival, especially in a mature mobile telecommunications market. To build on customer retention research, we propose an integrative model capturing the dual relational mechanisms that explain customer resistance to churn. We empirically test the model using data from 815 subscribers who have stayed with their mobile network operators for more than three years. The results show that two contrasting mechanisms, dedication-based and constraint-based relationships, simultaneously determine customer resistance to churn. The constraints of procedural, financial, and relational costs significantly influence perceived risk, while dedication factors of economy-based and identification-based trust significantly influence commitment.

Tolls on the Bridge Over the Digital Divide? An Economic and Regulatory Analysis of Over-the-Top Services in a Developing Market

Over-the-top (OTT) services are value-added applications such as streaming media, messaging, or voice calling that utilize service provider networks for delivery without being under the control of the network service provider. In many cases, the OTT services compete with services offered by the network operator themselves, such as when consumers use VoIP services like Skype or messaging services like WhatsApp instead of voice calling or short message service (SMS) offered by mobile wireless carriers. In most countries, network operators are under statutory obligation to carry OTT traffic, and while they may receive revenue by charging for this carriage at the rate of regular data traffic, they forgo the higher revenues earned by charging for calls or messages directly. While this has been a boon for consumers, it is having negative impacts on the revenues, forecasts, and infrastructure investments of network service providers. The issue of infrastructure investment is particularly sensitive in developing countries, where the need to create new infrastructure is substantial, it is difficult to attract investment, few alternative service providers exist if an incumbent leaves the market, and average revenue per user is already relatively low. Regulators in these markets face difficult choices due to the desire to bring better and lower-cost services to underserved consumers while also encouraging competition, innovation, and investment in infrastructure. The rapid introduction of OTT services has affected the long-term revenue forecasts for existing service providers, challenging the models used for existing infrastructure investments and payback periods. Telcos and network service providers are also being forced to consider new business models for the future, including changes requiring regulatory approval. In this paper, we consider the case of Rwanda, where we analyze data collected directly by the telecommunications regulatory authority. Using a quantitative and qualitative mixed-methods approach, we investigate the economic and regulatory impact of over-the-top services on the mobile telecommunications market in Rwanda. This data is used to analyze and predict future revenue streams from traditional and value-added sources. This analysis is used to consider the evolving business and revenue models necessary to support ongoing operations and future investment, and regulatory changes that may be required to enable this evolution. The analysis serves a model not only for Rwanda, but for many developing countries facing similar questions around the impact of OTT services on revenue, predictions, infrastructure investment, competition, and appropriate regulation.

Lao PDR and Vietnam Border Trade and Economic Linkages: Performance and Prospects

Lao PDR and Vietnam share an extensive land border and there are a number of points at which border crossings can be made and border trade conducted. The connectivity of these crossings is to be intensified by cross-border transportation infrastructure such as the Vientiane-Bolikhamsay-Vung Anh deep seaport railroad, which would facilitate exports from landlocked Lao PDR. Such infrastructure will improve existing Vietnamese investment in its western neighbour, where more than 400 projects worth more than US$5 billion have already been licensed in activities such as hydropower, industrial tree plantation and mining. Meanwhile, Star Telecom, which is a joint venture between Viettel Global and Lao Asia Telecom, has achieved 50% market share of the mobile telecommunications market in Lao PDR and there are numerous further opportunities for investment in consumer markets as well as business-to-business markets. The Lao PDR government would certainly like to diversify its exports away from reliance on natural resource commodities but lacks resources and capacity for leadership in this area and the vital small and medium-sized enterprises sector suffers from the ‘missing middle’ phenomenon that means firms are generally unable to participate in regional value chains, including those mobilised potentially by Vietnamese partners. This paper investigates the extent of Lao-Vietnamese border trade and cross-border investment and the prospects for the future in an international environment challenged by trade wars, volatility and global climate change.

Market segmentation using high-dimensional sparse consumers data

Good segmentation contributes towards a better understanding of the market and customer demands. This study aims to develop a new methodological approach, integrating “Recency, Frequency and Monetary” with the sparse K-means clustering algorithm of Witten and Tibshirani (2010). The proposed approach is suitable for handling large, high-dimensional and sparse consumer data. Drawing on the proposed methodology, alongside data collection from the Chinese mobile telecommunications market, and considering specific services, our treatment is further assessed empirically and appears to provide robust results when compared to the Dolnicar, Kaiser, Lazarevski and Leisch (2012) biclustering of customers method. Following the attainment of a clear and robust market segmentation structure, our theoretical treatment and its empirical analysis provide a useful tool and valid methodology for marketers, and decision makers in general, to accurately determine the most profitable market segments.

5G Is Going Live in Country After Country [Mobile Radio

As 5G is switched on in one country after another, the significance of this technology for all sectors of society will become increasingly apparent. The June 2019 edition of "Ericsson Mobility Report" [1] presents a glimpse of the impressive progress in the mobile telecommunication market, now on the verge of deploying 5G. The report forecasts 1.9 billion 5G subscriptions by the end of 2024. That's up from 1.5 billion forecast in the November 2018 edition, an increase of almost 27%. Other forecasts have also increased notably due to the rapid 5G uptake. It is expected that 5G coverage will reach 45% of the world's population by the end of 2024. This could surge to 65%, as spectrum -sharing technology enables 5G deployment on LTE frequency bands.