Abstract
This paper empirically examines the factors broadband users take into account when choosing their fixed broadband access mode in Slovenia. The conditional logit model was employed incorporating the survey data. The results reveal that the socioeconomic characteristics of users (age, education, gender, presence of student/pupil in the household, living in the city, subscription to TV services, and preferences for speed) influence the choice between different broadband access modes. Contrary to our expectations, access mode characteristics (the price, the download speed) have no statistically significant impact on the choice of the broadband access mode. This may be attributed to the intense price competition among different broadband technologies resulting in the price convergence and behavior of users, which tend to use the internet mainly for basic services. The results of the analysis may hold important implications for internet service providers when identifying appropriate strategies to attract customers to subscribe to their broadband technologies.
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Notes
Potential presence of multicollinearity was checked in two ways, firstly by calculating the bivariate correlation coefficients and, secondly, by calculating the Variance Inflation Factor (VIF). The estimated values for all bivariate correlation coefficients are below 0.41, indicating a small possibility of multicollinearity in our data set. The calculated values of the VIF test for all explanatory variables are below 1.3, reconfirming that multicollinearity is not present in our data set.
Variables AGE (CABLE) and DSTUSEC (DSL) are statistically significant only under the one-sided hypothesis.
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This study was supported by the Slovenian Research Agency (Grant number P5-0117).
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Švigelj, M., Hrovatin, N. Analysis of household broadband technology preferences in Slovenia. Eurasian Bus Rev 9, 407–422 (2019). https://doi.org/10.1007/s40821-019-00127-8
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DOI: https://doi.org/10.1007/s40821-019-00127-8