Impacts of handset bundling on mobile data usage: The case of Finland

  • Authors:

  • Mathias Tallberg;Heikki Hämmäinen;Juuso Töyli;Sauli Kamppari;Antero Kivi

  • Affiliations:

  • Networking Laboratory, Helsinki University of Technology, P.O. Box 3000, FI-02015, Finland;Networking Laboratory, Helsinki University of Technology, P.O. Box 3000, FI-02015, Finland;Helsinki School of Economics, P.O. Box 1210, 00101 Helsinki, Finland;Networking Laboratory, Helsinki University of Technology, P.O. Box 3000, FI-02015, Finland;Networking Laboratory, Helsinki University of Technology, P.O. Box 3000, FI-02015, Finland

  • Venue:
  • Telecommunications Policy
  • Year:
  • 2007

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Abstract

Promotion of the adoption of new services has emerged as a possible driver for the regulation of handset bundling and subsidies. Handset bundling, however, has complex implications not only on mobile data service adoption, the focus of this research, but also more broadly on the mobile market dynamics. Due to the complexity, regulators have difficulties in anticipating the possible resulting impacts. Using a case study, expert interviews, and usage measurements as research method, an empirical framework was constructed to make the service usage impacts more explicit. The framework enables the identification of the regulator's steering options and their qualitative impacts. Results are based on observations before and after the change of law on handset bundling in the Finnish market. According to the findings, handset bundling regulation is a possible but risky tool for steering the market.