Broadband migration and lock-in effects: Mixed logit model analysis of Japan's high-speed Internet access services

Authors:
Takanori Ida;Kai Sakahira
Affiliations:
Kyoto University, Graduate School of Economics, Yoshida, Sakyoku, Kyoto 606-8501, Japan;Ministry of Internal Affairs and Communications, Kasumigaseki, Chiyodaku, Tokyo 100-8926, Japan
Venue:
Telecommunications Policy
Year:
2008

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Abstract

The development of Japan's broadband Internet access services has been remarkable. However, two main problems have emerged concerning broadband migration: migration from narrowband to broadband services and migration inside broadband services. Focusing on the latter problem, this paper reaches two conclusions. First, in terms of the type of users who initially migrated to the fiber to the home (FTTH) service is analyzed. It is found that income levels, service usage such as motion-picture viewing, and type of residence are important factors determining FTTH subscriptions. Second, the lock-in effects of NTT, which provides both asymmetric digital subscriber line (ADSL) and FTTH, are analyzed. In conclusion, significant lock-in effects exist whose values are measured around JPY 2400 (US$ 21.2).