MVNO services: Policy implications for promoting MVNO diffusion

  • Authors:
  • Dong-Hee Shin

  • Affiliations:
  • Department of Interaction Science, Sungkyunkwan University, B307 International Hall, 53 Myeongnyun-dong 3-ga, Jongno-gu, Seoul 110-745, South Korea

  • Venue:
  • Telecommunications Policy
  • Year:
  • 2010

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Abstract

This study seeks to validate a comprehensive model of consumer acceptance in the context of MVNOs. While the MVNO business model has gained much popularity over the past few years, it shows a sign of drastic decrease. This study uses the unified theory of acceptance and the use of technology (UTAUT) model with constructs from the innovation diffusion theory (IDT) such as compatibility, relative advantage and social influence. Structural equation modeling is used to construct a predictive model of attitudes toward the MVNO services. While the model confirms the classical role of technology adoption factors (i.e., perceived usefulness and ease of use are key antecedents to consumers' intention), the results also show that users' intention and usage are influenced by IDT factors. The model brings together extant research on MVNO and provides an important cluster of antecedents to eventual technology acceptance via constructs of behavioral intention to use and to the actual MVNO usage. Policy implications of MVNO are discussed in terms of consumer adoption and market diffusion.