Battle of the Internet Channels: How Does Mobile and Fixed-Line Quality Drive Internet Use?

47 Pages Posted: 3 Mar 2016

See all articles by Jiao Xu

Jiao Xu

Georgia Institute of Technology - Scheller College of Business

Chris Forman

Cornell University - Dyson School of Applied Economics and Management; Georgia Institute of Technology - Scheller College of Business

Yu Jeffrey Hu

Georgia Institute of Technology - Scheller College of Business

Date Written: March 2, 2016

Abstract

This article studies whether and how mobile Internet networks compete with traditional fixed-line Internet networks by examining the how the quality of local fixed-line Internet service influences mobile Internet adoption and use. An empirical analysis shows that local fixed-line Internet speed is negatively related to mobile Internet adoption and use; if the local fixed-line connection is insufficient, consumers tend to go online using their mobile phones. Further, better local mobile Internet coverage increases the likelihood of adopting and using the mobile Internet. Neither fixed-line nor mobile Internet speed has significant impacts on mobile offline services, such as taking photos or videos. In some circumstances, competition between the two channels is stronger, such as among younger consumers and those who live in areas with lower fixed-line Internet speeds. The authors discuss the implications of these findings for policy makers, consumers, and mobile service providers.

Keywords: channel competition, econometrics, fixed-line Internet, mobile Internet

Suggested Citation

Xu, Jiao and Forman, Chris and Hu, Yu Jeffrey, Battle of the Internet Channels: How Does Mobile and Fixed-Line Quality Drive Internet Use? (March 2, 2016). Georgia Tech Scheller College of Business Research Paper No. WP47. Available at SSRN: https://ssrn.com/abstract=2741048 or http://dx.doi.org/10.2139/ssrn.2741048

Jiao Xu

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Chris Forman (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Yu Jeffrey Hu

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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