Optimal bundle of multimedia services in emerging mobile market

Abstract

Although various emerging technologies have been introduced, they still have some limitations to offer full-scale ubiquitous services by themselves. Given this fact, service providers will likely provide bundled services among possible combinations of services. The purpose of this paper is to find the optimal service bundle among five emerging mobile services: T-DMB, S-DMB, WiBro, HSDPA, and Telematics. Considering what kinds of service features among the five emerging services offer differentiation to customers, we examine four attributes (TV, Voice, Portable Wireless Internet, and location-based services) using conjoint analysis to distinguish the service features. Our results show that TV service is the most favored among the attributes, followed by voice service in second, and Internet and location based service in third and fourth, respectively. Our result implies that mobile operators would be better off bundling HSDPA and S-DMB first and then adding other services later, while fixed operators would be better off bundling WiBro and S-DMB first and other services later.