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Quantifying substitution of mVoIP for cellular telephony in Korea

This study aims to estimate the substitutability between mVoIP and traditional cellular voice, and measure the impact of introducing mVoIP on MNO revenue. Using a conjoint analysis based on a survey experiment in the wireless communication market in Korea, we compute the probability of choosing mVoIP services conditional on the characteristics of payment plans and on the network environments that would support the use of mVoIP. We simulate the mobile plan substitution as a result of the use of mVoIP as well as call substitution between mVoIP and traditional cellular voice. Their simulation results, based on the estimates from a mixed logit model, show that the expected loss in MNO revenue may amount to as much as 17%.