An analysis of the switching behavior in the Thailand cellular market

The issue of switching costs and anti-competitive behavior has been discussed several times in the academic and practical world. The findings and policy recommendations is that the regulator should implement the Mobile Number Portability (MNP) in order to reduce the consumers switching costs. Most of literatures have done in the context of developed countries. However, less develop countries tend to follow those findings and solutions from developed countries without bearing the impact of the policy. The purpose of this is to explain the determinate factors of switching behavior in the Thailand cellular market before the mobile number portability (MNP) policy is implemented. A binary logit model and individual survey data of the National Telecommunications Commission 2009 will be used to estimate the intention of mobile phone consumers to switch. This paper will show that the consumers of each operator might have difference intention to switch depend on the operators and consumers profile. In addition, this study will also estimate the willingness to pay for the MNP as well as to explain the most preferable operator. Based on the findings, the potential impact of the MNP policy will be discussed, and some policy recommendations including roaming regulation that can make the network coverage among mobile operators are equal