Willingness to pay for Internet Access Services and the Impact of large Content and Application Providers

Willingness to pay for Internet Access Services and the Impact of large Content and Application Providers

Outlining a Research Approach

The report presents a methodological approach to investigate the relevance and impact of video streaming services from Content and Application Provider (CAPs) on the willingness to pay for internet access services.

Consumers have high expectations when it comes to internet access services and, according to some studies, these expectations are likely to continue to grow. However, the number of recent empirical studies that address the demand for and willingness to pay for internet access services and, in particular, look at usage-dependent components, is comparatively small. These studies could, however, provide important insights, particularly for the “fair share” debate. 

The debate is about whether CAPs should contribute to the expansion and maintenance of network infrastructures, since the use of their OTT services by end-users contributes to a significant amount of data traffic. However, the question arises as to whether CAPs are not already indirectly creating value for internet access services. 

Motivated by this debate, this report presents an approach to investigate the relevance and influence of the use of CAPs' OTT services on the willingness to pay of end-user for internet access services. The methodology is based on survey data and a dual response conjoint analysis. The focus pertains to video streaming services.