Are smartphone messaging apps and traditional telecommunication services substitute goods?

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• Nicolas Karsten, Duesseldorf Institute for Competition Economics (DICE)
• Monday 29 February 2016, 14:30-14:55
• Room SS03, Computer Laboratory, William Gates Building.

If you have a question about this talk, please contact Alastair Beresford.

Smartphone messaging apps, such WhatsApp, Snapchat, Skype and Facebook Messenger have experienced strong growth in the last few years – they have become a part of everyday life for hundreds of millions of users. This talk explores whether messaging apps are what economists call substitute goods. In other words, do users of smartphone messaging apps make less use of traditional mobile services, such as text messaging or phone calls, or are messaging apps complementary to these traditional services? We explore this question by looking at smartphone usage data over the last four years, gathered from over 20,000 handsets running Device Analyzer. Our initial results for the Norwegian market, with 700 users, suggest that mobile messaging apps are a complementary good and have little influence on traditional mobile services.

This talk is part of the Computer Laboratory Digital Technology Group (DTG) Meetings series.

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