Inderscience Publishers

Analysis of mobile broadband competition: 3G vs. WiFi

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This paper analyses optimal pricing of two different platforms of broadband mobile internet access where one provider uses third generation (3G) and the other WiFi. The authors utilised a game theoretic competition model considering population density, user's preference for bandwidth and coverage, user's willingness-to-pay, the number of hot-spots, cost structure of deployment, and market penetration rate. The authors used both simulation and computation methods to find the market equilibrium point. Through the equilibrium analysis, the authors found that the 3G network is more profitable as WiFi coverage percentage increases, and 3G is more favourable in higher density areas.

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