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Relationship of Over-the-top (OTT) Communications and Traditional Telecommunications Services: the Case of Thailand

Author

Listed:
  • Jirakasem, Monarat
  • Mitomo, Hitoshi
Abstract
This paper focuses on the relationship between over-the-top (OTT) and traditional communications services. Many analysts have stated OTT communications services might soon replace other communication services; however, the empirical study of this assumption is scarce, especially in the case of Thailand. This study thus aims to investigate the actual effects of OTT communications services on traditional communications services and whether OTT communications services can substitute or complement traditional communications services. The data used in this paper were collected in 2019 and comprised 1,052 observations. After the Probit analysis, the results stated the relationship between the two services depends on tariff type: they are complementary under a flat rate plan but substitutable under a use-dependent scheme. With respect to messaging feature, OTTs and short message services (SMS) and multimedia messaging services (MMS) are independent. The results contribute to the field of telecommunications and provide evidence of the substitution and guidelines for telecommunications policy makers in Thailand. Regulators and mobile operators should encourage the flat rate plan. For economic reasons, the regulation similar to traditional telecommunications might not be suitable; however, regulation regarding other issues should be addressed in further study.

Suggested Citation

  • Jirakasem, Monarat & Mitomo, Hitoshi, 2019. "Relationship of Over-the-top (OTT) Communications and Traditional Telecommunications Services: the Case of Thailand," 30th European Regional ITS Conference, Helsinki 2019 205184, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse19:205184
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    File URL: https://www.econstor.eu/bitstream/10419/205184/1/Jirakasem-Mitomo.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jeanjean, François, 2024. "Creation and sharing of value in the telecoms sector. (How telecom operators' investments benefit content providers rather than themselves.)," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302486, International Telecommunications Society (ITS).
    2. Opapun, Amnist & Khemakongkanonth, Chate & Srinuan, Pratompong, 2024. "Perceptions of Traditional Voice Calls and Over-the-Top (OTT) Communication Services among Thai Consumers," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302469, International Telecommunications Society (ITS).

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    Keywords

    Over-the-top (OTT) communications services; substitution; mobile telephony; messaging; Thailand;
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