Consumer choice and local network effects in mobile telecommunications in Turkey

The aim of this paper is to analyze the extent of network effects in mobile telecommunications in Turkey, and to identify other determinants of consumer choice based on consumer survey data. This study shows that there are regional disparities in the adoption of network services in Turkey, the attractiveness of the different networks varies for consumers between different regions. The results show that local network effects are significant for consumer choice. This finding means that consumers are more likely to be affected by the choices of other people within their local area than by the overall size of a network. Furthermore, local network effects also outweigh macro network effects at least in Turkey.

► Consumer survey data is analyzed to find the determinants of consumer choice. ► Local/spatial network effects along with macro network effects are analyzed. ► Finds that consumers are affected by the choices of other people in their local area. ► Finds that local effects may outweigh macro network effects.