Fixed - Line and Mobile Internet : Complements or Substitutes ?

This article examines whether the quality of local fixed-line Internet service influences mobile Internet adoption and usage. An empirical analysis shows that local fixed-line Internet speed relates negatively to mobile Internet adoption and usage; if the local fixed-line connection is insufficient, consumers tend to get online through their mobile phones. Further, better local mobile Internet coverage increases the likelihood of adopting and using the mobile Internet. Neither fixed-line nor mobile Internet speed has significant impacts on mobile-specific offline services such as taking photos or videos. In some circumstances, substitution between the two platforms is stronger, such as among younger consumers and those living in areas with lower fixed-line Internet speeds. The authors discuss the implications of these findings for policy makers, consumers, and mobile service providers.