Compensating Data-Rich Digital Services: Should Telcos Carry the Burden Alone?
(A2025-125863)

AUTHORS

Anil Gürbüz, WHU - Otto Beisheim School of Management; Christian Schlereth, WHU - Otto Beisheim School of Management; Jarle von der Bey, WHU - Otto Beisheim School of Management

ABSTRACT

The growth in online activity led to increased traffic across telecommunication networks, creating a need for infrastructure investments. These costs currently rest solely on telecommunication operators, sparking a debate over who should bear the rising expenses. Digital service providers rely on net neutrality, arguing that the financial burden should remain with telcos. In contrast, telcos advocate for the fair share principle, claiming digital service providers, particularly those driving significant traffic, should contribute to infrastructure costs. However, potential contributions from digital service providers could result in higher consumer prices for data-intensive services. This paper contributes by empirically analyzing consumers' willingness to pay and willingness to accept compensation for continued use or loss of various online services using an enhanced best-worst scaling method. Findings show varying consumer valuations and price sensitivity across service categories.