oh no!

I could be wrong…

A few weeks back I received a call from a mobile network asking if I wanted to switch to their network. The caller described the perks of their network, the services they offered and how switching would be a great idea since their subscriber base is pretty big and they have wide network coverage.

Zoning out, I remembered what I said in my thesis defense some years back: the computed marginal effect of network externality is already relatively small…my panel believed me. Simply put, the network externality, or the benefit that one derives with the increase in the network base is relatively small that it wouldn’t make that much difference to the consumer. I attributed this conclusion to the fact that networks can now freely connect with each other, unlike before where there was a separation between networks.

Then I wondered, would my conclusion be correct if I factor in the “call and text unlimited” promos which are exclusive to a particular network? With the impending financial crisis, it seems that now, there is an incentive to get into a network which has a bigger subscriber base.

so..I told the caller I’d think about it.

- Tanchico, Reizel Ann A.

02-10332