A Conjoint Analysis of a Next Generation Network (NGN) in Japan

A conjoint analysis on a Web survey in 2010 with 160 participants and 8 questions shows that a Marginal Willingness To Pay (MWTP) on a Next Generation Network (NGN) of Flet’s Hikari Next is lower than its actual price as provided by NTT East. Conjoint analysis is one application of conditional logit. MWTP is WTP when one unit of property is increased, and MWTP is used to verify how much each person evaluates each property. Higher transmission speed, digital TV availability, and higher Internet security affect the MWTP positively, and the amount of the monthly payment of NGN affects the MWTP negatively. Therefore, it is assumed that the NGN of Flet’s Hikari Next by NTT East will be accepted by potential customers and diffused as a major communications service of NTT East and NTT West. NGN providers may be able to maximize their benefits by adjusting the NGN of Flet’s Hikari Next property to meet customer demands, especially in digital TV availability, higher transmission speed, and communications security.