If we build it will they come? Or is this only if the price right? Adoption and use of 4G versus 3G technology: results from a Netlogo simulation

This paper models some simple consumer behaviour of the acceptance of a new mobile phone technology (4G) versus a mode widespread existing technology (3G). It is commonly believed that the adoption and use of new mobile networks is based on price and service. New networks though may face limitations of providing access to all consumers and managers may need to carefully consider to what extent a network can be upgraded and expanded given a limited capital budget. There is however, the risk of churn, of customers leaving a network for other providers if their requirements cannot be catered for. Results from an Agent Based Modelling Simulation using Netlogo found that consumer tolerance (or patience) the number of Four G Access points capacity of each access point and only the price of 3G seemed to influence the happiness of consumers and the mean use of technology (4G and 3G). Loss of customers is determined mainly by tolerance. The implications for managers are; that planning for capacity is important but you don’t have to provide access to all consumers; the price of the old technology is more important than the price of the new technology and relationship marketing is important to increase tolerance and prevent churn.