The Diffusion of the Contingent Product Based on Multi Product Interrelation Model: A Case Study of the Indonesian Telecommuncation Services

In recent years, the diffusion model on telecommunication business has changed following the trend of more services related to non-voice services. Contingent product/services become more important following the decline of ARPU on conventional telecommunication services (voice). Diffusion model has transformed and improved by incorporating more variables to capture dynamics of the diffusion of innovation. This study tries to reveal the diffusion process in telecommunication services with regard to the contingent services. From the comparison of the result, found that independent model/equation (Logistic and Gompertz) gave better result than simultaneous equations. But, still there are opportunities to improve this result through fine-tuning the model. This study improves overall understanding of the Indonesian telecommunication condition and contingent products in telecommunication business. Moreover, this study can be used by policy makers and telecommunication companies to anticipate the impact of contingent products or services diffusion in order to maximize gain or advantage from the changing of it.