Frontier, in partnership with Connect Ohio (a subsidiary of Connected Nation), will test whether offering financial incentives increases the likelihood that subscribers will take digital literacy training. Frontier will permit subscribers to choose from three offers within the pilot project. The first is a $20 monthly subsidy off a range of wireline broadband plans. The second requires participation in a digital literacy program and receives a $30 monthly subsidy and a waiver of the $34.99 non-recurring charge. The third choice requires participation in a digital literacy program in order to receive the $20 monthly subsidy and a free computer. For the second and third offers, Frontier will have a test group in which subscribers are required to take training, and a control group, in which subscribers are encouraged to take training but will not receive incentives for doing so. This project is unique in testing whether a financial incentive to take digital literacy training can help in overcoming adoption hurdles (e.g., addressing relevance, privacy concerns).
Frontier Communications Corp. | Broadband Pilot Application | Appendix A | Appendix B | Appendix C | Ohio Lifeline Application | Supplement | Supplement Appendix A | Supplement Appendix B | Unredacted Version
For more information contact: 888-899-8849
Nexus, in partnership with Connect Ohio, will test the effect of subsidy amounts and digital literacy on adoption by giving one group of subscribers a $15 subsidy, a second group $20 and a third no subsidy (groups are offered plans based on zip code). These subsidies will lower the offered price by the subsidy amount for a menu of plans, which are varied based on usage limits. By allowing customers to select their usage limits, Nexus will be able to report subscribers’ willingness to pay for data limit increases and also learn if subscribers were satisfied retrospectively with their choice.
For more information contact: 800-248-0204
Virgin Mobile, in partnership with Technology Goes Home, will test the effect on adoption and retention of discounted prices and device costs by randomly offering one of four treatment groups to a large, geographically diverse sample. Two groups of subscribers will pay $20 while another two groups of subscribers will pay $0 with a $20 activation fee. This project will provide information on customers’ relative sensitivity to upfront and ongoing costs, as well as the expected subscribership increase from a lower cost offering.
For more information contact: Elaine M. Divelbliss, 908-660-0358Published: July 10, 2013 Updated: July 15, 2013