Nexus Pilot Project

Nexus Communications, Inc. | Pilot Application | Supplement | Final Report | Project Data
The Nexus Pilot Project, which operated in 8 states, studied the effect of varying subsidy amounts and digital literacy offerings on adoption through mobile offerings. Nexus conducted a large, randomized controlled experiment by offering each group of potential subscribers one of six treatments. Treatments varied by the level of the subsidy and whether an offer of digital literacy training accompanied the solicitation. Groups were randomly offered plans based on the last two digits of their existing Nexus account number, and Nexus directly contacted households with a specific offer. Consumers, having been made an offer, then could choose to either purchase a smartphone or aircard plan (device priced at $49.99) with a monthly data allowance of 200 MB, 500 MB, 1GB or 2GB. While the discount amount was the same within each treatment, customers had to pay more for larger plans. This design allowed for cleanly estimating the causal effect of the discount level on consumer choice.