This action might not be possible to undo. Are you sure you want to continue?
Welingakar Institute of Management development & research MMM 2008 - 2011
MARKET RESEARCH REPORT FOR
” A STUDY OF BEHAVIORAL INTENTION FOR 3G MOBILE INTERNET
TECHNOLOGY: PRELIMINARY RESEARCH ON WILLINGNESS TO SUBSCRIBE
Croyden Pereira - 81 Rajeev Solanki - 106 Garima Lodha - 58
A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe
Table Of Content –
Acknowledgement……………………………………………………………………3 Declaration……………………………………………………………………………..3 Project Brief……………………………………………………………………………4 Research Model and Hypotheses……………………………………………….5 Methodology……………………………………………………………………………5 Introduction to Topic………………………………………………………………..6 Executive Summary…………………………………………………………………8 Detailed Findings of Secondary Research……………………………………9
The Advantages of 3G Technology…………………………………………………….11 Issues of 3G…………………………………………………………………………………..13 Current Status and Impact of 3G in India…………………………………………..13 Major Players…………………………………………………………………………………15 Technology Acceptance Model………………………………………………………….16
Detailed Findings of Primary Research……………………………………..17 Solutions & Recommendations…………………………………………………23 Other Findings……………………………………………………………………….23 Blank Questionnaire……………………………………………………………….24 Bibliography and Web Reverences………………………………………………28
com 3 .pereira@gmail. Declaration We hereby declare that the research conducted is done to the best of our knowledge and ability and under ethical terms.com firstname.lastname@example.org garimalodha@gmail. If any information in this report is different from our finding then please email us at croyden.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Acknowledgement We thank all our respondents for their participation and valuable feedback.
Therefore. and expanding their social and business networks.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Project Brief Abundant information has indicated that the proliferation of 3G technology or Mobile Internet allows consumers and businesses to build connectivity by transcending time and place. Research on 3G technology acceptance. Furthermore. increasing accessibility. will be extremely worthy in providing useful information. 4 . the results of this study may allow them to better segment and target the market. this study will be primarily beneficial to the mobile service providers since they can understand the innovators’ and non-innovators’ perception of the service. little attention has been given to user acceptance of 3G technology (Mobile Internet) in India. therefore. especially at this early stage of 3G Mobile Internet development and implementation. While there has been an increasing amount of wireless mobile activity.
readings from internet international & Indian. The secondary data in this study covers the theoretical part. articles published. Methodology The study is both qualitative and quantitative in nature with a set of interviews conducted and a questionnaire that was uploaded on the internet and was targeted to a sample of 32 working professionals based on a convenience sampling. in order to evaluate the expected demand on the 3G services. 5 . The research methodology that is used for this study also includes secondary data. either corporate or individuals. the impact of the 3G services will be defined generally as the possible change in the demand of mobile services as reflection to the introduction of the 3G services that will also create new revenue channels for the operators and that will eventually effect their profitability. Questionnaire was used to measure the research variables related to the consumer response towards usage of 3G services. In this research.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Research Model and Hypotheses The purpose of this analytical study is to understand the acceptability of 3G services in the Indian market and its impact on the subscribers’ demand. The survey will test the willingness of the potential 3G users.
A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Introduction To Topic Second generation mobile WAP devices have rapidly gained mainstream status in most of the developed markets and value – added services are appearing to exploit 2G’s data capabilities. industry consolidation. • Data (non – voice) uses of 3G will be as important as and very different from the traditional voice business. Significant changes will be brought about by this rapid evolution in technology. Enabling technologies like HSDPA. 6 . EVDO or WCDMA will arrive in India at the turn of this year. Adding to the above that the telecommunication world is changing as trends of media convergence. until recently undreamed of in a mobile environment and will allow operators to compete realistically in the mainstream internet marketplace. The latest wave of change is imminent in the shape of “Next Generation Mobile Technology” or referred to as 3G services. transforming the speed and volume of data flowing across wireless networks and opening the way for operators to offer true IP based data services. 3G will offer the kind of bandwidth that was. Internet and IP technologies and mobile communication collide into one. with 3G a radical departure from that came before in the first and even the second generations of mobile technology in a way that: • The people will look at their mobile phone as much as they hold it to the ear.
A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe • The mobile phone will be used as an integral part of the majority of people’s lives – it will not be an added accessory but a core part of how they conduct their daily lives. in spite of all uncertainties Operators have really have no option but to make long term commitments and massive long – term investment decisions. all these factors contribute to the highly volatile telecommunication environment where strategic would seem to have more value than long – term planning. • Many media and internet companies have shown strong interest in using 3G technologies as a new channel to distribute their content. But. 7 . driven by inexorable emergence of new mobile technologies. opening the opportunity for new entrants and new partnerships and value chains. the globalization of many leading players and the steady downward pressure of the price of basic telecom. liberalization of markets. The explosion of new competition.
The mobile handset is becoming a platform for a wide variety of data applications. For example. Mobile phones are not just devices for occasional use. is the fastest growing segment. but infotainment. handset capabilities are growing rapidly. which includes games. audio and video (both streaming and downloaded) and information services. To support the demands of data applications. and 26% in Western Europe. subscriber spends a half an hour a day on the mobile phone.S. watching video. from taking and sending pictures—virtually all new handsets will have cameras by the end of the decade—to playing games. 8 . By 2011. penetration will rise to almost three quarters by 2011. with even higher data rates being tested. Globally.5 times as many mobile devices in use as there are PCs. there are approximately 3. up from only 2% in 2003. Data network capability is also increasing. and getting information from the Internet. The usage of this nearly ubiquitous device is rapidly changing away from purely voice communications. Text messaging continues to be the largest single component of mobile data usage.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Executive Summary The mobile phone is the most widely-used electronic device on the planet. with about a third of the world’s population having at least one. listening to music. data services and content will make up 16% of total mobile revenues in North America. Download speeds of up to 1 Mbps are possible on some of the latest commercial networks. Some 45% of all new handsets have slots for flash memory cards. the average U.
taking the total user base to 267.263 million new customers in 2008. India is the fourth largest telecom market in Asia after China. This means that one out of every three Indians has a telephone connection. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. taking the telecom penetration to over 33 per cent. 9 . according to the data released by COAI. the total number of telephone connections (mobile as well as fixed) had touched 385 million as of December 2008.8 per cent in 2007. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. The Indian telecommunications industry is on a growth trajectory with the GSM operators adding a record 9. the country’s cellular base witnessed close to 50 per cent growth in 2008. Cellular market penetration will rise to 60. According to the Telecom Regulatory Authority of India (TRAI).7 per cent from 19. and telecom companies expect this pace of growth to continue in 2009 as well. in April 2008.India added 113. India had already overtaken the US as the second largest wireless market.5 million customers added every month.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Detailed Findings of Secondary Research The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010.8 percent in developed economies. At current levels.1 percent as compared with over 2. with an average 9. To put this growth into perspective. the largest globally.3 million new subscribers in January 2009. Japan and South Korea. telecom intensiveness of Indian economy measured as the ratio of telecom revenues to GDP is 2.5 million. In fact.
65 million fixed and Wireless in Local Loop (WLL) connections and 551. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Indian telecom sector has undergone a major process of transformation through significant policy reforms.064 Village Public Telephones (VPT) as on September 2008. 10 . • • Availability of telephones on demand (targeted by 1997) Universal service covering all villages and one PCO per 500 persons in urban areas at the earliest (targeted to be achieved by 1997) • • Telecom services at affordable and reasonable prices World standard quality of services "NTP 1999 brought in the third generations of reforms in the Indian telecommunications sector. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP'1999. Policy reforms can be broadly classified in three distinct phases"The Decade of 1980's saw private sector being allowed in telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed and a Telecom Commission was set up to give focus to telecommunications policy formation. India is one of the fastest growing telecom markets in the world with an addition of more than 6 million connections per month. It is emerging as telecom manufacturing hub. Year 2007 was declared as "Year of Broadband" in India. telecommunications sector also benefited from the general opening up of the economy. Rural India had 76. "In 1990s. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. FDI inflow in Indian Telecom sector is the highest among all sectors.
there seems to be huge untapped potential for mobile phone penetration in rural India. during 2008 to 2009.000 community service centers in rural India to provide broadband connectivity. for the development of around 100. the government targets: · 80 million rural connections · Mobile coverage of 90 per cent geographical area · Internet Protocol Television (IPTV) in 600 towns · Quadrupling manufacture · Two-fold increase in telecom equipment R&D from the current level of 15 per cent The Advantages of 3G Technology · Perform all those functions that they perform at present with their mobile devices but at much higher speed than before. 92 per cent of the villages in India have been covered by the VPTs. · Can avail the benefits of video calling.000 towers by 2010. and music entertainment with improved quality. The government also plans an investment of US$ 2 billion. · Clarity is better and the facility can be enjoyed as long as both of are using the 3G technology. · Provides them with faster connectivity.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Therefore. 11 . Additionally. Universal Service Obligation (USO) subsidy support scheme is also being used for sharing wireless infrastructure in rural areas with around 18. With the tele-density in rural areas being still about 10 per cent against the national average of about 21 per cent. by 2010. faster internet access. The Indian rural market is going to be the next big thing for wireless telecom providers. The target of 80 million rural connections by 2010 is likely to be met during 2008 itself.
· All these services can be provided to the customers on the basis of the amount of data they transmit and not on the time for which they use the service thus making the services cheaper. increased call volumes and host of the multimedia applications to their customers. including: Will ease spectrum constraints on the 2G networks and accommodate subscriber growth Will improve data opportunities as spectrum constraints are a major barrier to adoption and usage. · Improved performance over 2G. Basically it holds three way benefits to all the parties involved.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe · Access any site on the Internet by using your phone as a modem for computer or laptop and mail the important documents. · Downloading games and songs is much faster with this technology · Can be also used for favorite search engines to find information on news headlines. · Increased the bit rate thus enabling the service providers to provide high speed internet facilities. · Provide with the data transmission speed of up to 2Mbps when the users are using the phone on stationary mode. get information about the evening weather. · Provides significantly faster data transfer rates of connectivity and increased networking and most importantly the resistance to noise. Indian consumers already own c2m 3G devices 3G spectrum will allow incumbents to differentiate services from new entrants and regional players 12 . · Beneficiary to the service providers as well as the intermediaries like the content providers and the media houses who are looking for an additional platform market their products.
including: Issues of 3G Although 3G was successfully introduced to users across the world.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Improved capacity Improved coverage. The initial pricing has been on the higher side and it will have to drop if mass adoption is to ensue. A high degree of service flexibility. some issues are debated by 3G providers and users: · Expensive input fees for the 3G service licenses in some jurisdictions · Differences in licensing terms between states · Level of debt incurred by some telecommunication companies. The delay in auction over three years has deprived Indian subscribers of the benefits of high speed mobile data services available to over 300 million 13 . which has left the country lagging behind many others. media rich content. which makes investment in 3G difficult · Lack of state support for financially troubled operators · Cost of 3G phones · Lack of coverage in some areas · High prices for 3G in some countries · Demand for high speed services in a hand-held device · Battery life of 3G phones Current status and Impact of 3G in India The success of 3G is going to depend on demand for superior quality voice services and data heavy. Spectrum policy in India has been the victim of slow decision-making. enabling migration from a 2G deployment.
by providing a far richer service experience than is currently available—particularly in the deployment of audio-visual services. 3G offers a platform which can offer true multimedia services. many operators are starved of spectrum and as 3G offers four to five times the voice capacity of 2G spectrum. Tata Indicom and Reliance are the only players in the data card segment. This would pave the way for data usage on mobile phones. network operators can offer wireless broadband services. Moreover. a large untapped rural market. The fundamental driver for 3G in India is to serve the country’s demand for broadband services. With 3G. Currently. 14 . and the challenge of providing high bandwidth in rural areas using landlines are all factors favoring a 3G rollout. Poor broadband penetration.. Europe. sales are expected to boom with competitive prices and attractive schemes. This is vital as operators are focusing on customer acquisition as well as ‘sticky offerings’ to prevent churn. The technology is expected to drive data card adoption. With more players coming into the market. these could be rolled out into other emerging markets. Services beyond voice and text can be offered. 3G in India is initially expected to provide additional spectrum for voice services. The technology will be critical for operators in enabling the differentiation of their service portfolio. it is a cost effective tool to deliver voice.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe subscribers residing in over 125 countries with significant concentration around the Americas. At a later stage. This is also an opportunity for Indian software companies to join hands with service providers to develop applications that will meet the needs of the Indian mobile user. 3G enables better VAS services due to the higher levels of bandwidth that it can accommodate. and South East Asian countries.
) • -Foreign invested companies (Hutchison-Essar. Major Players There are three types of players in telecom services: • -State owned companies (BSNL and MTNL) • -Private Indian owned companies (Reliance Infocomm. Spice Communications) 15 . deploying a mobile network is much cheaper and it can be rolled out a lot faster than wired infrastructure. in areas where no fixed-line infrastructure exists. Tata Teleservices. Escotel. BPL Mobile.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe From a technological point of view. Bharti Tele-Ventures. Idea Cellular.
The model suggests that when users are presented with. It was introduced and developed by Fred Davis in 1986 (Davis et al. 1989) 16 . a number of variables influence their decisions about how and when they will use it. 1989).. perceived usefulness and perceived ease of use. 1989). (Davis and Arbor. which are hypothesized to be fundamental determinants of user acceptance. a new software package. There are two specific variables. for instance..A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Technology Acceptance Model The technology acceptance model is an influential extension of Ajzen and Fishbein’s theory of reasoned action (TRA). TAM is a model derived from a theory that addresses the issue of how users come to accept and use a technology. Perceived Usefulness External Variables Perceived Ease of Use Attitude Toward Use Behavioral Intention to Use Figure 1 Technology Acceptance Model (Davis et al.
Gender Male Female 29 91% 3 9% 3. Age It was found that 26-35 age bar of respondents was maximum.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Detailed Findings of Primary Research Following are the graphs and charts for the questionnaire conducted in our project. 17 . Disclosure of name was kept as compulsory. 2. 1.
A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 4.20000/.10000/. there are 81% male & 19% female. • 91% are in service. Price range of the mobile which you currently use Rs 1000 – Rs 5000 Rs 5000 – Rs 10000 Rs10000 – Rs 20000 Option Above Rs 25000 2 6% 413% 1959% 619% Deduction: 59% of total respondents are using a mobile between the price range of Rs. 5. 60% is male & 40% is female.of which 53% are male & 47% are female. of which 60% were between the age group of 26 – 35. • 91% were male. • 75% are between the age group of 26 – 35 yrs of which. 18 . Occupation Student Service Self employed / Business Home maker 1 3% 2991% 2 6% 0 0% Deductions: Of the total sample survey.& Rs.
so percentages may add up to more than 100%. Do you use internet on your mobile phone Yes No 29 3 91% 9% Deduction: 91% of the total respondents use internet of which. What are the current features on your mobile phone Internet Google Map Flash None 31 97% 18 56% 13 41% 1 3% People may select more than one checkbox. 19 . 8. & 56% use it for google maps. Deduction: Of the 91% respondents that use internet on the mobile. You use Internet on your mobile phone for Social networking Online Game Email (Personal/ Official) Documents PDF / DOC/ Excel/PPT Browsing None 1547% 2 6% 2681% 1341% 2166% 3 9% People may select more than one checkbox. 7. 97% use the purely the net.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 6. so percentages may add up to more than 100%. 81% use it for emails alone.
How much do you spend on your mobile internet per month? 200 200-500 500 and above None 1134% 825% 619% 722% 20 .How often do use the above features Multiple times in a day Once in a day Once a week Once in fifteen days None 1 59 9 % 3 9% 4 13 % 3 9% 3 9% 10. 59% of them still check their mobile for various net based applications multiple times a day. Are you happy with the current internet speed on your phone? 6 Yes No None 23 3 19% 72% 9% Deduction: Though 72% of the respondents are unhappy about the current internet speed.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 9. 11.
34% spend less than Rs.per month. Are you aware of 3G technology? Yes No 28 4 88% 13% 14. What do you understand by 3G technology? Deductions: Although 88% of the respondents gave an affirmative on being aware of 3G technology. Is your handset 3G enabled Yes No Dont Know 18 56% 11 34% 3 9% 21 . Connectivity of Internet on Mobile handset is through Mobile network Provider Wireless Wi. 15. 13.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 12.200/. there was only 66% who could describe exactly what some of the features of 3G technology were.Fi network None 2784% 2 6% 3 9% Deductions: Though 84% of the respondents access internet applications via their Mobile Network Provider.
If you’re current handset is not 3G compatible are you willing to buy a 3G handset? Yes 20 63% No May be 6 19% 6 19% Deductions: 9% of total respondents did not know if their handset was 3G enabled. but 63% would change their handset for a 3G handset. Will a speedy and efficient net service motivate you to spend more on mobile internet? 22 69% Yes No May be 2 6% 8 25% 22 .A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 16. 17.
intra enterprise web applications. . . 63% of the total respondents. In regard to gender. CRM.A faster technology for cell phones where internet is faster & video conference is possible.. 69% of the respondents would be motivated to spend more on their internet budget if they had a faster connection. Enterprise application which is data rich (video conf. making possible the integration of voice.) would be launched by the operators at corporate price rates assuring revenue volumes would be marketed as most of the respondents in service availed the email service.Multimedia 3G networks transmit wireless data up to 2 megabits per second.It enables hi speed data transfers on mobile through dedicated frequencies and thereby will enable a lot of multimedia and live streaming on mobile.The next generation of wireless technology.. Corporate and Enterprise user segment is possibly the first target of 3G service. However in depth understanding of the technology was still lacking. .what do you understand by 3G technology? . 3rd generation wireless technology.Fast net connectivity.Faster speed better technology like video conferencing etc. e-mail etc.. would change their mobile instrument to avail of the 3G technology when launched. . data and video. Other Findings Majority of respondents knew the basic functionality of 3 G technology. it helps you to manage your home gadgets 23 . Below are some of the respondent’s replies to the Question . but the female respondents were not adverse to the launch of 3G.its a higher & better version of 2G(as per my knowledge of it) . though the male population showed a higher inclination towards the willingness to adopt 3G.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Solutions & Recommendations From the total respondents.
regardless of whether you choose to participate. Gender . We are students with Welingkar College and are inviting you to participate in research in the form of a questionnaire Your opinion will represent the opinions of thousands of people much like yourself and will be of great help to our research.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Blank Questionnaire A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe.Female . Please advise us if you have questions at any time about the survey or the procedures.com Thanking you Yours Sincerely Garima Lodha 1.Male 24 . Your responses will be strictly confidential and data from this research will be reported only in the aggregate. Dear Sir/ Madam. please let us know if you would like a summary of our findings. Name 2. you can write to us on garimalodha@gmail. Your participation is voluntary.
No 8.Rs.A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 3.Google Map .Online Game .45 .26 -35 .10000 – Rs.None 7. You use internet on your mobile phone . 10000 .5000 – Rs. 5000 Rs.Flash .15.Rs.Home Maker 5.Email (Personal/ Official) . Price range . Occupation .Documents PDF / DOC/ Excel/PPT .25000 6.45 + 4.25 .None 25 . Do you use internet on your mobile phone .Service .Internet .Rs.36. Age .Above Rs.Self Employed / Business .Browsing . 20000 .Social Networking .1000 – . What are the current features on your mobile phone .Student .Yes .
A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 9.Yes .Don’t Know 26 .Mobile network Provider .Multiple times in a day . How often do use the above features .Yes .Yes . Connectivity of Internet on Mobile handset is through .200 .Wireless Wi. How much do you spend on your mobile internet per month? .Fi network . What do you understand by 3G technology? 15.None 12.Once in fifteen days 10.Once in a day .500 .No 14. Is your handset 3G enabled . Are you happy with the current internet speed on your phone? .No .None 11. Are you aware of 3G technology? .Once a week .None 13.200.No .500 and above .
Yes .A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe 16.Yes .No . Will a speedy and efficient net service motivate you to spend more on mobile internet? .May be 17. If you’re current handset is not 3G compatible are you willing to buy a 3G handset? .May be 27 .No .
Tatas bid for 3G . 07.Times of India – India Business .Future of 3G in Indian Telecom sector – IBS Pune PDF . Senior Research Manager – IDC .16pm IST 28 .A Study of Behavioral Intention for 3G Mobile Internet Technology: Preliminary Research on willingness to subscribe Bibliography and Web References . RCom.Role of Future – India 3G in India’s Mobile Should Skip 3G and go to LTE? Article contributed by Bill Rojas and Alex Chau.Bharti. Mar 18.PTI. Track: New Technologies and E-Marketin .An investigation of consumer behaviour in mobile phone markets in Finland Submission to 32nd EMAC conference. Vodafone. 2010.