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Abstract
The uptake of advanced mobile data services in South Africa has been slow, even though it is
currently the largest cellular market and has one of the most advanced mobile
telecommunication industries in Africa. This apparent contradiction forms the subject of this
article. It presents the findings from a survey in South Africa that looked at the adoption of a
number of data services, including content services, web browsing, email, MMS, mobile games,
mobile banking and mobile chats. It was found that, apart from SMS, users were indeed
generally slow to adopt any of the 3G data services. The article lists and discusses the major
obstacles and inhibitors to this adoption as mentioned by the respondents. It also reports on
what mobile users perceived could be done to promote the adoption of mobile services. This
research should, therefore, provide useful insights to researchers interested in mobile
technology adoption in Africa as well as the providers of mobile data services.
Keywords: Mobile Data Service adoption, inhibitors and enablers of Mobile Data Services,
Mobile Internet, South Africa
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Copyright © 2011 Hiranjali Ramburn,and Jean-Paul Van Belle. This is an open access article distributed
under the Creative Commons Attribution License unported 3.0, which permits unrestricted use,
distribution, and reproduction in any medium, provided that original work is properly cited. Contact
author: Hiranjali Ramburn E–mail: ranjali17@gmail.com
Communications of the IBIMA 2
the number of mobile subscribers Some researchers believe that this 3-tier
increasing at 35% a year. This has resulted model poses a serious threat for M-
in an increase in tele-densities and better commerce in South Africa as WASPs are
reach and service to people from the rural less motivated to introduce more services
areas (Scott, Batchelor, Ridley & Jorgensen, since profits have to be split in three ways
2004). South Africa has one of the most (Vechattio, 2005). Some studies established
sophisticated telecommunication systems that while consumers trust MNOs, they are
of all emerging markets and ranks 23rd in not confident of the services offered by
telecommunications development (Manjoo WASPs and in the past, some WASPs were
& Kankwenda, 2007). The held responsible for misleading
telecommunication sector contributes advertising; billing consumers for services
approximately 6% to South Africa’s GDP not received; charging very high rates and
(E- Business Handbook, 2005). One of the SPAM (Joubert & Van Belle, 2009).
most remarkable occurrences within the However, other researchers have
South African telecommunication attributed the success of mobile phones
environment has been the rapid adoption and data services to this unique 3-tier
rate of mobile phones (Van Wyk & Van model (Hislop, 2004).
Belle, 2005). As at the end of December
2008, the South African market consisted Mobile Data Services in South Africa
of approximately 47.28 million mobile
subscribers (Business Monitor South Africa was quick to make significant
International, 2009). This is a significant financial investments for both the purchase
increase in the number of mobile users of 3G licenses and rollout of 3G network
when compared to the reported 38 million infrastructure. Vodacom was first to launch
estimated in 2006. Furthermore, with more 3G services in December 2004 followed by
than 83% of the South African population MTN. Currently, both Vodacom and MTN
currently using mobile devices, South users who are equipped with 3G enabled
Africa is the largest cellular market on the handsets can make video calls (Joubert &
African continent, which holds around 78 Van Belle, 2009). In March 2006, MTN
million cellular users (Converging launched 3.5G technologies, which make
Communications, 2005). use of High Speed Downlink Packet Access
(HSDPA) to provide users with connection
The South African mobile industry operates speeds of 2 Mbps. Vodacom followed in
under a unique 3-tier model (Manjoo & April 2006 (Global UMTS Network Rollout
Kankwenda, 2007). The 3 main Status, 2006) .
stakeholders are the Mobile Network
Operators (MNOs), Service Providers (SPs) Despite the fact that the use of mobile
and Wireless Application Service Providers devices is the fastest growing technology
(WASPs). Although South Africa has four ever seen in South Africa, the use of
MNOs, namely Vodacom, MTN, Cell C and advanced mobile data services has still not
Virgin Mobile, the first two dominate the touched the lives of most cellular phone
market and together, hold about 90% users (Goldstuck, 2005). The major portion
market share (Business Monitor of the population uses SMS, chat services
International, 2009). Service Providers and some leisure based services such as
(SPs) are in charge of the retailing of ring tones and games but they are still
mobile products (contracts, handsets, pre- reluctant to engage in other more advanced
paid vouchers and data services) to the data services (Scott et al., 2004; Goldstuck,
general public and corporate users. They 2005).
are also responsible to manage customer
relationship on behalf of MNOs. Wireless Enablers and Inhibitors of Mobile Data
Application Service Providers (WASPs) are Services
responsible for the creation, promotion and
hosting of mobile services. They depend on Mobility, convenience and ubiquity are the
both SPs and MNOs to provide the main benefits of using mobile data services.
infrastructure and customer relationship to Internet now travels with the customers;
offer their services. transactions can be conducted from any
Communications of the IBIMA 4
location and at any time of the day, which Mobile phone charges in South Africa are
makes it well suited for the customers. believed to be up to10 times more
Information can now be easily accessed at expensive than that of other comparable
anytime from any location hence ensuring European countries (Steenkamp, 2005).
convenience, mobility and ubiquity
(Turban et al., 2002). Other factors inhibiting use of mobile data
services include lack of business
However, the actual usability and security requirements, incompatibility of handsets,
of mobile devices have been debated. While lack of skills and knowledge concerning the
some people find using mobile devices to service and poor design interface of the
conduct transactions relatively easy, others devices (Singh, 2003).
experience difficulty with the small screen
size and small keypad. Data input becomes Research Methodology
a problem, and this can lead to wasted
time, errors and frustration experienced by One of the research objectives was to
users, hence making usability less assess the relative extent to which the
attractive (Tarasewich, 2003; Chen & various mobile data services have been
Frolick, 2004). adopted in South Africa. The main focus of
this research, however, is the
Some researchers believe mobile understanding of factors which act as
commerce has fewer security flaws as barriers to the adoption and use of mobile
opposed to electronic commerce as the data services followed by an overview of
mobile device travels with the user, hence the major inhibitors and thereafter the
giving the latter a greater sense of security factors which will subsequently encourage
(Brown et al., 2005; Doens, 2005). adoption and use. For this purpose, we
However, the mobility of these mobile adopted a positivist, quantitative research
devices also increases the risk of losing approach by sending a questionnaire to a
them (Tarasewich, 2003). Mobile users are sample of mobile phone users. The
worried about the safety of their devices as research is mainly descriptive in nature. A
these can easily be lost or stolen. One of the cross-sectional time horizon was chosen
key concerns which emerged during the because of the constant evolutionary
results analysis of a South African study nature of mobile data services and mobile
was: “Although cell phone banking is technologies: new mobile data services are
convenient and more secure in a way, it introduced at a very rapid pace.
would be more inconvenient if one loses
the phone, because everything will have to The questionnaire first measured the
be replaced” (Gordon, Janik & Meyer, current, previous and future level of use of
2004). respondents by focusing on both the
variety and frequency of the use of the
On the downside of the use of mobile data above mentioned mobile data services. The
services, information security is a potential respondents were then prompted to state
concern. Information security refers to the the reason(s) why they are not using any of
safety and security of data as it travels over the mobile data services. A final section
the network. Concerns have been asked respondents to rank the three most
expressed about the call being intercepted influential factors which they believe will
and decrypted (Gordon et al., 2004). inhibit or encourage their use. A stratified
Despite technical assurances to the sampling approach with sub-groups based
contrary, security perceptions remain on age, occupation and income have been
negative among many users. investigated.
This frequency distribution provides an few Mauritians are currently using them
indication of the services which have been (Ramburn, 2007)
successfully accepted in South Africa. As
discussed in the literature, this research The Major Reasons Accounting For Non-
reveals that SMS and chats are the most Use of Mobile Data Services
popular services in South Africa. Web
browsing, MMS and content services have In order to identify the barriers to
gained relative acceptance amongst users. pervasive adoption of mobile data services,
The results give mobile stakeholders an respondents were asked to state reasons
insight on the services which have not been for not using data services in an open
widely adopted as yet, allowing them to response field. These were classified by the
market the services better in an attempt to researchers into categories. This procedure
increase awareness and generate curiosity. allowed us to gain richer insights with
regards to respondents’ perceptions of
This usage trend is comparable to other what is preventing them from using the
African countries with similar technological various available mobile data services.
infrastructure as well. For instance, Respondents unanimously cite the lack of
Mauritius follows a similar pattern for need for the services as the main reason
services such as SMS, downloading of accounting for non-use of mobile data
content and cell phone banking, with SMS services. Lack of interest in the services,
being the most popular service in Mauritius high cost of transactions and lack of
as well. Some differences can however be awareness then follow. However, not all of
noted in the usage trends of MMS, web the reasons that are advanced for non-
browsing, email, top up and online chats. adoption can be seen as inhibitors: lack of
Whilst MMS, web browsing and email are need or awareness is not primary
highly used services in South Africa, very inhibitors (though, admittedly, focused
7 Communications of the IBIMA
marketing can address both by creating a inhibitor has been grouped in three
real or perceived need). categories namely; the number of times
respondents rated them as the 1st, 2nd or
The Major Inhibitors of Mobile Data 3rd most signi?icant inhibitors. Key
Services inhibitors to adoption were culled from the
literature and users were asked to identify
In this section, we attempted to identify the and rank their top three inhibitors. Figure 2
factors which respondents’ rate as prime below illustrates the findings.
inhibitors and for this purpose, each
70
59
60
50
Number of respondents
40 37
35 35
29
30 27
22 22 23 23 23
20 19 20 19
20 18 18
16
14
11 11 12 12 11
10
10 8
6 6 6
4
0
Increased Receiving Leaking of Spamming Not knowing Lack of need Billing Erros Complexity Lack of Unreliability
cost of illegal and my personal what am of operating coverage of mobile
services harmful information paying the handset technology
content
Inhibitors
Increased costs, leaking of personal games, where they have to subscribe to the
information and spamming are seen as the service provider, still very expensive while
most prominent inhibitors. Receiving services such as chats, cell phone banking
illegal harmful content, lack of need of and email, where they only pay for the data
services, billing errors and lack of usage fee, relatively cheaper. They also
knowledge on the cost of services closely mention that if costs of these services are
follow. reduced, people will be encouraged to use
them more frequently. For instance, some
Increased cost of transaction is seen as the useful services such as ‘Look4me’ provided
most potential inhibitor. This result is by Vodacom, despite being very beneficial
consistent with the findings of Ramburn and useful, are not yet affordable to the
(2007) who interviewed a sample of average mobile user (Ramburn, 2007). This
mobile data users in South Africa to better can be a possible reason to explain why our
understand the reasons accounting for non above findings showed SMS, chat and
use. The sample unanimously agreed that emails as the extensively used services
they will cease use of mobile data services, whilst ringtones online games were less
should the price of services increase. popular.
Moreover, mobile data services users find
services such as ring tones, MMS and online
Communications of the IBIMA 8
The research found while respondents are The Major Factors Encouraging Use of
apprehensive to use services such as Mobile Data Services
mobile banking due to the fear of fraud,
those who do use it will immediately stop The final part of this paper provides an
usage, should they lose any confidential insight into the most significant factors
information. With regards to spamming, promoting or encouraging the use of
mobile data users do not welcome mobile data services. The same method as
advertisements that are not focused on above has been used to reveal the factors
mobile products and services. They see this users rate as most important. The first two
practice as being distracting and major factors influencing use of mobile
frustrating, contributing towards data services are lower prices of services
decreasing the value derived from using and a wider range of services followed by
these services thus acting as a potential increased awareness of new services and
inhibitor. better reliability of services.
80
74
70
60
Number of respondents
50
40
35
33
28 29
30
25
21 22 22
20 19 18 19
20 18 18 18 17
14 15
12 13 12
11 10 11
10 6
4 4 4 3
0
Increased awareness
Increased awareness
Lower prices
Higher income
of security measures
mobile technology
Wider range of
Reliability of the
improves my image
availability on PC or
It is trendy and
services
services
No internet
laptop
Figure 3: Major Factors Encouraging the Use of Mobile Data Services in South Africa
The influential impact of cost as both a trialability of new services. Next, a wider
determinant and inhibitor of mobile data range of services, allowing respondents to
services stand out clearly. This factor is be more functionally efficient, would
often not given prominence in the research encourage them to engage in more
in developed countries. Some of the mobile frequent use of mobile data services. Lastly,
data services are still relatively expensive, increased awareness of mobile data
especially when compared to non-African services is a distinguished factor that may
countries. The high cost combined with the encourage trial ability and continued use.
relatively lower income – these can be
taken together as “affordability” – appear Conclusions and Implications
to reduce usage of important services and
stop further usage of entertainment-based This research reports on a survey that
services. Conversely, lower-priced services looked at the use and adoption of a number
are deemed to a major incentive promoting of data services, namely SMS, downloading
9 Communications of the IBIMA