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Communications of the IBIMA


http://www.ibimapublishing.com/journals/CIBIMA/cibima.html
Vol. 2011 (2011), Article ID 710870, 11 pages
DOI: 10.5171/2011.710870

Inhibitors and Enablers of Mobile


Data Services Use in South Africa
Hiranjali Ramburn and Jean-Paul Van Belle
Department of Information Systems, University of Cape Town, South Africa
______________________________________________________________________________________________________________

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
__________________________________________________________________________

Introduction such as cell phones to conduct commercial


and ?inancial transactions (Pinheiro, 2003).
The mobile phone, or cell phone as it is
commonly called in Africa, is now regarded However, M-commerce cannot fulfil its
as a ubiquitous multipurpose potential without the widespread
communication and computing device, with acceptance of mobile data services
penetration rates of above 90% of South (Massey, Ramesh & Venkatesh, 2003;
Africa’s population. New functionalities, Mattila, 2004). Despite huge investments in
ranging from internet access to mobile the sector, the actual adoption and use of
television, are constantly added to the basic mobile data services in most African
data access function of these devices countries has been particularly slow when
(Tarasewich, 2003). compared to countries such as Japan,
Taiwan, USA and UK. In Africa, the use of
There has been a lot of excitement about SMS and chat services has been widely
the use of mobile data services and mobile accepted, but people are still reluctant to
commerce in African countries over the engage in other mobile data services, such
past few years, with claims that mobile as MMS, mobile banking and web browsing
commerce would become the next new amongst others (Brown, Gordon, Janik &
trend in the electronic marketplace Meyer, 2005). Thus, any barriers to the
(Joubert & Van Belle, 2009). adoption of mobile data services is an
essential concern for M-commerce
Mobile Commerce, more commonly stakeholders, as are possible enablers to
referred to as M-commerce, is defined here speed user adoption.
as the use of wireless handheld devices

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

Research Objective by providing them with an insight into the


potential barriers which discourage
We first investigate the extent to which current and future use, as well as how
mobile data services have been adopted in these might be alleviated. Researchers in
Mauritius. The reasons why mobile phone the field of Mobile Communications should
users are reluctant to use different data be interested in the enablers and inhibitors
services and the key inhibitors are as described and may wish to compare this
explored. Lastly, the factors, which may across time or geographic dimensions.
encourage users to use mobile data
services more frequently, are discussed. Definitions and Prior Research

The research focused on individual, not Definitions


business users of mobile data services in
South Africa. Given the technological Mobile data services are here defined as
landscape, only the following mobile data wireless access to a set of B2C activities
services were considered: cell phone using a mobile phone available through
banking, downloading ring tones, games mobile service providers (Wang & Lin,
and logos, downloading content such as 2006; WMIS, 2006 as cited by Oh et al.,
weather, sport and/or news, web 2006). Examples include transactions, such
browsing, accessing email, mobile as SMS, send/receive emails, MMS, mobile
gaming/video, short messaging service games, content services, mobile banking, e-
(SMS), multimedia messaging (MMS) and tickets, mobile auctions and stock trading.
online chats such as MSN messenger and Some studies have used mobile data
Mxit. services, mobile applications/services or
even mobile Internet services
These services were selected since they interchangeably (Bouwman, Carlsson,
form part of the most popular and Molina-Castillo & Walden, 2007).
advanced mobile data services available in
South Africa. We chose to conduct this This research focuses on the use of mobile
study in South Africa because it already has phones as opposed to Personal Digital
the required infrastructure for new mobile Assistants (PDAs). This is an important
technologies and services in place, thus, the distinction to note, since PDAs are mostly
economy of the country could experience a used by corporate users for business
major boost with the adoption and use of transactions while mobile phones are
mobile data services (Rouvinen, 2004). The mainly utilised for individual use (Singh,
progress of the mobile telecommunication 2003). It must be noted that the difference
industries depends on not only the between mobile phones and PDAs is
development of mobile technology and the gradually becoming less apparent as the
data services provided, but also the screen sizes on phones get larger, with
subsequent adoption of the services by the applications being continuously added.
consumers (Bouwman, Carlsson, Molina- “However, the main difference is still the
Castillo & Walden, 2007). Hence, the numeric keypad and one-hand usage of
necessity to investigate the potential most phones as opposed to the touch
barriers and factors which may encourage screens and two-hand usage of most PDAs”
potential and existing users to adopt (Kaasinen, 2005).
and/or continue use of mobile data
services. The Mobile Telecommunication Industry
in South Africa
The results of this research will be of value
to M-commerce stakeholders. Although the Although Africa accounts for 13 % of the
mobile industry is currently one of the world’s population, it only accounted for
fastest growing markets in South Africa, 2.3 % of the world’s (fixed line and cellular)
consumers are still reluctant to use and telephonic subscribers at the end of 2002
adopt the new services being introduced. (Marrakech, 2002). However, over the last
Therefore, this research allows the few years, many African countries have
stakeholders to better understand the witnessed rapid developments of their
consumer market of mobile data services mobile networks and infrastructure, with
3 Communications of the IBIMA

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.

Cost of mobile data services is another We selected a first select sub-sample in


prominent inhibitor. It is one of the major South Africa consisting of university
factors to be considered by consumers students and staff. Students, in particular,
when deciding whether or not to use a can be seen as an interesting population
technology or service. Most consumers group because they are young, innovative,
perceive the cost of mobile data services to sophisticated and well-networked users
be particularly high (Gordon et al., 2004). who are familiar with the mobile
5 Communications of the IBIMA

technology, accounting for some of the key Demographic Analysis


adoption factors in traditional adoption
models. A second sub-sample came from The sample consists of 128 (60%) males
the business environment where people and 84 (40%) females. With respect to the
are thought to achieve direct financial and age distribution, the sample reflects a
time efficiencies from using the relatively young user group: more than
technologies. This sample is deemed to be 40% of the respondents fall in the 21-25
suitable for the purpose of this research as year age group. This percentage reflects the
the participants represent different stratified sampling approach which
background and socio-economic status. targeted students as one of two desired
The sample is mostly from the Western population groups. Only 8-9% of the
Cape. Even though this may be fairly sample is older than 40 years. Although
representative for South Africa in terms of people above 40 years old have been
income and age, it is not fully targeted, they were either very reluctant to
representative of the country’s population fill in questionnaires or they did not use
in terms of other social demographics such any of the mobile data services provided.
as race, language, or culture. This bias, Occupation is another important
which may or may not affect the findings, is demographic factor. The target sample
a limitation of this study but was forced on comprises of 53% students and 47 % of
the researchers because of practical working people. The latter consisted of
feasibility and resource constraints. academics, analysts, programmers and
software developers, accountants,
A pilot study was initially conducted. The researchers, administrators, sales people
questionnaires were distributed to a subset and marketing executives.
of the above described sample. The pilot
study allowed the researcher to uncover Usage Profile
whether the questionnaire was user-
friendly, clear and understandable to the This section discusses the usage profile of
intended sample. Based on the feedback the various mobile data services. Not
received, the questionnaire was reviewed surprisingly, SMS is the most frequently
and refined. used service with 98% of sample using it.
MMS and web browsing are the most
The modified questionnaires were then sought after services after SMS, followed by
delivered to the respective samples. The online chats and downloading of content.
researcher first made some initial contact 37% of the sample access email from their
with a few targeted respondents in order to mobile phones while 31% use top up
encourage greater participation of the services and 30 % download ringtones
respective samples, hence ensuring a from their mobiles. Cell phone banking and
higher response rate. Some questionnaires playing online games are the least popular
were hand-delivered by the researcher, services with more than 80 % of the
while others were sent via internal mail. sample not using these 2 services at all. As
247 questionnaires were obtained but 35 for frequency of use, 67% of the sample use
of them were inappropriate to be used for SMS several times and 17% engage in web
the analysis, resulting in 212 usable browsing. 11% use online chats several
responses. These samples are sufficiently times daily while only 9% use email several
large to provide reasonably reliable data. times daily. Very few respondents use the
other services more than once daily. Figure
1 below shows the distribution.
Communications of the IBIMA 6

Figure 1: Frequency of Use of Mobile Data Services

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

1st 2nd 3rd

Figure 2: Inhibitors of Mobile Data Services in South Africa

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

A new mobile handset

Higher income

of security measures
mobile technology
Wider range of

Reliability of the

improves my image
availability on PC or

The reliability and


dependability of

It is trendy and
services

services
No internet

laptop

Fcators influencing use

1st 2nd 3rd

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

of ringtones, content services, web Telematics and Informatics, vol.24, no.2,


browsing, email, MMS, mobile games, pp.145-160.
mobile banking and mobile chats. South
Africa has an advanced mobile Brown, I., Cajee, Z., Davies, D. & Stroebel, S.
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