Faculty of Commerce, Law and Management

Permanent URI for this communityhttps://wiredspace.wits.ac.za/handle/10539/3922

For information on accessing Faculty of Commerce, Law and Management content please contact your Faculty Librarian

Browse

Subject: search.filters.subject.Mobile telecommunications

Search Results

Now showing 1 - 8 of 8
  • Thumbnail Image
    Item
    Adoption of mobile internet applications as a means of communication in South Africa
    (2014-01-21) Naidoo, Deena
    Mobile network operators in South Africa are experiencing a decline in their voice and messaging revenues as consumers continue to find new and cheaper ways to communicate over the mobile internet. The availability of high speed mobile broadband access and increased smartphone penetration in South Africa has created an environment in which the availability and use of Mobile Instant Messaging (MIM) applications (such as Whatsapp, Mxit, BBM and iMessage) are flourishing. Consumers are now downloading MIM applications onto their smartphones to support text messaging over the mobile internet as opposed to using mobile operators’ own messaging platforms. Consequently, every text message sent via MIM communication is lost revenue for mobile network operators. With limited research pertaining to the factors that influence consumers’ to adopt MIM for communication, this study attempts to identify these factors and the extent to which they affect consumers’ behavioural intention to adopt MIM for communication. Data collection was facilitated by means of an online survey via the internet and respondents were contacted via e-mail to participate in the survey. The samples used were mainly from the economically active population in South Africa that have valid e-mail accounts and have access to the internet. There were 259 valid respondents for the survey. The findings suggest that the factors, facilitating conditions, attitude, compatibility, perceived behavioural control, relative advantage and self-efficacy (in descending order of importance) have significant positive influences on consumers’ behavioural intention to adopt MIM for communication. While, subjective norms and significant others were found to have no significant impact. The results of this study are expected to give mobile network operators in South Africa an insight into how consumers come to accept and adopt MIM services for communication. Mobile operators must recognise that consumer behaviour is changing and that there is an imminent risk of their services being eroded by MIM communication.
  • Thumbnail Image
    Item
    The impact of Mobile Number Portability on customer switching behaviour in the South African mobile telecommunications industry
    (2012-12-04) Ayo-Oladejo, Rachael Lola
    Previous studies examining a range of sectors within the service industry have confirmed the negative effect of customer switching behaviour on the profitability of a company. The increased demand for the ever-evolving products and services offered by mobile network providers has resulted in extensive switching behaviour among mobile phone customers. Switching between mobile phone operators, however, has a number of associated inconveniences for customers, especially in terms of losing their cellular numbers. Mobile Number Portability (MNP) is an added feature on telecommunications networks that allows network subscribers the freedom to retain their existing cellular numbers when they switch to a different network provider, and it has been proposed that MNP increases churn and switching activity within the mobile telecommunications sector. Mobile Number Portability was implemented in South Africa in November 2006. This study identifies the critical factors that influence a customer‟s decision to switch network providers within the South African mobile telecommunications industry, and assesses the impact that the implementation of Mobile Number Portability has had on customer switching behaviour. Data was collected first by means of a qualitative open-ended question interview with 5 individuals. Their responses were content analysed to extract the major themes that emerged from the interviews regarding their decision to switch and how the decision was impacted by MNP. A survey was then carried out to identify the factors that determine if a customer would switch network providers. A total of 594 people responded to the survey, out of which 182 had previously switched network providers. These 182 respondents formed the sample, and a Common Factor Analysis was carried out on their responses. The findings revealed 3 significant criteria that determine if a customer switches network providers – Network service quality and availability; Customer iii service experience, and Mobile Number Portability. The resulting conclusion of this study is that MNP has had an impact on customer switching behaviour.
  • Thumbnail Image
    Item
    Customer retention strategies for the prepaid mobile telecommunications sector in South Africa
    (2012-01-23) Flynn, Teresa
    This study will propose ways in which companies can focus retention strategies in the local prepaid mobile telecommunications sector. Currently there is little academic literature on this topic, even though in-house marketing research has been done by the operators. The purpose of this research is to investigate the customer retention strategies in the prepaid mobile telecommunications sector in South Africa. This will be done by triangulation of what consumers believe is important in their retention, what the organisations deem as paramount, and what retention experts state are the motivators of retention. Data was collected using both a survey questionnaire for consumers, and through face to face interviews with marketing management at mobile telecommunications operators, as well as independent expert consultants on the topic of customer retention. The findings from this study were that the consumers want to keep the same cell phone number as it is part of their identity. The customer looks at the total offering when considering pricing, and not just certain costs, and prefers a prepaid model as spending is controlled in this manner. Both consumers and management agree that rewards and loyalty programs are seen as a value add, especially where they offer instant gratification. A reliable product is necessary for a consumer to stay with the company, as is accessibility to support and other products. Management realises that the total customer experience across all touch points is a retention enabler, with one really bad experience being enough cause for a customer to churn. The consumer survey indicated that customer service is a driver that all market players need to improve on. An organisation‟s brand allows a consumer to identify with the firm, and is more a pull factor than a push factor, unless it is perceived as dishonest or unethical. The only time a consumer‟s demographics came into play regarding customer behaviour was age making a difference was when using a cell phone to access the internet - iii older age brackets use it sparingly if at all. Although other value added services such as SMS and MMS are used across the board. Companies model consumer behaviour, and base it on data from previous churners to identify possible churners. Of these, only profitable churners are then recognised for retention campaigns. Retention campaigns are measured for success. The prepaid market makes up 80% of the mobile telecommunications market in South Africa, and the revenue they contribute is approximately 35% of the total. Therefore this customer base should not be neglected or ignored. Due to the demographics of emerging markets, prepaid offerings are the way of the future. The research paper finishes with several recommendations on how to enrich customer retention strategies for the prepaid mobile communication market.
  • Thumbnail Image
    Item
    THE USE OF MOBILE CELLULAR PHONES IN MICROENTERPRISES
    (2011-06-23) Tsotetsi, Khopotso
    This report presents the findings of an applied research study designed to explore the use of mobile cellular phones in micro-enterprises based at Pretoria. In particular, the report, considers the core research question: Are informal, survivalist micro-enterprises based in Pretoria realising the full potential of cellular phones to support the growth, development and sustainability of their businesses? What measures must be taken to advance the effective use of mobile cellular phones in informal, survivalist micro-enterprises. The context of the study is the assertion expressed in literature that indicates that the survival changes of micro-enterprises in South Africa beyond a period of three years is poor, despite the potential of mobile cellular phones to support productivity and efficiency gains in business. Hence, the exploratory study was designed to contribute towards the formulation of appropriate polices, strategies and interventions to improve micro-enterprises’ use of mobile cellular phones as tools to support business development. The study is also informed by the stipulations of the United Nations World Summit on Information Society Declaration which was signed by a significant number of heads of state in 2003. The WSIS Declaration (2003) indicates that that information and communication technologies (ICTs) are an important enabler of small enterprises’ growth through efficiency gains and increased productivity. Moreover, productivity growth depends on using existing tools more effectively and efficiently to yield bigger results. A focus group methodology was employed to enable the realisation of the research aim and question. The methodology allowed for a detailed explanation on experiences, perceptions, and why particular use patterns of cellular phones are prevalent amongst informal, survivalist micro-enterprises. The methodology also enabled the participants to put the experiences in their own words, and express attitudes, feelings, experiences, meaning and rationale underpinning usage. Moreover, the report also outlined a wide range of relevant literature and research studies that shed light on the topic. The study did not seek to draw conclusions for generalisation, rather, it has endeavoured to encourage reflection, deepen existing research and inform further debate. ii The report revealed that in order to understand usage of mobile services, as a precursor, it is important to understand the micro-enterprise business needs, in terms of the form of business they own, characteristics thereof, their information needs and information sourcing practices. The study affirmed that a mobile cellular phone is an integral part of micro-enterprises, consistent with key arguments of numerous researchers and authors. Two statements of some of the focus group members capture the essence of the sentiments expressed about the significance of a mobile cellular phone in micro-enterprises, namely, “If I can stop to use a cell phone, my business would suffocate and die”. ”A cell phone for me is my office”. The report revealed that the micro-enterprises in Pretoria used the mobile cellular phone to communicate and interact with other businesses and customers. However, the micro-enterprise owners did not use a cellular phone effectively to attain support from Government and transact with public entities. It also emerged from the study that the most used functions or services of a cellular phone in micro-enterprises were a voice call and short text messages. A mobile TV, internet, video and camera functions were not widely and effectively utilised in the businesses. The report concludes that though the microenterprise owners from Pretoria which participated in the focus group had an access to mobile cellular phones, they did not fully utilise all the features, applications and services available to support business activities. A cellular phone had a potential to support micro-enterprise growth and development but the potential thereof was not fully realised in the micro-enterprises. It was also revealed that the model of a cellular phone, form of business activities engaged by the microenterprise, needs of the business, level of awareness and socio-economic factors such as age, skills of the owner and the cost of the technology influenced the mobile cellular phone usage pattern of micro-enterprise owners that participated in the focus group. The main recommendation of the report is that Government should package information and services to convey over the cellular phone for micro-enterprises to use and should intensify awareness programmes to educate the micro-enterprise owners about how the cellular phone applications can be used effectively in business
  • Thumbnail Image
    Item
    CONTENT STRATEGIES IN THE SOUTH AFRICAN
    (2011-06-22) Spira, Timothy
    The ability to distribute and share rich media content across mobile networks represents a commercial opportunity for firms in such diverse industries as telecommunications, information technology, media and consumer electronics. Drawing on expert interviews with industry executives, this study categorises the various participants in the nascent South African mobile entertainment industry and explores the underlying sources of each category’s relative bargaining power. It also provides an analysis of the content delivery strategies available to industry participants and the key success factors associated with each strategy. The research reveals a fast-evolving industry characterised by constantly shifting patterns of competition and collaboration. A general blurring of industry boundaries occurs as participants pursue opportunities in, and face threats from, hitherto unrelated quarters. Mobile network operators currently enjoy formidable bargaining power due to the strength and volumes of their customer relationships. However, their dominance is under threat as handset manufacturers and media companies, among others, establish competitive advantages by leveraging their own entertainment brands, content assets and influence over the end-user operating environment. Customers are also exerting bargaining power by venturing beyond the “walled gardens” of operator portals, demanding more predictable data pricing options and embracing disruptive services such as instant messaging and “off deck” social networks. Against this backdrop, the researcher identifies four generic content delivery strategies: channel provision, direct distribution, syndication and business-to-business aggregation. Key success factors common to all strategies include business model selection, partnership skills and an entrepreneurial spirit of innovation and experimentation. Among the strategy-specific success factors: Channel owners and content providers need to select content appropriate to the medium and contextualise it according to the circumstances of consumption; rapid product development and the ability to achieve audience and content scale ahead of competitors is a key success factor for B2B aggregators; and targeting advertising and content based on deep customer knowledge is essential for both channel providers and direct distributors. Environment factors key to the success of the industry as a whole include flat-rate data billing by MNOs; proliferation of affordable, multimedia-capable handsets; viable business models for rich media content; iii lower MNO billing commissions; improved user experience and user education; standardisation of operating environments; and a favourable legislative environment. The report concludes with recommendations to specific industry participants premised on the outcome of the research. Among these: • Mobile network operators should leverage their customer relationships to serve targeted advertising and earn billing commissions wherever the entertainment experience occurs. As billing and data connectivity are ultimately volume-driven, operators should stimulate mobile entertainment usage by introducing flat-rate data plans and trading their “walled garden” portals for open gateways to the mobile internet. • Handset manufacturers should build sustainable competitive advantage and counteract their dependence on network operators for handset distribution by developing specialised entertainment brands and acquiring strategic content assets. Rather than resisting platform interoperability, they should position themselves for an era of more open standards in which content and application developers can thrive, thereby driving demand for more capable handsets. • The influence of content owners will depend on their ability to embrace mobile-friendly forms of content, including user-generated content, and devise appropriate channel strategies. While print and online publishers are well positioned to create their own mobile internet channels, music companies and film studios should seek aggregator channels that meet consumer demand for breadth of content. More flexible business models, including advertiser-supported music and video content, will help combat the serious threat posed by illegal file sharing and piracy. • Content aggregators and service integrators will succeed by establishing systems and processes to manage and protect intellectual property rights, and by optimising services for mobile platforms. These skills will become more sought-after in a broadband environment characterised by the proliferation of rights-protected rich media content.
  • Thumbnail Image
    Item
    Perceptions of Mobile Advertising in South Africa
    (2011-05-31) Nash, Brett
    It has been suggested that the mobile phone is the fastest growing and potentially the most addictive advertising medium ever developed. The danger of mismanaging this mobile medium however risks alienating consumers, damaging the reputations of major brands and depriving mobile operators of a lucrative revenue stream. The main purpose of this study is to investigate the perception of mobile advertising in South Africa by evaluating the factors that influence a consumer’s willingness to accept the mobile phone as a means of receiving promotional content. The data analysed in this study was collected by means of a questionnaire that was administered to a stratified random sample of 500 South African contract (post paid) mobile subscribers. The questionnaire contained various questions and statements that represented those constructs suggested by the literature as impacting upon consumer perceptions and willingness to accept the mobile advertising medium. A seven point scale was used for the purposes of this study to derive ordinal level data for the purposes of analysis. The data was subjected to multivariate and descriptive statistical procedures. The results of the analysis were used to answer the research questions, derive the various recommendations as well as to develop topics for further research. The main findings of the research showed that South African consumers generally hold a negative attitude towards mobile advertising and little intention of adopting the mobile medium in the future. Even though marketers and service providers would like to exploit he medium, consumers in South Africa do not perceive the value. It was found that there are three consumer acceptance dimensions, each made up of specific constituent factors, which have a direct bearing on the perception of mobile advertising amongst South African consumers. These are defined as the Derived Value realised by consumers when participating in a mobile advertising campaign, the key role Consumer ii Trust plays in the relationship between the consumer and the stakeholders within the advertising value chain, and the risks and sacrifices that fuel the Perceived Threat associated with inclusion or participation in mobile advertising campaigns. It is suggested, however, that if managed successfully these consumer acceptance dimensions could help improve the prospects for mobile advertisers in South Africa. The research paper concludes with a number of recommendations and strategies tailored to help support the future success of the medium at various points along the mobile advertising value chain.
  • Thumbnail Image
    Item
    AN ASSESSMENT
    (2011-04-15) IFUGHE, CARLSON A.
    The objective of this research was to assess the quality of service delivered by MTN to its subscribers. The mobile telecommunications industry in South Africa is not sufficiently competitive and so mobile operators can afford to ignore the quality of services they provide to their subscribers while charging high rates. The contemporary SERVQUAL instrument was used for this study. It measured Zone-of- Tolerance between minimum, acceptable service and desired (or expected) levels of service and compared these levels to perceptions of actual service delivered. A convenience sample of 100 prepaid MTN subscribers was used in the study, as well as five MTN management staff. The results were analysed and then processed using factor analysis and K-Means clustering. This research shows that the provider and consumer of the service view service quality from the same perspective and that the provider has a very good understanding of the consumer expectations with respect to desired quality of service. “Dependability” (or reliability), “Assurance”, and “Responsiveness” are identified as the three most important underlying dimensions that impact on service quality. These findings emphasise the need for the service provider to continuously engage and interact with its subscribers/clients so that it is always aware of their changing desires and expectations regarding service quality.
  • Thumbnail Image
    Item
    Factors affecting the usage of consumer mobile entertainment services in
    (2011-04-12) Govender, Vinodhan
    The South African mobile telecommunications market is very mature and close to saturation. The decline in subscriber growth rates coupled with regulatory pressures to reduce tariffs could have a serious negative impact on revenue growth and profitability for operators. The mobile operators, Vodacom and Cell C, have invested heavily in infrastructure deployment and data networks. Cell C is currently investing in the roll-out of its own data network. Consumer mobile entertainment services, which are delivered on the data networks, are a potential revenue stream which can provide the additional operators of revenues to compensate revenue lost due to decreases in voice tariffs that are being advocated by Parliament and the regulator, ICASA. The purpose of this research is to identify the factors that affect the usage of consumer mobile entertainment services in South Africa. Data was collected using a questionnaire survey that was administered in Gauteng. It was found that individuals between the age groups of 18 to 45 were currently the key users of consumer mobile entertainment services. However, the age group 46-55 showed the greatest propensity to adopt these services in the future. The mobile entertainment service categories that were the most frequently used were: Personalisation, Mobile and Infotainment services. However, Mobile TV, Infotainment, Mobile Video and Mobile Games showed the highest potential for future adoption. It was concluded from descriptive analysis and factor analysis that the five factors namely billing integrity, privacy and ethics associated with the service, iii good access (including bandwidth availability and transmission), availability (the ability to use the service from any location) and simplicity of use coupled with the appeal of the content, were indeed factors that would influence the adoption on consumer mobile entertainment services in South Africa. The ranking of these factors in order of importance were as follows: Accurately billed Private and ethical Easy to access Available anywhere; and Simple and entertaining Hence, when designing and developing consumer mobile entertainment services in South Africa, the offers should be promoted as being accurately billed, private and ethical, easy to access, available anywhere, and simple and entertaining. Network operators should concentrate on developing consumer mobile entertainment services for the following categories: mobile TV, infotainment, mobile video and mobile gaming service categories since they hold the greatest potential for future growth and adoption. Demographic analysis showed that the age group 46-55 exhibit the greatest growth potential. Operators should develop targeted campaigns at this segment encompassing the marketing, customer education and relevant content.