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Use and Adoption of Mobile Data Services in Africa: an Empirical Study in Mauritius and South Africa

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Use and Adoption of Mobile Data Services in Africa: an Empirical Study in Mauritius and South Africa International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 1, No. 1, April 2011 Use and adoption of Mobile Data Services in Africa: An Empirical Study in Mauritius and South Africa Hiranjali Ramburn and Jean-Paul Van Belle The scope of this research is limited to Business to Abstract—South Africa and Mauritius both possess among Consumer (B2C) users of mobile data services in both South the most advanced mobile telecommunication industries in Africa and Mauritius. The specific mobile data services Africa. However, advanced mobile data services have still not which have been investigated in this study are: Cell phone entered the lives of most mobile subscribers. The research banking, downloading ring tones, games and logos, objective was to investigate the use and adoption of a number of data services, including content services, web browsing, downloading content such as weather, sport and/or news, email, MMS, mobile games, mobile banking and mobile chats web browsing, email, mobile gaming/video, playing online in South Africa and Mauritius. We also list the major obstacles games, short messaging service (SMS), multimedia and inhibitors mentioned by the respondents as well as what messaging (MMS), and online chat. These services were they perceived could be done to promote use and adoption of selected since they are the most popular and advanced mobile services. Both quantitative and qualitative research mobile data services available in both South Africa and methods have been used. A research instrument was been designed to assess the usage pattern of mobile data services in Mauritius. These two countries were chosen because they both countries while a qualitative analysis allowed richer already have the required infrastructure for new mobile insights to the quantitative findings. The targeted sample technologies and services in place, thus the economies of included both students and staff from a university and both countries could experience a major boost with the corporate users from various business sectors. The research adoption and use of mobile data services (Rouvinen, 2004). findings were that, apart from SMS, users were indeed This research focuses on the use of mobile phones as generally slow to adopt the more advanced 3G data services. Interestingly, despite the socio-economic differences in the two opposed to Personal Digital Assistants (PDAs). This is an countries, many of the barriers identified were similar. important distinction to make since PDAs are mostly used by corporate users for business transactions while mobile Index Terms—Mobile Data Service adoption, barriers to M- phones are mainly utilized for individual use (Singh, 2003). Commerce, M-Commerce enablers, South Africa, Mauritius. II. DEFINITIONS AND PRIOR RESEARCH I. INTRODUCTION Mobile data services are here defined as wireless access There has been a lot of excitement, if not hype, about use to a set of B2C activities using a mobile phone available of mobile data services and mobile commerce in African through mobile service providers. Examples include countries over the past few years, with predictions that transactions, such as SMS, send/receive emails, MMS, mobile commerce would become the next new trend in the mobile games, content services, mobile banking, e-tickets, electronic marketplace (Joubert, 2007). Despite huge mobile auctions and stock trading. Some studies have used investments in the sector, the actual adoption and use of mobile data services, mobile applications/services or even mobile data services in most African countries has been mobile Internet services interchangeably (Bouwman, particularly slow as compared to countries such as Japan, Carlsson, Molina-Castillo & Walden, 2007. Taiwan, USA and UK. In Africa, the use of SMS and chat South Africa has one of the most sophisticated services has been widely accepted, but people are still telecommunication systems of all emerging markets and reluctant to engage in other mobile data services, such as ranks 23rd in telecommunications development (Manjoo & MMS, mobile banking and web browsing amongst others Kankwenda, 2007). The telecommunication sector (Brown, Gordon, Janik & Meyer, 2005). contributes approximately 6% to South Africa’s GDP. One Although limited research has already been conducted on of the most remarkable occurrences within the South the adoption of some mobile data services in South Africa, African telecommunication environment has been the rapid hardly any literature is available in this regard in Mauritius. adoption rate of mobile phones (Van Wyk & Van Belle, Therefore, the primary research objective of this 2005). The South African mobile industry operates under a investigation is the use of mobile data services in two unique 3-tier model (Manjoo & Kankwenda, 2007). The 3 African countries namely, South Africa and Mauritius. main stakeholders are the Mobile Network Operators Firstly, the extent to which the various mobile data services (MNOs), Service Providers (SPs) and Wireless Application have been adopted is investigated. Secondly, the reasons Service Providers (WASPs). Although South Africa has four why mobile phone users are reluctant to use different data MNOs, namely Vodacom, MTN, Cell C and Virgin Mobile, services and the key inhibitors are explored. Lastly, the the first two dominate the market and together, hold about factors, which may encourage users to use mobile data 90% market share. Service Providers (SPs) are in charge of services more frequently, are unveiled. the retailing of mobile products (contracts, handsets, pre- paid vouchers and data services) to the general public and Manuscript received March 11, 2011. Department of Information Systems, University of Cape Town. corporate users. They are also responsible to manage 28 International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 1, No. 1, April 2011 customer relationship on behalf of MNOs. Examples of SPs security of mobile devices have been debated. While some include Nashua Mobile and AutoPage (Gilham & Van Belle, people find using mobile devices to conduct transactions 2005). Wireless Application Service Providers (WASPs) are relatively easy, others experience difficulty with the small responsible for the creation, promotion and hosting of screen size and small keypad. Data input becomes a problem, mobile services. They depend on both SPs and MNOs to and this can lead to wasted time, errors and frustration provide the infrastructure and customer relationship to offer experienced by users, hence making usability less attractive their services. Examples of WASPs are iTouch, Exact (Chen & Frolick, 2004). Mobile (Gilham & Van Belle, 2005). Some researchers believe mobile commerce has fewer Similar to South Africa, Mauritius has an advanced security flaws as opposed to electronic commerce as the telecommunications sector. In fact, Mauritius was the first mobile device travels with the user, hence giving the latter a country to launch cellular operations in the Southern greater sense of security (Brown et al., 2005). However, the Hemisphere on 29 May 1989 (Minges, Gray & Tayob, mobility of these mobile devices also increases the risk of 2004). Unlike other developing nations, Mauritius has a losing them (Tarasewich, 2003). Mobile users are worried prevalent accessibility of fixed telephonic networks; hence, about the safety of their devices as these can easily be lost or mobile phones have never been a substitute for fixed stolen. One of the key concerns which emerged during the telephony. In addition, Mauritius followed the Receiving results analysis of a South African study was: “Although Party Pays (RPP) system, implying that the person receiving cell phone banking is convenient and more secure in a way, calls was subject to be billed as well. However, as from it would be more inconvenient if one loses the phone, October 2004, the Island adopted the Calling Party Pays because everything will have to be replaced” (Gordon, Janik (CPP) regime resulting in a substantial increase in use of & Meyer, 2004). mobile phones (Minges et al., 2004). Currently, Mauritius Cost of mobile data services is another prominent has three Mobile Network Operators namely, Emtel, Cell inhibitor. It is one of the major factors to be considered by plus and Mahanagar (MTNL). Cell plus is the current consumers when deciding whether or not to use a market leader closely followed by EMTEL. MTNL is the technology or service. Most consumers perceive the cost of latest MNO which entered the market in 2006. mobile data services to be particularly high (Gordon et al., Both Mauritius and South Africa were quick to make 2004). Mobile phone charges in South Africa can be up to10 significant financial investments for both the purchase of 3G times more expensive than that of other comparable licenses and rollout of 3G network infrastructure. Mauritius European countries and Mauritian charges are comparably was the first country in the African continent to launch 3G high, especially when compared to the relative personal services followed by South Africa. The first test call was income of Mauritians. Other factors inhibiting use of mobile made on 16 October 2004 by EMTEL in Mauritius and in data services include lack of business requirements, November 2004, 3G services were available commercially. incompatibility of handsets, lack of skills and knowledge In South Africa, Vodacom was first to launch 3G services in concerning the service and poor design interface of the December 2004 followed by MTN. In March 2006, MTN devices (Singh, 2003). launched 3.5G technologies, which make use of High Speed Downlink Packet Access (HSDPA) to provide users with connection speeds of 2 Mbps. Vodacom followed in April IV. RESEARCH METHODOLOGY. 2006 (Global UMTS Network Rollout Status, 2006). The main research objectives relating to the use and Mauritius has not yet deployed 3.5G technologies. adoption of mobile data services were to assess the relative Despite the fact that the use of mobile devices is the extent to which the various mobile data services have been fastest growing technology ever seen in South Africa, use of used and adopted in both South Africa and Mauritius.
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