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Final Project

Role of 3G in SMEs at Local Level


Group members:
AdilHaider

13221001

MBA Marketing

ShazibAyub

13221003

MBA Marketing

HusnainHafeez

13221002

MBA Marketing

UrwahBokhari

13221004

MBA Marketing

Academic supervisor:
Sir IrfanMehmood
Corporate Name:
Mobilink
Corporate Supervisor:

Syed Zubair Hussain

Department of GIFT Business School


GIFT University, Gujranwala

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CERTIFICATE
It is certified that MBA final project titled Role of 3G in SMEs at local level has been prepared
by students, AdilHaider 13221001, ShazibAyub 13221004, Husnain Hafeez 13221002, Urwah
Bokahri 13221003 and academic supervisor sir IrfanMehmood has been approved for
submission.

___________________
Mr. Asim Ilyas
Project Supervisor

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DECLARATION FORM
I Adil Haider 13221001, shazib Ayub 13221003, Husnain Hafeez 13221002 and Urwah Bokhari
13221004 hereby declare that the Project titled role of 3G in SMEs at local level has been
submitted by us in the partial fulfillment of the requirements for the degree of MSc Business
Administration and this Project present carried out at Gift university Gujranwala campus and
aims encouraging discussion and comments. The observation and viewpoints expressed are the
sole responsibility of the author. It does not necessarily represent position of Gift university
Gujranwala campus or its faculty. I also understand that if evidence of plagiarism is found in my
project at any stage, even after the award of a degree, the work may be cancelled and the degree
revoked.

Printing Date: 29-06-2014


________________
Adil Haider

________________
Shazib Ayub

________________
Husnain hafeez

________________
Urwah Bokhari

________________

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DEDICATION
All the praises and thanks for Almighty Allah who bestowed us with the potential and ability to
contribute a drop of a material to the existing ocean of knowledge. We offer our humblest thanks
from the deepest core of our heart to the Holly Prophet Muhammad (peace be upon him) who is
fore ever a torch of guidance and knowledge for humanity as a whole. Secondly we would like to
express our grateful thanks to our parents and course instructor Mr. Irfan Mahmood whose
outstanding teaching skills, methods, breathe of knowledge and counseling helped us to complete
this assignment successfully.

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ACKNOWLEDGEMENT
All acclamations to Allah who has empowered us and enabled us to accomplish the task
successfully first of all we would like to thanks to our Allah Almighty who really help us in
every problem during the project. We would like to express sincere and humble gratitude to
Almighty Whos blessing help and guides has been a real source of all our achievement in our
life. We would like to admit that we completed this project due to parents who pray for our
success. We take this opportunity to express our profound gratitude and deep regards to our
supervisor Mr. Irfan Mahmood for his exemplary guidance, monitoring and constant
encouragement throughout the course of this final project

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TABLE OF CONTENTS:
1

SCOPE OF THE STUDY ..................................................................................................... 8

EXECUTVE SUMMARY ................................................................................................... 8

ROLE OF 3G TECHNOLOGY N SMES AT LOCAL LEVEL ..................................... 9


3.1

Introduction: ..................................................................................................................... 9

3.2

Overview of 2G & 3G Technology: ............................................................................... 11

3.3

Technical Highlights of 2G & 3G: ................................................................................. 11

3.4

Comparative Study of 2G, 3G: ....................................................................................... 12

3.5

Launching of 3G Technology n Pakistan: .................................................................... 13

3.6

Advantages of 3G: .......................................................................................................... 14

3.7

Disadvantages of 3G: ..................................................................................................... 14

LTERATURE REVEW ................................................................................................... 15

SMALL AND MEDUM ENTERPRSES N PAKSTAN:............................................ 28


5.1

Problems of SMES ......................................................................................................... 29

AM OF THE STUDY ........................................................................................................ 30

FRAME WORK: ................................................................................................................. 30

RESEARCH METHODOLOGY ....................................................................................... 31


8.1

Type of Study ................................................................................................................. 31

8.2

Type of nvestigation ..................................................................................................... 31

8.3

Extent of Researcher Interference .................................................................................. 31

8.4

Study Setting .................................................................................................................. 31

8.5

Measurement And Measures .......................................................................................... 31

8.6

Unit of Analysis ............................................................................................................. 32

8.7

Sampling Design ............................................................................................................ 32

8.8

Time Horizon ................................................................................................................. 32

8.9

Data Collection & Sample.............................................................................................. 32

8.10 Data Analysis Procedure: ............................................................................................... 32


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DATA ANALYSS: ............................................................................................................. 33


9.1

Exploratory Data Analysis: ............................................................................................ 33

9.2

Demographic Analysis: .................................................................................................. 36

9.3

Reliability: ...................................................................................................................... 37

9.4

The Descriptive Analysis: .............................................................................................. 38

9.5

Correlation Analysis ....................................................................................................... 41

9.6

Factor Analysis:.............................................................................................................. 42

9.7

Structural Regression Model: ......................................................................................... 43

10 CROSS TABULATONS: .................................................................................................. 45


10.1 Age and Awareness: ....................................................................................................... 45
10.2 Age and Company of 3G:............................................................................................... 45
10.3 Gender and Purpose of 3G: ............................................................................................ 46
11 DSCUSSON: ..................................................................................................................... 47
12 ROLE OF 3GMOBLE TECHNOLOGY N SMES AT LOCAL LEVEL: .................. 47
13 LIMITATIONS: .................................................................................................................. 48
14 CONCLUSON .................................................................................................................... 48
15 APPENDIX: ......................................................................................................................... 50
16 QUESTONNARE: ............................................................................................................ 50
17 REFERENCES .................................................................................................................... 53

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SCOPE OF THE STUDY:


3G is hot news in Pakistan these days. Many companies got 3G and 4G licenses to offer 3G
and 4 G services in country. Companies are providing free trail services and after a good
response, now companies like Ufone is offering its 3 G services in some cities for its prepaid
and postpaid users. If we talk about the quality of service, we can say that cellular companies
in Pakistan are providing good services to the local SMEs.The majority of the SMEs will use
3G service for browsing, social networking, communicating, data storing, video conferencing
and chat purposes. Initially, cellular companies will keep experimenting with the prices but
we can say that after a year their package plans will be affordable for a cell phone user. The
quality of service is much better as compared to many renowned companies operating in
other countries. So, the quality of 3 G service is also according to the international standards.
However, coverage is still a question mark, but as the service is just started in the country, so
we can hope that it will get better with time. Even at this initial stage nine cities in the
country are having 3G coverage and that means nearly 20% of the population can access 3 G
service. So, we can safely conclude that 3 G has a bright future in SMEs at local level and the
number of users will increase with the passage of time.

EXECUTVE SUMMARY:
The main objective of this paper is to evaluate underlying paradigms of 3 rd Generation (3G)
mobile services. Given the success of second generation (2G) mobile communication system
and services, the third generation mobile networks and applications are faced with a lot of
expectations such as providing us online services via mobile terminals. Many SMEs
waiting desperately for 3G, because after 3G launch the era of mobile applications will start.
Every user has Smartphonesnow a day. So every company tries to reach out its customers
through mobile applications. Online business purchasing trend increases day by day. 3G
usage will help SMEs to reach out its customers with just a click on their smart phones.
This paper reviews existing literature related to 3G and develop a frame work that presents
the factors that contributes to the success of 3G and to check the role of 3G in SMEs at local
market. The findings provide the insight into the development and marketing of 3G. Our
research shows that mostly SMEs want to adopt MOBILINK for the 3G purpose at local
level therefore.
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We have done demographic analysis, factor analysis, cross tabulation, regression and
hypothesis testing to check the impact of 3G at local level. In this paper we checked the
advantages and disadvantages of 3G, those how 3G effects the SMEs at local level. In our
research paper we also find the competitors like Telenor, Zong and Ufone working hard to
give a tough time on 3G service. We find out that, 3G company adoptions depend on
coverage service and packages. In the light of the discussion in this paper, there is strong
evidence to suggest that the main outcome of using 3G networks and services will be to get
access to the same services with faster data connection speed.
3
3.1

ROLE OF 3G TECHNOLOGY N SMES AT LOCAL LEVEL:


Introduction:
3G technology is the result of research and development work carried out by the
International Telecommunication Union (ITU) in the early 1980s. 3G specifications and
standards were developed in fifteen years. The technical specifications were made
available to the public under the name IMT-2000. The communication spectrum between
400 MHz to 3 GHz was allocated for 3G. Both the government and communication
companies approved the 3G standard. The first pre-commercial 3G network was launched
by NTT DoCoMo in Japan in 1998, branded as FOMA. It was first available in May 2001
as a pre-release (test) of W-CDMA technology. The first commercial launch of 3G was
also by NTT DoCoMo in Japan on 1 October 2001, although it was initially somewhat
limited in scope broader availability of the system was delayed by apparent concerns over
its reliability. The first European pre-commercial network was an UMTS network on the
Isle of Man by Manx Telecom, the operator then owned by British Telecom, and the first
commercial network (also UMTS based W-CDMA) in Europe was opened for business by
Telenor in December 2001 with no commercial handsets and thus no paying customers.
The first network to go commercially live was by SK Telecom in South Korea on the
CDMA-based 1xEV-DO technology in January 2002. By May 2002 the second South
Korean 3G network was by KT on EV-DO and thus the South Koreans were the first to see
competition among 3G operators.

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The first commercial United States 3G network was by Monet Mobile Networks, on
CDMA2000 1x EV-DO technology, but this network provider later shut down operations.
The second 3G network operator in the USA was Verizon Wireless in July 2002 also on
CDMA2000 1x EV-DO. AT&T Mobility is also a true 3G UMTS network, having
completed its upgrade of the 3G network to HSUPA.The first pre-commercial
demonstration network in the southern hemisphere was built in Adelaide, South Australia
by m.Net Corporation in February 2002 using UMTS on 2,100 MHz. This was a
demonstration network for the 2002 IT World Congress. The first commercial 3G network
was launched by Hutchison Telecommunications branded as Three or "3" in June 2003.
3G was relatively slow to be adopted globally. In some instances, 3G networks do not use
the same radio frequencies as 2G so mobile operators must build entirely new networks
and license entirely new frequencies, especially so to achieve high data transmission rates.
Other delays were due to the expenses of upgrading transmission hardware, especially for
UMTS, whose deployment required the replacement of most broadcast towers. Due to
these issues and difficulties with deployment, many carriers were not able to or delayed
acquisition of these updated capabilities.
In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA
networks were operating in 71 countries, according to the Global Mobile Suppliers
Association (GSA). In Asia, Europe, Canada and the USA, telecommunication companies
use W-CDMA technology with the support of around 100 terminal designs to operate 3G
mobile networks.
Roll-out of 3G networks was delayed in some countries by the enormous costs of
additional spectrum licensing fees. The license fees in some European countries were
particularly high, bolstered by government auctions of a limited number of licenses and
sealed bid auctions, and initial excitement over 3G's potential.
The 3G standard is perhaps well known because of a massive expansion of the mobile
communications market post-2G and advances of the consumer mobile phone. An
especially notable development during this time is the Smartphone (for example, the
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iPhone, and the Android family), combining the abilities of a PDA with a mobile phone,
leading to widespread demand for mobile internet connectivity. 3G has also introduced the
term "mobile broadband" because its speed and capability make it a viable alternative for
internet browsing, and USB Modems connecting to 3G networks are becoming
increasingly common.
3.2

Overview of 2G & 3G Technology:


2G was commercially launched in 1991. It introduced digital signaling via packet data in
telecommunications, and provided reduced power consumption and noise levels. It also
proposed better security methods with digital encryption techniques coupled with lower
power usage. SMS, MMS and e-mail were a few packet-based services introduced by 2G.
Although highly advanced markets have reached a stage where 2G networks are now being
switched off, 2G technologies still account for over 80 percent of connections in China and
90 percent in India - the two largest mobile markets in the world. With successive
technologies such as 2.5G, 2.75G and 3G, the era of ever-increasing data rate demands
skyrocketed across the globe. While packet data was introduced in 2G, higher data rates
and better data services were brought by 3G. Attractive services such as Mobile TV, Video
on Demand, Video Conferencing, Location-Based Services and Global Positioning System
(GPS) gradually grew into a necessity for a majority of mobile users. Statistics1 suggest
that, as of 2012, more than 500 operators across 185 countries have deployed 3G networks,
pointing to the fact that mobile users in more than three-quarters of the worlds markets
have access to 3G services.

3.3

Technical Highlights of 2G & 3G:


Lower power consumption, better security and better bandwidth usage are the key
advantages of 2G over its precedent technologies. 2G introduced digital encoding in
telecommunications, resulting in better compression and multiplexing of voice data than its
preceding analog encoding. The advantage: 2G supported a larger number of calls in the
same radio bandwidth and ensured lower power consumption that improved battery life in
mobile phones. Digital encryption methods introduced in 2G provided better security and
privacy to mobile users. Short Message Service (SMS) and Multimedia Message Service

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(MMS) became the first form of packet-based services introduced in 2G, marking the
beginning of data services on mobile phones.
3G entered the market with the advantage of increased data rates available to mobile users
for services such as Mobile TV, Location-Based Services, video calls and internet
browsing on the move. It also provides variable data transfer speeds ranging from 128 kbps
to 3 mbps depending on the speed with which the mobile device is moving within the
network. Beyond mobile telephony, the higher speeds allowed 3G connections in PCs,
gaming consoles, tablets and any other portable device that could benefit from a faster and
higher quality internet connection. 3G also provides users with better security through user
authentication capabilities when communicating with other wireless devices. 3G boasts of
better power control methods for both uplink and downlink, with the network using a
target Signal-to-Interference Ratio (SIR) to adjust its output power. It also improves
spectrum utilization through shared channels in the radio interface, thus making it more
effective than 2G networks.
3.4

Comparative Study of 2G, 3G:


Features

2G

3G

Data services such as text Term mobile broadband


messaging (SMS), multimedia
Services

messaging

(MMS),

introduced because of its

internet speed

access & SIM cards.

&

Universal

capability.
access

&

portability across different


device types.
Speed

9.6/14.4 Kbps.

3.1 Mbps (peak)/


500-700 Kbps.

GSM - Global System for UMTS( Universal

Technology

Mobile

Mobile Communication with

Telecommunications

technological

System )

backbone of TDMA

network architecture with

as

its

core

HSPA (high speed packet


access)protocol.
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GSM, GPRS (2.5G) & EDGE UMTS( Universal


(2.75G).

Mobile

Telecommunications
System )

Standards

&

2000 (code

CDMAdivision

multiple access) standards.


Voice & Data Support

Voice & data could not be Simultaneous voice & data


simultaneously supported.
Consists

Switching Techniques

of

only

support.

circuit Uses a combination of both

switched networks.

circuit-switched & packetswitched networks.

Initially 900MHz spectrum was 1.8 2.5 GHz.


Frequency Band

used,

but

later

GSM

was

introduced on an 1800MHz
band.
3.5

Launching of 3G technology in Pakistan:


The third generation (3G) telecom licenses was auctioned on March 29 2014 with each
license to be base priced at $210 million and auctioned through bidding.PTA Chairman Dr.
Muhammad Yasin told the media that the amount of bidders will have to deposit with
initial expressions of interest would be $31.5 million and license terms would be from
eight to 15 years. He expects to attract at least 10 to 15 potential investors for the initial
bidding process. The existing telecom operators could start offering 3G services
immediately after being awarded a license. Analysts say that the base price is little higher
than they had originally expected. Earlier estimates suggested that the base price for 3G
licenses would be $195 million.
According to a press release, this trend follows a decline in the prices of smart phones and
tablets, and anticipated launch of 3G services. Internet-capable feature phones are expected
to continue to play an important role, too. An additional factor is the unreliability of the
electricity supply which is also helping to promote the usage of tablets and smart phones in
Pakistan.

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The findings come from a survey of over 1,000 Pakistanis by research firm IDC on behalf
of Google. The Pakistan Digital Consumer Study conducted earlier this quarter took a
look at the life of the connected Pakistani consumer. The survey found that digital
consumers are engaging more with the internet than ever before. The study revealed that
home is the preferred location for Internet access even for mobile-only users, who
prefer to use their home Wi-Fi connection.
The top three activities in Pakistan both on desktop and mobile Internet are: social media,
email and general search. The main challenge of Internet proliferation in Pakistan are the
quality and reliability of connectivity including poor speed or bandwidth availability,
perceived value-for-money, customer service quality, limited choice of plans and
frequency of service interruptions. The unreliability of the power supply is also a factor,
the press release stated.
3.6

Advantages of 3G:
3G entered the market with the advantage of increased data rates available to mobile
users for services such as Mobile TV, Location-Based Services, video calls and internet
browsing on the move.

It helps in future from consumer perspective to gain many benefits like roaming
capability and broad bandwidth and high speed communication. Due to fast connectivity
of internet; you can send and receive large email messages via wireless in a very small
time.

Access to convenient, affordable and highly customization mobile broadband devices and
services make life more productive, secure and meaningful and empowers people to
transform the way they live, learn, work and play.

Currently broadband facility is used by very few ratio of population in Pakistan but after
launch of 3G technologies it can take broadband to every nook and corner of the country,
becoming accessible to more than 90 per cent of the population, with relatively small
effort.

3.7

Disadvantages of 3G:
The cost of cellular infrastructure, upgrading base stations is very high.

Needs different handsets.


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Power consumption is high.

The main disadvantage of the 3G phone service is its cost. Data transmission rates for
users of 3G phone service are incredibly high. Unless you have an unlimited plan from
your carrier, you are charged per kilobyte of data you send or receive. If you take your
3G phone to another country, you are charged on a completely different (and dramatically
more expensive) pay scale due to using international phone towers," said a senior official
of the Telecom Ministry, who requested not to be named. He added that features of 3G
products and networks are enhanced data transmission capabilities. 3G devices will
eventually be replaced as newer technologies become ready for mainstream use.

LTERATURE REVEW
Today, the majority of mobile services used via 3G networks are already available in current
2,5G networks (GPRS, EDGE) such as browsing the Web, sending and receiving
multimedia messages (like pictures and video), and e-mailing. Therefore, 3G should not be
viewed as a new technology surpassing the existing 2,5G networks, or a revolution in
mobile communication. Instead, 3G should be considered to be evolution of existing mobile
communications (Harmer, 2003). In the light of the discussion in this paper, there is strong
evidence to suggest that the main outcome of using 3G networks and services will be to get
access to the same services with faster data connection speed. Furthermore, it seems that the
success of 3G lies in its ability to serve not only mobile users but in providing access to the
Internet with data cards inserted in laptops. Thus, 3G networks will serve the same purpose
as LAN and WLAN networks. In terms of business opportunities, telecommunication
companies main source of income is still coming from voice-centric services. For example,
the mobile operator Hutchinson, offering services purely in 3G networks, announced this
autumn 2004 that its main source of income comes from discount packets that offer free
speech time in 3G networks. Moreover, as long as the price of the network time is high in
3G, operators cannot wait fast diffusion of data centric mobile services. According to mobile
operators, 3G is needed in congested places where the demand on current mobile networks
exceeds the capacity. Another important factor affecting future of 3G is the availability of
reasonably priced handsets. 3G devices launched to the market during 2004 have also
suffered from various problems such as high power consumption that limits usage time. The
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findings presented should be interpreted in the light of certain limitations. The results are
based on existing material found from various sources and thus concern the development of
3G globally. Future studies should concentrate on country specific research to provide a
more detailed understanding of the phenomenon at hand. Another limitation concerns the
framework developed. Willingness to use 3G services is definitely dependent on various
other factors beyond the framework presented, which could not all be addressed within this
study. On this basis, future research that identifies additional factors or views the factors
presented in different light would contribute to the understanding of 3G acceptance. Thus, a
natural extension of this study is the collection of primary data about the use and acceptance
of 3G services in both consumer and business markets.(An Investigation of Third Generation
(3G) Mobile Technologies and Services by HeikkiKarjaluoto)
Successful diffusion of 3G mobile is necessary for the provision of many advanced
applications via the mobile platform such as mobile broadband Internet and video. The
current deployment of 3G services is significantly more developed in some countries than
others. Through a regression analysis of 106 observations, this study examines the factors
affecting such differences. It was found that multiple standardization policy, lower level of
1G and 2G penetration, and a higher level of income contribute to the diffusion of 3G.
The world of telecommunications has changed rapidly as we enter the era of convergence
between wireless networks, broadband communication, and the content sector. Demands for
advanced services such as mobile broadband Internet and mobile video have increased
tremendously in recent years and been touted as the driver for the continuous growth of the
telecommunications industry (Tellabs, 2009). In fact, such bandwidth consuming mobile
ventures are often regarded as a means of paying off the hefty license fees for many third
generation (3G) mobile service providers (Ponsford, 2006). In essence, as the mobile voice
services become commoditized with increasing price competition, new data services made
possible by the 3G networks are critical in generating profit and growth. Mobile network or
service based on the International Mobile Telecommunication-2000 (IMT-2000) family of
global standards is commonly referred to as 3G mobile (ITU, 2003b). These mobile
systems provide higher transmission rates than possible in second generation wireless
technologies, supporting data transport rates of at least 144 kbit/s for all radio environments
and 2 Mbit/s in low-mobility and indoor environments (ITU, 2003b,Shelanski, 2003). Th
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3G mobile systems enable many advanced applications such as mobile videoconferencing,


video phone/mail, mobile TV/Video player, and digital audio/video delivery (Xavier,
2001,ITU, 2001). Thus, the true provision of video communication, information, and
entertainment via the mobile platform will be impossible without the successful diffusion of
3G services. In addition, industry analysts have increasingly concluded that mobile
broadband will soon become the standard of accessing the Internet in most countries
From a global perspective, the deployment of 3G mobile services is significantly more
advanced in some countries than others. At the end of 2007, there were 3.35 billion mobile
subscribers throughout the world (ITU, 2008). It was estimated that mobile broadband
handset users will grow from 158 million in 2008 to over 1.8 billion in 2014, with most
increase coming from emerging countries such as China and India (Cellular-News, 2009). In
spite of the rapid growth of 3G and even 4G services in a select number of countries, many
countries are still in the early stages of 3G mobile deployment. According to the latest
International Telecommunication Union (ITU) penetration data (December 2006), Korea,
Italy, and Japan are the leading 3G mobile economies among ITU member countries
(ITU,2006). What factors contribute to the differential deployment rates of 3G mobile
services among countries? As important as these factors are in affecting the next phase of
mobile technology development, consumer access to advanced mobile broadband and video
services, and the eventual convergence between the mobile platform and other mass media
content distribution systems, little empirical studies have addressed the political, economic,
market, and consumer issues that might play a role in the diffusion of 3G mobile
services.(The deployement of 3G mobile services by sangwon lee).
The primary research problems were related to what are Chinese consumers attitudes
towards the current mobile services and what factors affecting their choice behaviors
towards mobile services from 2G/2.5G and 3G. In order to achieve these aims, a series of
objectives have been concluded as follow:
(i): Identify current situation of mobile network services in china:
According to the statistics report showed, 2G/2.5G was still the dominant mobile services in
current China communication market, which popularity rate has reached a very high spot in
recent year. On the other hand, the 3G service just goes into service in a short time ago, only
a small section of people are privileged to use 3G network services in China excluding the
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city of Hong Kong. In addition, the data analysis in chapter 4 also showed, only 24.5% of
participants respond they have used 3G service before or are using at present, and the rest is
not.
(ii): Review the previous studies and theories on the factors affecting consumers attitudes
and choices towards mobile services:
Reviews numerous previous studies and theories related to the factors which influence
consumers attitudes and choices towards mobile services from 2G to 3G, such as price
strategy, service quality, service feature, service and phone convenience, playfulness
(iii): Examined users attitudes towards the current mobile service in china:
This provided several questions to test user attitudes towards the current mobile service. As
the result of data showed, high service quality, lower cost, high data speed, easy to use and
highly entertaining became the top 5 things which concerned by most of users, moreover,
they also considered the Good service quality, Good network coverage and one-way charge
system were very important for them.
(iv): Identify factors which influence users attitudes and their choice of mobile service or
device:
According to the original TAM model and extension TAM model which proposed by other
researchers. The researchers found the original TAM was not enough to predict users
attitudes towards the field of mobile service, so they added several external variables to
support the TAM. Hence, it was found that PU, PEOU, perceived system quality, perceived
content quality, perceived playfulness, Perceived price level, internet experience and social
pressure (Je and Myeong-Cheol, 2005; Kwon and Chidambaram, 2000) are the most
significant factors to influence users attitudes as well as their choice behaviors.
(v): Investigate 2G/2.5G and 3G users attitudes towards these two mobile services:
Emerging technologies such as 4G-LTE attract the lions share of industry and
mediaattention. However, 2G and 3G wireless networks remain highly relevant, currently
supporting over 80% of all mobile phone activity. Trends suggest the use of 2G and 3G
technologies will expand dramatically during the next three to five years as the worlds two
largest markets, India and China, open their doors wide to mobile phone usage. Ericsson,
Nokia, Qualcomm and Alcatel-Lucent are among those who developed the building blocks
of todays wireless world. They collectively control the majority of all patents in this space.
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Nokia, LG Electronics and Qualcomm alone own more than 43 percent of all seminal
patents (i.e., determined to be strong based on a set of parameters). The playing field has
evolved dramatically in recent years, causing these brands to slowly fade from the minds of
consumers. However, they will continue to exert an influence on current market leaders such
as Apple, Google and Samsung, who control todays mobile device ecosystem. 2G and 3G
technology patents have been at the center of ongoing patent wars and they can be expected
to fuel a significant escalation in activity during the next five years as top patent holders
seek to monetize their portfolios. Leading patent holders have already launched initiatives
against major competitors, with some having sold patent rights toSmall-to-medium
enterprises (SMEs) and patent assertion entities (PAEs). It is highly likely,given the
increasing pressure on these companies to generate revenue, that many will become more
aggressive by entering into new agreements with patent privateers to monetize their
assets. The result will likely be an increase in litigation and licensing. So, who stands to
benefit in this evolving marketplace? Which companies control the largest number of
patents and the largest number of seminal patents in the world of 2G and 3G technologies?
Which PAEs are best positioned to leverage monetization efforts? These are some of the
questions addressed in this report. We explore key 2G and 3G patent holders, providing
details on the number and category of overall, standard-essential and seminal patents. The
report delves into SMEs and PAEs that control a large percentage of seminal and standardessential patents. Nearly nine percent of seminal 2G and 3G patents are currently held by
SMEs and PAEs, and approximately five percent of all standard-essential patents are held by
two companies - Innovative Sonic Ltd. and Vringo Infrastructure Inc. This report also
reveals that certain small companies hold key 2G and 3G patents that have remarkably high
patent monetization potential. (2G and 3G mobile communication)
Almost half the population of the earth now uses mobile communications. A billion mobile
subscribers were added in the last 4 years to leave the total standing at 3.2 billion. There are
still many adults and young people who would appreciate the social and economic benefits
of mobile technology but are unable to access it, highlighting a huge opportunity for future
growth and a challenge to all players in the industry ecosystem to expand the scope of
products and services to tap this demand. Given the strong growth trajectory and pace of
innovation, we are confident that
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the next few years will see continued growth with a further 700 million subscribers expected
to be added by 2017 and the 4 billion mark to be passed in 2018. This growth is mirrored by
strong mobile connections growth, to almost 7 billion connections in 2012, as many
consumers have multiple devices or use multiple SIMs to access the best tariffs, while firms
in many industry sectors roll out M2M applications to boost their own productivity and tap
into new markets. Despite challenging economic headwinds in many regions, the market is
expected to grow even more strongly on the dimension of connections over the next five
years, with 3 billion additional connections expected to be added between 2012 and 2017, a
growth rate of 7.6%.(The Mobile Economy 2013 by AT Kearney).
Although Taiwans 3G services startedits operation in 2003, the main profit source for every
telecommunication company is still the cheaper fees of airtime minutes. Therefore, this
study is directed on how these companies design the marketing tactics closer to the
consumers need under the dual influences of the decreasing individuals contribution and
the low utility rate, as well as how to improve customerswillingness to adopt 3G mobile
telecommunication services. Unified Theory of Acceptance and Use of Technology
(UTAUT) is used as the model to carry out expert interviews and consumers questionnaire
investigation. This study found that the factors that significantly influenced the behavioral
intention include performance expectancy, social influence, and facilitating
conditions, while the traditional known effort expectancy did not. Moreover, three nonassumed relationships were discovered during the Structural Equation Modeling analysis,
which helped to revise the UTAUT model for 3G telecommunication services. The results of
this study can be helpful to Taiwans mobile telecommunication companies to adjust their
corporate strategies and tactics for providing customer-oriented 3G services to both existing
and potential customers, such that the overall 3G market can be expanded as well as a winwin situation for the 3G industry and their consumers can be achieved (Using UTAUT to
explore the behavior of 3G mobile communication users by Yu lung Yu, Yu hui Tao, Pei chi
Yang).
In general terms, 3G services comprise of wide bandwidth services such as enhanced
communication (e.g. messaging, e-mail, video), browsing the Web (Robins, 2003; Symbian
Glossary, 2004), and location-specific information (Barnes, 2002) like informing users
about the availability of stores, restaurants, gas stations, free parking lots and so on near
Page 20

them (Kanter, 2003). In addition, business users will have a direct access to company
networks while traveling or working outside office. From marketing point of view,
identifying and designing these services and setting an appropriate price is said to be the
core marketing task related to 3G (Robins, 2003). Although it can be concluded that the
most successful 3G services probably belong to one of these categories, it is impossible to
predict in detail exactly what is going to happen in the mobile marketplace. However, we
will not experience a so-called radical innovation in the market; merely the evolution of
existing mobile communications giving users faster transmission speeds which then might
open up possibilities for new mobile data services also. Next, we will go through the most
common mobile data services and ponder their ability to serve as the most successful 3G
services.
A wide range of authors from various disciplines ranging from technology to business have
argued that the 3G will enable mobile access to the Internet (e.g., Barnes, 2003: 13; Dziong,
Khan, Medepalli, & Nanda, 2002; Harmer &Friel, 2001), or in other words, aim to merge
cellular networks and the Internet meaning that mobile users can have ubiquitous access to
all the services that the Internet provides from messaging to Contemporary Management
Research 97 browsing (Camarillo & Garcia-Martin, 2004: 5). The term mobile Internet, or
Internet in mobile, refers to gaining access to the Internet using a handheld, wireless device
like a mobile phone or PDA. 2G networks have been mainly voice-centric with low data
transmission capacity (Harmer &Friel, 2001), 2,5G and 3G will speed up data transmission
speeds. However, in 3G networks the data transmission speed is depended upon the number
of users accessing the network at the same point of time. Thus, in reality 3G networks rarely
offer the theoretical maximum speed. Another question relates to the users need to browse
the Web from mobile. Besides the most used mobile Internet services in 2,5G, namely news
and entertainment (Buellingen&Worter, 2004), the question of whether there are any other
online services that are preferably used from mobile rather than from other devices such as
laptops which have larger screens and also easier to use interfaces with large keyboards,
remains open. However, the question of whether users are willing to browse the Internet
from mobile phone or PDA becomes
Unimportant as terminals are only devices, and finally the user judges the terminals and
chooses the one he or she prefers. For instance, by using 3G data card users can browse the
Page 21

Internet via their laptop or via a mobile device. The purpose of use dictates the terminal in
the end. Research has suggested that the most attractive WAP applications are news,
entertainment, ticketing and reservations, as well as banking (Buellingen&Worter, 2004).
These are actually among the most common online services used with computers as well
(e.g. Karjaluoto, Mattila, Pento, 2002). To conclude, while many 3G services are operated
via the Internet, browsing the Internet from mobile phones or PDAs will not be a mobile
version of fixed-line access (Lindgren, Jedbratt, &Svensson, 2002: 4). In fact, people do not
use the Internet in the same way from mobile terminals as they do when accessing the
Internet via larger screens from computers. France Telecom Research & Development
(2004) predicts that mobile Internet offers the advantage of always being near at hand, and
of being a personal tool. On this basis possible successful services might be services
developed for traveling purposes like ticketing, checking schedules, traffic reports and
related services.
With the development of mobile technologies, mobile services have already become a
fundamental part of people's lives and society throughout the world. In the meanwhile, the
mobile technology experienced a series of innovation and development, which from the
original analog digital communications, the second generation (2G) to the latest third
generation (3G) mobile technology. As some researchers examined, the mobile technology
and service development is typically based on consumer acceptance as well as their future
requirements (e.g. Kumar, 1997; Nagel, 2003). Hence, it is important to explore consumers
motives and their choice decisions during the rise of the 3G network in recent history
(Benady, 2002). There are many complex factors were likely to influence consumers choice
behaviors, but these really can be boiled down to two determinant points: the benefits of
technology and the pricing policy of service (Benady, 2002).
As the world biggest potential mobile communication market, China also has devoted
entirely to their construction of 3G market, therefore, it is very important to examine
different factors which influence users attitudes and their choice behaviors related to
2G/2.5G and 3G services in China.
With the recent and future high growth of global 3G marketing, many countries are taking
part in the line of 3G industries in succession. As the world biggest potential mobile
communication market, china had begun to develop the 3G scheme since 2001, and several
Page 22

technology standards were tested which included TD-SCDMA (Time Division-Synchronous


Code Division Multiple Access), WCDMA (Wide-Code Division Multiple Access),
CDMA2000 (Code Division Multiple Access) and other technology testing, among of these
3G technology standard, while TD-SCDMA standard is a proprietary intellectual property
which belong to China owned. After a long times preparation, china issued an official trial
through their TD-SCDMA standard network in 2006. The several participants of TD
commercial testing include: Beijing, Baoding, Xiamen, Qingdao, etc. In addition, Hong
Kong has already established their 3G standard (WCDMA) for several years ago;
meanwhile, the 3G services have already been adopted in many places of their daily life.
Along with the 3G goes into service, many new data service can be provided to consumers,
such as MMS, internet surfing, video calls, mobile television, GPS, high speed data service,
etc. meanwhile, the development of 3G industry also can provide huge profits to every
participant in this value chain, for instance, network provider, service provider, content
provider, equipment provider, even the bank can depend on their service payment system to
take part in this value chain. However, the premise to achieve these services and commercial
values is that we must have both the support of technology and the acceptance of market.
With regard to china, TDSCDMA standard has been already established for many years,
the technology aspects are not the barrier for china popularizes their 3G.
Over the past year, the promise of mobile broadband has become reality as many tens
ofmillions of users have actively started using smartphones, tablets, netbooks, and laptops
with wireless connections. Yet, we are only scratching the surface of what is to come. This
will be the decade of anywhere social existence, work, and entertainment. Major
developments this past year include 3rd Generation (3G) ubiquity, deepening Smartphone
capability, the availability of hundreds of thousands of mobile applications, the introduction
of new form factors such as tablets, projections of mobile-data demand exceeding capacity,
acknowledgment by industry and government of the need for more spectrum,
implementation of data offload via Wi-Fi, dramatic performance increases through HSPA
enhancements, initial deployments of LTE technology, and significant progress on
specifications that will meet true Fourth Generation (4G) requirements. 3G technology has
shown us the power and potential of always-on, everyplace network connectivity and has
ignited a massive wave of industry innovation that spans devices, applications, Internet
Page 23

integration, and new business models. Already used by hundreds of millions of people,
mobile broadband connectivity is on the verge of becoming ubiquitous. It will do so on a
powerful foundation of networking technologies including Global System for Mobile
Communications (GSM) with Enhanced Data Rates for GSM Evolution (EDGE), High
Speed Packet Access (HSPA), and Long Term Evolution (LTE). LTE in a forthcoming
release called LTE-Advanced will be one of the first technologies to meet the requirements
of International Mobile Telecommunications Advanced (IMT-Advanced), a project of the
International Telecommunications Union (ITU). Through constant innovation, Universal
Mobile Telecommunications System (UMTS) with HSPA technology has established itself
as the global, mobile-broadband solution. Building on the phenomenal success of GSM, the
GSM-HSPA ecosystem has become the most successful communications technology family
ever. Through a process of constant improvement, the GSM family of technologies has not
only matched or exceeded the capabilities of all competing approaches, but has significantly
extended the life of each of its member technologies. HSPA is strongly positioned to be the
dominant mobile-data technology for the next five to ten years. To leverage operator
investments in HSPA, the Third Generation Partnership Project (3GPP) standards body has
developed a series of enhancements to create HSPA Evolution, also referred to as
HSPA+. HSPA+ represents a logical development of the Wideband Code Division
Multiple Access (WCDMA) approach, and it is the stepping stone to an entirely new 3GPP
radio platform called 3GPP LTE. LTE, which uses Orthogonal Frequency Division Multiple
Access (OFDMA), is seeing initial deployment this year. Simultaneously, 3GPP
recognizing the significant worldwide investments in GSM networkshas defined
enhancements that will significantly increase EDGE data capabilities through an effort
called Evolved EDGE.
Combined with these improvements in radio-access technology, 3GPP has also spearheaded
the development of major core-network architecture enhancements such as the IP
Multimedia Subsystem (IMS) and the Evolved Packet Core (EPC), previously called System
Architecture Evolution (SAE). These developments will facilitate new types of services, the
integration of legacy and new networks, the convergence of fixed and wireless systems, and
the transition from circuit-switched approaches for voice traffic to a fully packet-switched
model. The result is a balanced portfolio of complementary technologies that covers both
Page 24

radio access and core networks, provides operators maximum flexibility in how they
enhance their networks over time, and supports both voice and data services. Transition to
4G: 3GPP Broadband Evolution to IMT-Advanced, Rysavy Research/3G Americas, Sept
2010 Page 5 This paper discusses the evolution of EDGE, HSPA enhancements, 3GPP LTE,
the capabilities of these technologies, and their position relative to other primary competing
technologies. It explains how these technologies fit into the ITU roadmap that leads to IMTAdvanced.
The following are some of the important observations and conclusions of this paper:

The wireless technology roadmap now extends to IMT-Advanced with LTE-Advanced


being one of the first technologies defined to meet IMT-Advanced requirements. LTE
Advanced will be capable of peak throughput rates that exceed 1 gigabit per second
(Gbps).

Future networks will be networks of networks, consisting of multiple-access


technologies, multiple bands, widely-varying coverage areas, all self-organized and selfoptimized.

GSM-HSPA1 has an overwhelming global position in terms of subscribers, deployment,


and services. Its success will continue to marginalize other wide-area wireless
technologies.

In current deployments, HSPA users regularly experience throughput rates well in excess
of 1 megabit per second (Mbps) under favorable conditions, on both downlinks and
uplinks, with 4 Mbps downlink speed commonly being measured. Planned enhancements
such as dual-carrier operation will double peak user-achievable throughput rates.

HSPA+ provides a strategic performance roadmap advantage for incumbent GSMHSPA


operators. Features such as multi-carrier operation, Multiple Input Multiple Output
(MIMO), and higher-order modulation offer operators multiple options for upgrading
their networks, with many of these features (e.g., multi-carrier, higher order modulation)
being available as network software upgrades. With all planned features implemented,
HSPA+ peak rates will eventually reach 168 Mbps.

HSPA+ with 2x2 MIMO, successive interference cancellation, and 64 Quadrature


Amplitude modulations (QAM) is more spectrally efficient than competing technologies
including Worldwide Interoperability for Microwave Access (WiMAX) Release 1.0.
Page 25

The 3GPP OFDMA approach used in LTE matches or exceeds the capabilities of any
other OFDMA system. Peak theoretical downlink rates are 326 Mbps in a 20 MHz
channel bandwidth. LTE assumes a full Internet Protocol (IP) network architecture, and
it is designed to support voice in the packet domain.

LTE has become the technology platform of choice as GSM-UMTS and Code Division
Multiple Access (CDMA)/One Carrier Evolved; Data Optimized (EV-DO) operators are
making strategic, long-term decisions on their next-generation platforms.

GSM-HSPA will comprise the overwhelming majority of subscribers over the next fiveto
ten years, even as new wireless technologies are adopted. The deployment of LTEand its
coexistence with UMTS-HSPA will be analogous to the deployment of UMTSHSPAand
its coexistence with GSM.

3GPP has made significant progress on how to enhance LTE to meet the requirementsof
IMT-Advanced in a project called LTE-Advanced. LTE-Advanced is expected to bethe
first true 4G system available. Specifications are scheduled to be completed inMarch of
2011, with earliest availability for deployment in 2012.

HSPA-LTE has significant economic advantages over other wireless technologies.1 This
papers use of the term GSM-HSPA includes GSM, EDGE, UMTS, HSPA and
HSPA+. UMTS-HSPA refers to UMTS technology deployed in conjunction with
HSPA capability. Transition to 4G: 3GPP Broadband Evolution to IMT-Advanced,
Rysavy Research/3G Americas, Sept 2010 Page 6

WiMAX has developed an ecosystem supported by many companies, but it will still
represent only a very small percentage of wireless subscribers over the next five years.

EDGE technology has proven extremely successful and is widely deployed on


GSMnetworks globally. Advanced capabilities with Evolved EDGE can double and
eventually quadruple current EDGE throughput rates, halve latency, and increase spectral
efficiency.

EPC will provide a new core network that supports both LTE and interoperability
withlegacy GSM-UMTS radio-access networks and non-3GPP-based radio access
networks. Policy-based charging and control provides flexible quality-of-service
management, enabling new types of applications, as well as billing arrangements.
Page 26

Innovations such as EPC and UMTS one-tunnel architecture will flatten the network,
simplifying deployment and reducing latency.

This paper begins with an overview of the market, looking at trends, EDGE and UMTSHSPA deployments, and market statistics. It then examines the evolution of wireless
technology, particularly 3GPP technologies, including spectrum considerations, corenetwork evolution, broadband-wireless deployment considerations, and a feature and
network roadmap. Next, the paper discusses other wireless technologies including Code
Division Multiple Access 2000 (CDMA2000) and WiMAX. Finally, it compares the
different wireless technologies technically, based on features such as performance and
spectral efficiency. The appendix explains in detail the capabilities and workings of the
different technologies including EDGE, Evolved EDGE, WCDMA2, HSPA, HSPA+, LTE,
IMT-Advanced, LTEAdvanced, IMS, and EPC.
In 2012, the global mobile market grew strongly to nearly 7 billion connections, representing
a growth rate of 13.7% p.a. since 2008. The number of individual subscribers increased by
38% in the four years from the end of 2008 and the number of connections grew by 67%
over the same period (an increasing number of people have multiple connections, e.g. for
work and personal use or for phone and tablet). As the global market continues to grow,
2013 is expected to be a landmark year, with for the first time more SIMs active than people
alive. Despite challenging economic headwinds, the global mobile market is expected to
continue to grow over the next five
Years, with annual growth in the number of connections of 7.6% expected between 2012 and
2017. This is slower than the growth rate of 13.7% over the period 2008 to 2012, which is to
be expected given subscriber market saturation in some countries. In absolute terms,
however, this still represents 3 billion new connections, 10% more than was added between
2008 and 2012. As a result of this growth, global SIM penetration is forecast to reach 129%
by 2017 from the current 94%, breaking the 100% mark during 2013, while subscriber
penetration should increase
from 45% to 52% in the same period. However, as we explore later in this chapter, the
dynamics differ significantly by region.

Page 27

The headline growth in number of connections hides an important shift taking place in the
types of connections that make up the total. In terms of numbers of connections, 2G
technology which provides digital quality voice, messaging and low bandwidth data
connections still accounts for the majority of global connections in 2012, 5 billion of the
6.8 billion totals. However, the growth in connections will be driven by increased uptake of
3G and 4G connections, which are forecast to increase from 26% to 53% of global
connections over the period 2012 to 2017.
5

SMALL AND MEDUM ENTERPRSES N PAKSTAN


Traditionally an SME, (a small and/ or medium enterprise) is defined as an enterprise and is
considered to be any entity engaged in an economic activity, irrespective of its legal form.
This includes in particular, self-employed persons and family businesses engaged in craft or
other activities, and partnerships or associations regularly engaged in an economic activity.
However, when we talk about the exact composition of an SME it tends to differ from one
province to another. In Punjab an industry is categorized as an SME if its fixed investment
consists up to Rs 20 million excluding its land and building. However, in the province of
Sindh, an SME is defined as any entity engaged in producing handicrafts or in the
manufacturing industry with a fixed capital not more thanRs 10 million including its fixed
investments. In Pakistan, cottage or household industries hold an important position in rural
set-up. Most villages are self-sufficient in the basic necessities of life. They have their own
carpenters, blacksmiths, potters, craftsmen and cotton weavers. Many families depend on
cottage industries for income. The industry has immense potential in terms of its input in the
total GDP growth of the country. However due to the lack of financial opportunities and
other hindrances the small scale businesses are unable to work in its full potential and
therefore only makes up to 5% of the total GDP growth. Special measures need to be taken
for the improvement in the promotion of such industries in the economy since such
industries in particular have created large scale employment opportunities. Since the
industry is labor intensive in nature 25% of the Pakistani labor force is currently employed
in the different SMEs especially in the different parts of Punjab like Sailkot, Faisalabad and
Gujranwala. Areas of Sindh include Hyderabad and Karachi in particular. Apart from these

Page 28

major city centers, there exist many different small scale enterprises in the remote areas of
KPK and Kashmir.
5.1

Problems of SMEs
Due to the low financial investments available to the entrepreneurs of the SMEs, there is
large numbers of problem and barriers for the proper functioning of as such industries. Some
of the major problems are:
1. The revenues generated tend to have a very small monetary value due to which the
individual profits generated is so less that most of it is spent on the daily
expenditures. Extra capital is not available for expansion purposes.
2. There is a lack of standardization and quality control. In some cases they do not meet
the standards of foreign markets. A lack of coordination between different industries
also creates differences in prices.
3. Due to the low literacy rate of the investors, the production methods and technology
used is outdated.
4. The wholesaler, who takes most of the profits, exploits the owners of the small-scale
industry. In some cases goods are sold to wholesalers at cost price, which discourages
the owners and they reduce the quality and quantity the produced.
5. In rural areas, where the electricity is not provided, small-scale industries are difficult
to set up. Even the great fluctuation in voltage and power break-downs cause damage
to the electric motors. The commercial rates of electricity have also increased
significantly which hinders the growth.
6. The craftsman and artisans learn their skills and production methods from their
elders. The provision of technical advice and further training is limited.
7. Due to the lack of trade barriers and the promotion of free trade, the markets are
flooded with internationally produced goods which over shadow the domestically
produced output.
The small and medium enterprises of Pakistan play a very important role in the economic
development of the country. In fact some of the products produced by this sector of the
economy not only caters to the GDP growth rate but also forms the cultural identity of
Pakistan. Hence the preservation, protection and promotion of the sector should be the top
most priority of the government and it should take strong and immediate action in help in the
Page 29

development of such industries since these are the basic milestones to the road to economic
success.
6

AM OF THE STUDY
The study will help to understand the impact of 3G on SMEs working at local level. It would
also evaluate the advantages and disadvantages of 3G. Further it would be beneficial for
SMEs to enhance their productivity through information technology and by using 3G.

FRAME WORK:
Perceived
Usefulness

Perceived Ease of
Use

Personal
Innovativeness

Perceived
Enjoyment

Adoption of
3G
Image

Network Effects

Following are the hypothesis derived from frame work :


H1: Personal innovativeness significantly enhance by image.
H2: Ease of 3G usages significantly enhances enjoyment.
H3: 3G network coverage significantly enhances adoption.
H4: 3G usage significantly improves my productivity.
H5: perceived enjoyment significantly enhances the adoption of 3G.
H6: Image of 3G mobile service significantly enhances adoption of 3G.

Page 30

8
8.1

RESEARCH METHODOLOGY
Type of study:
The main purpose of this study is hypothesis testing. In this research, the relationship
between dependent variable which is Adoption of 3G and Network Effects is tested
which is an independent variable, other variable like Perceived usefulness, Perceived of
ease of use and personal innovativeness and image are performing the role of dependent
variables and independent variables at the same time.
After that hypothesis are developed checking the effect of these independent variables on
dependent variables. After that, the hypothesis is tested through various statistical data
analysis techniques.

8.2

Type of investigation:
The type of investigation is causal. The causes of the problem will be investigated by
developing hypothesis related to different factors in shape of independent variables and
effects of these independent variables on dependent variables. Then the developed
hypothesis will be tested.

8.3

Extent of researcher Interference:


In this study extent of researcher is minimum because the questionnaire will be get filled
from the respondents and the results will be shown as they exist after analyzing statistical
data and it is concerned only with quantitative data so in this study extent of researcher
interference is minimum.

8.4

Study Setting:
This study setting is non-contrived because while gathering data, any change will not be
made in natural environments, the questionnaires will be get filled at the spot.

8.5

Measurement and Measures:


The measurement of the variables will be performed with the help of closed ended
questions. The scales related to quantitative data like interval scale, and Likert scale will be
used. Commonly five points Likert Scale will be used.

Page 31

8.6

Unit of analysis
The unit of analysis is individual because a single SME will be taken as a sample it will
concern about thinking, perception and mindset of an our respondents while getting the
questionnaire filled up.

8.7

Sampling Design
Sampling technique is convenient sampling and the respondents will be those SME who
had ever intersted in using of 3G. The ratio of 10:1 will be used for determining the sample
size.

8.8

Time Horizon
Our study was one shot cross sectional because we are going to collect data at just one
point in time and derived conclusions on that data. Cross sectional means to collect the
data at one time only and no need to collect data again and again for research. This time
period is also very suitable for us as we do not have sufficient time to conduct the research
in more detailed form.

8.9

Data Collection & Sample


We used questionnaires to collect data from our respondents. We collected data from 50
SMEs; each SME was given four questionnaires for filling. The base of our unit of analysis
was individual. Our unit of analysis was role of 3G in SMEs at local level. The objective of
our study was to check the impact of 3G technology in SMEs at local level. The
respondents were selected from Gujranwala, Hafizabad and Wazirabad. Convenient
sampling technique was more appropriate for our research. This sampling technique suits
in our study because approaching to all employees is quite difficult. Thats why we select
this technique. The data collection method is survey through questionnaire. The
questionnaire will be Developed and get the questionnaire filled out by respondents that
help in conducting the analysis and interpretation of data.

8.10 Data Analysis Procedure:


Data analysis basically provides concrete facts and outcomes of academic research through
various research instruments which provides useful information about the research topic
either the information gathered play supporting role to the research title or not and also
present how much deviation occur from actual course of action. The type of data is
Page 32

quantitative so various statistical tools like Regression analysis are used with the help of
different computer programs like SPSS and AMOS
9

DATA ANALYSS:
In data analysis eight types of analyses were performed, EDA (Exploratory data analysis)
Demographic Analysis, Reliability Analysis, EFA (Exploratory Factor Analysis),
Descriptive Analysis (for all variables), CFA (confirmatory Factor Analysis), Correlation
Analysis an Structural Model Application.
Exploratory Data Analysis explores the trend of data related to responses of respondents;
Demographic Analysis describes the frequencies of responses from various demographic
groups in our selected sample, EFA explores level of percentage measurement of latent
variables by manifest variables, Descriptive Analysis describes the characteristics of data
related to responses, Reliability Analysis discloses level of reliability of data i.e. level of
consistency in items of variables, Correlation Analysis is perform to check the association of
all variables among each other and finally, the Structure Model is applied in order to
estimate and test the causal relationships for acceptance and rejection of our constructed
hypothesis.

9.1

Exploratory Data Analysis:


Likert scale of five values was used in questionnaire for collecting data, values of 1, 2, 3 , 4
, 5 was used in Likert scale which was meant as Strongly Disagree, Disagree,
Undecided, Agree and Strongly Agree respectively.
Awareness:
Serial

Variables

Frequency

Percent

Yes

160

80%

Some what

32

16%

No

4%

Total

200

100

Page 33

Interpretation:
We also checked awareness level of our respondents 80% said yes they are aware of 3G
technology and 4% were unaware of 3G.Other 16% were aware of 3G but not so much
aware of it.
Meanings of 3G:
Serial

Variables

Frequency

Percent

Fast internet speed

88

44%

video calling

4%

Better quality signals

24

12%

More applications of mobile phone

80

40%

Total

200

100%

Interpretation:
After checking the awareness level of respondents we asked them about the meaning of
3G.Among all the respondents 44% said that the meaning of 3G is fast internet speed,4%
said 3G is just video calling from mobile phone,12% said that 3G means better quality of
signals and 40% respondents said that 3G means more applications of mobile phones.
This shows that more of the respondents understand what 3G technology is.
Company of 3G:
Serial

Variables

Frequency

Percent

Mobilink

76

38%

Ufone

12

6%

Warid

42

24%

Page 34

Telenor

30

12%

Zong

40

20%

Total

200

100%

Interpretation:
Then we asked from respondents about the company, from which company they will
purchase 3G connection. Most respondents said that they will use mobilink and warid 3G
services.Mobilink customers were 38% and waridcustomers were 36%.others were,
Ufone 6% and telenor were 20%.
Advantages of 3G:
Serial

Variables

Frequency

Percent

High access speed

80

40%

More application of mobile phone

32

16%

Mobile phone with better performance

48

24%

Better signal quality

32

16%

Easy to use

4%

Total

200

100%

Interpretation:
After that we asked about the advantages of 3G technology.40% respondents said that
they will use 3G due to high access speed, 16% said that they will use due to more
applications and 24% said that mobile phone will give better performance. This shows
that customers are aware of advantages of 3G technology.

Page 35

Purpose of 3G:
Serial

Variables

Frequency

Percent

Entertainment

76

38%

communication

68

34%

Business

56

28%

Total

200

100%

Interpretation:
This table shows purpose for which customer will use 3G services.38% of the respondents
will use 3G for entertainment purpose.34% for communication and 28% for business
purpose. Ratio of entertainment is high then other variables.
9.2

Demographic Analysis:
The demographic analysis part contains division of selected sample on the basis of
different characteristics and then analyzing their response frequencies. The selected sample
is divided on the basis of Gender, Age, Gender, The response frequencies are analyzed
according to the gender of the respondents,
Table 1: Responses from Male and Female Respondents
Serial

Variables

Frequency

Percent

Female

28

14%

Male

172

86%

Total

200

100%

Page 36

Table 2: Age and Response Frequency


Serial

Variables

Frequency

Percent

19 and under

2%

20-29

80

40%

30-39

16

8%

40-49

52

26%

50-59

48

24%

Total

200

100%

Interpretation:
Demographic tables show the response of males and females of different age groups. In
above table 86% males and 14% females responded to our questionaire.2% of the sample
is those employees which are under 20 years of age. Respondents belonging to age of 20 to
29 are 40%.From 30 to 39 years of age respondents were 8% in our data and whose age
was 40 to 49 years were 26% and 24% were of age 50 to 60 years.
9.3

Reliability:
The main purpose of check the reliability and consistency in variables item how they are
correlated among of then. So Nully in 1960 in which they stated that the Cronbacs value
that varies from .6 to .7 in case of strong correlation among variable items.
If the correlated item has value less than .6 but greater than .50 is satisfactory but has no
appropriate reference in literature.

Page 37

Table 4: Reliability and Consistency among variables


Cronbachs alpha

No. of items

Perceived usefulness

.766

Perceived ease of use

.747

Perceived enjoyment

.785

Image

.616

Personal innovativeness

.682

Networks effect

.821

Networks adoption

.710

Variables

Source: Questionnaire Survey


The Networks effect has greatest Chronbacs Alpha value which shows the strongest
correlation between items of the variable.
All other variables like Perceived usefulness, Perceived ease of use, Perceived enjoyment,
Image, Networks adoption and personal innovativeness have Chronbacs Alpha values
greater than 0.7 which are in acceptable range.
9.4

The Descriptive Analysis:


The Descriptive analysis will describe the main features of the data collected through a
questionnaire survey, The main tools used in descriptive analysis are Means of each
variable which would describe the average response value, The Standard Deviation, which
will describe the possible deviation of values from mean values, The coefficient of
variation, which will describe the percentage of deviation from mean value and the
Skewness which would describe asymmetric from normal distribution and disclose either
the data is negative or positive skewed:

Page 38

Table 6: Descriptive Statistics:


Variables

Mean Statistics

STD. Statistics

C.V (%)

Skewness
Statistics

Personal

3.59

.80

22

-.644

4.00

.62

15

-1.702

3.68

.85

23

-.839

Perceived Ease of 3.26

.94

28

-.227

innovatiness
Perceived
usefulness
Network effects

use
image

4.72

1.11

23

-.941

Perceived

3.02

.86

28

-.149

Enjoyment
The Average response value for Personal innovations is 3.59 which describe the average
response from the respondents is between undecided and agree about statements of the
questions asked.
The Standard Deviation is 0.80 which means the response might be greater than mean
value or less than it by .80 i.e. from 2.79 to 4.39, Coefficient of variation describes that
the deviation is 22 percent of average response value.
The Average response value for Information Perceived usefulness is 4.00 which describe
the average response from the respondents is agree with statements of the questions
asked.
The Standard Deviation is 0.62 which means the response might be greater than mean
value or less than it by .62 i.e. from 3.38 to 4.62, Coefficient of variation describes that
the deviation is 15 percent of average response value.
Page 39

The Average response value for Network effects of organization is 3.59 which describe
the average response from the respondents is between undecided and agree about
statements of the questions asked.
The Standard Deviation is 0.80 which means the response might be greater than mean
value or less than it by .80 i.e. from 2.79 to 4.39, Coefficient of variation describes that
the deviation is 22 percent of average response value.
The Average response value for perceived ease of use is 3.68 which describe the average
response from the respondents is between undecided and agree about statements of the
questions asked.
The Standard Deviation is 0.85 which means the response might be greater than mean
value or less than it by .85 i.e. from 2.83 to 4.53, Coefficient of variation describes that
the deviation is 23 percent of average response value.
The Average response value for is 3.26 which describe the average response from the
respondents is undecided about statements of the questions asked.
The Standard Deviation is 0.94 which means the response might be greater than mean
value or less than it by .94 i.e. from 2.32 to 4.2, Coefficient of variation describes that the
deviation is 28 percent of average response value.
The Average response value for imageis 4.72 which describe that the average response
from the respondents is between agree and strongly agree about statements of the
questions asked, the Standard Deviation is 0.80 which means the response might be
greater than mean value or less than it by .80 i.e. from 3.61 to 5.83, Coefficient of
variation describes that the deviation is 23 percent of average response value.
The Average response value for perceived Enjoyment is 3.02 which describe the average
response from the respondents is undecided about statements of the questions asked.
The Standard Deviation is 0.86 which means the response might be greater than mean
value or less than it by .86 i.e. from 2.16 to 3.88, Coefficient of variation describes that
the deviation is 28 percent of average response value.
Page 40

All values of skewness are negative which means that the data is negatively skewed i.e.
in normal distribution, most of the values are to be concentrated on left side of the mean
9.5

Correlation Analysis
Correlation among variables explains the level and direction of association of variables
among each other or prediction of one variable to another. Correlation value usually ranges
from -1 to +1. Correlation coefficients value of +1 means that there is strong correlation
or association between two variables, 0 value of correlation coefficients means that there
is no association between two variables, -1 value of correlation coefficients means that
there is negative association or correlation between two variables, correlation values below
0.5 is also significant but shows weak association between two variables (J. Rosenblatt,
2001);

Variables

Perceived

Perceived Perceived

Usefulness Ease

Image

of Enjoyment

Personal

Network

Innovativeness Effects

Adoption
of 3G

Use
1

Perceived
Usefulness
Perceived

Ease .416**

of Use
.376**

.552**

Image

.464**

.565**

.432**

Personal

-.105

-.031

-.155

.435**

.455**

.485**

.551**

.409**

-.104

.551**

-.033

.565**

-.232

.427**

Perceived
Enjoyment

Innovativeness
Network Effects
Adoption of 3G

.443**

Page 41

Above table represents the correlation between the variables. The correlation between
Perceived Usefulness and Perceived Ease of Use is positive and its value is .416. It means
that if usefulness of 3G increases then it will be easy to use. They are moderately
correlated. Correlation between Perceived Ease of use and Perceived Enjoyment is also
positive and is .552.They are moderately correlated. It means that if usefulness of 3G
increases then the user enjoyment will increase. For perceived enjoyment and image
correlation is .432.It means if the user enjoy the services of 3G then the image of 3G will
increase because the user will suggest others to use 3G technology. Correlation between
image and personal innovativeness is also positive and it is .409. it means that if the
network of 3G will batter then image will enhance .Correlation between network effects
and adoption of 3G is also positive and its value is .427.it means if network quality is good
then adoption of 3G will increased because customer wants better quality of network.
9.6

Factor analysis:

Sr. No.

Perceived

Perceived

Usefulness

Ease

Perceived

Image

of Enjoyment

Personal

Network Adoption

Innovativeness

Effects

of 3G

Use
1

.756

.816

.684

.522

.606

.515

.580

.846

.620

.746

.576

.716

.546

.709

.785

.743

.698

.712

.813

.622

.585

.698

.614

.739

.611

.586

.660

.629

.718

.655

7
8
Variance
KMO

49.1%
.762

BARTLEETS .000

49.9%

51.5%

55.3% 51.3%

45.71%

40.9%

.766

.702

.717

.658

.732

.788

.000

.000

.000

.000

.000

.000
Page 42

Factor analysis explains the loading scores against each of the item. These loading scores
represent how certain items independently explained the variable. Kaiser (1974)
recommends that the value of KMO for each variable should be above 0.6 and the value
of Bartlett of each variable must be less than 0.05 it means both assumptions of factor
analysis are fulfilled.
The value of the loading scores of all items if first variable is full fills the condition. The
loading scores are .756, .846, .785, .698, .629, .718 respectively. This table shows the
validity of the internal items that these items perfectly explain the variable without any
ambiguity. This variable also explains the values of KMO and Bart let, Variance that
must fulfill as a condition. All items on the above table fulfill the condition and have
perfect internal validity. No one even single variable is in this table that values of Bart let
less than 0.6 and less than .05 of KMO. In our case, the total variance of perceived
usefulness is 49.1%.Similarly the other variance also explains the other variables 49.9%
of perceived ease of use, 51.5% of perceived enjoyment, 55.3% of image , 51.3% of
personal innovativeness, 45.71% of networks effect and 40.9% of adoption of 3G.
9.7

Structural Regression Model:

Hypothesis

Estimates

P value

Hypothesis

H1

.236

.049

Accepted

H2

.342

.558

Rejected

H3

.109

.013

Accepted

H4

.275

.018

Accepted

H5

.107

.578

Rejected

H6

.392

.010

Accepted

Page 43

Interpretation:
H1: Personal innovativeness significantly enhance by image.
H2: Ease of 3G usages significantly enhances enjoyment.
H3: 3G network coverage significantly enhances adoption.
H4: 3G usage significantly improves my productivity.
H5: perceived enjoyment significantly enhances the adoption of 3G.
H6: Image of 3G mobile service significantly enhances adoption of 3G.
We tested hypothesis by applying regression .Our two hypothesis are rejected and four
are accepted.H1 shows that personal innovativeness significantly enhances the image of
thecompany. It means that if 3G have different and innovative things then its image will
increase and SMEs will adopt 3G for business usage .H2 is rejected it means that ease of
use will not significantly enhance the enjoyment. H3 is statistically accepted it means that
network coverage have direct impact on adoption of 3G,if network coverage will be
better then adoption of 3G will increase. H4 is also accepted and shows that 3G usage
will enhance the productivity of organization because there will be more faster
communication and working .H5 is rejected that shows that perceived enjoyment have no
effect on adoption of 3G.h6 is accepted and shows that image has direct impact on
adoption of 3G,it means if 3G service provider have good image then usage of 3G
technology will also increase.

Page 44

10 CROSS TABULATONS:
10.1 Age and Awareness:
Age and Awareness Comperison Table:
Age

Yes

Some What

No

Total

19 and under

20-29

60

16

80

30-39

16

16

40-49

36

16

52

50-59

44

48

Total

160

32

200

We did crosstab between age and awareness. 20-29 age bracket represent that 60 people said that
they aware about 3G. 16 people of age bracket between 40-49 and 20-29 said they somewhat
aware about 3G.
Chi-Sqare Test:
Value
Pearson Chi-Square
Nominal

Approx.
Significance
0.001
0.001

26.923
0.367

10.2 Age and Company of 3G:

Age and Company Cross Tabulation:


Age

Mobilink

Ufone

Zong

Waird

Total

19 and under

20-29

40

16

20

80

30-39

16

40-49

16

28

52

50-59

16

16

48

Total

76

12

40

72

200
Page 45

Chi-Sqare Test:

Pearson Chi-Square
Nominal

Value

df

45.491a
0.477

12

Approx.
Significance
0.001
0.001

Interpretation:
Total respondents are 200, Mobilink and Ufone got the hoghest ranking in cross
tabulation. The people blongs to age of 20 to 29 years, more towards to the mobilink and
people belong to age of 40 to 49 years, more toward Warid
10.3 Gender and Purpose of 3D:

Gender and purpose of 3G Cross Tabulation:


Gender

Entertainment Communcation Business

Total

Male

17

11

28

Female

59

57

56

172

Total

76

68

56

200

Chi-Sqare Test:

Pearson Chi-Square
Nominal

Value

df

13.804
0.263

Approx.
Significance
0.001
0.001

Interpretation:
Total respondents are 200. Out of 28 males, more males prefer to use 3G for entertainment
purpose and out of 172 frmale respondents, approx. all females want to use 3G for
Entertainment, Communication, and Business purpose equaly. The overall data represents
that more people including male and females, wants to use 3G for Entertainment Purspose.

Page 46

11 DSCUSSON:
Business is selling goods and services to customers. Small and Medium Enterprises (SMEs)
are doing business and having the latest information is very important for their business. The
ones that have the latest information technology will get the latest products and will increase
their market share. 3G Mobile technology will provide data transfer ability and allow
immediate access anywhere and anytime with better speed and accuracy. 3G Mobile
technology is becoming important for communication in their business. This research
investigated the role of 3G mobile technology in SMEs at local level. Data was gathered by
filling questionnaire from 50 SMEs. The findings of the research pointed out that most
SMEs were using mobile devices for communication. This study may help SMEs to
appreciate the role of 3G mobile technology as important communication tools in their
business. The study findings may be useful for manufacturers and application developers to
target mobile devices especially for SMEs market. Mobile devices have gained popularity in
the present world. Non IT professionals such as students, farmers and doctors use mobile
devices. Mobile devices can be used for long distance communication. First & second
generation cell phones allowed people to talk and listen to each other anywhere and anytime
without the wire. The third generation (3G) phones allow people to see each other anywhere
and anytime in addition to exchange of speech. Previously SMEs manually records their
information for their business (Chau & Turner, 2001). SMEs spent lots of time and human
resource in recording and saving the data. In spite of manual work, they made mistakes.
Lately they have started using computers instead of manual work. Internet has also been
adopted as a part of this change. With greater use of in mobile devices, SMEs are able to
work differently from how they used to do earlier.
12 ROLE OF 3G MOBLE TECHNOLOGY N SMES AT LOCAL LEVEL:
The impact of mobile devices in SMEs can be divided between mobile data and mobile
device functions. Some SMEs still exist in the classical mould. They still use conventional
practices for communication. The mobile devices in these SMEs are playing only a limited
role in doing their business. Mobile devices are the most important way of communication
between SMEs and customer. Mobile devices also help communication within SMEs.These
SMEs use only some mobile device functions to improve their communication. Mobile
devices can be used for recording information and reminding people. The impact of mobile
Page 47

devices on this functioning of SMEs is mainly for personal communication. It is unlike the
impact of mobile data on SMEs which is only for business. However, mobile devices
improving personal communication helps the SMEs indirectly.
13 LIMITATIONS:
In this study, the qualitative data could not considered regarding the problem because the
time factor was the big hurdle in the way and the research had to complete within specific
time but as this type of research must need qualitative data to be considered for finding
results like interviews.. These interviews are not to be directly analyzed but the research
questions can be more purified. It is not possible to directly analyze the interviews because
this is a qualitative research. Any other technique also could not use of research like
observation by visiting the different SME for the purpose of observing the change in
environment area vise because it was needed huge financial budget and founds. As this
research is based upon behavior and nature of human beings so there was a keen need to
consult with psychologist as it was experienced in this research that many hypothesis
supported by literature and theories were rejected so a psychologist can explain batter the
reason of their rejection and limited application of theories.
14 CONCLUSON
Today, the majority of mobile services used via 3G networks are already available in current
2.5G networks (GPRS,EDGE)such as browsing the Web, sending and receiving multimedia
messages (like pictures and video), and emailing. Therefore, 3G should not be viewed as a
new technology surpassing the existing 2.5G networks, or a revolution in mobile
communication. Instead, 3G should be considered to be evolution of existing mobile
communications. The third generation (3G) phones allow people to see each other anywhere
and anytime in addition to exchange of speech. Previously SMEs manually records their
information for their business (Chau & Turner, 2001). SMEs spent lots of time and human
resource in recording and saving the data. In spite of manual work, they made mistakes.
Lately they have started using computers instead of manual work. Internet has also been
adopted as a part of this change. With greater use of in mobile devices, SMEs are able to
work differently from how they used to do earlier. After our research we find out that 3G
can enhance the business and can improve workings of SMEs. Most respondents thought
Page 48

that 3G technology provided easy, fast and anywhere anytime communication.3G


technology improved communication among SMEs employees, as well as communication
between SMEs and their customers and suppliers. 3G technology provided greater
business opportunities for SMEs. The annual turnover of SMEs can also increased as a
result of these additional business opportunities.

Page 49

15 APPENDIX:
16 Questionnaire:
We are students of MBA in GIFT University Gujranwala and doing research on Role of 3G
technology in SMEs at local level. Therefore, you are kindly requested to fill this questionnaire.
The information provided will be kept confidential and will be used for academic purpose only.
It will take 15-20 min to complete the questionnaire. Thank you for anticipation. Strongly
Disagree = 1..Strongly Agree = 5
Strongly

Perceived Usefulness

Disagree

3G mobile services will allow me to do things


faster
3G mobile services will make me more
productive
3G mobile services will increase my degree of
mobility
3G mobile services will increase the quality of
communication
Additional services that will be available with 3G
are useless for me
Mobile phones are not comfortable enough for
using high speed internet

Strongly
Agree

Strongly

Perceived Ease of Use

Disagree Neutral Agree

Disagree

Disagree Neutral Agree

Strongly
Agree

Using 3G services seems complicated for me

It will be easy to learn using 3G services.

3G will help more to handle job problems

Perceived Enjoyment

Strongly Disagree Neutral Agree

3
4

Using

3G

services

will

be

clear

understandable

and

Strongly

Page 50

Disagree

Agree

Using 3G mobile services seems to be unpleasant

Upcoming 3G mobile services excite me

It will be interesting to use 3G mobile services

Strongly

Image

Disagree

People who use 3G mobile services will have


more prestige than those who wont

Disagree Neutral Agree

Strongly
Agree

Using 3G mobile services will be a status symbol

I have clear understanding of 3G

I can specifically point out 3G advantages

Strongly

Personal Innovativeness

like

to

Disagree
purchase

new

information/communication technologies
Among my peers, I am usually the first to try out
new information/communication technologies
In general I am hesitant to try out new
information technologies
Network Effects

1
2

I think my contacts are eager to use 3G services


My contacts usually follow the innovations about
mobile phones closely.
Adoption of 3G

I can easily plan my daily life by


using 3G service
I can communicate with others more unrestrained
and fast by using 3G service

Disagree Neutral Agree

Strongly
Agree

Strongly
Disagree

Disagree Neutral Agree

Strongly
Agree

Strongly
Disagree

Disagree Neutral Agree

Strongly
Agree

Page 51

3
4

3G service saves more time on my work


I can get latest information anywhere and at
anytime by using 3G service

We would like to have some additional information.


1. In what age group are you?
1. 19 and under

2. 20 29

3. 30 39

4. 40 49

5. 50 - 59

2. Gender:
1. Female

2. Male

3. Are you aware of 3G technology?


1. Yes

2. No

3. Some what

4. What does 3G means for you?


1. Fast internet speed

2.video calling

3.Better quality signals

4.More

applications of mobile phone


4. Which 3G agency will you choose to offer services?
1. Mobilink

2. Telenor

3. Ufone

4. Zong

5. What characteristics of 3G agency you thought is the most important to choose a 3G agency?
1. Good services

2. Lower rates 3. Discounts

4. Packages

5. Others______

6. Which of following advantages of 3G technologies will attract your attention?


1. High access speed

2. More application of mobile phone 3. Mobile phone with better

performance 4. Others_________
7. For what purpose do you want to use 3G multimedia services?
1. Entertainment 2. Communication (voice/video calling)3.Business 4. Location
Page 52

17 REFERENCES

(An Investigation of Third Generation (3G) Mobile Technologies andServices) by


HeikkiKarjaluoto.

(The Deployment of Third-Generation Mobile Services: A Multinational Analysis


of Contributing Factors) July 2009 by Sang won Lee, Ph.D. Assistant Professor
Communication Department Jamestown College

(transition to 4G,3gpp broad band evolution to IMT advanced).September 2010

(Investigate consumers attitude and their choice towards mobile service china:
between 2G and 3G)by Jun Sun

(2G and 3G mobile communication)

( RFID, GPS, and 3G)by Lori Bowen Ayre

( The mobile economy 2013) by AT Kearny

SMEDA 2014

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