A Study On Mediating Effects On Technology Communications Essay

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Technology as the differentiator has become the driver of the Indian telecom business since the past decade with telecom and industrial sector reforms providing firm foundation.

The telecom industry has been significantly influence by evolution of technology. The growing application of semiconductor devices, computerized networks, software's to telecommunication reduced the tariff and increased the quality of service substantially. The evolution of telecom technology has been mainly driven by changes in distribution channels as we see evidence from Mobile phones, Broadband Internet, SMS, Bluetooth etc.,

Network effects and standardization have recently become one of the most popular topics as the number of wireless telephone users has increased substantially and the application of wireless communication principle to telecommunication has become ever more versatile. In particular, network effect and standardization are arguably most common reasons for concentrated market structures in technology intensive industries. Hence, it seems to be natural to consider progress in telecom technology as a reason for market consolidation given the nature of network in telecommunication.

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The major challenge for telecom company is to fall in line with the emerging scenario and adopting the require technology to provide state of art services to the customers. Technology should ultimate results in better customer service, low cost and quick delivery.

1.1 OVERVIEW

One might remember the days when he/she should use post offices for communication purpose through letters and trunk calls because of manual telephone exchanges. With the introduction of auto exchanges, later he/she should use public telephone booths for his communication purpose. One of the most substantial changes in telecom technology is the recent introduction of Mobile phones.

As telecom technology has focused on reducing cost of distribution, new technologies in telecommunication are characterized as a process innovation by making customers handle their own communication without going to public booth.

Telecom competition is assessed in three different ways, Price (tariff), quantity (Subscriber base) and quality (network, reputation-relationship). Traditionally Telecom Company have competed in branch in exchange network (quantity) to increase the number of customers, i.e., subscriber base. However, with the benefit of new technologies, the quantity competition seems to be replaced by network competition in quality, volume of data transmission and other value added services.

1.2 BACKGROUND OF THE STUDY

Telecom sector is the spinal cord of sovereign economy of any country. India is no exception. The technology adaptation in telecom operations in India was few decade behind that of in developing countries. Since late 1980s Dept. of Telecom adapted digital communication technology in their telecom network. Technology was seen as a key business enabler in six vital areas of telecom operation viz. augmenting profit tool, operation efficiency, customer management, distribution and reach, product innovation and quality communication and settlement. Dept of telecom expect that these developments in the areas of housekeeping and decision-making will improve the customer service levels and productivity, ultimately resulting in better profitability.

Government of India announced National telecom policy in 1994. The new economic policy adopted by the Government aims at improving India's competitiveness in the global market and rapid growth of exports. Another element of the new economic policy is attracting foreign direct investment and stimulating domestic investment. Telecommunication services of world class quality are necessary for the success of this policy. It is, therefore, necessary to give the highest priority to the development of telecom services in the country. The objectives of the New Telecom Policy will be as follows:

  1. The focus of the Telecom Policy shall be telecommunication for all and telecommunication within the reach of all. This means ensuring the availability of telephone on demand as early as possible.
  2. Another objective will be to achieve universal service covering all villages as early as possible. What is meant by the expression universal service is the provision of access to all people for certain basic telecom services at affordable and reasonable prices.
  3. The quality of telecom services should be of world standard. Removal of consumer complaints, dispute resolution and public interface will receive special attention. The objective will also be to provide widest permissible range of services to meet the customer's demand at reasonable prices.
  4. Taking into account India's size and development, it is necessary to ensure that India emerges as a major manufacturing base and major exporter of telecom equipment.
  5. The defence and security interests of the country will be protected.
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The telephone density during 1994 in India is about 0.8 per hundred persons as against the world average of 10 per hundred persons. It is also lower than that of many developing countries of Asia like China (1.7), Pakistan (2), Malaysia (13) etc. There are about 8 million lines with a waiting list of about 2.5 million. Nearly 1.4 lakh villages, out of a total of 5, 76,490 villages in the country, are covered by telephone services. There are more than 1 lakh public call offices in the urban areas.

In view of the growth of the economy and the reassessed demand, it was necessary to revise the VIII Plan targets as follows :

  1. Telephone should be available on demand by 1997.
  2. All villages should be covered by 1997.
  3. In the urban areas a PCO should be provided for every 500 persons by 1997
  4. All value-added services available internationally should be introduced in India to raise the telecom services in India to international standard well within the VIII Plan period, preferably by 1996.

In order to achieve standards comparable to the international facilities, the sub-sector of value-added services was opened up to private investment in July 1992 for the following services:

  1. Electronic Mail
  2. Voice Mail
  3. Data Services
  4. Audio Text Services
  5. Video Text Services
  6. Video Conferencing
  7. Radio Paging
  8. Cellular Mobile Telephone

In respect of the first six of these services companies registered in India are permitted to operate under license on non-exclusive basis. This policy would be continued. In view of the constraints on the number of companies that can be allowed to operate in the area of Radio Paging and Cellular Mobile Telephone Service, however, a policy of selection is being followed in grant of licenses through a system of tendering. This policy will also be continued and the following criteria will be applied for selection :

  1. Track record of the company;
  2. Compatibility of the technology
  3. Usefulness of the technology being offered for future development;
  4. Protection of national security interests;
  5. Ability to give the best quality of service to the consumer at the most competitive cost; and
  6. Attractiveness of the commercial terms to the Department of Telecommunications.

Basic Services

With a view to supplement the effort of the Department of Telecommunications in providing telecommunication services to the people, companies registered in India will be allowed to participate in the expansion of the telecommunication network in the area of basic telephone services also. These companies will be required to maintain a balance in their coverage between urban and rural areas. Their conditions of operation will include agreed tariff and revenue sharing arrangements. Other terms applicable to such companies will be similar to those indicated above for value-added services.

Pilot Projects

Pilot projects will be encouraged directly by the Government in order to access new technologies, new systems in both basic as well as value-added services.

Technology and Strategic Aspects

Telecommunication is a vital infrastructure. It is also technology intensive. It is, therefore, necessary that the administration of the policy in the telecom sector is such that the inflow of technology is made easy and India does not lag behind in getting the full advantage of the emerging new technologies. An equally important aspect is the strategic aspect of telecom, which affects the national and public interests. It is, therefore, necessary to encourage indigenous technology, set up a suitable funding mechanism for indigenous R&D so that the Indian Technology can meet the national demand and also compete globally.

NTP 1994 also recognized that the required resources for achieving these targets would not be available only out of Government sources and concluded that private investment and involvement of the private sector was required to bridge the resource gap. The Government invited private sector participation in a phased manner from the early nineties, initially for value added services such as Paging Services and Cellular Mobile Telephone Services (CMTS) and thereafter for Fixed Telephone Services (FTS). After a competitive bidding process, licenses were awarded to 8 CMTS operators in the four metros, 14 CMTS operators in 18 state circles.

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The Government recognizes that the result of the privatization has so far not been entirely satisfactory. While there has been a rapid rollout of cellular mobile networks in the metros and states with currently over 1 million subscribers, most of the projects today are facing problems. The main reason, according to the cellular and basic operators, has been the fact that the actual revenues realized by these projects have been far short of the projections and the operators are unable to arrange financing for their projects. Basic telecom services by private operators have only just commenced in a limited way in two of the six circles where licenses were awarded. As a result, some of the targets as envisaged in the objectives of the NTP 1994 have remained unfulfilled. The private sector entry has been slower than this sector.

TRAI (established 1997) is the independent regulator established by the Government of India to regulate the telecommunication business in India.

Need for a new telecom policy

In addition to some of the objectives of NTP 1994 not being fulfilled, there have also been far reaching developments in the recent past in the telecom, IT, consumer electronics and media industries world-wide. Convergence of both markets and technologies is a reality that is forcing realignment of the industry. At one level, telephone and broadcasting industries are entering each other's markets, while at another level, technology is blurring the difference between different conduit systems such as wire line and wireless. As in the case of most countries, separate licenses have been issued in our country for basic, cellular, ISP, satellite and cable TV operators each with separate industry structure, terms of entry and varying requirement to create infrastructure. However, this convergence now allows operators to use their facilities to deliver some services reserved for other operators, necessitating a relook into the existing policy framework. The new telecom policy framework is also required to facilitate India's vision of becoming an IT superpower and develop a world class telecom infrastructure in the country.

The objectives of the NTP 1999 are as under:

  1. Access to telecommunications is of utmost importance for achievement of the country's social and economic goals. Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy.
  2. Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy;
  3. Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country;
  4. Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower;
  5. Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc.
  6. Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;
  7. Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities.
  8. Achieve efficiency and transparency in spectrum management.
  9. Protect defence and security interests of the country.
  10. Enable Indian Telecom Companies to become truly global players.

1.3 PROBLEM DISCUSSION

It is well known that most of individuals are late adopters of telecommunication and its application with regards to Mobile phones. Since most of the customers are late adopters, it seems that Mobile phone is facing many difficulties. Some issues are:

  1. Although many customers perceived usefulness and eases of use as benefits of the Mobile phones, they have not transferred this attitude toward the application of telecommunication to Mobile phone communication. May telecom customers are reluctant to use data transmission. Some customers simply don't like the technology at all, and others fear that because of tariff.
  2. Lack of infrastructure and weak telecommunication.
  3. Lack of Mobile phone services by telecom company because of spectrum crunch.
  4. Network coverage and Quality of service by telecom operators.
  5. Cost of Handset and Tariff for the communication.
  6. Fear of Radiation hazards.

1.4 PROBLEM DEFINITION

Tradition landline based telecommunication remains the most widespread method for conducting communication.

However, Mobile phone technology is rapidly changing the way personal telecom services are being designed and delivered. Many telecom company are trying to introduce new services to improve their operations and to reduce costs. Despite all their efforts aimed at developing better and easier Mobile phone system, these systems remained largely unnoticed by the customers, and certainly were seriously underused in spite of their availability. Therefore, there is a need to understand users' acceptance of Mobile phone communication, and need to identify the factors that can affect their intention to use Mobile phone communication.

1.5 OBJECTIVES

The main objectives of this study are:

  1. To find out the adoption of new technology in telecom sectors in the study area.
  2. To suggest the suitable methods for the adoption of new technology in telecom sectors.

1.6 LIMITATIONS OF THE STUDY

This study was conducted to find the mediating effects on technology adoption in Mobile phone services. As, such, there is still room for further investigation into the adoption of Mobile phone services.

1.7 CHAPTERISATION

CHAPTER 1 - Introduction

The first chapter represents the background of the study, Problem Discussion, Problem Definition, Objectives and Limitations of the study that leads us to our purpose. Subsequently it reports the contribution of the study.

CHAPTER 2 - Review of literature

This chapter explains the basic terminology of Mobile phone communication and Wireless technology and outlines the definition of adoption.

CHAPTER 3 - Research Methodology

This chapter discusses the research methodology of the dissertation. The sampling methods and sources of data used are presented in this chapter.

CHAPTER 4 - Analysis and Interpretation

In this chapter the data collected are analyzed based on basis of frame of reference of this study.

CHAPTER 5 - Conclusions

Based on the result obtained in the study, a discussion of theoretical and practical implication will be presented on this chapter.

CHAPTER 2

REVIEW OF LITERATURE

2.1 BASICS OF WIRELESS TECHNOLOGY

The ability to communicate with people on the move has evolved remarkably since Guglielmo Marconi first demonstrated radio's ability to provide continuous contact with ships sailing the English channel. That was in 1897, and since then new wireless communications methods and services have been enthusiastically adopted by people throughout the world. Particularly during the past Fourteen(14) years, the mobile radio communications industry has grown by orders of magnitude, fueled by digital and Radio Frequency circuit fabrication improvements, new large-scale circuit integration, and other miniaturization technologies which make portable radio equipments smaller, cheaper, and more reliable. Digital switching techniques have facilitated the large scale deployment of affordable, easy-to-use radio communication networks. These trends will continue at an even greater pace during the next decade.

Evolution of Mobile Radio Communications

A brief history of the evolution of mobile communications throughout the world is useful in order to appreciate the enormous impact that cellular radio and Personal Communication Services(PCS) will have on all of us over the next several decades. It is also useful for a newcomer to the cellular radio field to understand the tremendous impact that government regulatory agencies and service competitors wield in the evolution of new wireless system, services, and technologies. While it is not the intent of this study to deal with the techno-political aspects of cellular radio and personal communications, techno-politics are a fundamental driver in the evolution of new technology and services, since radio spectrum usage is controlled by governments, not by service providers, equipment manufacturers, entrepreneurs, or researchers. Progressive involvement in technology development is a vital for a government if it hopes to keep its own country competitive in the rapidly changing field of wireless personal communications.

Wireless communications is enjoying its fastest growth period in history, due to enabling technologies which permit widespread deployment. Historically, growth in the mobile communication field has come slowly, and has been coupled closely to technological improvements. The ability to provide wireless communications to an entire population was not even conceived until Bell Laboratories developed the cellular concept in the 1960s and 1970s[Nob62], [Mac79], [You 79]. With the development of highly reliable, miniature, solid-state radio frequency hardware in the 1970s, the wireless communications era was born. The recent exponential growth in cellular technologies of the 1970s, which are mature today. The future growth of consumer-based mobile and portable communication systems will be tied more closely to radio spectrum allocations and regulatory decisions which affect or support new or extended services, as well as to consumer needs and technology advances in the signal processing, access, and network areas.

The following market penetration data show how wireless communications in the consumer sector has grown in popularity.

Number of years after the first commercial deployment

illustrates how mobile telephony has penetrated our daily lives compared with the other popular inventions of the 20th century. Figure 2.1is a bit misleading since the curve labeled “mobile telephone” does not include the non telephone mobile radio applications, such as paging, amateur radio, dispatch, citizens band(CB), public service cordless phone, or terrestrial microwave radio systems. In fact, in 1990, licensed non cellular radio systems in the U.S had over 12 million users, more than twice the U.S cellular user population at that time[FCC91]. With the phenomenal growth of wireless subscribers in the late 1990s, combined with Nextel's novel business approach of purchasing private mobile radio licenses for bundling as a nationwide commercial cellular service, today's subscriber base for cellular and Personal Communication Services(PCS) far outnumbers all non cellular licensed users. Figure 1.1 shows that the first 35 years of mobile telephony saw little market penetration due to high cost and the technological challenges involved, but how, in the past decade, wireless communications has been accepted by consumers at rates comparable to television and the video cassette/compact disc player.

In 1946, the first public mobile telephone service was introduced in twenty-five major American cities. Each system used a single, high-powered transmitter and large tower in order to cover distances of over 50km in a particular market.

Examples of Wireless Communication Systems

Most people are familiar with a number of mobile radio systems used in everyday life. Garage door openers, remote controllers for home entertainment equipment, cordless telephones, hand-held walkie-talkies, pagers(also called paged receivers or “beepers”), and cellular telephones are all examples of mobile radio communication systems. However, the cost, complexity, performance, and types of services offered by each of these mobile systems are vastly different.

The term mobile has historically been used to classify any radio terminal that could be moved during operation. More recently, the term mobile is used to describe a radio terminal that is attached to a high speed mobile platform(e.g., a cellular telephone in a fast moving vehicle) where as the term portable describes a radio terminal that can be hand-held and used by someone at walking speed(e.g., walkie-talkie or cordless telephone inside a home). The term subscriber is often to described a mobile or portable user because in most mobile communication systems, each user pays a subscription fee to use the system, and each user's communication is called a subscriber unit. In general, the collective group of users in a wireless system are called users a or mobiles, even though many of the users may actually use portable terminals.

Paging Systems

Paging systems are communication systems that send brief messages to a subscriber. Depending on the type of service, the message may be either a numeric message, an alphanumeric message, or a voice message. Paging systems are typically used to notify a subscriber of the need to call a particular telephone number or travel to a known location to receive further instructions. In modern paging systems, new headlines, stock quotations, and faxes may be sent.

Cordless Telephone systems

Cordless telephone systems are communication systems to connect portable handset to a dedicated telephone line with a specific telephone number on the public switched telephone network(PSTN). In the first generation cordless telephone systems(manufactured in the 1980s), the portable unit communicates only to the dedicated base unit and only over distances of a few tens of meters. Early cordless telephones operate solely as extension telephones to a transceiver connected to a subscriber line on the PSTN and are primarily for in-home use.

Second generation cordless telephones have recently been introduced which allow subscribers to use their handsets at many outdoor locations within urban centers such as London or Hong Kong. Modern cordless telephones are sometimes combined with paging receivers so that a subscriber may first be paged and then respond to the page using the cordless telephone. Cordless telephone systems provide the user with limited range and mobility, as it is usually not possible to maintain a call if the user travels outside the range of base station.

Cellular Telephone Systems

A cellular telephone system provides a wireless connection to the PSTN for any user location within the radio range of the system. Cellular systems accommodate a large number of users over a large geographic area, within a limited frequency spectrum. Cellular radio systems provide high quality service that is often comparable to that of the landline telephone systems. High capacity is achieved by limiting the coverage of each base station transmitter to a small geographic area called a cell so that the same radio channels may be reused by another base station located some distance away. A sophisticated switching technique called a handoff enables a call to proceed uninterrupted when the user moves from one cell to another.

Trends in Cellular Radio and personal Communications

Since 1989, there has been enormous activity throughout the world to develop personal wireless systems that combine the network intelligence of today's PSTN with modern digital signal processing and RF technology.

A worldwide standard, the Future Public land Mobile Telephone System renamed Internal Mobile Telecommunication 2000(IMT-2000) in mid-1995- has been formulated by the International telecommunications Union(ITU) which is the standards body for the United Nations, with headquarters in Geneva, Switzerland.

In emerging nations, where existing telephone service is almost nonexistent, fixed cellular systems are being installed at a rapid rate. This is due to the fact that developing nations are finding it is quicker and more affordable to install cellular telephone systems for fixed home use, rather than install wires in neighborhoods which have not yet received telephone connections to the PSTN.

The world is undergoing a major telecommunication revolution that will provide ubiquitous communication access to citizen, wherever they are. The wireless telecommunications industry requires engineers who can design and develop new wireless systems, make meaning comparisons of competing systems, and understand the engineering trade-offs that must be made in any system.

Modern Wireless Communications Systems

Since the mid 1990s, the cellular communications industry has witnessed explosive growth. Wireless communications networks have become much more pervasive than anyone could have imagined when the cellular concept was first developed in the 1960s and 1970s. The worldwide cellular and personal communication subscriber base surpassed 600 million users in late 2001. and the number of individual subscribers is projected to reach 2 billion(30% of the world's population) by the end of 2006. Indeed, most countries throughout the world continue to experience cellular subscription increases of 40% or more per year.

The rapid worldwide growth in cellular telephone subscribers has demonstrated conclusively that wireless communications is a robust, viable voice and data transport mechanism. The wide spread success of cellular has led to the development of newer wireless systems and standards for many other types of telecommunication traffic besides mobile voice telephone calls. The demand for ubiquitous personal communications is driving the development of new networking techniques that accommodate mobile voice and data users who move throughout buildings, cities, or countries.

2.2 CONCEPTION OF MOBILE PHONE COMMUNICATION

Mobile phone communication means that telecom services such as services, Prepaid, Postpaid services, SMS & MMS for Value added services, Internet, Data communication, Bluetooth, Call forwarding, Call waiting, Personal Ring Back Tone(PRBT), Voice Mail etc.,

  1. The Mobile phone appeals deeply to the Indian psychology, to the spreading desire for personal space & voice, not in defiance of the family & tribe but in the chaotic midst of it.
  2. Imagine what it was like, back in the pre cellular age, to be young in a traditional household, People are everywhere. Doors are open, Judgments fly. Bedrooms are shared. Phones are centrally located.
  3. The Cell Phone serves, then as a technology individualization. On the Cell phone, you are your own person. No one answers yours cells (or) reads your messages. Your number is just your.

2.3 MOBILE PHONE COMMUNICATION IN INDIA

Growth of mobile technology

India has become one of the fastest-growing mobile markets in the world.[10] The mobile services were commercially launched in August 1995 in India. In the initial 5-6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05.

Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more mobile phones than India with 246 million mobile phones is China - 408 million. [11]

India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service.

The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market.[12]

In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year.[13]

In April 2008 the Indian Department of Telecom (DoT) has directed all mobile phone service users to disconnect the usage of unbranded Chinese mobile phones that do not have International Mobile Equipment Identity (IMEI) numbers, because they pose a serious security risk to the country. Mobile network operators therefore planned to suspend the usage of around 30 million mobile phones (about 8% of all mobiles in the country) by April 30.

ADOPTION

Adoption is the acceptance and continued use of a product, service or idea. According to Rogers and Shoemaker(1971), consumers go through “ a process of knowledge, persuasions, decision and confirmation” before they are ready to adopt a product or service.

So the stages through which a technological innovation passes are:

  1. Knowledge
  2. Persuasion
  3. Decision
  4. Implementation
  5. Confirmation

A potential adopter passes through certain stages before decision is made on whether to adopt or reject an innovation. Rogers has been one of the number of researchers who has focused upon the adoption process, which he defines as the “the process through which an individual or other decision-maker unit passes from first knowledge of an innovation, to forming an attitude toward the innovation to a decision or rejection to implementation of the new idea, and to confirmation of this decision”(Frambach, 1993).

The innovation adoption process defined by Rogers is the process through which an individual or other decision making unit passes from knowledge of an innovation to forming an attitude towards the innovation, to a decision to adopt or reject, to implementation of the new idea, and to confirmation of this decision (Fig 2-1).

As the Fig 2.1 shows there are five stages in innovation decision process. These are:

  1. Knowledge: Socio-economic characteristics, Personality variables and communication behavior all relate to innovativeness. Innovativeness is the degree to which an individual or other adoption unit is relatively early in adopting new ideas compared to others members of a system (Rogers, 1995). According to Rogers early adopters have more formal education than later adopters and are more likely to be (Socio-economic characteristics).
  2. Persuasion: The potential adopter's attitude towards the innovation is formed in this stage. By anticipating and predicting future use satisfaction and risk of adoption, the potential adopter develop positive or negative attitude to the innovation, which play important role of modifying the final decision. Perceived attitude of an innovation as its relative advantage, compatibility and complexity are especially important here (Rogers, 1995).
  3. Decision: The decision stage occurs when an individual engages in activities that lead to adoption or rejection of the innovation. In this stage the adopter starts to actively seek out information about the innovation that assists the decision making.
  4. Implementation stage: In this stage, mental information processing and decision making come to an end, but the behavioral change begins.
  5. Confirmation stage: After the adoption of innovations, the adopter keeps evaluating the results of his/her decision. If the level of satisfaction is significant enough, the use of innovation will continue: however, it is also possible that the rejection occurs after adoption. In the latter case, the reverse of previous decision is called “discontinuance”

A model of stage in the innovation-Decision Process. Sources: Rogers, 1995

The time frames for adopting an innovation can be compressed or fairly lengthy. For example, awareness of an innovation may precede the decision to adopt by months or years. Rogers (1995) has data showing awareness preceding the adoption of hybrid seed corn by about 1.7 years for early adopters and by as much as 3.1 years for later adopters. Further, the decision to adopt and the implementation of the decision may be separate acts and may be separated in time (Reed et al., 1996)

So we can briefly define adoption: Adoption is the acceptance and continued use of a product, service or idea. According to Rogers and Shoemaker (1971), consumers go through “ a process of knowledge, persuasion, decision and confirmation” before they are ready to adopt a product or service.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 INTRODUCTION

The present study is an attempt to examine customer's adoption of new technologies in telecom services operators in Trichy, Pudukottai. Some of the telecom operators are TATA Indicom, RELIANCE, BSNL, AIRTEL, AIRCELL, and VODAFONE

3.2 PILOT STUDY

Data collection, with the above procedure to conduct a pilot study to ensure that the survey materials are clear and did not provoke any confusion or problems for telecom customers. The draft questionnaire was eventually subjected to pilot testing with a total of 54 telecom customers working in different concerns within Trichy and Pudukottai.

3.3 CONSTRUCT MEASURES AND DATA COLLECTION

Data were collected by means of a structured questionnaire comprising seven sections namely A, B, C, D, E, F&G (see Appendix). Section A consists of three questions pertaining to Technology Awareness (TA). Section B consists of four questions pertaining to Security(S). Section C consists of Five questions pertaining to Technology Services (TS). Section D consists of two questions, Section E consist of one question and Section F consists of four question related to Age, Education and Technology respectively. Finally Section G consists of eighteen questions pertaining to customers Observe ability, Relative advantage, Compatibility, Trial ability and Simplicity in Technology Adoption were given.

All the items in Sections A to G were presented as statements on the questionnaire, with the same rating scale used throughout, and measured on a seven-point, Likert-type scale that varied from 1 highly dissatisfied to 7 highly satisfied.

For conducting an empirical study, data were collected from different telecom customers, who are inexperienced or experienced users of Mobile phones.

3.4 PROCEDURE FOR DATA ANALYSIS

The data collected were analyzed for the entire sample. Data analyses were performed with Statistical Package for Social Sciences (SPSS) using techniques that included descriptive statistics, Correlation analysis and AMOS package for Structural Equation Modeling and Bayesian estimation testing.

3.5 STRUCTURAL EQUATION MODELING

The main study used Structural Equation Modeling (SEM) because of two advantages: “(1) estimation of multiple and interrelated dependence relationships, and (2) the ability to represent unobserved concepts in these relationships and account for measurement error in the estimation process”(Hair et al., 1998, p.584). In other words, a series of split but independent multiple regressions were simultaneously estimated by SEM. Therefore, the direct and indirect effects were identified(Tate, 1998). AMOS 7.0(Arbuckle and Wothke, 2006), a computer program formulating, fitting and testing Structural Equation Models(SEM) to observed data was used for SEM and the data preparation was conducted with SPSS 13.0. Linear Structural Equation Models (SEMs) are widely used in sociology, econometrics, management, biology, and other sciences.

3.6 SOURCES OF DATA

DATA COLLECTION

“The process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes”.

“The act or process of capturing raw or primary data from a single source or from multiple sources”.

3.6.1 Primary data

A primary data is a data, which is collected for the first time for a particular interest to have more information. Here the primary data was collected using a structured questionnaire from the mobile phone customers.

Research instrument

The research instrument used is the questionnaire. Questionnaire is the sheet containing relating to certain aspects regarding which researcher has to collect data. The questionnaire used in the research consists of close-ended and open-ended questions to obtain the view of respondents.

The primary data was collected from the respondents through the questionnaire method:

A type of measurement instrument that yields a single score by arithmetically combining responses to a number of items(statements/questions with several possible responses represented on some form of scale), where each item attempts to measure one aspect of the factor being measured.

3.6.2 Secondary data

The secondary data was collected from the various magazines, journals and various web sites.

3.7 DATA SOURCE

The data was collected through both primary and secondary data sources. Primary data was collected through a questionnaire. The research was done in the form of direct approach.

3.8 A PROPOSED CONCEPTUAL MODEL

Mediation refers to a process or mechanism through which one variable (i.e., exogenous) causes variation in another variable( endogenous). Studies designed to test for moderation may provide stronger tests of mediation than the partial and whole covariance approaches typically used. It is useful to distinguish between moderation and mediation. Moderation carries with it no connotation of causality, unlike mediation which implies a causal order. Based on these arguments the following hypotheses are formulated.

Hypothesis 1: There is positively related technology adoption and technology awareness

Hypothesis 2: There is positively related technology adoption and technology adoption security

Hypothesis 3: There is positively related technology adoption and technology services

Hypothesis 4: There is positively related technology adoption and technology adoption analysis

Hypothesis 5: There is positively related technology adoption and technology demography

Hypothesis 6: There is positively related technology adoption and technology adoption observability

Hypothesis 7: There is positively related technology adoption and technology adoption compatibility

Hypothesis 8: There is positively related technology adoption and technology adoption trial ability

Hypothesis 9: There is positively related technology adoption and technology adoption simplicity

Hypothesis 10: There is positively related technology adoption and technology adoption relative advantage

Hypothesis 11: There is positively related technology relative advantage and technology awareness

Hypothesis 12: There is positively related technology relative advantage and technology adoption security

Hypothesis 13: There is positively related technology, relative advantage and technology services

Hypothesis 14: There is positively related technology relative advantage and technology demography

Hypothesis 15: There is positively related technology relative advantage and technology analysis

Hypothesis 16: There is positively related technology relative advantage and technology observability

Hypothesis 17: There is positively related technology relative advantage and technology compatibility

Hypothesis 18: There is positively related technology relative advantage and technology trial ability

Hypothesis 19: There is positively related technology relative advantage and technology simplicity

Dimensions of the study

  1. TAW - Technology Awareness
  2. 2. ASE - Adoption Security
  3. TES - Technology Services
  4. DMO - Demography
  5. TAY - Technology Adoption Analysis
  6. TAO - Technology Adoption Observability
  7. TARA - Technology Adoption Relative Advantage
  8. TAC - Technology Adoption Compatibility
  9. TAT - Technology Adoption Trial ability
  10. TAS - Technology Adoption Simplicity

The above dimensions are used in this study which discusses about the awareness of new technologies to customers, security system in using it, and their adoption level through observability, relative advantage, compatibility, Trial ability and simplicity.

CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1 REGRESSION MEDIATED MODEL OF THE MOBILE PHONE COMMUNICATION ADOPTION MEDIATED STRUCTURAL EQUATION MODEL

In hierarchical regression, the predictor variables are entered insets of variables according to a pre-determined order that may infer some casual or potentially mediating relationships between the predictors and the dependent variables (Francis, 2003). Such situations are frequently of interest in the social sciences. The logic involved in hypothesizing mediating relationships is that “the independent variable influences the mediator which, in turn, influences the outcome”(Holmbeck, 1997). However, an important pre-condition for examining mediated relationships is that the independent variable is significantly associated with the dependent variable prior to testing any model for mediating variables(Holmbeck, 1997).

Of interest is the extent to which the introduction of the mediating variable reduces the magnitude of any direct influence of the independent variable on the dependent variable.

Hence the researcher empirically tested the hierarchical regression for the model conceptualized in the figure 4.1 with in the AMOS graphics environment.

Above regression model reveals that all hypothesis are accepted, since adopting new technology depends upon Technology Adoption Relative Advantage.

The analyses conducted, the parameter estimates are then viewed within AMOS graphics and it displays the standardized parameter estimates.

The regression analysis revealed that the customers adoption on the various dimensions of technologies in mobile phone communication. The visual representation of results suggest that the relationships between the dimensions of customers adoption. : ‘Technology Adoption Relative Advantage' results a significant impact on the mediating factor ‘Technology adoption'

4.2 BAYESIAN ESTIMATION AND TESTING FOR REGRESSION MODEL OF THE MOBILE PHONE COMMUNICATION ADOPTION MEDIATED STRUCTURAL EQUATION MODEL

The research model is a SEM, while many management scientists are most familiar with the estimation of these models using software that analyses covariance matrix of the observed data(e.g., LISREL, AMOS, EQS), the researcher adopt a Bayesian approach for estimation and inference in AMOS 16.0 environment(Arbuckle & Wothke, 2006). Since, it offers numerous methodological and substantive advantages over alternative approaches.

Table 4.2: BAYESIAN ESTIMATION AND TESTING FOR REGRESSION MODEL OF THE MOBILE PHONE COMMUNICATION ADOPTION MEDIATED STRUCTURAL EQUATION MODEL

Regression weights

Mean

S.E.

S.D.

C.S.

Skewness

Kurtosis

Min

Max

Name

TADOP<--TAW

0.077

0.002

0.099

1

-0.049

0.174

-0.352

0.545

W1

TADOP<--ASE

-0.013

0.002

0.103

1

0.033

0.243

-0.535

0.544

W2

TADOP<--TES

-0.016

0.001

0.066

1

0.034

0.257

-0.283

0.329

W3

TADOP<--TAY

0.039

0.002

0.096

1

0.029

0.134

-0.359

0.507

W4

TADOP<--DMO

-0.086

0.002

0.088

1

-0.022

0.139

-0.458

0.356

W5

TADOP<--TAO

1.004

0.002

0.124

1

-0.007

0.028

0.506

1.528

W6

TADOP<--TAC

0.124

0.002

0.126

1

0.029

0.156

-0.386

0.716

W7

TADOP<--TAT

1.085

0.001

0.085

1

0.03

0.219

0.714

1.486

W8

TADOP<--TAS

1.175

0.001

0.073

1

-0.044

0.177

0.797

1.508

W9

TADOP<--TARA

1.187

0.002

0.086

1

0.015

0.098

0.837

1.586

W10

TARA<--TAW

-0.164

0.002

0.182

1

-0.032

0.155

-0.956

0.707

W11

TARA<--ASE

-0.044

0.004

0.188

1

-0.007

0.21

-0.926

0.965

W12

TARA<--TES

0.074

0.003

0.124

1

0.042

0.334

-0.542

0.682

W13

TARA<--DMO

0.177

0.003

0.16

1

-0.031

0.152

-0.479

0.993

W14

TARA<--TAY

0.185

0.003

0.177

1

-0.028

0.225

-0.738

1.013

W15

TARA<--TAO

0.496

0.003

0.218

1

0.058

0.371

-0.534

1.675

W16

TARA<--TAC

0.044

0.006

0.25

1

-0.009

0.073

-1.055

1.073

W17

TARA<--TAT

0.284

0.002

0.151

1

0.031

0.173

-0.361

0.918

W18

TARA<--TAS

0.118

0.002

0.135

1

-0.085

0.21

-0.65

0.644

W19

Means

Mean

S.E.

S.D.

C.S.

Skewness

Kurtosis

Min

Max

Name

TAW

13.645

0.014

0.7

1

0.02

0.196

10.164

16.504

M1

ASE

19.76

0.011

0.611

1

0.038

0.119

17.287

22.367

M2

TES

24.719

0.023

0.908

1

-0.108

0.114

20.906

28.419

M3

DMO

13.59

0.01

0.69

1

0.014

0.106

10.276

16.331

M4

TAY

21.577

0.017

0.681

1

-0.068

0.212

18.382

24.952

M5

TAO

18.587

0.006

0.418

1

-0.029

0.204

16.509

20.566

M6

TAC

9.468

0.007

0.345

1

-0.02

0.159

7.877

10.892

M7

TAT

20.778

0.009

0.725

1

-0.02

0.16

17.529

23.686

M8

TAS

13.813

0.018

0.664

1

-0.097

0.479

10.284

16.927

M9

Intercepts

Mean

S.E.

S.D.

C.S.

Skewness

Kurtosis

Min

Max

Name

TARA

1.133

0.095

5.533

1

-0.055

0.147

-25.191

26.505

I1

TADOP

-0.328

0.033

2.976

1

0.006

0.149

-16.196

12.226

I2

Variances

Mean

S.E.

S.D.

C.S.

Skewness

Kurtosis

Min

Max

Name

TAW

26.237

0.319

7.187

1.001

1.089

1.685

10.71

64.254

V1

ASE

20.029

0.288

5.131

1.002

1.049

1.786

8.11

48.906

V2

TES

43.5

0.358

11.29

1.001

1.014

1.799

16.493

119.471

V3

DMO

25.571

0.247

6.525

1.001

1.121

2.123

10.436

64.262

V4

TAY

24.958

0.366

6.526

1.002

0.962

1.219

9.892

58.732

V5

TAO

9.516

0.09

2.42

1.001

1.073

1.967

3.774

23.552

V6

TAC

6.438

0.051

1.634

1

1.306

4.055

2.464

18.049

V7

TAT

28.124

0.233

6.898

1.001

0.935

1.589

10.894

70.724

V8

TAS

22.941

0.274

5.854

1.001

0.928

1.294

9.325

56.362

V9

e1

3.044

0.022

0.724

1

1.144

2.607

1.237

8.042

V10

e2

10.284

0.07

2.375