1. Research Project in Information Systems – IS3159
Project title: Analysing the two-way benefits of telecommunication and cell
phone services: a study on consumers and a telecommunication organisation in
Pakistan.
Author: Osman Sheikh
Abstract
With the increasing trend in innovation in telecommunication services and smartphones, it is
inevitable that the technology will have positive and negative effects on its users and society at
large. This project has explored one such aspect – the social impact and consequences of
telecommunication services for both the organisation and the consumer, economically and
socially–in Pakistan. The literature reviewed identifies that these services include health
facilities, mobile banking, virtual education applications, entertainment, and news sharing. The
case study research conducted on one organisation–Mobilink–explains that social benefits are
inter-linked with economic revenues and benefits. Even though organisations and customers
wish for increasing social benefits to improve corporate image and benefit customers, at the
end of the day these private organisations in a developing country context cannot thrive on
providing social services for the sole purpose of providing these benefits. Through this research,
the project highlights that in Pakistan the way social benefits are understood and realised
through telecommunication services is different and slightly lagging behind in comparison to
other developing countries (for instance Africa).
Keywords: telecommunication in developing countries; social benefits of telecommunication;
societal impact of cell phones; economic benefits of telecommunication services; revenue
generation through corporate social responsibility

2. Contents
Chapter 1 – Introduction to the research project.....................................................1
Chapter 2 – Literature Review...................................................................................4
Section 1: Determinants of telecommunication services and mobile phone
adoption in developing countries..........................................................................4
Section 2: Social impact of telecommunication services and mobile phones......6
Section 3: Economic Impact of telecommunication services and mobile phones.
...............................................................................................................................9
Chapter 3 – Research Objectives & Research Methods..........................................13
Chapter 4 – Conceptual Framework........................................................................18
Chapter 5 – Findings................................................................................................22
Chapter 6 – Analysis................................................................................................31
Chapter 7 – Conclusion............................................................................................36
Bibliography.............................................................................................................40
Appendix One – Topic Area Proposal......................................................................44
Appendix Two – Project Specification.....................................................................49
Appendix Three – Survey – consumers...................................................................53
Appendix Four – Survey – telecommunication organisations.................................57
Appendix Five – Interview – telecommunication organisations.............................61

3. Chapter 1 – Introduction to the research project
This research project is broadly based upon the impact of different telecommunication services
provided by the telecommunication organisations in Pakistan directly on its users and indirectly
on society at large. Specifically, the project will put forth an assessment of whether
telecommunication services and cellular technology should be and has been used beyond the
basic purposes of establishing communication between people and eventually earning revenue
for the telecommunication firms.
The cellular phone and telecommunication technologies have evolved dramatically in the past
two decades. From basic calling and messaging facilities to creating documents, creating and
watching videos and listening to music and surfing the web, the telecommunication technology
has come afar. Because of the increasingly rampant use of these services, both customers and
service providers are constantly finding new ways to utilise this technology – albeit in some
countries this is happening much more than in others. This utilisation includes providing better
health care, insurance, money transfer, multimedia transfer, accurate information sharing,
virtual educational applications, and government support applications. This project will
research a collective of such services specifically provided by telecommunication organisations
in Pakistan.
The purpose of choosing this topic therefore is to analyse whether Pakistan (being a developing
country tied in a tough geo-political context) is using telecommunication technology for social
benefit/purposes. Social purposes here broadly refer to services designed, developed or
introduced by telecommunication service providers for the primary benefit of society at large.
The project does not make a claim that technology and innovations must be used for this
purpose. However, the project will assess whether using technology for social purposes is
possible in Pakistan? If it is possible, what services are being used, what impact do they have,
and how difficult or simple are they to implement in a developing country context where state-
of-the-art technology does not exist in most cities?
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4. The reason for choosing this project topic is the absolute increase in use of cell phones (and
spread of telecommunication networks) in Pakistan. In the last decade, there has been a rise in
the number of people using cell phones, and in the services that telecommunication service
providers are consistently presenting. However, Pakistan is a developing country and this
technology could be used to benefit people beyond the communication and entertainment
purposes. These benefits will be assessed in this project from the telecommunication service
provider viewpoint only. This is because only a small section has access to Wi-Fi and proceeding
services. The mass population can only access services that their telecommunication
organisation provides them.
Furthermore, around the developing world telecommunication organisations have provided a
variety of services at low cost and not focused on economic revenue. For this reason the topic is
interesting and will evaluate whether in Pakistan the focus of providing any service is the
economic background of that service or firms have the capacity to provide services even free of
cost? The project will begin with this premise and divide it into smaller research objectives
ahead.
Roadmap of the project
The next chapter – chapter 2 – is the literature review. This chapter is a detailed assessment of
the different academic research done on this and closely similar topics.
Chapter 3 will divide the broad research premise discussed here into smaller objectives based
on the literature review. This chapter will also explain the research methods through which
research will be conducted, where it will be conducted, the sample size, and the exact
procedure of carrying out the empirical data collection.
Chapter 4 will put forth a description and justification of the conceptual frameworks chosen for
analysing the research results of this project. The actual findings or research results will be
presented in chapter 5. Chapter 6 will analyse these research results through the chosen
conceptual frameworks.
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5. The last chapter (7) will summarise the main findings, experience of conducting the project, and
recommendations for further research. The conclusion will be followed by the detailed
bibliography section, and the bibliography will be followed by a series of appendices, including
the topic area proposal and project specification.
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6. Chapter 2 – Literature Review
The literature reviewed for this chapter includes academic peer-reviewed articles from
information systems and technology journals, books, and reliable technology magazines and
newspapers.
Section 1: Determinants of telecommunication services and mobile phone adoption in
developing countries
Improved telecommunication services and the introduction of mobile phones have had a major
impact on telecommunication infrastructure in developing countries. Figures from countries in
Africa demonstrate this development. According to Aker and Mbiti (2010), mobile telephony in
Central and Southern Africa has increased by leaps and bounds over the past 15 years. Smith
(2009) states that there are more than 350 million mobile phone users in Africa alone and the
number is increasing at geometric progression. Until 2009 there were less than three landlines
available per hundred persons but the number of mobiles phones was ten times more as
compared to landlines in Sub-Saharan Africa (as per reports of International
Telecommunication Union–ITU, 2009). According to the GSM association, 60 percent of the
population had mobile phone coverage by 2009.
Similarly, Sherry (2009) finds that in Morocco, “mobidensity” increased from 0 to 20.5 million
between 1998 and 2007. Research done by the International Telecommunications Union (ITU,
2009) identifies that of the total mobile subscribers in the world in 2009, only 33% were from
developed countries. In Pakistan alone, as per the figures released by Pakistan
Telecommunication Authority (pta.gov.pk, 2016), there are currently 128 million mobile phone
subscribers.
One of the reasons for rapid diffusion and adoption of mobile phones in developing countries
(in comparison to developed countries) has been the lack of landline infrastructure in
developing countries. In developed countries such as North America and Europe, landlines were
the primary source of communication. Developing countries lacked in this technology due to a
scattered population and heavy investments required in the infrastructure for deploying
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7. landlines. Aker and Mbiti (2010) identify that this is why in recent times, at many places in
Africa mobile phones and wireless technology represent the first modern telecommunications
infrastructure of any kind.
The main reasons for this spread of mobile telephony are easy deployment, better and wider
coverage, and fewer infrastructure costs in establishing mobile networks. Another advantage of
mobile phones over landlines is that it connects individuals to information in addition to
connecting individuals to individuals and individuals to services.
Tenhunen (2008) identifies another reason for the high adoption rate of mobile phones in India:
low literacy in rural India. Unlike computers, communication via mobile phone does not require
much literacy and is being adopted in areas with no prior form of communication technology.
Ahmed et al. (2012) discover that in Pakistan, people with low literacy doing small businesses in
villages prefer conducting their business via mobile phones, because written communication
becomes impossible for them. Even the business agreements that require guarantees or oaths
are done by recording voice communication and voice notes.
Another factor for high rate of adoption of mobile phones in developing countries is the
deregulation policy introduced by governments for the telecommunication sector. According to
Harianawala & Aziz (2016), the deregulation policy encourages foreign companies to invest in
developing telecommunication markets. They give an example of Pakistan where 100% foreign
equity and remittance of profits, dividends, and capital is allowed for foreign companies. These
companies contribute 0.5% of their net revenue to the Research and Development fund, which
is utilised in the ICT market and product development. Furthermore, these companies invest in
huge amounts through marketing, branding and other activities to attract people to use latest
telecommunication services and mobile phones. These factors, directly and indirectly,
encourage the usage of mobile phones.
Aker and Mbiti (2010) state the primary factors that determine whether mobile phone
coverage can spread in developing countries or not. These factors include:
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8. • Population Density: the population of a country is all people living in it (whether legally
or not); population density is the population divided by the total land area of a country.
The higher the density, the higher the subscription to telecommunication services.
• Per Capita Income: is the income (on average) earned by each member of an area in a
year. If the income is above a certain level, mobile phone adoption and
telecommunication service subscription would increase.
• Pre-existence of landlines: if the landline infrastructure is not widely developed,
individuals would be likely to purchase mobile phones and a telecommunication
connection.
From cities to remote areas, these handheld devices, supporting fast data transfers, are being
used for financial services like money transfers, escrow payments etc. Etzo & Collender (2010)
aptly point out that a new form of economy is transpiring because of these smart mobile
phones and innovative technology.
Section 2: Social impact of telecommunication services and mobile phones
In addition to the technical and economic avenues made available through mobile technology
itself, telecommunication companies operating globally have also realised the importance of
interacting with society at different levels. According to Mudzamir (2003), these companies try
to portray themselves as “highly socially responsible companies” and strive to actively involve
themselves in society based programmes for better exposure in the market. One reason to do
this is to gain visibility and improve the image of the company.
Several writers including Joyner et al. (2002) term this as “Corporate Social Responsibility” (CSR)
and further categorise it into “economic, legal, ethical and discretionary activities” that a
business engages in to contribute positively towards the society. Furthermore, to gain
competitive advantage over other rival operators and to maintain sustainability and
profitability, they believe a good reputation in the eyes of a consumer and healthy relations
with the governing bodies and state are the keys to success. For these reasons, Mudzamir
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9. (2003) believes that “welfare or charity, environment protection, community involvement and
natural disasters awareness programs” are the areas where these operators should focus on
when operating in developing countries.
In addition to the role played by telecommunication companies through CSR, the mobile
phones themselves have the potential to change the dynamics of the society. Mobile phones
have positive impacts on “social relationships and individuals’ behavior”, according to Aker and
Mbiti (2010). They write that mobile phones can play a role in building social networks by
providing a platform to people to communicate more frequently, and expand business
networks by creating ease for firms and individuals to conduct business in remote locations.
In their article on Mobile Technology in Mexico Mariscal and Rivera (2009) conclude that
mobile phones are definitely the preferred means of communication for less favored segments
of the society and go as far as describing the technology as a “Pro-Poor Service”. Mulgan (2006)
explores the area of health where the mobile phone is considered as a social innovation. In
developing countries it is becoming an essential tool for the effective management of
healthcare services, especially in underdeveloped rural areas.
Consol Homes Orphan Care, Malawai, is an effective example mentioned by Goggin & Clark
(2009) where healthcare workers are specially given mobile phones as incentives that raise
their status in society, and allow them to spend maximum time with patients rather than
staying in field. Similarly, the Heroes Project in India (www.heroesprojectindia.org) and the
Zumbido support network in Mexico provide mobiles phones to their HIV patients who “send
texts to the network about their daily concerns and challenges”.
Another social aspect of mobile phones is discussed by Karim (2003) who emphasises on the
importance of communication technologies for diasporic population and their relationship with
their ethnic homelands and their host states. A similar topic has been discussed by Goggin &
Clark (2009) who gives the examples of Filipino citizens who work overseas. These citizens do
not lose their link to their homeland and make significant contribution to the GDP of their
country through remittances they make via mobile banking.
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10. Lane et al. (2006) provide their analysis on the research conducted by GSM association in 2005
and conclude the following to be the major social impacts of mobile phones in developing
countries:
• They create unity, strengthen bond and promote connection in families and societies.
• Provide ease of communication to members of society with lower literacy levels. For
example, according to GSM Association’s research in Tanzania and Bangladesh, the
owners of the mobile phones extend their phones to users with low literacy for use to
relay messages in local languages.
• Promote local content, for example, information on current affairs and local news or on
healthcare facilities like vaccinations etc.
• Support in emergency situations at all levels including “early warnings, disaster impact,
immediate aftermath and recovery and rebuilding phase”.
Having discussed the primarily positive social impact of telecommunication services and mobile
phones, the review will identify the limitations and negative implications associated with these
services. Ahmed et al. (2012), in their article on telecommunication sector in Pakistan, discuss
the social ills of using mobile phones telecommunication services. According to the authors,
owning a mobile phone has become a status symbol in the country, and many who do not have
the resources to buy the a particular mobile phone (brand, device) compromise other
necessities just to own the device.
Furthermore, it has put human life in danger due to increased crimes associated with mobile
phones, like mobile snatching. Street crimes have increased only because for unemployed
youth stealing and snatching is an easy source of making money. A crucial negative aspect they
discuss is the use of telecommunication services and mobile phones in criminal and terrorist
activities e.g. kidnapping, ransom claims, making political statements, and going as far as
detonating self-made bombs. For this reason, time and again telecommunication services are
jammed by the Pakistan government to prevent terrorist threats and activities.
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11. Aker and Mbiti (2010) also mention in their article that mobile phone technology can also
diminish the relevance of local social networks as users get an access, beyond their close social
circle, to wider area of services and better opportunities.
Aker and Mbiti (2010) point out that the figures stating mobile adoption generally, are over-
rated too. The primary reasons for this are:
1) Total number of subscriptions are reported rather than the actual numbers in use.
Multiple subscriptions (numbers) can be under one person’s ownership, whereas the
actual usage is generally against a single number.
2) Group colleagues, peers, and neighbours generally use a single connection especially in
remote and rural areas (one subscription for multiple users).
Section 3: Economic Impact of telecommunication services and mobile phones.
In their article on the impact of mobile phones in Africa, Waverman and Meschi (2005) have
mentioned that there is a 0.59 percent higher growth rate of GDP in countries with an average
of 10 more mobile phone users per 100 people in the population. Aker and Mbiti (2010)
identify that higher adoption rate and usage of mobile phones leads to several economic
benefits, in addition to social benefits. Some of the important benefits include:
• Mobile phones provide easy and cheap access to information and wider areas of
knowledge, and help in minimising search costs. Donner (2007), while discussing the new
mobile users in a case study from Kigali-Rwanda, discovered that mobiles allow micro
entrepreneurs and home office users to build new business relations in Rwanda.
• The mobile phone industry, through different avenues, creates a job market and widens
the scope and sources of income generation and helps decrease unemployment. Goggin
and Clark (2009) give an example of “Grameen Phone” in Bangladesh where the
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12. company lends money to poor women in villages to buy a phone and these “phone
ladies” lease air time to other villagers. The money they make by leasing airtime is used
to pay back the phone loan. This program is known as the “Village Phone Program” and
these phone ladies make an average of $750 a year – an amount twice that of the
average income in Bangladesh. According to Harianawala and Aziz (2016), the
telecommunications sector alone in Pakistan, directly or indirectly, employs
approximately 1.36 million people.
• Ease of communication can enhance “firms’ productive efficiency” by making it easier for
them to control their logistics and supply network. For example, Molony (2009) provides
evidence that telecommunication has directly reduced cost and improved efficiency in
developing countries. He gives an example of Nigeria and Tanzania, where the textile
sector and the construction sector respectively have benefitted greatly by avoiding the
need to take long journeys for conducting business affairs.
• Mobile phones can smoothen communication within different factions of society at the
time of emergencies, consequently minimizing the risk of calamities and disasters
resulting in human and financial losses.
Different social and health related applications like “m-health” that use mobile phones as a
platform open doors for Non-Governmental Organisations and social work organisations to
reach out to public at large. Goggin & Clark (2009) also describe mobile phones as a device used
to plan and undertake different fundraising activities. Mobile phones in combination with
telecommunication services have the potential to facilitate the delivery of their services e.g. in
health sector, agriculture, farming and etc. Similarly, the same platform is very adroitly and
efficiently being used by telecommunication operators to deliver financial services to the
masses.
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13. Recently a whole new industry in mobile financial services is evolving. After the introduction of
mobile financial services, the cost associated with money transfers has reduced by one fourth
write Aker & Mbiti (2010). The concept of mobile money (also referred to as mobile wallet or
electronic money) is gaining pace in developing countries. The mobile phone companies serve
as intermediaries by leveraging their existing network to support this model. Mobile money is
used to purchase airtime, transfer money and pay bills. Some advantages of mobile money
transfers include insurance, guarantee, security, efficiency and low interest rates.
It is pertinent to mention here the following factors that differentiate mobile money from
general banking:
• Mobile money does not provide interest on savings.
• Mobile money does not facilitate access to credit from formal financial institutions.
• It does not insure the value stored in the mobile account.
In addition to Mobile Financial Services, Etzo and Collender (2010) state that a “large
informal economy” in case of mobile fixing, repairing, renting and selling, is developing as
an offshoot of the mobile sector.
While describing the economic benefit, many authors have also raised concerns over the
economic risks associated with developing communication sector. Aker and Mbiti (2010)
mention that while distributing cash through mobile money, there is a possibility that the target
audience does not even own a mobile phone. Additionally, the pensioner or recipient may have
to travel a long distance to find an agent, where other methods with lower cost and requiring
less effort are available.
The same authors write that many countries in Africa do not follow liberalization and only allow
one state-owned company to provide telecommunication services. This results in a
monopolistic economy, and overcharging by the company in the form of high prices and heavy
taxes. In 16 of the most heavily taxed countries in Africa the annual average tax collected per
user ranges from US $24 to US $179, which Etzo and Collender (2010) consider as
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14. “disproportionately high”. They say that government regulations play a major role in the
benefits that an economy can derive out of the telecommunication sector e.g. M-Pesa in Kenya
has been a very successful project, whereas similar mobile banking services in other African
countries are still struggling to cross the very initial phase due to obstructions created by
regulatory authorities.
Many writers including Aker and Mbiti (2010) and Goggin and Clark (2009) agree that
investment in telecommunication infrastructure alone is not sufficient for a developing
country’s economy to grow. It is complimented by investment in other public infrastructure
such as roads and power sector e.g. a businessman might be able to obtain updated
information through their mobile phone, but they will still be requiring roads to transport goods
to the market. Similarly, a telecommunication organisation can provide different services but it
still requires continuous power supply to keep its transmission towers operational.
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15. Chapter 3 – Research Objectives & Research Methods
The research objectives
Reiterating the main research question, this project will explore:
1) What are the social benefits and drawbacks of telecommunication services and mobile
phones for consumers?
2) And what are the economic benefits and drawbacks of these social benefits and
drawbacks to telecommunication organisations?
The research objectives based on the above questions are:
1) What is characterised as social benefits provided by telecommunication services
providers? Are these characterisations considered the same by telecommunication
service providers and their users/customers?
2) Having obtained the answer to research objective 1, the next objective would be to
understand whether these social benefits are actually recognised by the
users/customers? Do they provide what they state?
3) Do telecommunication service providers attain economic benefits from these services
(social) they provide? What is the aim of such services – is it primarily economic benefit?
4) How is the economic benefit assessed for services that are provided for the social
benefit of customers and improvement of the fabric of society through
telecommunications?
The research methodology
Since this project is using a case study research design, multiple research methods (under the
case study) will be used to research one phenomenon. Therefore, a combination of qualitative
and quantitative research methods will be used; however, the tilt of the research is towards
qualitative enquiry.
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16. The research design – case study
Zainal (2007) identifies that the case study allows for in-depth exploration of phenomena by
moving beyond statistical techniques and allowing “to understand the behavioural conditions
through the actor’s perspective”. This is one of the reasons the case study is chosen as the
research design for this project: it allows following the interpretivist epistemology. In addition,
the case study focuses on rich data gathering from one organisation. I will be conducting
research on one telecommunication organisation because of maximum availability of
information and access from this organisation. The case study is the most suitable research
design for this purpose. Zainal (2007) also identifies that case studies allow research to be
grounded in “real” context rather than being a snapshot of different organisations.
However, the case study method does have limitations. Because it is an in-depth investigation
of one phenomena/organisation/people, Cornford and Smithson (2006) identify that it can be
difficult to find cause-and-effect or correlational relationship between variables. This can make
it hard to generalise the results to the wider population – in this project to other
telecommunication organisations and its users. Another limitation Zainal (2007) highlights is the
actual administering of the case study. Because this is a student project, it could be difficult to
collect and organise a plethora of information from one organisation and its customers.
Albeit there are criticisms of the case study as a research design and method, it will be suitable
for this project primarily because one organisation is being researched, and this method lends
to the ontological and epistemological approach being followed.
The research methods
The two particular research methods to be used for this project (under the case study design)
are:
1) Semi-structured interview: Gosling et al. (2011) explain semi-structured interviews as a
combination of structured and unstructured interviews. Interviews are where a series of
questions are asked of participants – usually face-to-face. In this type of interview, some
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17. questions will be set and asked in a fixed pattern. However, for most questions
interviewees are free to respond in their own words and can continue the discussion like
an ordinary conversation.
• This method is suitable because it is primarily qualitative but also not completely
unstructured (like an everyday conversation). It suits the epistemology and
research design.
• Gosling et al. (2011) identify that these interviews have “depth and flexibility”.
• However, because of this depth the results of these interviews are hard to
generalise to the wider population. To counter this limitation, interviews will be
used in combination with semi-structured interviews.
2) Semi-structured questionnaire: questionnaires, according to Gosling et al. (2011) have a
“structured question format”, where a standard set of (same) questions is distributed to
respondents (via e-mail, post, or by hand). The questions for this research will primarily
be closed-ended i.e. have fixed responses. Some questions will be open-ended i.e. give
respondents space to write out their own answer in their words.
• This method is not qualitative but has been chosen to allow for some findings to
be generalised to the wider population. Questionnaires also allow data to be
gathered from large number people, as opposed to semi-structured interviews.
• According to Gosling et al. (2011), this method is also quicker and cheaper than
other qualitative methods.
• However, since questionnaires are not as in-depth and the response rate may be
low, they are being used in combination with the qualitative interview research
method (see above).
The case study organisation
Mobilink (Pakistan Mobile Communications Ltd):
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18. Mobilink (PMCL) is a private organisation in Pakistan. It is one of the largest
telecommunications organisation in Pakistan. It is primarily because of this reason that
Mobilink has been chosen for research – it will allow for maximum number of customers and
employees to be covered for research. This would give a higher response rate than if research
was conducted in other organisations.
The specific departments in which I will be conducting research (interviews and questionnaires
with managers and employees) will be:
• Corporate Customer Services: the department responsible for providing customer
services to high profile corporate accounts (e.g. Nestle, Coca Cola etc.).
• Enterprise Solutions: the department responsible for selling data and voice related
solutions to corporate accounts, SMEs & SOHOs. Solutions include Campaign
Management Tools, Corporate SMS, and Mobile Broadband Customized Voice Packages.
• Mobile Financial Services (MFS): the department responsible for developing and selling
financial products and services through mobile phones. Services provided include
mobile banking, escrow payment solutions, salary disbursement solutions etc.
Interviews will be taken from the following members of the following departments:
1) Senior Manager (Corporate Accounts).
2) Senior Manager (Customer Support Services)
3) Relationship Manager B-to-B (Business-to-Business) sales of Mobile Financial Services.
4) Manager Sales & Operations M-to-M (Machine-to-Machine) business.
5) Manager IT Operations (Enterprise Products).
Surveys will be conducted with the managers and employees of these departments:
1) Corporate Customer Services: 15 employees at least.
2) Enterprise Solutions: 15 employees at least.
3) Mobile Financial Services: 15 employees at least.
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19. Justification: the reasons for choosing these departments and managers are that they are the
main departments dealing with the economic, financial and corporate services provided by
Mobilink. Therefore, in lieu of the research question and objectives it will be most appropriate
to conduct research within these departments. Furthermore, I have access to the maximum
sample (number of people) in these departments.
Regular customers
With customers of telecommunication services organisations, I will be primarily conducting the
survey (questionnaire). Interviews will be conducted, but they may be more costly and time-
consuming, therefore the primary focus will be distributing questionnaires amongst the
customers. Currently, I have chosen customers from the customer base of different
telecommunication companies, and especially customers of the above mentioned departments:
• Survey: at least 100 customers.
• Interviews: aiming for at least 10 customers.
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20. Chapter 4 – Conceptual Framework
Conceptual framework 1: The Diffusion of Innovations (DOI) Theory
The Diffusion of Innovations (DOI) theory is now considered a popular theory to understand
how an innovation is accepted or rejected by its prospective audience after its introduction.
This theory, originally by Rogers (1995), explains that any innovation is accepted (or not)
because of different reasons by different types of prospective consumers. An innovation here is
“an idea, practice, or object that is perceived as new by an individual or another unit of
adoption”. Rogers (1995) defines diffusion as “the process by which an innovation is
communicated through certain channels over time among the members of a social system”.
Rogers (1995) explained that diffusion of any idea (or in this case technology and technological
service) is spread through four steps or processes:
1) The innovation itself: the adoption or acceptance (or rejection) of an innovation is
based upon the following eight characteristics of an innovation:
• Moore and Benbasat (1991) adopted the diffusion of innovation model to
diffusion of information systems and information technology. They identified that
rate at which an adoption occurs is based on eight factors. These are:
a) Voluntariness:
b) Relative advantage
c) Compatibility
d) Image
e) Ease of use/complexity
f) Result demonstrability
g) Visibility/observability
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21. h) Trialability
2) The communication channel: refers to the ways through which people communicate
information about a new innovation to each other. Formal communication channels
include expert knowledge and the mass media. The informal channels focus on
interpersonal communication between people to discuss and observe new innovations.
3) The time dimension: refers to the rate at which an innovation is adopted.
• Diffusion over time is based on the type of adopters of innovation. These
adopters, as defined by Rogers (1995), are:
a) Innovators
b) Early adopters
c) Early majority
d) Late majority
e) Laggards
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22. 4) The social system: Rogers (1995) defines this as “a set of interrelated units that are
engaged in joint problem solving to accomplish a common goal”. Therefore, this system
is a collection of individuals, groups and/or organisations that define the norms, trends,
leadership and boundaries through which a diffusion of innovation takes place. For
example, the social norms regarding the purchase and use of mobile phones is
dependent upon the creators of mobile phones, the services telecommunication
providers provide for use in mobile phones, family and friends usage of phones, and the
cultural implications of incorrect or correct usage (defining boundaries of usage).
Justification for choosing DOI for this project: the DOI framework provides a context for
observing and analysing who adopts an innovation, when they adopt it, and why they adopt it.
This will allow me to understand the acceptance (or rejection) of different types of mobile
phones and telecommunication services: why they were adopted, at what rate they were
adopted, and how do they fit into the social system? The fairly large number of variables and
concepts of this theory will also help frame questions for research in addition to a socio-
technical analysis of the findings.
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Conceptual framework 2: Theory of competitive strategy (Porter’s five forces model)
The theory of competitive strategy is another name for the classic five forces model by Michael
Porter (1979), and they depict the factors that determine the profitability of a company within
its market/industry. According to Porter (1979), any organisation is not only competing with its
exiting rivals for maximum profitability, but they are also affected by other forces at play. These
forces need to be considered together by an organisation to evaluate its competitive strategy.
The five forces are:
1) Threat of new entrants
2) Threat of substitute products and services
3) Bargaining power of customers
4) Bargaining power of suppliers
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23. 5) Existing competition/rivalry
Justification for choosing theory of competitive strategy for this project: the five forces
described above will be used as concepts to study the telecommunication and mobile phone
industry. These concepts will identify:
• The current structure of the telecommunication industry: who are the main rivals, the
main suppliers, the buyer base, and substitute products through new or existing
entrants?
• Can social services through telecommunication organisations and mobile phones be
provided without affecting these five forces or without being affected by them?
• How does the corporate social responsibility of telecommunication organisations and
mobile phone creators affect (or not) profitability and economics of the industry?
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24. Chapter 5 – Findings
Questionnaire findings
Customers
The following section summarises the results of the survey conducted through questionnaires.
The population selected for the surveys through questionnaires consisted of:
1. Customers (mobile phone users).
2. Employees (of Mobilink).
The sample size of the questionnaire survey for customers was 100, while the sample size of
questionnaire for employees was 50.
100% of the population selected for questionnaire survey consisted of mobile phone users out
of which 62% were male users. Of the total number of customers surveyed, 71% belonged in
the age bracket of 20 years and 40 years. Majority of them had an average monthly income of
between Rs.40,000 and Rs.60,000 (per month).
There are five mobile phone companies operating in Pakistan. As per the survey results, the
majority of the respondents were subscribers of Mobilink and Warid which jointly consists of
approximately 60% of the total market share in the country. As depicted through survey results
in the bar chart (Chart 1) 38% of the respondents were using Mobilink services
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25. Chart 1
The next set of questions was about the value added services (used over the internet) by the
subscribers. Many respondents marked multiple services they use out of which social
networking was the main service used and internet browsing was the second most used service
by the subscribers.
68% of the users considered price as the influencing factor in making a decision to use mobile
internet. As per the survey more than 75% of the users are well aware of the various internet
services provided by different operators and above 70% mark price and network quality as the
major reasons for shifting from one telecommunication service provider to another. Therefore
cost of services and mobile internet impacts the most when selecting these services and/or
selecting a telecommunication organisation. When asked about the satisfaction level, 68% of
the respondents were found to be satisfied by the services of their current service provider.
However, the majority of the respondents mentioned that all the operators provide almost the
same level and quality of services to its users.
The next set of questions was about the social and economic benefits of telecommunication.
61% of the users marked mobile banking and mobile money transfer as the most used and
sustainable internet service provided by their operator. 21% marked health facilities through
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26. mobile as a service beneficial for society, but in terms of usage of this service the ratio is very
low (displayed below in Chart 2).
Chart 2
When asked about rate of adopting new telecommunication services, 41% of the users
categorised themselves as those that adopted new telecommunication services within the first
few months of launch. Out of the total, 38% marked ease of use of services and social image in
society as the major reasons for the adoption of these new services. For adoption of these
services, 61% of consumers considered informal communication channels, e.g. word of mouth,
as an effective communication channel to persuade them to use a service. However, a huge
majority of 80% think that a telecommunication company cannot sustain their social services
unless they get economic returns out of these services.
Employees
A different questionnaire was conducted with 50 employees of the Commercial Sales and
Services Department at Mobilink (the case study organisation). Out of the total respondents
56% were male and 44% female. 74% fell in the age bracket of 20 to 40 years. The majority
were middle management employees with their work experience ranging from 7 years to 9
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27. years. Because of the nature of their job almost all of the respondents were extremely aware of
mobile internet services provided by their respective companies.
On the set of questions based on the mobile internet services, the respondents identified that
between 60% and 100% of the mobile phone users use at least one service or application
through mobile internet within a month. Of all the employees, 70% marked mobile
data/internet as the most used service. As there was an option of selecting more than one
service, 54% also selected mobile banking as the service used regularly by customers.
On the question of economic benefits for the telecommunication company, 95% identified that
services introduced for social purposes (e.g. health facilities, poverty reduction, mobile money)
all provide economic benefits. However, the majority said that these benefits have just a
moderately positive impact on the revenues. 82% considered innovation in data services with
better bundled packages as having a further positive impact on revenue streams. The reason
given by respondents for the positive impact of innovation in data and internet services was
mainly that because of the introduction of 3G/4G technology, the data transfer speeds have
increased immensely. This has resulted in a whole new domain of mobile data monetisation
and revenue generation through OTT (Over The Top) services.
Regarding customers’ adoption of these services, nearly all the employees who responded
agreed to the fact that adoption rate of new data services is very high as users are becoming
more technology literate. Furthermore, the social networking applications like Facebook,
Google+ etc. enhance social image of the consumers and are also relatively easy to use. These
two factors were identified as the main reasons consumers adopt any telecommunication
services (exact percentages in chart 3 below).
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28. Chart 3
According to employees, the formal communication channels e.g. paid advertisements are
more effective in the spread and success of telecommunication services. It was the opposite in
case of customers who (in majority) claim that informal communication channels are more
effective in convincing them to adopt telecommunication services.
The next question was only from an organisational viewpoint, asking what affects the
organisation the most when introducing (or not) any new services. Majority of the employees
(61%) consider the threat of new entrants and existing competition significantly influences the
company’s decision in introducing new social service applications in the market. The primary
reason given is that as telecommunication and cell phone technology is improving, more
companies have started focusing on research and development to introduce better services to
gain first mover advantage in the market. Therefore, existing and potential competition are the
most important factors considered when designing and rolling out new services.
76% of respondents considered that organisations can sustain innovative and social services
even if they do not provide economic returns because these services have a spillover effect and
result in loyal customers who then also use other services from where revenue can be
generated.
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29. Interview Results
The second phase of the research consisted of semi-structured interviews conducted with the
experienced employees of the Commercial Sales and Services Department at Mobilink (the
largest cellular operator in Pakistan). The five interviewees with their designations are
mentioned below:
1. Mr. Khawaja Ahsen (Manager Sales Operations M-to-M business).
2. Mr. Umar Akram (Corporate Accounts Manager).
3. Mr. Jahanzaib Ahmed (Ex-Manager Customer Support Services)
4. Mr. Tahir Saeed (Relationship Manager).
5. Jehanzeb Khan (Manager IT Operations).
The interviews were open-ended and conversation based to get an in-depth view of managers
at Mobilink about the research topic. The first question asked interviewees’ viewpoint about
what constitutes social services and benefits that their telecommunication organisation (and
industry) provides. The first set of questions focused on the interviewees’ definition of social
services provided by telecommunication organisations. The majority claimed that social
services by definition are those that are only created for the economic and social (including
health, financial, educational) benefit of society, without a focus on the economic revenue.
However, one of the interviewees identified that in reality this definition may not hold because
private organisations “need to make a profit to sustain themselves and cannot run like a
government or not-for-profit organisation”.
Nearly all the interviewees said that mobile internet applications that are focused on social
benefits of their customers also reap economic benefits for the company one way or the other.
According to Mr. Saeed, mobile health applications are one area in research and development
where companies can gain competitive advantage over other companies. He said:
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30. “Mobilink is the first company in the market that has partnered with an insurance
company to provide life and health insurance to its customers. In the initial phase they
are in the process of acquiring age and health related data of their customers and based
on that will provide insurance solutions to its customer base”.
Mr. Ahsen and Mr. Akram emphasised on the role of Corporate Social Responsibility (that falls
under social services) within telecommunication organisations and explained the role played by
Mobilink as an organisation in this domain. According to Mr. Ahsen, the IT department at
Mobilink has developed an application for its employees through which they can get an update
on the ongoing social projects that the company is involved in and can also contribute from
their salaries in the form of donations for these projects. This was one example of an internal
effort to serve social responsibilities through telecommunication.
Mr. Khan was of the view that these types of services create a positive image in the market
resulting in customers getting more inclined to use the services of that company. Mr. Ahsen
gave an example of Africa where he served for a few years. He identified that mobile phones
are used to educate customers in countries like Nigeria and Ghana. Preventive healthcare
services and providing epidemic outbreak information are the responsibilities of the
telecommunication companies. These services are monitored by the local government. To
provide these facilities the network infrastructure of telecommunication companies is used,
and in result these companies are monetarily compensated by the government and non-
governmental organizations like WHO and World Bank. Although the charges for these social
services are kept at very nominal rates, the revenue derived from these services also adds to
the profits of the companies.
The interviewees were then asked about the limitations of social telecommunication services.
Foremost in the barriers are “less knowledge” on the part of the customer, low literacy levels
and poor network infrastructure (mentioned by Mr. Ahsen and Mr. Akram). In addition to
these, weak government regulations and monopoly of a single telecommunication company in
some developing countries like Ethiopia and South Africa, serve as factors hampering the
spread of social services through telecommunication companies. In the case of Pakistan, the
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31. interviewees agreed that monopoly of an organisation cannot now exist. However, weak
government regulations can be a limiting factor for such organisations “to develop and help
society at large”.
However, the impact of these limitations is only in a few developing countries, and all the
interviewees’ felt that the services eventually provided more benefits than limitations. All the
interviewees agreed to the fact that services provided by these telecommunication companies,
either through CSR or through different applications and products, benefit the society at large.
These services are also sustainable in the long run because of the economic benefits derived by
the companies. The economic benefits may be from direct revenue generation by charging for
these services, from getting sponsorships and aids from governments and other social
organizations, and “creating a good image in the society resulting in loyal and long term
customers for the company”.
On the question of importance of these services in the developing countries specifically, the
four out of five interviewees said that whether it be a developing country or a developed
country, the value and importance of these services remains the same. The only difference
prevails in the launching and implementation of these services. Mr. Khan explained that:
“Although these services are meant for the betterment of the society, the main
impediment comes at the time of approvals from regulatory authorities. Then revenue
forecasting is another step where the projects go on hold unless pushed by some
government agencies or supported by some social organisations in the form of
donations”.
The last question asked about the expected revenue streams from these services and mobile
data in the presence of free Wi-Fi and other plethora of applications and services introduced by
third party vendors and application developers. Mr. Ahmed explained the recent changes
occurring globally in mobile data monetisation. He specifically referred to Over-The-Top (OTT)
content (audio, video, and other multimedia content being provided by through mobile internet
or public internet anytime and anywhere).
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32. “Competition and flat rate pricing for voice has decreased revenues for Operating
Companies (OpCos). The introduction of 3G/4G technology has further changed the
focus of companies from voice to data. The concept of IOT (Internet Of Things) and OTT
(Over The Top) services is gaining pace and these telecommunication companies provide
platform for the delivery of OTT services to its customers”
On the question of third party applications and services, Mr. Ahmed and Mr. Akram explained
that there are different parties involved from the time of development of the product or service
till its delivery to end user. These parties involve application developers, vendors who provide
support services and the mobile telecommunication companies that provide platform for
delivery of services. The real game changer for these telecommunication operators is to enter
into internet and application business as well, and provide end-to-end service to customers to
avoid revenue sharing with other parties e.g. web-based apps downloaded via Wi-Fi.
The same point has been highlighted by three other interviewees who stressed on the
importance of research and development and content development/management for
telecommunication organisations. On the question on Wi-Fi popularity over mobile internet,
the respondents said that at places where fixed landline broadband services are strong, users
prefer using internet over Wi-Fi. However, this concept is also fast changing as internet over
mobile provides mobility to users because they can use internet while on the move.
Furthermore, due to rapid development and deployment of 3G/4G infrastructure, internet is
being introduced in areas where landlines and fibre optic are not available. In these areas
mobile over internet is the first and only choice. In addition to this, prices of mobile internet are
going down and at place where these prices are less than fixed line broadband, customers
definitely prefer to use mobile internet.
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33. Chapter 6 – Analysis
This chapter analyses the research results through the two conceptual frameworks and the
academic literature review. The research question, objectives and results guided the analysis
and discussion.
The primary research question and objectives focused on whether telecommunication
organisations and their services focus on providing social benefits to their users in developing
countries, and do these benefits (depending on how they are defined and recognised) reap
economic revenue for organisations or not (in developing countries). The underlying question
being what is more important: social impact or economic revenue?
What is a social service or benefit then? The customers and telecommunication organisation
representatives all believe in the commonsense definition of a service that helps build society in
any possible way–educationally, health-wise, financially, economically, and the like. However, it
is clear that most customers do not actually select a service or innovation for just its “social”
benefit. As per Rogers (1995) diffusion of innovation conceptual framework, social image and
ease of use are two of the most important (according to these research findings also) factors in
choosing an innovation. The other factors (such as trialability, voluntariness etc.) did not matter
to any of the consumers. This may also be because the customers find informal communication
channels (like word-of-mouth) as most effective when choosing a telecommunication service.
Customers care more about what their social circle ascribes to as opposed to the actual
benefits of the service (at least in the short run).
This leads to a clearer understanding of why most customers adopt a new service in the first
few months of its launch – early adopters according to Rogers (1995) – i.e. because most of
their social circle or society at large, does. Additionally, the cost of subscribing to any service
remains a major consideration when subscribing to a service. This means any “social” service
per se would not be free of cost from an organisational viewpoint. The most used services are
also monetary based services i.e. mobile banking and mobile money transfer. The “social
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34. system” from the DOI framework explains how the system of norms and culture of society
drives the choice of innovations in a society. As Aker and Mbiti’s (2010) research identified, the
way African cities adopted cell phone technology for social services is based on their social
system e.g. limited landlines, poor literacy and government support. In Pakistan, the culture
and norms require safe transfer of money (cash and otherwise), and this is why this remains the
most used and claimed social impact of telecommunication organisations with cell phones in
recent times.
The employees’ (questionnaire) of the organisation also provide similar views to the customers.
This demonstrates a sync between many of the policies rolled out by the telecommunication
organisations and those accepted by customers eventually (as the survey from customers
demonstrates). However, it seems that the monetary cost and benefit of innovation is more
significant for the telecommunication organisations, since the majority of the employees
specifically note that social services do not provide enough economic revenue. This is why the
focus on Over-the-Top services has increased i.e. to provide as many internet based services to
increase revenue for the organisations and compete with the Internet based app market.
Linking this to the diffusion of innovation, this conceptual does not consider cost or price as the
reasons for the diffusion for an innovation. However, relative advantage and compatibility
variables by Rogers (1995) could be considered relevant here. Any innovation would diffuse
only if an organisations believes it is providing more value than something else available in the
market and in sync with the existing values of society (to a great extent).
Furthermore, employees also rated social image and ease of use as the highest influencers for
adopting an innovation (as the customers did). This also signals to the material and economic
elements being proportionately more important than social benefits. Therefore, the formal
media communication was considered more effective by the employees; the organisation
believes that their formal efforts lead to more adoption and affects the “social system”. Most
customers were therefore early adopters influenced by the organisation’s formal promotions
according to Mobilink employees.
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35. Additionally Porter’s (1979) theory of competitive strategy focused on five forces that affect
Mobilink’s choice of what they may introduce as a service or product. For Mobilink, the
employees felt that existing and potential entrants posed the greatest threat and sense of
competitiveness, leading to increased or lack of innovation. Therefore, any service for social
betterment would be introduced (or not) because other firms may introduce these services or
may not. Bargaining power of suppliers and customers, and the threat of substitute products
and services seldom impacts the competitive strategy. Even then the employees considered
social services to impact in a developing country context and sustain because through these
they gained loyal customers even if not increasing revenue.
The interview findings, in-depth and with only senior managers at Mobilink, revealed a similar
picture. Again, social services, e.g. health related and emergency facilities or agricultural
facilities, were not considered deliverable without economic revenue in the current economic
environment of developing countries. In terms of both conceptual frameworks, the managers’
view point to maintain a certain social image of the firm for diffusion of any social service and
for displaying corporate social responsibility; however, at the same time make sure that they
compete with the existing and potential new entrants.
A social image depicting corporate responsibility is extremely important. This image leads to
retaining loyal customers and eventually to aids from government and revenue. Therefore,
clearly the underlying notion could be considered aiming at economic revenue more than
making a social impact. Furthermore, according to Lane et al. (2006) and other literature
reviewed, social impact is measured through health benefits, poverty reduction, and eventually
even raising the GDP of a developing country. However, this could not be ascertained for
Pakistan from the research because of the lack of data available. However, the impact would
seem to be positive because of the employment opportunities created with the spread of a
service like mobile transfer, especially in rural areas of the country. Additionally, companies get
access to huge amount of cash to keep for a few days before it is transferred to the recipients.
They also charge a nominal fee for these transactions. So, even though the data is not available
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36. for Pakistan on the impact on the GDP, but the factors mentioned above definitely point to the
fact that the impact on the GDP would be positive.
The most reported service by interviewees under “social” was mobile banking and money
transfer by organisations and customer alike.
Some services may also not be implementable and deliverable because of the “social system”
(as defined by Rogers, 1995). It can be inferred from the interviewees’ answers that even if
organisations and customers want a certain service to be delivered, the existing government,
regulations, culture and norms may inhibit these being implemented. Until any new entrant
does not break through this inhibition, the social benefits achieved through telecommunication
in Africa and some other developing countries may not be achieved in Pakistan.
However, there has been increasing innovation in the recent times – even if it does not literally
lead to a socially beneficial impact. The prevalence of apps (through the Apple App Store or
Google Play Store for example) could be considered threat from a new entrant, threat from
existing competition, and a substitute service. This has led to research and development in this
field for telecommunication companies. The development of Over-the-Top services specified by
the interviewees’ indicates that Porter’s (1979) prediction about research and development
based on an industry’s external circumstances is accurate in inferring Mobilink’s case study
findings.
Discussion points
The above analysis leads to some significant points summing this analysis and for further
discussion:
1. “Social services/benefit/impact” is a broad term, and it is hard to define what it exactly
means – especially in terms of developing countries that each face different and
complex problems ranging from terrorism to extremely poor infrastructure.
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37. 2. Economic revenue matters significantly for private telecommunication organisations,
especially if they do not have support from the government of developing countries (like
Pakistan) for their research and development on any new innovation.
3. Financial based services are perhaps the most important services in Pakistan’s
telecommunication industry even when categorised under the term “social”. This is a
major difference in Pakistan (inferring from Mobilink’s case study) as compared to other
developing countries that utilise telecommunication technology for health, emergency
services, employment, agriculture etc. Indirectly telecommunication industry has
increased employment, and aimed to contribute in other areas too. But directly (Ahmed
et al. 2012 states – chapter 2) the implementation of such services requires a two-way
commitment. However, in Pakistan owning a cell phone has become more of a status
symbol as opposed to a service that adds to social or other benefits.
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38. Chapter 7 – Conclusion
This chapter summarises the main findings of this research project. It then highlights the
learnings from the project and how it could have followed even narrower research objectives to
provide the research a different perspective. The conclusion ends with recommendations for
future research on this topic.
Reiterating the research topic and question, this project focused on the social and economic
benefits and drawbacks of telecommunication services in developing countries – Pakistan in
this case. The empirical data collection was through conducting a case study at one
telecommunication organisation – Mobilink – in Lahore, Pakistan.
In the recent past, telecommunication and cellular technology has advanced rapidly and
jumped leaps and bounds in the facilities it offers. However, as with any technology product
and service, the question arises of whether this product and service can be used for the benefit
of society socially, and for the benefit of the telecommunication organisations in turn? This
question was broken down into smaller research objectives.
The primary findings of the project identify that the term “social” is understood in a
commonsense manner by most customers and telecommunication firm representatives, and
not in the manner researched through the academic literature. Because of this, the customers
(surveyed) and Mobilink employees explained social impact as “something that benefits and
contributes to society” at large. This is a broad encompassing definition. The
telecommunication services like mobile banking, money transfer, and insurance services are
considered social services having a considerable social impact that betters the lives of their
users. In terms of the conceptual framework (diffusion of innovation), these services are easy to
use and improve the social image of their users and providers; therefore, these services have a
significant social impact. These services also provide monetary benefit to the
telecommunication organisations.
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39. However, when this assessment is compared with academic literature, especially ground-
breaking work with telecommunications and cell phones in Africa (ref: Aker and Mbiti, 2010),
Pakistan lags considerably in providing socially impactful services e.g. providing health care
facilities, accurate information sharing, emergency services, and virtual education at a mass
level. Both the research results and literature studied do claim that there is increasing effort
and work being done in this field in Pakistan. However, without higher-level and government
support, support and investment in research and development, implementation of such
services is delayed to state the least. All telecommunication organisations are private for-profit
organisations and need to maintain their revenue and market share ultimately. This
competitiveness makes them focus on monetary revenue more than social services
(interpretable and wide definition in the first place).
Therefore, another main finding is the focus of consumers in spending minimum on attaining
telecommunication services and telecommunication organisations in earning as much as they
are able to. The newer OTT (over-the-top) services offered by telecommunication organisations
focus on this goal. Consumers in turn search for the most efficient ways to attain the services
they require (e.g. free Wi-Fi and application stores online). This diverts the focus onto
competitiveness and efficiency, especially monetarily and economically.
In conclusion, the social impact of telecommunication services is not considered as salient as
the economic revenue and efficiency for both consumers and telecommunication organisations
– more so for telecommunication organisations (inferring from the case study). This may be
because of the current social system (culture, political context, norms) encompassing both the
consumers and the telecommunication organisations, and until both parties make an effort this
social impact may not increase rapidly.
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40. Limitations of research – an assessment
The project research was through the case study method. Therefore, the analysis and
discussion were based on inferring the findings from the employees and managers of a single
organisation. An attempt was made to conduct interviews with customers of different
telecommunication companies, but due to the lack of time it was not possible to conduct these
interviews.
If the research was conducted amongst more or all telecommunication service providers of
Pakistan, and additionally in different cities, a wide demographic view of people from different
socio-economic strata would have been achieved. That could have provided a different
perspective or broader perspective for answering the research question.
Secondly, after the empirical research was conducted, I realised that the research question and
objectives could have been narrower. Terms like “social impact” and “economic impact”
brought forth many different definitions or very commonplace definitions only because these
were considered very broad concepts.
I also think that more specific measurement of economic benefits (e.g. revenue) and impact in
quantitative terms could have aided the research results. The economic revenue achieved
through services (like mobile banking) could have given an indication of why the service is
promoted or used more than others – does the actual revenue affect diffusion of innovation?
The research project did not focus on quantitative measurement and was primarily qualitative
(following the research methodology).
Lastly, that if more time had been spent on the empirical research as opposed to the literature
review, I could have better analysed the research question and objectives. For instance, I was
unable to conduct interviews with customers and was only able to conduct a questionnaire
survey with them. The project is time-sensitive and spending more time on a particular chapter
as opposed to all others should be avoided.
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41. Recommendations for future
Although some academic research on telecommunications and cellular technology has been
conducted in Pakistan, it seldom focuses on its social benefits or whether the “social” aspect
should be considered in the first place. Most research in this field has been conducted in all
other developing countries, especially Africa. Therefore, further research should be conducted
on the topic of whether technology and its providing companies have a responsibility to
facilitate society for purposes other than the basic services being offered. The focus of future
research could also be on only one type of service rather than all possible social services.
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Mobile Telecommunication Industry: Case Study Of Malaysia”, 2003, pp. 1-26
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saving technologies” in de Bruijn, M., Nyamnjoh, F. and Brinkman, I., Mobile Phones: The
New Talking Drums of Everyday Africa, (Leiden: African Studies Centre, 2005), pp. 93-109.
30. Mulgan, G., “The process of social innovation”, Innovations, 2006, Vol. 1, Issue No.2, pp.
145-162.
31. Porter, M. E., “How Competitive Forces Shape Strategy”, 1979, Harvard Business
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2009, International Journal of Education and Development using Information and
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33. Sherry, J. and Ilahiane, H., “Economic And Social Effects Of Mobile Phone Use In
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45. 37. Waverman, L. Meschi, M. and Fuss, M. “The impact of telecoms on economic growth in
developing countries”,in Vodafone Africa: the impact of mobile phones, pp. 1-23.
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46. Appendix One – Topic Area Proposal
Author: Osman Sheikh
Date: 15th
December 2015
Revision number: --
Working title of project: Social benefits by telecommunication organisations: a customer and
organisational perspective.
Description of the main research area: Telecommunication services provided for the purpose
of social benefits of consumers. In the 21st
century, telecommunication services and
smartphones are increasingly common and are penetrating the lives of people in the most rural
and unexpected geographical areas. Therefore, it is important to assess whether the services
provided by telecommunication organisations aim at more than just the basics and are trying to
improve the fabric of society in the long-run or not?
Possible research questions:
1) What are the social and communal benefits provided by telecommunication service
providers – according to these providers?
2) Are these services implemented in the manner as planned? Linked to this is the question
that do the customers recognise these benefits and avail them?
3) What are the economic benefits of these services and how are they financially justified
within the telecommunication organisations?
4) What is the perspective of customers of the range of services (apart from the basic)
provided by telecommunication organisations?
Outline of main argument: In this project, I will argue that telecommunication organisations
are aiming to move beyond achieving only economic benefits through the services they
provide, and they are now rolling out social services for customers to improve the overall fabric
of society.
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47. Link to wider information systems issues: According to Cornford and Smithson (2006),
information systems are “social systems” and not just technology-based artefacts. Therefore,
information systems move beyond providing technical support and are used to, in Avgerou’s
(2011) words, “achieve organisational value”. Based on this, the research area of this project
links to:
• Organisational productivity achieved through implementation of information systems.
• Social benefits (e.g. helping improve job conditions in rural areas) provided by
information systems.
• Economic and financial benefits achieved through information systems.
• The impact of spread of telecommunication services and smartphones, and the impact
of this spread on conventional information systems in organisations.
Link to syllabus of other courses in the Postgraduate diploma:
• Introduction to information systems: the definition and basics about information
systems are based on the content of this unit. This course forms the management and
information technology background for this project and helps understand the literature
on the topic in an informed manner.
• Introduction to computer systems architecture and programming: this course helped
understand the technical infrastructure of telecommunication systems. Many literature
articles focused on technical and computer architecture that were based on knowledge
from this unit.
• Principles of sociology: this course links to the research methodology, design, and
research methods used for the research project. The conduction of research and
analysis of research is based on learnings from this course.
• Information systems development and management: the information systems
theoretical perspective chosen was based on this course. This course was used to
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48. understand many information systems issues in a social, ethical and organisational
context.
• Information and communication technology: principles and perspectives: the network
and security unit of this course was used to understand the telecommunications
infrastructure and its technicalities.
5 keywords for online search:
1) Telecommunications services
2) Social benefits of telecommunication services
3) Benefits of mobile services in developing countries
4) Economic impact of telecommunication services
5) Economic benefits of smartphones
Alternative ways to research the topic and to collect data:
Currently I have decided on using the case study research design for conducting research for
this project. Under the case study, the semi-structured interview and semi-structured
questionnaire research methods will be used. Alternative ways to collect data could be:
• Studying internal documentation from one or more organisations to understand their
telecommunication services.
• Conducting a large-scale survey on different organisations and their customers across
the country, rather than using the focused case study design.
• Using the observation research method and observing the way customers use
telecommunication services (how much they use cell phones, what services they use,
how it affects their day-to-day living and work activities etc.).
Conceptual framework:
Conceptual Framework 1: Diffusion of Innovation Theory by Rogers (1995). This theory explains
how an innovation (technology) spreads in the population. Each innovation (technology) is
accepted or rejected based on characteristics such as compatibility, image, ease of use, visibility
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49. etc. Members of the population accept this innovation (in this case technology) in terms of a
time dimension i.e. some adopt an innovation the earliest and other adopt it very sceptically –
innovators, early adopters, early majority, late majority, and laggards. This framework will be
used to assess how and why telecommunication services and mobile phone technology is
accepted by the majority of the population. The main concepts/variables that will be used are
the characteristics of innovation (technology in this case) evaluated when adopting a
technology. The other main variable to be considered is the time frame in which the innovation
will be adopted.
Conceptual Framework 2: Theory of competitive strategy by Porter (1979). This framework is
regarding the structure of competition in an industry/market. There are five forces according to
Porter (1979) that need to be considered when assessing the competition of an industry: threat
from new entrants, threat of substitute service, bargaining power of customers, bargaining
power of suppliers, and threat from existing competition. These five forces will allow me to
evaluate the competition and structure of the telecommunication company I am conducting a
case study on, its services, and its current nd potential customers
Required resources and issues of access:
• I have access to one telecommunication organisation where I will be conducting the
case study for this research project.
• I need to contact the different departments and their managers in this organisation for
further access within this organisation.
• Software needed for statistical reasoning: the specific resource needed for this will be
software like Microsoft Excel.
Assessment of required skills or techniques to be applied:
• Interviewing skills: formulating interview questions that follow the semi-structured
interview format and learning how to conduct interviews with customers and
telecommunication experts i.e. tailoring questions to the type of audience.
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50. • Statistical reasoning: I will need to brush up my statistical skills to analyse the
questionnaire data.
• Revising my knowledge of telecommunication infrastructure (the technical aspects),
networks and services for gathering and analysing the findings, and for understanding
the literature.
Reference to 5 articles or books relevant to the topic:
1) de Silva, H. “Scoping Study: ICT and rural livelihoods – South Asia component”,
International Development Research Centre [IDRC] Regional Office for South Asia and
China New Delhi, India, 2008, pp. 1-186.
2) Goggin G. and Clark J., “Mobile Phones and Community Development: A Contact Zone
between Media and Citizenship”, Development in Practice, 2009, Vol. 19, Issue No. 4/5,
pp. 585-597.
3) Joyner. B.E, Payne. D, and Raibom C.E., “Building Values, Business Ethics and Corporate
Social Responsibility into the Developing Organisation”, Journal Of Developmental
Entrepreneurship, 2002, Vol. 7, Issue No. 1, pp. 113 – 131.
4) Molony, T. “Trading places in Tanzania: mobility and marginalization at a time of travel-
saving technologies”, chapter in de Bruijn, M., Nyamnjoh, F. and Brinkman, I., Mobile
Phones: The New Talking Drums of Everyday Africa, (Leiden: African Studies Centre,
2005), pp. 93-109.
5) Waverman, L. Meschi, M. and Fuss, M. “The impact of telecoms on economic growth in
developing countries”,in Vodafone Africa: the impact of mobile phones, pp. 1-23.
Justification of interest of research project to others:
• Telecommunication organisations: would benefit from the project, since it would try to
uncover whether their services are providing economic, social, or both benefits to the
organisations themselves and to their customers. They can then use these findings to
improve their services (if required).
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51. • Cellular phone customers/users: could use these findings to attain more value from the
telecommunication services and from their cell phones, rather than just using the basic
facilities that they do.
• Government organisations: could assess the current two-fold relationship between
customers and telecommunication organisations. They could use this for
telecommunication regulation and decision-making.
• Academics: could benefit from this project to base their future research on this topic in
the context of different (other than Pakistan) developing countries.
Appendix Two – Project Specification
Revised project title: Analysing the two-way benefits of telecommunication and cell phone
services: a study on consumers and a telecommunication organisation in Pakistan.
Date: 5th
January 2016
Author name: Osman Sheikh
Refined research question: What are the social and economic benefits of telecommunication
services designed to provide social benefits to consumers – both from the provider’s and
consumers’ viewpoint?
Objective 1: to search for and study literature (academic and non-academic) on the research
project topic i.e. on telecommunication services; social benefits of services; economic benefits
of services; benefits actually realised by consumers – all of these in terms of developing
countries primarily.
Principal activities: search online databases through the University of London online library and
locate as many possible relevant peer-reviewed articles (past 5 years) on the research topic.
Use other online search tools e.g. Google Scholar. Locate newspapers, magazines, and books on
the topic. Read as much literature as possible to gain both a broad and specific understanding
of the research topic. Formulate research question and multiple specific research objectives
(draft) based on this reading.
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52. Resulting deliverable: A draft review of the research project topic i.e. social and economic
benefits of telecommunication services rolled out for social purposes. Approximately 1500-
2000 words.
Objective 2: to understand the strategic and social motive of different telecommunication
organisations in the city (Lahore, Pakistan) regarding why they provide social services and what
benefits (and limitations) they gain through these services.
Principal activities: shuffle through my contacts with the telecommunication organisations
based on my jobs and work experience. Arrange interviews with managers or/and employees.
Prepare questions for these interviews to gain a broad understanding of the topic. Use these
questions and interview results for the detailed empirical research ahead.
Deliverable: an empirical review of the perspective of telecommunication organisations
(managers) about the research project topic. Can form basis of final findings of the project.
Approximately 1000 words.
Objective 3: to explore the different theoretical perspectives and conceptual frameworks that
could be used to understand and critically analyse the findings of this research project.
Principal activities: search the already read literature (objective 1) for frameworks used by
researchers on this topic. Search the University of London online library databases for articles
that provide conceptual frameworks that may be directly or indirectly related to the topic.
Choose one or two frameworks and search a few peer-reviewed articles on these frameworks.
Read these articles and make notes. Write the conceptual framework chapter based on the
chosen frameworks.
Deliverable: Conceptual/theoretical framework chapter. Approximately 1000 words.
Objective 4: search and read further available literature (based on objective 1) to write the
actual literature review chapter on the social and economic benefits and drawbacks of
telecommunication services to its consumers and to the telecommunication organisations
themselves.
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53. Principal activities: locate the classic articles and peer-reviewed articles through the
bibliography section of articles already read (objective 1). Search for more academic articles,
books, and journals on the topic. Read and make notes from these articles. Write (add) in the
draft literature review – the deliverable for objective 1.
Deliverable: literature review chapter. 30 to 35 references – approximately 2500 words.
Objective 5: conduct case study on one telecommunication organisation to obtain an in-depth
perspective from them on the research project topic.
Principal activities: contact one telecommunication organisation and contact the main contacts
within the organisation. Write a cover letter identifying the purpose of the research project and
send it out to the identified contacts. Call contacts to confirm interview schedule and follow-up
a day before each interview. Prepare the interview questions, and survey questions for
employees (if allowed to take survey). Conduct interviews and record respondents’ answers (if
allowed) or take notes.
Deliverable: the transcripts of interviews and filled-up surveys. Final deliverable – the findings
chapter section on telecommunication organisations (the case study). Approximately 1000
words.
Objective 6: to obtain data from customers and consumers of the case study
telecommunication organisation for finalising the findings chapter (see previous objective).
Principal activities: write survey questions for consumers. Prepare interview questions for
consumers. Contact telecommunication organisation for possible consumer list. Post mail
or/and e-mail survey to these consumers. Set up an interview time with the consumers who use
maximum services from telecommunication organisations. Follow-up on survey results and
compile survey results once obtained. Follow-up on interview schedule. Meet the consumers,
conduct interviews, and take notes on respondents’ answers.
Deliverable: the transcripts of interviews and filled-up survey. Final deliverable – the findings
chapter section on consumers’ perspective. Approximately 500-800 words.
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54. Objective 7: to analyse the findings obtained on completion of the previous objectives. Write
the final report.
Principal activities: analyse the findings of the case study, survey results, and interview
transcripts, through the concepts of the conceptual framework and learnings from the
literature review. Write the analysis and conclusion sections of the project. Edit and revise.
Deliverable: analysis and conclusion chapters of the project. Approximately 1000-1500 words
in total.
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55. Appendix Three – Survey – consumers
Academic research project: Analysing the two-way benefits of telecommunication and cell
phone services: a study on consumers and a telecommunication organisation in Pakistan.
Author: Osman Sheikh
E-mail address: osmansheikh66@gmail.com
This research aims to uncover the benefits telecommunication organisations provide and
receive through services aimed specifically for the social benefit of their consumers.
Thank you for taking out the time to answer the following questions.
You contribution is valued.
1. Are you a mobile phone user?
a. Yes ( )
b. No ( )
If you choose No, you do not have to proceed filling this survey.
2. Please tick your gender
a. Male ( )
b. Female ( )
3. Please tick your age bracket
a. 20-30 ( )
b. 30-40 ( )
c. 40-50 ( )
d. 50-60 ( )
e. 60+ ( )
4. Please tick your income bracket (Pak Rupees)
a. Above 80,000 ( )
b. 60,000-80,000 ( )
c. 40,000-60,000 ( )
d. 20,000-40,000 ( )
e. 10,000-20,000 ( )
f. Below 10,000 ( )
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56. 5. Which telecommunication operator do you use?
Please tick more than option if you use more than one provider.
a. Mobilink ( )
b. Telenor ( )
c. Ufone ( )
d. Warid ( )
e. Zong ( )
6. Do you use mobile internet/mobile data services?
a. Yes ( )
b. No ( )
7. What main purpose do you use mobile internet for?
a. Social networking ( )
b. Internet browsing ( )
c. Entertainment services ( )
d. Mobile banking ( )
e. Mobile money transfer ( )
f. Other: _________________________________________________________
8. Does the price of the mobile internet package impact your decision to use mobile
internet (versus not using it or using Wi-Fi)?
a. Yes ( )
b. No ( )
9. Are you satisfied with the services provided by your current telecommunications service
provider?
a. Very satisfied ( )
b. Satisfied ( )
c. Dissatisfied ( )
d. Very dissatisfied ( )
10. Please state the reasons (briefly) for your choice in the previous question (Question 9)
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
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57. 11. If you would switch to another telecommunication service provider in the future, why
would that be?
a. Price ( )
b. Network quality ( )
c. Brand image ( )
d. Value added services ( )
(e.g. mobile money, health facilities, free social networking etc.)
e. Promotional offers ( )
12. How familiar are you with the various services and offers provided by your
telecommunication service provider?
a. I am extremely aware ( )
b. I am somewhat aware ( )
c. I am not aware ( )
13. According to you, which of the following services does your service provider provide for
the social benefit of its consumers?
You may tick more than one option
a. Mobile banking ( )
b. Mobile money transfer ( )
c. Mobile data/internet ( )
d. Business transaction facilities ( )
e. Programmes for poverty reduction ( )
f. Entertainment services ( )
g. Health facilities through mobile ( )
14. Which of these services do you use?
You may tick more than one option
a. Mobile banking ( )
b. Mobile money transfer ( )
c. Business transaction facilities ( )
d. Programmes for poverty reduction ( )
e. Health facilities through mobile ( )
f. None of the above ( )
g. Other: _________________________________________________________
15. Which of these services is most beneficial and sustainable?
a. Mobile banking ( )
b. Mobile money transfer ( )
c. Business transaction facilities ( )
d. Programmes for poverty reduction ( )
e. Health facilities through mobile ( )
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58. 16. When adopting a new service by your telecommunication service provider, which
category of adopters would you place yourself under?
a. Adopt services immediately when launched ( )
b. Adopt within the first few months of launch ( )
c. Adopt after few months of the launch ( )
d. Adopt at least after a year of launch ( )
17. Which of the following are important when adopting/subscribing a service by your
telecommunication service provider?
You may tick more than one option
a. Voluntary vs. compulsory adoption ( )
b. Relative advantage ( )
c. Compatibility with previous services ( )
d. Social image of consumer ( )
e. Ease of use ( )
f. Visible results ( )
g. Opportunity to trial innovation ( )
18. Which communication channel is more effective to persuade you to adopt a
telecommunication service?
a. Formal communication channel (e.g. paid ads) ( )
b. Informal communication channel (e.g. word-of-mouth) ( )
19. Do you think telecommunication organisations can sustain services that provide social
benefit but do not provide economic returns to the organisations?
a. Yes ( )
b. No ( )
Thank you for filling this survey
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59. Appendix Four – Survey – telecommunication organisations
Academic research project: Analysing the two-way benefits of telecommunication and cell
phone services: a study on consumers and a telecommunication organisation in Pakistan.
Author: Osman Sheikh
E-mail address: osmansheikh66@gmail.com
This research aims to uncover the benefits telecommunication organisations provide and
receive through services aimed specifically for the social benefit of their consumers.
Thank you for taking out the time to answer the following questions.
You contribution is valued.
1. Please tick your gender
a. Male ( )
b. Female ( )
2. Please tick your age bracket
a. 20-30 ( )
b. 30-40 ( )
c. 40-50 ( )
d. 50-60 ( )
e. 60+ ( )
3. Please write your particular designation and the department you are currently working
for in this organisation
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
4. How familiar are you with the different services and their outcomes provided by your
telecommunication organisation?
a. I am extremely aware ( )
b. I am somewhat aware ( )
c. I am not aware ( )
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