Factors which Influence Introduction of Mobile Value Added Services in Developing Countries: the Case of Mobile Network Operators in Ghana
Rudolph Kotoka and Richard Boateng, PhD Corresponding Email: University of Ghana Business School | This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Purpose - Our daily lives reflect the ubiquitous availability of mobile phones and the many Value Added Services deployed over it. M-VAS is increasingly diffusing into developing countries and is postulated to be the solution to the problem of decreasing Average Revenue Per User (ARPU). This paper attempts to analyze that connection by investigating the adoption decision of M-VAS by end users and then gauging strategic, operational, regulation, market and socio-cultural challenges to effective deployment of mobile M-VAS in developing countries.
Methodology - This study presents a Technology Acceptance Model that integrates playfulness, affordability and credibility to investigate what determines end users M-VAS acceptance. The proposed model was tested using data collected from Focus Group Discussions and a semi-structured interview technique was used to assess the factors that influence M-VAS introduction by MNOs.
Findings - The findings indicate that all variables except perceived playfulness significantly affect users’ adoption intent. Additionally, the issue of an equitable revenue sharing ratio and the need for regulation in the M-VAS industry are vital to the development of a viable market.
Research implications - There is the need to stimulate a greater collaboration among players in the VAS value chain to ensure that the huge potential of mobile is effectively harnessed.
Practical and Policy implications - The discussions provide Mobile Network Operators, Value Added Service Providers (VASPs) and business people working in the telecoms industry with a clearer sense of the contribution M-VAS can make; assisting them in prioritization, planning, and evaluation of VAS projects.
Three Learning Points for Ghana and Africa
- Subscriber’s acceptance of an M-VAS offering is partly informed by its relevance and usefulness to the subscriber and hence it is important that MNOs and Content Providers position their VAS offering to meet the specific needs of subscribers.
- The ability to delist from a service after subscription is important in guaranteeing continuous use. M-VAS providers must therefore put in as much effort into educating subscribers on delisting procedures.
- An equitable revenue sharing ratio agreeable between all players is salient to motivating VASPs to roll-out more ‘exciting’ services. Additionally, perhaps an adequate share of the resulting revenue will reduce the temptation of VASPs to request for higher pricing for M-VAS products to the detriment of end users.
Profile: Rudoplp Kotoka is MBA MIS Candidate at the University of Ghana Business School and has interest in m-commerce research. He can be reached by This e-mail address is being protected from spambots. You need JavaScript enabled to view it
