Market Promotion of 4G LTE

Introduction

2

• 4G LTE means “fourth-generation long term evolution”

• Up to 10 times faster than 3G (Stringfellow, 2018)

• 4G is vibrant in Nepal but inadequate market success

• How customers perceive 4G LTE?

• What factors affect attitude formation towards 4G LTE?

How was it studied?

3

• Quantitative and Qualitative Methods• Survey Questionnaire with internet users with their

smartphones• 942 Samples (KTM, Bhaktapur, Lalitpur, Saptari,

Morang, Sunsari) • Purposive Sampling at central locations• Focus Group Discussion (4G users and Non 4G

users)• Key Informants Interview: (Regulators (NTA) and

Operators(NTC, NCELL, SMART Telecom))• Frequency Distribution, Descriptive Statistics,

Regression, Thematic Analysis of qualitative data

Male: 61.1% Female: 31.0%

4

68.1

31.0

.90.0

20.0

40.0

60.0

80.0

Male Female Others

Gender

3.3

24.8

46.7

18.4

5.61.3

0.0

10.0

20.0

30.0

40.0

50.0

Under18

years

19-25years

26-35years

36-45years

46-60years

Above60

years

Age Group

74.4% were below 35 years

Masters & Above: 53.05%Bachelors: 27.65%

5

Private Service: 44.0%

Student: 20.8%

Self Employed: 16.5%

4.86% 1.12% 3.61%9.71%

27.65%

53.05%

0.00%10.00%20.00%30.00%40.00%50.00%60.00%

Education

44.0

8.216.5

2.2

20.8

5.3 3.00.0

10.0

20.0

30.0

40.0

50.0

Occupation

Mobile Data: 71.66%WIFI: 64.44%

6

48.89%

81.33%

4.74%

31.70%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

NTC NCELL SMART NTC +NCELL

SIM used for Mobile Data

71.66%

64.44%

60.00%62.00%64.00%66.00%68.00%70.00%72.00%74.00%

SIM Card WIFI (ISP, ADSL)

Source of Data in Smartphones

NT: 48.89%NCELL: 81.33%NT+NCELL: 31.70%

More than seven times a day: 50.07%

7

Travelling: 66.07%

No WIFI: 63.11%

4.59%12.15%

22.81%

50.07%

6.52% 3.85%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Once a day Two tothree

times aday

Four toseven

times aday

More thanseven

times aday

Few timesin a week

Few timesin a month

Frequency of Data Use from SIM Card

66.07%55.56% 53.48%

63.11%

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%

Travelling Home Office WhenWIFI is notavailable

Location of Data Use

Evening: 79.11%Afternoon: 72.59%

8

62.81%72.59%

79.11%

54.96%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Morning Afternoon Evening Night

Time of Data Use

8.89%

19.70%

29.04%24.74%

11.41%6.22%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

Money Spend in Mobile Data

Rs. 401-800: 29.04%Rs. 801-1500: 24.74%

Purpose of Mobile Data

9

86.96%

68.59%

68.00%

64.44%

52.15%

38.22%

37.33%

27.41%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Social Media

Voice/Video Call

News

Email

Maps and Directions

Online Purchase/Ecommerce

Watching movies

Others

10

75.11%

15.70%9.19%

0.00%

20.00%

40.00%

60.00%

80.00%

Yes No Don’t Know

Use Mobile Data Package

82.81%

11.11% 6.07%0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Yes No Don’t Know

Smartphones Support 4G LTE

82.07%

49.78%36.15%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

4G 3G/2G Both use

Mobile Technology Use

What encouraged you to use 4G LTE?

11

73.96%

67.99%

51.72%

49.19%

30.02%

22.24%

22.06%

22.06%

0.00% 20.00% 40.00% 60.00% 80.00%

Fast speed/performance

Very Useful

Service quality

Access from anywhere anytime

Social status and prestige

Referral from friends/relatives

Price

Promotion and Advertisement

Why don't you use mobile data?

12

74.44%

43.61%

14.29%

22.56%

10.90%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Costly Slow WIFIavailableanywhere

Not required Don’t know

Perception towards 4G LTE

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Mean Std. Deviation

Mobility

4G Users 3.5835 .80176

2G/3G Users 3.1530 .74738

WIFI Users 3.3233 .97210

Speed

4G Users 3.9144 .58386

2G/3G Users 3.5464 .63574

WIFI Users 3.5627 .93591

Social Prestige

4G Users 3.5527 .97104

2G/3G Users 3.1202 .88562

WIFI Users 3.4561 1.03034

Price

4G Users 3.7185 .69311

2G/3G Users 3.5273 .65673

WIFI Users 3.8333 .86983

Perception towards 4G LTE

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Mean Std. Deviation

Quality

4G Users 3.8318 .66277

2G/3G Users 3.4918 .64740

WIFI Users 3.4749 .91597

Promotion

4G Users 3.4858 .83541

2G/3G Users 3.0410 .75646

WIFI Users 3.0840 1.02139

Usefulness

4G Users 3.7348 .70993

2G/3G Users 3.3060 .77209

WIFI Users 3.3070 .97631

Attitude

4G Users 3.9421 .70530

2G/3G Users 3.5082 .68059

WIFI Users 3.4975 .94114

Regression Results

15

• Promotion, Speed and Quality creates perceived usefulness (βP= .517 ,βS=.218 ,βQ=.156, R2 =.618)

• Social prestige, price and mobility have no affect on perceived usefulness

• Attitude towards 4G is formed through perceived usefulness (β=.749, R2 =.592)

Focus Group Discussion (4G Users)

16

• Tariff is high

• Packages are cost effective and preferable however difficult to understand sometimes.

• Use mobile data during travelling for maps, email, social media

• Useful and saves time

• Faster than 3G

• No affect on social status

• Large number of dark spots

Focus Group Discussion (Non Users of Mobile Data)

17

• WIFI available at home.

• 4G is expensive. Opt to use if price is lowered.

• Use WIFI data for social media, watching movies, serials

• People say 4G is expensive

Key Informants Interview (Regulator)

18

• No significant difference between 3G and 4G in terms of speed

• Large number of blind spots

• Bandwidth limitation – 5MHz (NT and NCELL), 10 MHz (SMART)

• Low marketing role

• No motivation for Users: Limited coverage and speed

• 4G data will grow with progression of socio-economic conditions

Key Informants Interview (Operators)

19

• Consumer perceive 4G as high speed

• No significant difference between 3G and 4G

• Expansion at low pace. Limited investment

• No aggressive marketing. Limited features for marketing

• No revenue target on 4G

• 4G packages are effective

• Limited 4G handsets penetration

• 4G data will grow with content and service based solutions

Conclusion and Recommendations

20

• Availability of 4G handsets in market. Consumers ready to use 4G

• Allocate 4G Spectrum (Regulator)

• Expand 4G network (Operators)

• Initiate promotion indicating speed and quality

• Develop content and service based solutions

Avant Garde Solution (P) Ltd

Sankhamul, Kathmandu, Nepal

Contact : 977 1 5242340

info@avantgarde.com.np

www.avantgarde.com.np