1 Telecom use on a Telecom use on a shoestring: shoestring: Some findings from a study of the Some findings from a study of the Financially Constrained in South Asia Financially Constrained in South Asia Ayesha Zainudeen, Rohan Samarajiva, Ayoma Abeysuriya, Harsha de Silva, Divakar Goswami, Mariam Hameed, Tahani Iqbal, Malathy Knight-John, Sriganesh Lokanathan, Avanti Moonesinghe, Chanuka Wattegama. Usable Knowledge for Growing the Sector: ICT Policy & Regulation Research from LIRNEasia 19 December 2005, Colombo
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1 Telecom use on a shoestring: Some findings from a study of the Financially Constrained in South Asia Ayesha Zainudeen, Rohan Samarajiva, Ayoma Abeysuriya,
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Telecom use on a shoestring:Telecom use on a shoestring: Some findings from a study of the Financially Some findings from a study of the Financially
Constrained in South AsiaConstrained in South Asia
ICT Policy & Regulation Research from LIRNEasia19 December 2005, Colombo
www.lirneasia.netwww.lirneasia.net
2
Objectives of the Study Understand the use of telecom services by
the ‘financially constrained’ in South Asia To what extent do they use it? What benefits do they gain from use? How do they use it? Why do they use it the way that they do?
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Sample
Surveys in India & Sri Lanka (3199 in total) Not representative of India & Sri Lanka as wholes
‘Users’ those who have used a phone in the last three months
‘Financially constrained’ users: Socio-Economic Classification (SEC) groups B,C,D & E
Monthly income < USD100 Mix of urban (37.5%) and rural (62.5%)
Basket methodology Based on OECD methodology with modifications
RPP Prepaid & post-paid
Based on monthly tariffs of cheapest tariff package of largest operator in each country India – Airtel (Bharti) – 28% (July’05) Sri Lanka – Dialog Telkom – 60% (July ’05)
Why people choose phones: Cost & convenience% of users who chose a mode for reason...
0
20
40
60
80social status
fashion
value added services
privacy
mobility
easy to use
easy to access
can use at any time
save on travel time and cost
clear connection
no other choice
control costs
economical to receive calls
economical to make calls
Fixed
Mobile
Public access
COST
CONVENIENCE Base: full sampleFixed:1580Mobile: 616Public access: 2106
SYMBOLIC
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What they use phones for: relationship maintenance
0
20
40
60
80
100keeping in touch (local)
keeping in touch (international)
send news & messages
receive news & messages
financial transactions
business transactions/enquiries
arranging logistics
access Internet
fixedmobilepublic access
BASES:Fixed: 1580Mobile: 616Public: 2106
INSTRUMENTAL
RELATIONSHIP MAINTAINANCE
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Use of mobiles: relationships in SL; also some instrumental use in India
0
20
40
60
80
100keeping in touch (national)
keeping in touch (international)
send news & messages
receive news & messages
financial transactions
business transactions/enquiries
arranging logistics
access Internet
SLIndia
Bases:
SL: 374
India: 242
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0
20
40
60
80
100ke
epin
g in
tou
ch(in
tern
atio
nal)
keep
ing
in t
ouch
(nat
iona
l)
send
new
s &
mes
sage
s
rece
ive
new
s &
mes
sage
s
finan
cial
tra
nsac
tions
busi
ness
tran
sact
ions
/enq
uirie
s
arra
ngin
g lo
gist
ics
acce
ss I
nter
net
relationship maintenance intrumental
% o
f mal
e/fe
mal
e us
ers
malefemale
Base: Fixed usersmale: 676female: 904
Fixed
Gender Patterns:Fixed: men use the phone for relationship maintenance as much as women
Relationship maintenance instrumental
Statistically significant difference
*
*
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0
20
40
60
80
100ke
epin
g in
tou
ch(in
tern
atio
nal)
keep
ing
in t
ouch
(nat
ion
al)
send
new
s &
mes
sage
s
rece
ive
new
s &
mes
sage
s
finan
cial
tra
nsac
tions
busi
ness
tran
sact
ions
/enq
uirie
s
arra
ngin
g lo
gist
ics
acce
ss I
nter
net
relationship maintenance intrumental
% o
f mal
e/fe
mal
e u
sers
malefemale
Base: mobile usersmale: 323female: 293
Mobile
Same story on mobiles (minor difference on business transactions) …
Relationship maintenance instrumental
*
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0
20
40
60
80
100ke
epin
g in
tou
ch(in
tern
atio
nal)
keep
ing
in t
ouch
(nat
iona
l)
send
new
s &
mes
sage
s
rece
ive
new
s &
mes
sage
s
finan
cial
tra
nsac
tions
busi
ness
tran
sact
ions
/enq
uirie
s
arra
ngin
g lo
gist
ics
acce
ss I
nter
net
relationship maintenance intrumental
% o
f mal
e/fe
mal
e us
ers
malefemale
Base: Public access usersmale: 1018female: 1088
Public Access
…and public access
Relationship maintenance instrumental
**
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How is the phone used: ‘strategies’on mobile
Use of strategies in fixed lines by income group
0
20
40
60
80watch call duration on local calls
watch call duration on national andinternational calls
use timer which disconnects callsafter certain time*
use until free talk time is over*
disconnect if it exceeds certainamount of call charge/ time*
only use for fixed amount per month*
restrict numbers that I can call / cancall me*
only call people on same network
use to ask others to call back
only use for non-local calls using calling card*
only use at home*
only use when travelling*
use only for SMS*
only use for SMS when travelling*
Low' income group
High' income group
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43 % of mobile owners switch off their phone: not for cost reasons
COST FACTORS
Reasons for switching off mobiles
0 10 20 30 40 50 60 70
because I'm out of town
to avoid incoming calls atpeak hours
to avoid incoming calls
to control communicationcosts
to avoid being disturbed
to avoid being disturbed whenasleep
to conserve battery
% of mobile owners who switch their phone off
Base: mobile owners who switch off their mobiles: 216
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Time of day that users make calls
58%
33%
5%
8am-6pm6pm-8amno particular time
Base: 374 (mobile users, Sri Lanka)
mobile users, Sri Lanka
77%
12%
10%
8am-6pm6pm-8amno particular time
Base: 2854 (fixed users, full sample)
fixed users
* No peak-off peak differentials on mobile in India
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Little strategic use… Little discretion in the few calls that they
make Heavier users use a few more strategies
Few options to make use of strategies 69% have access to only one mode
Majority are using other people’s phones 58% don’t own phones
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Heavier users use more strategies (back)
0 20 40 60 80 100
Light'users: Sri
Lanka
Heavy'users: Sri
Lanka
Light'users:India
Heavy'users:India
Sri
Lan
kaIn
dia
% of users that use strategy
reduce local call durations (fixed users)
reduce local call durations (mobile users)
reduce national and international call duraitons (fixed users)
reduce national and international call duraitons (mobile users)
call to ask others to call back (fixed users)
call on fixed to ask others to call back on mobile (fixed & mobileusers)receive on fixed phone, not mobile (fixed & mobile users)
receive on fixed phone, not mobile (fixed & mobile users)
receive messages on mobile and call back on fixed (fixed &mobile users)receive messages on mobile and call back on fixed (fixed &mobile users)return missed calls from mobile on fixed (fixed & mobile users)
return missed calls from mobile on fixed (fixed & mobile users)
disconnect the phone if call charges/time is exceeded (fixedowners & mobile users)use cut-off timer (mobile users)
use only for fixed amount mobile owners & fixed users)
only use free airtime mobile owners & fixed users)
use phone only for SMS (mobile users)
restrict numbers that can call me / call out mobile owners & fixedusers)
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Obtaining a fixed line: paying in installments
0
20
40
60
80
100
Sri Lanka India
% o
f o
wn
ers
paid full amount at once Paid in installments
Base: full sample: 847SL: 212India: 647
Getting connected: Financing fixed line connections slightly harder in Sri Lanka – use of installment plans
Use of installment plans on fixed phones
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Reflects connection charges for fixed phones
Sri Lanka incumbent = USD 180 (min.)
Sri Lanka entrants = USD 120
India incumbent = USD 16
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0
20
40
60
80
100
Sri Lanka India
% o
f mob
ile o
wne
rs
Had to get finance from somewhere elseI had the money (or someone in my household did
Base: full: 509SL: 322India: 187
Opposite case in mobiles in Sri Lanka:less people had money available for connection
Where owners got money for the connection from
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40
0
20
40
60
80
100
bought it brand new bought it second hand received it as a gift /got it free
% o
f mob
ile o
wne
rs
Sri Lanka totalIndia total
Bases:full:509SL: 322India: 187
Getting handsets: 10% got it free; 33% of Indians bought second-hand handsets
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410 10 20 30 40 50 60 70
difficulty in finding the money
had to wait for service to become available
lack of information on phone options
had to go to another town to get connected
waiting time of over 1 year
too much paper work
had to make many visits to office
had to pay bribes
wasn't treated well because didn't have 'contacts'
phone did not get connected immediately
no difficulties
% who faced difficulty
India
Sri LankaBase: SL: 212India: 647(fixed owners)
Difficulties in getting fixed connections:waiting time, paper work, & other inconveniences in India
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Obtaining a mobile connection: it’s relatively easier…
0 10 20 30 40 50 60 70
difficulty in finding the money
had to wait for service to become available
lack of information on phone options
had to go to another town to get connected
waiting time of over 1 year
too much paper work
had to make many visits to office
had to pay bribes
wasn't treated well because didn't have 'contacts'
phone did not get connected immediately
no difficulties
% who faced difficulty
India
Sri LankaBase:SL: 322India: 187(mobile owners)
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Cost of using the phone: Mobile is perceived to be the least affordable
0
20
40
60
80
100
Fixed Public Mobile
mode of access
% o
f u
sers
wh
o f
ind
th
e c
ost
...
extr.high/v.high/highaffordable
Full sampleBasesfixed: 1580public: 2106mobile: 616
extremely high / very high / high
affordable
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But more affordable in India
affordable
affordable
0
20
40
60
80
100
Sri Lanka India
Mobile
% o
f u
ser
s w
ho
fin
d t
he
co
st.
..
affordable extr.high/v.high/high
BasesSL: 374India: 242
extremely high / very high / high
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Fixed users spend less than USD4 per month (approx)
0
10
20
30
40
<USD1 USD1-4 USD4-8 >USD8
Average monthly expenditure on telecommunication (fixed + public access users)
% o
f fix
ed
+ p
ub
lic a
cce
ss u
sers
wh
o s
pe
nd
...
Base: fixed + public access users: 2854
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0
10
20
30
40
<USD1 USD1-4 USD4-8 >USD8
Average monthly expenditure on telecommunication (mobile users)
% o
f m
ob
ile u
sers
wh
o s
pe
nd
...
Base: mobile users: 616
Mobile users spending much higher amounts
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33 % of Jaffna sample spend more than USD12 per month on mobile
Jaffna
0
5
10
15
20
25
30
35
< USD 1 USD1-4 USD4-8 USD8-12 >USD12
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‘on average, around the world, people spend about 2-3% of their income on telecommunication’ Telecommunications Regulation Handbook, infoDev, module 6, p.6.6
Graph taken from Telecommunications Regulation Handbook, infoDev; module 6
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Rural respondents perceive fixed phones to be more affordable, and less likely to change use if price changed
0
20
40
60
80
Sri Lanka Urban Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
High Affordable
0
20
40
60
80
Sri Lanka Urban Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
Will increase usageWon't change
•Reflects telecom/transportation trade-off
•Access deficit charge in India ensures lower cost of rural fixed phones
Base: fixed (only) users
Change in usage if costs were halved
Perception of current costs
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Mobiles perceived to be more costly & use would increase if costs were halved; rural users a little happier about cost
0
20
40
60
80
100
Sri Lanka Urban Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
High Affordable
0
20
40
60
80
100
Sri Lanka Urban Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
Will increase usage Won't change
Reflects the said reasons for choice of mobile : convenience
Base: mobile (only) users
Change in usage if costs were halved
Perception of current costs
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Public access: more affordable in rural areas
0
20
40
60
80
100
Sri Lanka Urban Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
High Affordable
0
20
40
60
80
Sri LankaUrban
Sri Lanka Rural N India Urban N India Rural S India Urban S India Rural
Will increase usage Won't change
Change in usage if costs were halved
Perception of current costs
Despite respondents in India perceiving current costs to be affordable, they are willing to increase phone usage if costs were halved.