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Hand Phone Users Survey 2007

From the Chairman

Introduction

Main findings

Tables

Glossary

3

4

6

19

27

CONTENTS

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FROM THE CHAIRMAN

Malaysians are avid texters. This has proven true over the years that short messaging services (SMS) or multimedia messaging services (MMS) have been introduced. A steady increase of hand phone users who send an average of 5 or more SMS or MMS a day was noted over the period 2004 to 2007. In fact a solid 50.4 % of hand phone users sent more than 5 SMS or MMS per day.

This is among some of the interesting findings of the SKMM Hand Phone Users Survey 2007; the fourth in the Hand Phone Users Survey series and the sixth in the Statistical Briefs Series published by the Malaysian Communications and Multimedia Commission (SKMM).

This report presents the main findings of the Hand Phone Users Survey (HPUS) 2007. It brings together the findings of the HPUS 2006 and HPUS 2005 carried out by SKMM that illustrates the relationship between hand phones and their owners.

Response rates to surveys done by the SKMM have been encouraging and the HPUS 2007 is no exception, garnering a response rate of 79.8 percent. I would like to thank respondents who answered our calls and agreed to be interviewed by our Computer Assisted Telephone Interview (CATI) operators for the survey. Without their cooperation, this report would not have been possible.

I would like to commend the Research and Planning Division of SKMM on another successful survey and invite suggestions from readers to make this series of publication even more useful.

Datuk Dr. Halim ShafieChairmanMalaysian Communications and Multimedia Commission

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● nationality ● gender ● ethnicity ● age ● usual state of residence ● urban/rural distribution ● income

● payment plan ● number of active hand phone subscriptions ● SMS usage ● unsolicited SMS received per week ● Internet access through the hand phone ● awareness of mobile number portability, (MNP) ● awareness of International Mobile Equipment Identity (IMEI) ● international roaming

as well as other hand phone user trends and usage.

In 2007, these included:

Target Population

The target population was all main users of hand phones on all digital platforms in the states and territories making up Malaysia. These were the main users of the 012, 013, 014, 016, 017 and 019 networks. Both postpaid and prepaid users were covered.

INTRODUCTIONThe Hand Phone Users Survey 2007 is the fourth of an annual survey on hand phone users conducted by the Malaysian Communications and Multimedia Commission (SKMM). The main objective of this survey is to estimate proportions of the hand phone users that fall into the various classes of the categorization schemes of the key variables.

Proper use of these estimated proportions, in conjunction with population estimates, can yield the various hand phone user penetration rates.

The survey probed the demographics and socioeconomics of the hand phone user such as:

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Introduction

Reference date and geographical coverage of the survey

The reference date of the survey was set at 31 March 2007. The survey was canvassed using a Computer Assisted Telephone Interview (CATI) solution and operated out of SKMM’s CATI Centre located at the SKMM Central Regional Office, Shah Alam. The canvassing period extended from 9 June to 12 July 2007.

No statistical unit and no segment of the target population were excluded on the grounds of geographical inaccessibility or service non-coverage or on any other grounds.

Response Rate

Response rate to the survey was 79.8%.

Methodology

The sample size was 4,925 units (α = 0.01 and d = 0.02) drawing from the work on sample sizes from multinomial populations by Chakravarty.

There was only one stage of sample selection as the survey adopted a simple random sample (SRS) approach. Meaningful stratification was not possible because no suitable variable for stratification was available.

As at 31 March 2007, there were 20,808,797 hand phone subscriptions on the 6 digital networks operating in the country. The survey also determined that as high as 18.3% of hand phone users had the same main user and this was netted out to transfer the estimates from the survey, to a ‘user’ rather than ‘subscription’ basis.

Method of administering the instrument

The questionnaire was administered by CATI. Trained interviewers called up main users of selected hand phone numbers to seek their cooperation. Answers given to precoded questions were clicked in while open ended answers were typed in.

Calls were made from 2.00 pm to 9.00 pm on weekdays and 10.00 am to 6.00 pm on weekends and public holidays.

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MAIN FINDINGS

Core Variables

Core Variables of the Hand Phone Users survey are the variables that are canvassed every round so as to enable the monitoring of key indicators in mobile telephony.

The findings in respect of these variables are presented below. However, percentages may not add up to 100 percent because of rounding.

Percentage distribution of hand phone users by nationality

The survey found that 90.3 percent of hand phone users are Malaysians while 9.7 percent of hand phone users are non – Malaysians.

Percentage

Percentage

Nationality

Gender

2005

93.7

6.3

2005

57.4

42.6

Malaysian

Non - Malaysian

Male

Female

2006

92.5

7.5

2006

58.3

41.7

2007

90.3

9.7

2007

56.4

43.6

Percentage distribution of hand phone users by gender

Survey results show that males contribute to 56.4 percent of the total hand phone subscribers while females contribute 43.6 percent. The figure for male is slightly lower compared to the years 2006 and 2005. On the contrary, the figure for females has shown an increase in percentage compared to 2006 and 2005.

The Malaysian population is made up of 51 percent male and 49 percent female.

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Main Findings

Percentage

Percentage

Age category

Ethnicity

2005

13.1

78.2

8.7

2005

53.9

6.5

32.4

6.3

0.9

Pre-teens & teens (up to 19)

Adults (20-49)

Seniors (50+)

Malay

Bumiputra(Sabah/Sarawak) and Orang Asli

Chinese

Indian

Others

2006

20.5

66.8

12.6

2006

57.3

6.7

28.9

6.2

0.9

2007

20.9

66.8

12.3

2007

61.1

5.8

25.8

6.6

0.7

Percentage distribution of hand phone users by ethnicity

Percentage distribution of hand phone users by broad age categories

Adults (users aged between 20 and 49 years as at last birthday) continue to be the highest group of users with 66.8 percent followed by pre-teens and teens (users aged up to 19 years old) with 20.9 percent. Seniors (aged 50 years and above) account for only 12.3 percent.

The upward trend for the pre-teens and teens continues, although slowing down in 2007. It was 13.1 percent in 2005, 20.5 in 2006 and 20.9 in 2007. In more specific age groups, the 20 – 24 year olds has the highest share of the user base, accounting for some 19.9 percent of it.

Among Malaysian users, Malays continue to be the largest group of users accounting for 61.1 percent followed by Chinese at 25.8 percent. Indians, Bumiputra Sabah & Sarawak and Orang Asli account for 6.6 percent and 5.8 percent respectively. The remaining 0.7 percent are other ethnic groups.

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70

60

50

40

30

20

10

0Malay Bumiputra

Sabah/Sarawak& Orang Asli

Chinese Indian Others

200520062007

Percentage distribution of hand phone users by state

Selangor continues as the state with the highest number of hand phone users at 22.1 percent followed by Johor (13.5 percent), Federal Territory of Kuala Lumpur (8.6 percent) and Perak (7.8 percent).

Among other states, Sabah (including Federal Territory of Labuan), Penang, Kedah, and Sarawak have between 6 and 7 percent of hand phone users, while Pahang, Kelantan, Negeri Sembilan, Terengganu and Melaka have between 4 and 5 percent users. Perlis has the smallest number of users with only 0.8 percent.

22.1% 13.5% 8.6% 7.8%

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Selangor Johor W.P. Kuala Lumpur Perak

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Main Findings

PercentageState

2005

13.7

5.9

3.7

3.0

3.9

4.5

7.4

7.3

0.8

24.7

2.9

6.4

5.9

9.7

Johor

Kedah

Kelantan

Melaka

Negeri Sembilan

Pahang

Penang

Perak

Perlis

Selangor

Terengganu

Sabah

Sarawak

F.T. Kuala Lumpur

2006

13.0

6.6

4.6

3.7

4.3

4.8

6.4

7.7

0.9

21.7

3.8

6.4

7.1

8.6

2007

13.5

6.6

4.2

3.7

4.2

5.1

6.5

7.8

0.8

22.1

3.7

7.1

6.1

8.6

The graph below shows the consistent pattern that emerges in each survey conducted from 2005 to 2007.

30

25

20

15

10

5

0

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Melaka

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Pena

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Pera

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200520062007

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Percentage distribution of hand phone users by urban – rural sector

PercentageSector

2005

81.9

18.1

Urban

Rural

2006

80.5

19.5

2007

78.0

22.0

Over the period 2004 to 2006, the urban-rural gap has narrowed down as shown in the table above. The definition of ‘urban’ follows that of Census 2000 conducted by the Department of Statistics, Malaysia. Census 2000 findings had shown that 62 percent of the population live in urban areas while the remaining population in the rurals.

Percentage distribution of hand phone users by income category

Among hand phone users, 29.9 percent had incomes of RM1,000 and below, 30.8 percent had incomes between RM1,000 – RM3,000, while 5.3 percent reported monthly incomes ranging from RM3,000 – RM5,000. Only 3 percent had incomes in excess of RM5,000.

The remaining 31 percent consisting of retirees, housewives, students and unemployed persons had no income.

No Income

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Main Findings

Percentage

Percentage

Payment plan

SMS/MMS sent per day

2005

19.6

80.4

2005

15.1

7.6

8.1

9.2

3.0

7.4

41.8

2004

25.9

9.1

9.7

10.8

5.6

7.2

31.7

Postpaid

Prepaid

0

1

2

3

4

5

More than 5

2006

15.9

84.1

2006

16.4

7.5

9.9

9.0

4.7

6.4

46.1

2007

16.1

83.9

2007

18.8

4.1

6.5

5.9

1.7

12.7

50.4

User Trends And Experiences

This section of the survey probes into current trends and issues in the use of hand phone and the experiences of hand phone users.

Percentage distribution of hand phone users by payment plan

In 2007, prepaid users outnumbered postpaid ones, 84 to 16 for every hundred. This ratio closely reflects observations made in preceding years.

SMS Usage

In Q1 2007, the number of SMSes and MMSes sent, stood at 11,724 million (Communications & Multimedia – Selected Facts and Figure, Q1 2007). This represents a growth of 57 percent over Q1 2006. The upsurge in SMS usage is reflected in the survey findings. The percentage of hand phone users sending out more than five SMS/MMS in a day on average stood at 50.4 percent.

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Unsolicited SMS

In total, 51.3 percent of users received unsolicited SMSes. 6.4 percent of users received more than 10 such SMSes in a week, while 44.9 percent of them received anything from one to 10 per week.

Internet access using hand phones

Only 13.7 percent of users accessed the Internet through their hand phones. This is a drop of 4.7 percentage points from year 2006 figure.

Among those who accessed the Internet on their mobiles, 84.4 percent used GPRS while 16.5 percent used 3G, 12.1 percent used WAP and 1.5 percent used EDGE.

PercentageUnsolicited SMS per week

0

Up to 10

10 to 20

20 to 30

More than 30

48.7

44.9

4.7

0.9

0.8

PercentageUse of hand phone to access internet

Yes

No

2006

18.4

81.6

2007

13.7

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Main Findings

Awareness on Mobile Number Portability

In the past three months preceding reference date, as many as 28.1 percent of hand phone users changed their service provider.

However, only 12.6 percent of hand phone users were aware of Mobile Number Portability (MNP).

PercentageChanged service provider

Yes

No

28.1

71.9

0.6%

Not Aware, 87.4%

Aware, 12.6%

1.5% 12.1%

16.5%

84.4%

GPRS 3G WAP EDGE Others & Don’t know

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51.6 percent of hand phone subscribers will consider porting if charges are made lower by 10 percent and an additional 9.5 percent will consider if charges are lower by 15 percent, a further 18.4 percent of hand phone users will consider porting if charges are lower by 25 percent.

60.5 percent agreed that RM10 is a fair charge per port and 37.4 percent said that a five working day period to change the service provider is reasonable while others want it to be faster.

PercentageLower charges by

10%

15%

25%

51.6

61.1

79.5

Percentage

Percentage

RM10 per port

Awareness of mobile banking services

Yes

No

Yes

No

60.5

39.5

33.5

66.5

Mobile banking

Only 33.5 percent of hand phone users were aware of mobile banking. Only 7 percent of those who are aware have registered for the services.H

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Main Findings

PercentageTypes of payment transactions

Purchase of goods and services from retailers

Payment for public transportation

Parking fee

Payment of bills

Remittance or person to person transfer

Purchase of mobile ring tone

Others

*17.2

*20.7

**3.4

72.4

*34.5

*34.5

**6.9

Of those who are aware but not registered, 18.0 percent were interested to sign up while 82.0 percent were not interested.

Among those who are registered for mobile banking, 25.0 percent conducted financial banking transactions, 8.7 percent non-financial and 6.5 percent both financial and non-financial. The remaining 59.8 percent did not transact in the three month preceding reference date.

Among financial transactions, the most popular was payment of bills (72.4 percent), followed by remittance or person to person transfers (34.5 percent) and purchase of mobile ring tones, top-up and games (also 34.5 percent).

Not Registered, 93%

Registered, 7%

* see RSE tables

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Factors that will spur the interest of hand phone users to subscribe to mobile banking services included more convenience (91.6 percent) followed by more banking services (27.6 percent), greater security features (24.8 percent) and others (3.2 percent).

PercentageFelt secure for

Payment of bills

Parking fee

Payment for public transportation

Remittance or person to person transfer

Purchase of mobile ring tone

Purchase of goods and services from retailers

Others

50.0

42.8

39.1

36.8

31.6

20.8

11.1

91.6

3.2

27.6

24.8

More banking services Greater security featureMore convenience Others

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50 percent of the subscribers felt secure using mobile banking transaction for payment of bills, 42.8 percent for paying parking fees, and 39.1 percent for payment for public transportation. These and others are shown in the table below.

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Main Findings

Comfort ceilings are as tabulated below.

Cumulative percentage of those registeredComfort ceiling

Less than RM50

RM50

RM100

RM200

RM500

100.0

82.0

73.6

54.4

25.2

No Aware, 77%

Aware, 23%

Awareness of IMEI

Survey results show that 23.0 percent are aware about International Mobile Equipment Identity (IMEI). The majority of hand phone users, 77.0 percent, do not know what IMEI is. 57.1 percent of all respondents said that RM10 is a fair price to pay for registration of IMEI while the rest were of the opinion that it was too expensive.

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Main Findings

International roaming

10.4 percent of users travel overseas during the three months preceding 31 March 2007 and of those, 55.6 percent made use of international roaming services to make calls/SMS/MMS while overseas.

Did not travel overseas, 89.6%

Travel overseas,

10.4%

PercentageUse of international roaming services

Yes

No

55.6

44.4

Among the international roaming users, 65.2 percent felt that the charges imposed were too expensive, 29.1 percent felt that the charges were fair while 5.7 percent claimed that the charges were cheap.

Expensive

Fair

Cheap

0

5.7

29.1

65.2

10 20 30 40 50 60 70

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TABLESCaution is required in the use of the estimates tabulated below.

While SKMM takes every care to minimize non-sampling errors, which cannot be quantified, the estimates presented are also subjected to sampling error, which is a measure of the chance variation that occurs because a sample, and not the entire population is canvassed. The sampling error of an estimate is usually expressed as a percentage of that estimate to give the relative sampling error (RSE) of that estimate.

In general, estimates that are small are subjected to high RSEs. As a guide, only estimates with RSEs of 25 percent or less are considered reliable for general use. Estimates with RSEs greater than 25 percent but less than or equal to 50 percent are denoted with an asterisk in these tables and should be used with caution while those with RSEs greater than 50 percent are denoted by two asterisks and are considered too unreliable for general use. However these estimates may be aggregated with others until an RSE of less than 25 percent is obtained.

Confidence intervals for very small estimates should be based on the binomial distribution rather than the normal approximation to the binomial. As an alternative, the method of Korn and Graubard, 1998 may also be used.

Percentages may not add up to 100.0 percent because of rounding.

Table 1

Percent

Percent

RSE

RSE

Gender

Nationality

56.4

43.6

90.3

9.7

1.4

1.8

0.5

4.9

Male

Female

Malaysian

Non-Malaysian

Table 2

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Tables

Percent

Percent

Percent

RSE

RSE

RSE

Ethnicity

Age category

State

61.1

5.8

25.8

6.2

0.7

20.9

66.8

12.3

13.5

6.6

4.2

3.7

4.2

5.1

6.5

7.8

0.8

22.1

3.7

7.1

6.1

8.6

1.3

6.7

2.8

6.3

20.3

3.1

1.1

4.2

4.0

6.0

7.6

8.1

7.6

6.9

6.1

5.5

17.8

3.0

8.1

5.8

6.3

5.2

Malay

Bumiputra (Sabah/Sarawak) and Orang Asli

Chinese

Indian

Others

Pre-teens and teens

Adults

Seniors

Johor

Kedah

Kelantan

Melaka

Negeri Sembilan

Pahang

Penang

Perak

Perlis

Selangor

Terengganu

Sabah

Sarawak

F.T. Kuala Lumpur

Table 3

Table 4

Table 5

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Tables

Percent

Percent

RSE

RSE

Income

SMS/MMS sent per day

31.0

29.9

30.8

5.3

3.0

18.8

4.1

6.5

5.9

1.7

12.7

22.8

12.0

3.8

1.0

4.8

6.0

2.4

2.4

2.4

6.7

9.1

3.3

7.7

6.1

6.4

12.2

4.2

2.9

4.3

8.1

16.1

7.1

6.3

No income

RM5000

0

1

2

3

4

5

6 – 10

11 – 20

21 – 30

31 – 40

41 – 50

50 and more

Table 6

Percent RSEPayment plan

15.9

84.1

3.6

0.7

Postpaid

Prepaid

Table 7

Table 8

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Tables

Percent RSEUse of hand phone to access Internet

13.7

86.3

12.6

87.4

60.5

39.5

4.0

0.6

4.2

0.6

1.3

2.0

Yes

No

Yes

No

Yes

No

Table 9

Table 11

Table 12

84.4

16.5

12.1

*1.5

**0.2

**0.4

1.9

9.7

11.6

35.1

99.9

70.6

GPRS

3G

WAP

EDGE

Others

Don’t know

Table 10

Percent RSEMode of hand phone access to Internet

Awareness of MNP Percent RSE

Percent RSEAgreement to a 5 working day period to port

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Tables

Percent*

Percent

Percent

RSE

RSE

RSE

Will consider switch on charges

Agreement to a charge of RM10 per port

Changed service provider in past three months

51.6

9.5

18.4

37.4

62.6

28.1

71.9

2.0

6.3

4.3

2.1

1.2

5.4

0.5

10% lower

15% lower

25% lower

Yes

No

Yes

No

Table 15

Table 13

Table 14

Percent RSEAwareness of mobile banking services

33.5

66.5

2.2

1.1

Aware

Not aware

Table 16

* In the report, aggregated percentages were used for ease of understanding.

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Tables

Percent

Percent

RSE

RSE

Types of banking transactions

Types of payment transactions

25.0

*8.7

*6.5

59.8

*17.2

*20.7

**3.4

72.4

*34.5

*34.5

**6.9

18.1

33.8

39.4

8.6

40.7

36.6

98.3

11.5

25.6

25.6

68.2

Financial

Non-financial

Both

None

Purchase of goods and services from retailers

Payment for public transportation

Parking fee

Payment of bills

Remittance or person to person transfer

Purchase of mobile ring tone

Others

Table 18

Table 19

Percent RSERegistration with bank for mobile banking

7.0

93.0

10.1

0.8

Registered

Not registered

Table 17

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Tables

Percent

Percent*

Percent

RSE

RSE

RSE

Factors that drive mobile banking

Comfort ceiling

Felt secure for

27.6

24.8

91.6

*3.2

18.0

8.4

19.2

29.2

25.5

*50.0

**42.8

39.1

36.8

31.6

*20.8

**11.1

10.2

11.0

1.9

34.8

13.5

20.9

13.0

9.9

10.9

46.4

22.1

27.7

32.9

36.4

40.7

54.7

More banking services offered on the mobile

Greater security features

More convenience

Others

Less than RM50

RM50

RM100

RM200

RM500

Table 22

Table 23

Table 20

Percent RSEInterest in signing up for mobile banking

18.0

82.0

6.1

1.3

Yes

No

Table 21

Payment of bills

Parking fee

Payment for public transportation

Remittance or person to person transfer

Purchase of mobile ring tone

Purchase of goods and services from retailers

Others

* In the report, aggregated percentages were used for ease of understanding.

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Tables

Percent

Percent

RSE

RSE

Agreement to a registration charge of RM10 per phone

Opinion on roaming charges incurred

57.1

42.9

65.2

29.1

*5.7

1.4

1.8

4.8

10.4

26.9

Agree

Disagree

Expensive

Fair

Cheap

Table 25

Table 28

Percent

Percent

RSE

RSE

Travel overseas

Used of international roaming services

10.4

89.6

55.6

44.4

4.7

0.5

4.4

5.5

Yes

No

Yes

No

Table 26

Table 27

Percent RSEAwareness of IMEI

23.0

77.0

2.9

0.8

Yes

No

Table 24

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Glossary

GLOSSARY

TERM DESCRIPTIONS

The hand phone is seen as a personal, rather than a household equipment. This is because hand phones are normally carried by their main users when they leave the house or office. When the hand phone rings at home, more often than not the person who answers it is the main user as calls received by that device are expected to be for him.

(see also main user below)

The main user may or may not be the legal owner of the device. He may also not be the one who pays for the bills incurred as in the case of supplementary subscriptions and company subscriptions.

The ethnicity of a child of mixed parentage is Malay if either parent is Malay, or recorded as reported, or takes the ethnicity of the father if undecided.

Age referred to age as at last birthday.

Usual state of residence refers to the state where the respondent has a home and has stayed continuously there for the past 6 months. If he has stayed for less than 6 months but knows beyond reasonable doubt that he will be there for at least 6 months continuously, then he should be counted in that state. This is especially so in cases where the respondent has just been transferred in, prior to the interview taking place. If a respondent knows that he will be moving to another state shortly but has not done so yet at the time of the interview then he is not considered as a resident of the state where he is moving to. This is especially so in cases where the respondent has a notice of transfer but has not moved yet.

Usual state of residence does not refer to the state where ancestral homes or kampungs are located.

A service that allows customers the choice of switching from one mobile service provider to another while retaining their existing telephone numbers.

A number unique to every GSM and UMTS mobile phone. It is usually found printed on the phone underneath the battery and can also be found by dialing the sequence *#06# into the phone. The IMEI number is used by the GSM network to identify valid devices and can be used to stop a stolen phone from being used.

The hand phone

The main user

Ethnicity

Age

Usual state of residence

Mobile Number Portability (MNP)

International Mobile Equipment Identity (IMEI)

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Glossary

The SKMM website contains more statistics pertaining to the Communications and Multimedia industry. This is updated every quarter of the year.

The SKMM website is at www.skmm.gov.my

The SKMM publishes the following:1. Communications & Multimedia: Selected Facts & Figures (ISSN: 1675-6223), a quarterly statistical bulletin of the communications and multimedia industry.2. Postal & Courier Services: Selected Facts & Figures (ISSN: 1823-9919), a half yearly statistical bulletin of the postal and courier industry.

Please contact SKMM for more details or email publications@cmc.gov.my

The Statistical Brief series (ISSN:1823-2523) is issued by the SKMM to disseminate survey findings and statistical updates. These briefs are aimed at the general to intermediate user audience.

Titles in this series so far:

Statistical Brief Number One Hand Phone Users Survey 2004

Statistical Brief Number Two Household Use of Internet Survey 2005

Statistical Brief Number Three Hand Phone Users Survey 2005

Statistical Brief Number Four Hand Phone Users Survey 2006

Statistical Brief Number Five Household Use of Internet Survey 2006

Statistical Brief Number Six Hand Phone Users Survey 2007 (this issue)

Koay Hock Eng

Azilawati MasriAsharina AlwiDayang Aidah Awang PiutSiti Shadiah Zainol Abidin

For further information about these and related statistics, contact the following officers:

Koay Hock Eng: +603 8688 8234 hekoay@cmc.gov.my

Azilawati Masri: +603 8688 8235 azilawati@cmc.gov.my

THE STATISTICS & KNOWLEDGE RESOURCE DEPARTMENT

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