1 telecom use on a shoestring: some findings from a study of the financially constrained in south...
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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
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 LIRNEasia19 December 2005, Colombo
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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%)
respondents
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Methodology Face-to-face interviews Questionnaire:
Closed-ended Pilot-tested (in India and SL) and refined Designed by LIRNEasia team (6) with
implementing partner Sampling
Purposive selection of localities Random selection of households KISH grid used to select within households
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Sri Lanka: 1100 respondents, 4 localities, 2 languages
Hambantota – rural, tsunami affected
Badulla – rural, plantation economy, hill countryColombo - capital
city, urban landscape
Jaffna – post conflict area, high migration
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Kasargod – fisheries &
remittance based economy
Gorakhpur – agrarian economy
Mumbai – metropolitan, in
Asia’s largest slum
Dehradoon – agrarian economy, foothills of
Himalayas
Cuttack – poor area, high migration
Sivaganga – trading, fishing & agrarian economy
Neemuch - flat, arid area
India: 2099 respondents, 7 localities, 5 languages
‘Northern’‘Southern’
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Questionnaire ‘Mode’ of access:
fixed, mobile, ‘public access’ Reasons for selecting mode Ownership & use by other people How telecom services are used
Usage patterns What they are used for (purposes) Ways in which they are used (strategies) Difficulties faced
Use of Internet & telegrams
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Limitations Difficult to make accurate comparisons
with groups not studied (financially ‘unconstrained’)
Closed ended questionnaire Could have been supplemented with Focus
Group Discussions Calling patterns based on recall data Weaknesses in a few questions
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Findings How the financially constrained
communicate Why they choose fixed, mobile or public
phones What they use them for How they use them Constraints & considerations Expenditure & cost perceptions
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Everyone in uses phones…
unsuccessful: not used phone in last 3
months0.3%
successful 29.8%
unsuccessful (other)69.9%
Sri Lanka
Total number approched: 3690
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unsuccessful: not used phone in last 3
months12%
successful 44%
unsuccessful (other)44%
India
Total number approched: 4769
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…but 58% do not own one!
51%
23%
52%
24%
49%
77%
49%
76%
0
20
40
60
80
100
< USD50 USD50-100 < USD50 USD50-100
Own Don't Own
Sri Lanka India
Phone ownership doubles in higher income groups
What people own
Sri Lanka India
< USD 50
USD50-100
< USD 50
USD50-100
Landline Only 2 20 19 37
Mobile Only 21 28 3 8
Landline + Mobile
1 4 1 6
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66% use public access phones
Fixed(49%)
Mobile(19%)
‘Public’ access (66%)
21%2%
11%
3%23%
3%
37%
Base: 3199
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Non-owners (fixed) mostly use PCOs and payphones to make calls
the place where fixed users who do not own a phone most often use the phone
0 20 40 60 80 100
Home
Neighbour's house
Relative/friend's house
Employer/office
Public call office (PCO)/communication bureau
Post office
Public payphone
% of fixed owners that do not own a phone
to receive callsto make calls
Base: non-owners (fixed): 1794
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Higher reliance on public access in India
0
20
40
60
80
100
Sri Lanka Northern India Southern India
% o
f re
spo
nd
ents
wh
o u
se...
Public access
Fixed phone
Mobile
Bases :Sri Lanka =1100 North India =1195 South India = 904
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31%
69%
yesno
Base: Fixed owners (847)
7%
93%
yesno
Base: Mobile owners (509)
I allow ‘others’ to use my phoneFixed users
Mobile users
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Subscribers per 100 inhabitants (Sept 2005)
Sri Lanka India
Mobile 15.6 5.96
Fixed 5.7 4.4Source: TRAI, TRCSL (2005)
…reflects availability of service wide availability of PCO in India India & Sri Lanka almost same penetration on
fixed Sri Lanka higher in mobile but India growing too
Sri Lanka had mobile since 1989; India since 1994 India converted to CPP in 2003; Sri Lanka is still
RPP
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...and larger group of poorer people in Indian sample
0
10
20
30
40
50
60
70
80
90
100
Sri Lanka India
% o
f re
spon
dent
s
USD50-100per month
<USD50per month
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Usage patterns: mobile users make more calls than fixed users in Sri Lankan and Northern Indian sample
0
10
20
30
40
50
60
outgoing incoming outgoing incoming
fixed mobile
aver
age
num
ber
of c
alls
per
mon
th
Sri Lanka Northern India Southern India
(incl. public phone users)
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Mobile users that use the short message service
3%
40 %
57 %
use smsdon't use smsnot mentioned
Base: mobile users (616)
SMS use is low…What they use SMS for:
Why they use it:
personal communication
88%
emergency communication
37%
business communication
7%
to minimize comm. expenditure
88%
as a signal 58%
to make sure message is received
48%
59% of SMS users use English language for messages
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83 % of mobile users on pre-paid
Base: all respondents
Mobile Package versus income
0
20
40
60
80
100
< USD50 >USD 50 < USD50 >USD 50
Sri Lanka India
% o
f mob
ile o
wne
rs
not mentioned
Post-Paid
Pre-paid
Bases: SL: 322India: 187
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Monthly Mobile Tariffs (Pre-Paid vs Post Paid):India
0
5
10
15
20
25
30
Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid
Low User Medium User High User
US
D
Connection Rental Usage SMS
Prepaid cheaper than postpaid in India…
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Monthly Mobile Tariffs (Pre-Paid vs Post Paid):Sri Lanka
0
5
10
15
20
25
30
Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid
Low User Medium User High User
US
D
Connection Rental Usage SMS
… and Sri Lanka
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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)
Basket includes airtime (in/out), SMSs, rental & connection charges + free airtime & SMSs
Outgoing calls/month SMS/month
Low user 25 30
Medium user 75 35
High user 150 42
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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.
Base: Public access (only) users
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Difficulties in use of fixed phones
0 20 40 60 80
phone is often disconnected
repair time is too long
repair costs are too high
inaccurate billing
bill is not reader-friendly
have to travel far to pay bills
get disconnected without warning (red notice)
no difficulties
% who faced difficulty
India
Sri Lanka
Base: SL: 212India: 647(fixed owners)
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Less complaints about mobile use
0 20 40 60 80
Phone is often disconnected
cannot make calls despite having credit
Some features don't always work
Difficult to make/receive calls
no difficulties
% who faced difficulty
India
Sri Lanka
Base: SL: 322India: 187(mobile owners)
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Problems with the connection: fixed
0 10 20 30 40 50 60
% who face difficulty
India
Sri Lanka
Base: SL: 212India: 647(fixed owners)
Cannot get a call through
Poor audio connection (including cross connections)
Weak signal
Line disconnection due to not paying the bill on time
Customer service is not efficient
Calls dropped
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55
Problems with connection: mobile- some complaints of poor quality connection
0 10 20 30 40 50 60
Cannot get a call through
Poor audio connection (including cross connections)
Weak signal
Line disconnection due to not paying the bill on time
Customer service is not efficient
Calls dropped
Have to go to locations where there is signal
% who face difficulty
India
Sri Lanka
Base: SL: 322India: 187(mobile owners)
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In conclusion Neglected, silent group of consumers
Most rely on shared access Little discretion Not entirely happy with cost, esp. on mobile Spend considerable amount on telecom
services