Final Project

Role of 3G in SMEs at local level

Group members:
Adil Haider

13221001

MBA Marketing

Shazib Ayub

13221003

MBA Marketing

Husnain Hafeez

13221002

MBA Marketing

Urwah Bukhari

13221004

MBA Marketing

Academic supervisor:
Sir Irfan Mehmood
Corporate Name:
Mobilink
Corporate Supervisor:
Syed Zubair Hussain

Department of GIFT Business School

GIFT University, Gujranwala
Page 1

CERTIFICATE
It is certified that MBA final project titled Role of 3G in SMEs at local level has been prepared
by students, Adil Haider 13221001, Shazib Ayub 13221004, Husnain Hafeez 13221002, Urwah
Bukahri 13221003 and academic supervisor sir Irfan Mehmood has been approved for
submission.

___________________
Mr. Zikria Mian
Project Supervisor

Page 2

DECLARATION FORM
I Adil Haider 13221001, shazib Ayub 13221003, Husnain Hafeez 13221002 and Urwah Bukhari
13221004 hereby declare that the Project titled role of 3G in SMEs at local level has been
submitted by us in the partial fulfillment of the requirements for the degree of MSc Business
Administration and this Project present carried out at Gift university Gujranwala campus and
aims encouraging discussion and comments. The observation and viewpoints expressed are the
sole responsibility of the author. It does not necessarily represent position of Gift university
Gujranwala campus or its faculty. I also understand that if evidence of plagiarism is found in my
project at any stage, even after the award of a degree, the work may be cancelled and the degree
revoked.

Printing Date: 15-7-2013

________________
Adil Haider

________________
Shazib Ayub

________________
Husnain hafeez

________________
Urwah Bukhari

________________

Page 3

DEDICATION
All the praises and thanks for Almighty Allah who bestowed us with the potential and ability to
contribute a drop of a material to the existing ocean of knowledge. We offer our humblest thanks
from the deepest core of our heart to the Holly Prophet Muhammad (peace be upon him) who is
fore ever a torch of guidance and knowledge for humanity as a whole.
Secondly we would like to express our grateful thanks to our parents and course instructor
Mr. Irfan Mahmood whose outstanding teaching skills, methods, breathe of knowledge and
counseling, helped us to complete this assignment successfully.

Page 4

ACKNOWLEDGEMENT
All acclamations to Allah who has empowered us and enabled us to accomplish the task
successfully first of all we would like to thanks to our Allah Almighty who really help us in
every problem during the project. We would like to express sincere and humble gratitude to
Almighty Whos blessing help and guides has been a real source of all our achievement in our
life.
We would like to admit that we completed this project due to parents who pray for our success.
We take this opportunity to express our profound gratitude and deep regards to our supervisor
Mr. Irfan Mahmood for his exemplary guidance, monitoring and constant encouragement
throughout the course of this final project

Page 5

1 Contents:
EXECUTIVE SUMMARY ................................................................................................................ 8
ROLE OF 3G TECHNOLOGY IN SMES AT LOCAL LEVEL ................................................................ 9
Introduction: ................................................................................................................................ 9
Overview of 2G & 3G Technology .......................................................................................... 11
Technical Highlights of 2G & 3G ............................................................................................. 11
Comparative Study of 2G, 3G: ................................................................................................. 12
Launching of 3G technology in Pakistan: ................................................................................. 13
Advantages of 3G: .................................................................................................................... 13
Disadvantages of 3G: ................................................................................................................ 14
LITERATURE REVIEW: ............................................................................................................... 14
SMALL AND MEDIUM ENTERPRISES IN PAKISTAN ..................................................................... 28
PROBLEMS OF SMES ................................................................................................................. 28
AIM OF THE STUDY .................................................................................................................... 29
RESEARCH METHODOLOGY ...................................................................................................... 30
Data Collection &sample .......................................................................................................... 30
Time Horizon: ........................................................................................................................... 30
Data Analysis Software: ........................................................................................................... 30
Instrument Development/Selection ........................................................................................... 30
DATA ANALYSIS ....................................................................................................................... 30
Demographic Analysis: ............................................................................................................. 31
Gender: .................................................................................................................................. 31
Age: ....................................................................................................................................... 31
Interpretation: ........................................................................................................................ 31
Awareness: ............................................................................................................................ 32
Interpretation: ........................................................................................................................ 32
Meanings of 3G: ................................................................................................................... 32
Interpretation: ........................................................................................................................ 32
Company of 3G: .................................................................................................................... 33
Interpretation: ........................................................................................................................ 33
Advantages of 3G: ................................................................................................................ 33
Interpretation: ........................................................................................................................ 33
Purpose of 3G: ...................................................................................................................... 34
Interpretation: ........................................................................................................................ 34
Reliability.................................................................................................................................. 34
Correlation ................................................................................................................................ 35
DISCUSSION: ............................................................................................................................. 36
ROLE OF 3GMOBILE TECHNOLOGY IN SMES AT LOCAL LEVEL: ................................................ 37
CONVENTIONAL SMES ............................................................................................................. 37
CONCLUSION............................................................................................................................. 37
Page 6

APPENDIX .............................................................................................................................. 39
Questionnaire ............................................................................................................................ 40
REFERENCES ............................................................................................................................. 44

Page 7

2 Executive Summary
The objective of this paper is to evaluate the underlying paradigms of third generation
(3G) mobile services. Given the success of second generation (2G) mobile communications
systems and services, the third generation mobile networks and applications are faced with a
lot of expectations such as providing ubiquitous access to online services via mobile
terminals. However, 3G technologies and applications have encountered obstacles that have
hindered both the technology development and user acceptance.

This

paper

reviews

existing literature related to 3G and develops a framework that presents the factors that
contribute to the success of 3G. The findings provide insight into the development and
marketing of 3G services.
Emerging technologies such as 4G-LTE attract the lions share of industry and media attention.
However, 2G and 3G wireless networks remain highly relevant, currently supporting over 80%
of all mobile phone activity. Trends suggest the use of 2G and 3G technologies will expand
dramatically during the next three to five years as the worlds two largest markets, India and
China, open their doors wide to mobile phone usage.
2G and 3G technology patents have been at the center of ongoing patent wars and they can be
expected to fuel a significant escalation in activity during the next five years as top patent
holders seek to monetize their portfolios. Leading patent holders have already launched
initiatives against major competitors, with some having sold patent rights to small-to-medium
enterprises (SMEs) and patent assertion entities (PAEs).

Page 8

3 Role of 3G technology in SMEs at local level

3.1 Introduction:
3G technology is the result of research and development work carried out by the International
Telecommunication Union (ITU) in the early 1980s. 3G specifications and standards were
developed in fifteen years. The technical specifications were made available to the public under
the name IMT-2000. The communication spectrum between 400 MHz to 3 GHz was allocated
for 3G. Both the government and communication companies approved the 3G standard. The first
pre-commercial 3G network was launched by NTT DoCoMo in Japan in 1998, branded as
FOMA. It was first available in May 2001 as a pre-release (test) of W-CDMA technology. The
first commercial launch of 3G was also by NTT DoCoMo in Japan on 1 October 2001, although
it was initially somewhat limited in scope broader availability of the system was delayed by
apparent concerns over its reliability.
The first European pre-commercial network was an UMTS network on the Isle of Man by Manx
Telecom, the operator then owned by British Telecom, and the first commercial network (also
UMTS based W-CDMA) in Europe was opened for business by Telenor in December 2001 with
no commercial handsets and thus no paying customers.
The first network to go commercially live was by SK Telecom in South Korea on the CDMAbased 1xEV-DO technology in January 2002. By May 2002 the second South Korean 3G
network was by KT on EV-DO and thus the South Koreans were the first to see competition
among 3G operators.
The first commercial United States 3G network was by Monet Mobile Networks, on CDMA2000
1x EV-DO technology, but this network provider later shut down operations. The second 3G
network operator in the USA was Verizon Wireless in July 2002 also on CDMA2000 1x EVDO. AT&T Mobility is also a true 3G UMTS network, having completed its upgrade of the 3G
network to HSUPA.
The first pre-commercial demonstration network in the southern hemisphere was built in
Adelaide, South Australia by m.Net Corporation in February 2002 using UMTS on 2,100 MHz.
Page 9

This was a demonstration network for the 2002 IT World Congress. The first commercial 3G
network was launched by Hutchison Telecommunications branded as Three or "3" in June 2003.
3G was relatively slow to be adopted globally. In some instances, 3G networks do not use the
same radio frequencies as 2G so mobile operators must build entirely new networks and license
entirely new frequencies, especially so to achieve high data transmission rates. Other delays were
due to the expenses of upgrading transmission hardware, especially for UMTS, whose
deployment required the replacement of most broadcast towers. Due to these issues and
difficulties with deployment, many carriers were not able to or delayed acquisition of these
updated capabilities.
In December 2007, 190 3G networks were operating in 40 countries and 154 HSDPA networks
were operating in 71 countries, according to the Global Mobile Suppliers Association (GSA). In
Asia, Europe, Canada and the USA, telecommunication companies use W-CDMA technology
with the support of around 100 terminal designs to operate 3G mobile networks.
Roll-out of 3G networks was delayed in some countries by the enormous costs of additional
spectrum licensing fees.The license fees in some European countries were particularly high,
bolstered by government auctions of a limited number of licenses and sealed bid auctions, and
initial excitement over 3G's potential.
The 3G standard is perhaps well known because of a massive expansion of the mobile
communications market post-2G and advances of the consumer mophone. An especially notable
development during this time is the smartphone (for example, the iPhone, and the Android
family), combining the abilities of a PDA with a mobile phone, leading to widespread demand
for mobile internet connectivity. 3G has also introduced the term "mobile broadband" because its
speed and capability make it a viable alternative for internet browsing, and USB Modems
connecting to 3G networks are becoming increasingly common.

Page 10

3.2 Overview of 2G & 3G Technology

2G was commercially launched in 1991. It introduced digital signaling via packet data in
telecommunications, and provided reduced power consumption and noise levels. It also proposed
better security methods with digital encryption techniques coupled with lower power usage.
SMS, MMS and e-mail were a few packet-based services introduced by 2G. Although highly
advanced markets have reached a stage where 2G networks are now being switched off, 2G
technologies still account for over 80 percent of connections in China and 90 percent in India the two largest mobile markets in the world. With successive technologies such as 2.5G, 2.75G
and 3G, the era of ever-increasing data rate demands skyrocketed across the globe. While packet
data was introduced in 2G, higher data rates and better data services were brought by 3G.
Attractive services such as Mobile TV, Video on Demand, Video Conferencing, Location-Based
Services and Global Positioning System (GPS) gradually grew into a necessity for a majority of
mobile users. Statistics1 suggest that, as of 2012, more than 500 operators across 185 countries
have deployed 3G networks, pointing to the fact that mobile users in more than three-quarters of
the worlds markets have access to 3G services.

3.3 Technical Highlights of 2G & 3G

Lower power consumption, better security and better bandwidth usage are the key advantages of
2G over its precedent technologies. 2G introduced digital encoding in telecommunications,
resulting in better compression and multiplexing of voice data than its preceding analog
encoding. The advantage: 2G supported a larger number of calls in the same radio bandwidth and
ensured lower power consumption that improved battery life in mobile phones. Digital
encryption methods introduced in 2G provided better security and privacy to mobile users. Short
Message Service (SMS) and Multimedia Message Service (MMS) became the first form of
packet-based services introduced in 2G, marking the beginning of data services on mobile
phones.
3G entered the market with the advantage of increased data rates available to mobile users for
services such as Mobile TV, Location-Based Services, video calls and internet browsing on the
move. It also provides variable data transfer speeds ranging from 128 kbps to 3 mbps depending
on the speed with which the mobile device is moving within the network. Beyond mobile
telephony, the higher speeds allowed 3G connections in PCs, gaming consoles, tablets and any
Page 11

other portable device that could benefit from a faster and higherquality internet connection. 3G
also provides users with better security through user authentication capabilities when
communicating with other wireless devices. 3G boasts of better power control methods for both
uplink and downlink, with the network using a target Signal-to-Interference Ratio (SIR) to adjust
its output power. It also improves spectrum utilization through shared channels in the radio
interface, thus making it more effective than 2G networks.

3.4 Comparative Study of 2G, 3G:

Features

Services

Speed

Technology

2G
Data services such as text
messaging (SMS), multimedia
messaging (MMS), internet
access & SIM cards.

9.6/14.4 Kbps.
GSM - Global System for
Mobile Communication with
technological
backbone of TDMA

GSM, GPRS (2.5G) & EDGE

(2.75G).
Standards

Voice & Data Support

Switching Techniques

Frequency Band

Voice & data could not be

simultaneously supported.
Consists of only circuit
switched networks.
Initially 900MHz spectrum was
used, but later GSM was
introduced on an 1800MHz
band.

3G
Term mobile broadband
introduced because of its
speed
&
capability.
Universal
access
&
portability across different
device types.
3.1 Mbps (peak)/
500-700 Kbps.
UMTS( Universal Mobile
Telecommunications
System ) as its core
network architecture with
HSPA (high speed packet
access) protocol.
UMTS( Universal Mobile
Telecommunications
System )
& CDMA2000
(code
division
multiple access) standards.
Simultaneous voice & data
support.
Uses a combination of both
circuit-switched & packetswitched networks.
1.8 2.5 GHz.

Page 12

3.5 Launching of 3G technology in Pakistan:

The third generation (3G) telecom licences was auctioned on March 29 2014 with each licence to be base
priced at $210 million and auctioned through bidding. PTA Chairman Dr. Muhammad Yasin told the
media that the amount of bidders will have to deposit with initial expressions of interest would be $31.5
million and licence terms would be from eight to 15 years. He expects to attract at least 10 to 15 potential
investors for the initial bidding process. The existing telecom operators could start offering 3G services
immediately after being awarded a licence. Analysts say that the base price is little higher than they had
originally expected. Earlier estimates suggested that the base price for 3G licences would be $195 million.

According to a press release, this trend follows a decline in the prices of smart phones and
tablets, and anticipated launch of 3G services. Internet-capable feature phones are expected to
continue to play an important role, too. An additional factor is the unreliability of the electricity
supply which is also helping to promote the usage of tablets and smart phones in Pakistan.
The findings come from a survey of over 1,000 Pakistanis by research firm IDC on behalf of
Google. The Pakistan Digital Consumer Study conducted earlier this quarter took a look at the
life of the connected Pakistani consumer. The survey found that digital consumers are engaging
more with the internet than ever before. The study revealed that home is the preferred location
for Internet access even for mobile-only users, who prefer to use their home Wi-Fi
connection.
The top three activities in Pakistan both on desktop and mobile Internet are: social media, email
and general search. The main challenge of Internet proliferation in Pakistan are the quality and
reliability of connectivity including poor speed or bandwidth availability, perceived value-formoney, customer service quality, limited choice of plans and frequency of service interruptions.
The unreliability of the power supply is also a factor, the press release stated.

3.6 Advantages of 3G:

3G entered the market with the advantage of increased data rates available to mobile
users for services such as Mobile TV, Location-Based Services, video calls and internet
browsing on the move.

It helps in future from consumer perspective to gain many benefits like roaming
capability and broad bandwidth and high speed communication. Due to fast connectivity

Page 13

of internet; you can send and receive large email messages via wireless in a very small
time.

Access to convenient, affordable and highly customization mobile broadband devices and
services makes life more productive, secure and meaningful and empowers people to
transform the way they live, learn, work and play.

Currently broadband facility is used by very few ratio of population in Pakistan but after
launch of 3G technologies it can take broadband to every nook and corner of the country,
becoming accessible to more than 90 per cent of the population, with relatively small
effort.

3.7 Disadvantages of 3G:

The cost of cellular infrastructure, upgrading base stations is very high.

Needs different handsets.

Power consumption is high.

The main disadvantage of the 3G phone service is its cost. Data transmission rates for
users of 3G phone service are incredibly high. Unless you have an unlimited plan from
your carrier, you are charged per kilobyte of data you send or receive. If you take your
3G phone to another country, you are charged on a completely different (and dramatically
more expensive) pay scale due to using international phone towers," said a senior official
of the Telecom Ministry, who requested not to be named. He added that features of 3G
products and networks are enhanced data transmission capabilities. 3G devices will
eventually be replaced as newer technologies become ready for mainstream use.

4 Literature review:
Today, the majority of mobile services used via 3G networks are already available in current
2,5G networks (GPRS, EDGE) such as browsing the Web, sending and receiving multimedia
messages (like pictures and video), and e-mailing. Therefore, 3G should not be viewed as a new
technology surpassing the existing 2,5G networks, or a revolution in mobile communication.
Instead, 3G should be considered to be evolution of existing mobile communications (Harmer,
2003). In the light of the discussion in this paper, there is strong evidence to suggest that the
main outcome of using 3G networks and services will be to get access to the same services with
Page 14

faster data connection speed. Furthermore, it seems that the success of 3G lies in its ability to
serve not only mobile users but in providing access to the Internet with data cards inserted in
laptops. Thus, 3G networks will serve the same purpose as LAN and WLAN networks. In terms
of business opportunities, telecommunication companies main source of income is still coming
from voice-centric services. For example, the mobile operator Hutchinson, offering services
purely in 3G networks, announced this autumn 2004 that its main source of income comes from
discount packets that offer free speech time in 3G networks. Moreover, as long as the price of the
network time is high in 3G, operators cannot wait fast diffusion of data centric mobile services.
According to mobile operators, 3G is needed in congested places where the demand on current
mobile networks exceeds the capacity. Another important factor affecting future of 3G is the
availability of reasonably priced handsets. 3G devices launched to the market during 2004 have
also suffered from various problems such as high power consumption that limits usage time. The
findings presented should be interpreted in the light of certain limitations. The results are based
on existing material found from various sources and thus concern the development of 3G
globally. Future studies should concentrate on country specific research to provide a more
detailed understanding of the phenomenon at hand. Another limitation concerns the framework
developed. Willingness to use 3G services is definitely dependent on various other factors
beyond the framework presented, which could not all be addressed within this study. On this
basis, future research that identifies additional factors or views the factors presented in different
light would contribute to the understanding of 3G acceptance. Thus, a natural extension of this
study is the collection of primary data about the use and acceptance of 3G services in both
consumer and business markets.( An Investigation of Third Generation (3G) Mobile
Technologies and Services by Heikki Karjaluoto)

Successful diffusion of 3G mobile is necessary for the provision of many advanced applications
via the mobile platform such as mobile broadband Internet and video. The current deployment of
3G services is significantly more developed in some countries than others. Through a regression
analysis of 106 observations, this study examines the factors affecting such differences. It was
found that multiple standardization policy, lower level of 1G and 2G penetration, and a higher
level of income contribute to the diffusion of 3G mobile technology or services.
Page 15

The world of telecommunications has changed rapidly as we enter the era of convergence
between wireless networks, broadband communication, and the content sector. Demands for
advanced services such as mobile broadband Internet and mobile video have increased
tremendously in recent years and been touted as the driver for the continuous growth of the
telecommunications industry (Tellabs, 2009). In fact, such bandwidth consuming mobile
ventures are often regarded as a means of paying off the hefty license fees for many third
generation (3G) mobile service providers (Ponsford, 2006). In essence, as the mobile voice
services become commoditized with increasing price competition, new data services made
possible by the 3G networks are critical in generating profit and growth. Mobile network or
service based on the International Mobile Telecommunication-2000 (IMT-2000) family of global
standards is commonly referred to as 3G mobile (ITU, 2003b). These mobile systems provide
higher transmission rates than possible in second generation wireless technologies, supporting
data transport rates of at least 144 kbit/s for all radio environments and 2 Mbit/s in low-mobility
and indoor environments (ITU, 2003b, Shelanski, 2003). The 3G mobile systems enable many
advanced applications such as mobile videoconferencing, video phone/mail, mobile TV/Video
player, and digital audio/video delivery (Xavier, 2001,ITU, 2001). Thus, the true provision of
video communication, information, and entertainment via the mobile platform will be impossible
without the successful diffusion of 3G services. In addition, industry analysts have increasingly
concluded that mobile broadband will soon become the standard of accessing the Internet in most
countries.
From a global perspective, the deployment of 3G mobile services is significantly more advanced
in some countries than others. At the end of 2007, there were 3.35 billion mobile subscribers
throughout the world (ITU, 2008). It was estimated that mobile broadband handset users will
grow from 158 million in 2008 to over 1.8 billion in 2014, with most increase coming from
emerging countries such as China and India (Cellular-News, 2009). In spite of the rapid growth
of 3G and even 4G services in a select number of countries, many countries are still in the early
stages of 3G mobile deployment. According to the latest International Telecommunication Union
(ITU) penetration data (December 2006), Korea, Italy, and Japan are the leading 3G mobile
economies among ITU member countries (ITU,2006). What factors contribute to the differential
deployment rates of 3G mobile services among countries? As important as these factors are in
affecting the next phase of mobile technology development, consumer access to advanced
Page 16

mobile broadband and video services, and the eventual convergence between the mobile
platform and other mass media content distribution systems, little empirical studies have
addressed the political, economic, market, and consumer issues that might play a role in the
diffusion of 3G mobile services.(The deployement of 3G mobile services by sangwon lee).

The primary research problems were related to what are Chinese consumers attitudes
towards the current mobile services and what factors affecting their choice behaviors
towards mobile services from 2G/2.5G and 3G. In order to achieve these aims, a series of
objectives have been concluded as follow:
1: Identify current situation of mobile network services in china:
According to the statistics report showed, 2G/2.5G was still the dominant mobile
services in current China communication market, which popularity rate has reached a
very high spot in recent year. On the other hand, the 3G service just goes into service in
a short time ago, only a small section of people are privileged to use 3G network
services in China excluding the city of Hong Kong. In addition, the data analysis in
chapter 4 also showed, only 24.5% of participants respond they have used 3G service
before or are using at present, and the rest is not.
2: Review the previous studies and theories on the factors affecting consumers
attitudes and choices towards mobile services.
Reviews numerous previous studies and theories related to the factors which influence
consumers attitudes and choices towards mobile services from 2G to 3G, such as price
strategy, service quality, service feature, service and phone convenience, playfulness .

3: Examined users attitudes towards the current mobile service in china:

This

provided several questions to test user attitudes towards the current mobile

service. As the result of data showed, high service quality, lower cost, high data speed,
easy to use and highly entertaining became the top 5 things which concerned by most of

Page 17

users, moreover, they also considered the Good service quality, Good network coverage
and one-way charge system were very important for them.
4: Identify factors which influence users attitudes and their choice of mobile
service or device.
According to the original TAM model and extension TAM model which proposed by
other researchers. The researchers found the original TAM was not enough to predict
users attitudes towards the field of mobile service, so they added several external
variables to support the TAM. Hence, it was found that PU, PEOU, perceived system
quality, perceived content quality, perceived playfulness, Perceived price level, internet
experience and social pressure (Je and Myeong-Cheol, 2005; Kwon and Chidambaram,
2000) are the most significant factors to influence users attitudes as well as their choice
behaviors.
5: Investigate 2G/2.5G and 3G users attitudes towards these two mobile services.
The author proposed an extended TAM model in order to test users attitudes in chapter
3, which include the factors such as PU, PEOU, PP, PL and population effect.
Meanwhile, a variable (ATM) also provide a support for investigate users attitudes
towards 2G/2.5G and 3G mobile services. The chapter 4 provided a set of data for
author to find out the result related to users attitudes, while chapter 5 disclosed the
finding result for this research objective related to users attitudes towards mobile
services. (investigate consumers attitude and choices towardsmobile service 2G and
3G).

Page 18

Emerging technologies such as 4G-LTE attract the lions share of industry and media attention.
However, 2G and 3G wireless networks remain highly relevant, currently supporting over 80%
of all mobile phone activity. Trends suggest the use of 2G and 3G technologies will expand
dramatically during the next three to five years as the worlds two largest markets, India and
China, open their doors wide to mobile phone usage. Ericsson, Nokia, Qualcomm and AlcatelLucent are among those who developed the building blocks of todays wireless world. They
collectively control the majority of all patents in this space. Nokia, LG Electronics and
Qualcomm alone own more than 43 percent of all seminal patents (i.e., determined to be strong
based on a set of parameters). The playing field has evolved dramatically in recent years, causing
these brands to slowly fade from the minds of consumers. However, they will continue to exert
an influence on current market leaders such as Apple, Google and Samsung, who control todays
mobile device ecosystem. 2G and 3G technology patents have been at the center of ongoing
patent wars and they can be expected to fuel a significant escalation in activity during the next
five years as top patent holders seek to monetize their portfolios. Leading patent holders have
already launched initiatives against major competitors, with some having sold patent rights to
small-to-medium enterprises (SMEs) and patent assertion entities (PAEs). It is highly likely,
given the increasing pressure on these companies to generate revenue, that many will become
more aggressive by entering into new agreements with patent privateers to monetize their
assets. The result will likely be an increase in litigation and licensing. So, who stands to benefit
in this evolving marketplace? Which companies control the largest number of patents and the
largest number of seminal patents in the world of 2G and 3G technologies.Which PAEs are best
positioned to leverage monetization efforts? These are some of the questions addressed in this
report. We explore key 2G and 3G patent holders, providing details on the number and category
of overall, standard-essential and seminal patents. The report delves into SMEs and PAEs that
control a large percentage of seminal and standard-essential patents. Nearly nine percent of
seminal 2G and 3G patents are currently held by SMEs and PAEs, and approximately five
percent of all standard-essential patents are held by two companies - Innovative Sonic Ltd. and
Vringo Infrastructure Inc. This report also reveals that certain small companies hold key 2G and
3G patents that have remarkably high patent monetization potential.(2G and 3G mobile
communication)

Page 19

Almost half the population of the earth now uses mobile communications. A billion mobile
subscribers were added in the last 4 years to leave the total standing at 3.2 billion. There are still
many adults and young people who would appreciate the social and economic benefits of mobile
technology but are unable to access it, highlighting a huge opportunity for future growth and a
challenge to all players in the industry ecosystem to expand the scope of products and services to
tap this demand. Given the strong growth trajectory and pace of innovation, we are confident that
the next few years will see continued growth with a further 700 million subscribers expected to
be added by 2017 and the 4 billion mark to be passed in 2018. This growth is mirrored by strong
mobile connections growth, to almost 7 billion connections in 2012, as many consumers have
multiple devices or use multiple SIMs to access the best tariffs, while firms in many industry
sectors roll out M2M applications to boost their own productivity and tap into new markets.
Despite challenging economic headwinds in many regions, the market is expected to grow even
more strongly on the dimension of connections over the next five years, with 3 billion additional
connections expected to be added between 2012 and 2017, a growth rate of 7.6%.(The Mobile
Economy 2013 by AT Kearney).
Although Taiwans 3G services startedits operation in 2003, the main profit source for every
telecommunication company is still the cheaper fees of airtime minutes. Therefore, this study is
directed on how these companies design the marketing tactics closer to the consumers need
under the dual influences of the decreasing individuals contribution and the low utility rate, as
well as how to improve customerswillingness to adopt 3G mobile telecommunication services.
Unified Theory of Acceptance and Use of Technology (UTAUT) is used as the model to carry
out expert interviews and consumers questionnaire investigation. This study found that the
factors that significantly influenced the behavioral intentioninclude performance expectancy,
social influence, and facilitating conditions, while the traditional known effort expectancy
did not. Moreover, three non-assumed relationships were discovered during the Structural
Equation Modeling analysis, which helped to revise the UTAUT model for 3G
telecommunication services. The results of this study can be helpful to Taiwansmobile
telecommunication companies to adjust their corporate strategies and tactics for providing
customer-oriented 3G services to both existing and potential customers, such that the overall 3G
market can be expanded as well as a win-win situation for the 3G industry and their consumers
Page 20

can be achieved(Using UTAUT to explore the behavior of 3G mobile communication users by Yu

lung Yu, Yu hui Tao, Pei chi Yang).
In general terms, 3G services comprise of wide bandwidth services such as enhanced
communication (e.g. messaging, e-mail, video), browsing the Web (Robins, 2003; Symbian
Glossary, 2004), and location-specific information (Barnes, 2002) like informing users about the
availability of stores, restaurants, gas stations, free parking lots and so on near them (Kanter,
2003). In addition, business users will have a direct access to company networks while traveling
or working outside office. From marketing point of view, identifying and designing these
services and setting an appropriate price is said to be the core marketing task related to 3G
(Robins, 2003). Although it can be concluded that the most successful 3G services probably
belong to one of these categories, it is impossible to predict in detail exactly what is going to
happen in the mobile marketplace. However, we will not experience a so-called radical
innovation in the market; merely the evolution of existing mobile communications giving users
faster transmission speeds which then might open up possibilities for new mobile data services
also. Next, we will go through the most common mobile data services and ponder their ability to
serve as the most successful 3G services.
A wide range of authors from various disciplines ranging from technology to business have
argued that the 3G will enable mobile access to the Internet (e.g., Barnes, 2003: 13; Dziong,
Khan, Medepalli, & Nanda, 2002; Harmer & Friel, 2001), or in other words, aim to merge
cellular networks and the Internet meaning that mobile users can have ubiquitous access to all
the services that the Internet provides from messaging to Contemporary Management Research
97 browsing (Camarillo & Garcia-Martin, 2004: 5). The term mobile Internet, or Internet
inmobile, refers to gaining access to the Internet using a handheld, wireless device like a mobile
phone or PDA. As 2G networks have been mainly voice-centric with low data transmission
capacity (Harmer & Friel, 2001), 2,5G and 3G will speed up data transmission speeds. However,
in 3G networks the data transmission speed is depended upon the number of users accessing the
network at the same point of time. Thus, in reality 3G networks rarely offer the theoretical
maximum speed. Another question relates to the users need to browse the Web from mobile.
Besides the most used mobile Internet services in 2,5G, namely news and entertainment
(Buellingen & Worter, 2004), the question of whether there are any other online services that are
preferably used from mobile rather than from other devices such as laptops which have larger
Page 21

screens and also easier to use interfaces with large keyboards, remains open. However, the
question of whether users are willing to browse the Internet from mobile phone or PDA becomes
unimportant as terminals are only devices, and finally the user judges the terminals and chooses
the one he or she prefers. For instance, by using 3G data card users can browse the Internet via
their laptop or via a mobile device. The purpose of use dictates the terminal in the end. Research
has suggested that the most attractive WAP applications are news,entertainment, ticketing and
reservations, as well as banking (Buellingen & Worter, 2004). These are actually among the
most common online services used with computers as well (e.g. Karjaluoto, Mattila, Pento,
2002). To conclude, while many 3G services are operated via the Internet, browsing the Internet
from mobile phones or PDAs will not be a mobile version of fixed-line access (Lindgren,
Jedbratt, & Svensson, 2002: 4). In fact, people do not use the Internet in the same way from
mobile terminals as they do when accessing the Internet via larger screens from computers.
France Telecom Research & Development (2004) predicts that mobile Internet offers the
advantage of always being near at hand, and of being a personal tool. On this basis possible
successful services might be services developed for traveling purposes like ticketing, checking
schedules, traffic reports and related services.
With the development of mobile technologies, mobile services have already become a
fundamental part of people's lives and society throughout the world. In the meanwhile, the
mobile technology experienced a series of innovation and development, which from the original
analog digital communications, the second generation (2G) to the latest third generation (3G)
mobile technology. As some researchers examined, the mobile technology and service
development is typically based on consumer acceptance as well as their future requirements (e.g.
Kumar, 1997; Nagel, 2003). Hence, it is important to explore consumers motives and their
choice decisions during the rise of the 3G network in recent history (Benady, 2002). There are
many complex factors were likely to influence consumers choice behaviors, but these really can
be boiled down to two determinant points: the benefits of technology and the pricing policy of
service (Benady, 2002).
As the world biggest potential mobile communication market, China also has devoted entirely to
their construction of 3G market, therefore, it is very important to examine different factors which
influence users attitudes and their choice behaviors related to 2G/2.5G and 3G service in China.

Page 22

With the recent and future high growth of global 3G marketing, many countries are taking part in
the line of 3G industries in succession. As the world biggest potential mobile communication
market, china had begun to develop the 3G scheme since 2001, and several technology standards
were tested which included TD-SCDMA (Time Division-Synchronous Code Division Multiple
Access), WCDMA (Wide-Code Division Multiple Access), CDMA2000 (Code Division
Multiple Access) and other technology testing, among of these 3G technology standard, while
TD-SCDMA standard is a proprietary intellectual property which belong to China owned. After
a long times preparation, china issued an official trial through their TD-SCDMA standard
network in 2006. The several participants of TD commercial testing include: Beijing, Baoding,
Xiamen, Qingdao, etc. In addition, Hong Kong has already established their 3G standard
(WCDMA) for several years ago; meanwhile, the 3G services have already been adopted in
many places of their daily life.
Along with the 3G goes into service, many new data service can be provided to consumers, such
as MMS, internet surfing, video calls, mobile television, GPS, high speed data service, etc.
meanwhile, the development of 3G industry also can provide huge profits to every participant in
this value chain, for instance, network provider, service provider, content provider, equipment
provider, even the bank can depend on their service payment system to take part in this value
chain. However, the premise to achieve these services and commercial values is that we must
have both the support of technology and the acceptance of market. With regard to china, TD
SCDMA standard has been already established for many years, the technology aspects are not
the barrier for china popularize their 3G.
Over the past year, the promise of mobile broadband has become reality as many tens of millions
of users have actively started using smartphones, tablets, netbooks, and laptops with wireless
connections. Yet, we are only scratching the surface of what is to come. This will be the decade
of anywhere social existence, work, and entertainment. Major developments this past year
include 3rd Generation (3G) ubiquity, deepening smartphone capability, the availability of
hundreds of thousands of mobile applications, the introduction of new form factors such as
tablets, projections of mobile-data demand exceeding capacity, acknowledgment by industry and
government of the need for more spectrum, implementation of data offload via Wi-Fi, dramatic
performance increases through HSPA enhancements, initial deployments of LTE technology,
and significant progress on specifications that will meet true Fourth Generation (4G)
Page 23

requirements. 3G technology has shown us the power and potential of always-on, everyplace
network connectivity and has ignited a massive wave of industry innovation that spans devices,
applications, Internet integration, and new business models. Already used by hundreds of
millions of people, mobile broadband connectivity is on the verge of becoming ubiquitous. It will
do so on a powerful foundation of networking technologies including Global System for Mobile
Communications (GSM) with Enhanced Data Rates for GSM Evolution (EDGE), High Speed
Packet Access (HSPA), and Long Term Evolution (LTE). LTE in a forthcoming release called
LTE-Advanced will be one of the first technologies to meet the requirements of International
Mobile Telecommunications Advanced (IMT-Advanced), a project of the International
Telecommunications

Union

(ITU).

Through

constant

innovation,

Universal

Mobile

Telecommunications System (UMTS) with HSPA technology has established itself as the global,
mobile-broadband solution. Building on the phenomenal success of GSM, the GSM-HSPA
ecosystem has become the most successful communications technology family ever. Through a
process of constant improvement, the GSM family of technologies has not only matched or
exceeded the capabilities of all competing approaches, but has significantly extended the life of
each of its member technologies. HSPA is strongly positioned to be the dominant mobile-data
technology for the next five to ten years. To leverage operator investments in HSPA, the Third
Generation Partnership Project (3GPP) standards body has developed a series of enhancements
to create HSPA Evolution, also referred to as HSPA+. HSPA+ represents a logical
development of the Wideband Code Division Multiple Access (WCDMA) approach, and it is the
stepping stone to an entirely new 3GPP radio platform called 3GPP LTE. LTE, which uses
Orthogonal Frequency Division Multiple Access (OFDMA), is seeing initial deployment this
year. Simultaneously, 3GPPrecognizing the significant worldwide investments in GSM
networkshas defined enhancements that will significantly increase EDGE data capabilities
through an effort called Evolved EDGE.
Combined with these improvements in radio-access technology, 3GPP has also spearheaded the
development of major core-network architecture enhancements such as the IP Multimedia
Subsystem (IMS) and the Evolved Packet Core (EPC), previously called System Architecture
Evolution (SAE). These developments will facilitate new types of services, the integration of
legacy and new networks, the convergence of fixed and wireless systems, and the transition from
circuit-switched approaches for voice traffic to a fully packet-switched model. The result is a
Page 24

balanced portfolio of complementary technologies that covers both radioaccess and core
networks, provides operators maximum flexibility in how they enhance their networks over time,
and supports both voice and data services. Transition to 4G: 3GPP Broadband Evolution to IMTAdvanced, Rysavy Research/3G Americas, Sept 2010 Page 5 This paper discusses the evolution
of EDGE, HSPA enhancements, 3GPP LTE, the capabilities of these technologies, and their
position relative to other primary competing technologies. It explains how these technologies fit
into the ITU roadmap that leads to IMT-Advanced.
The following are some of the important observations and conclusions of this paper:

The wireless technology roadmap now extends to IMT-Advanced with LTE-Advanced

being one of the first technologies defined to meet IMT-Advanced requirements.
LTEAdvanced will be capable of peak throughput rates that exceed 1 gigabit per second
(Gbps).

Future networks will be networks of networks, consisting of multiple-access

technologies, multiple bands, widely-varying coverage areas, all self-organized and selfoptimized.

GSM-HSPA1 has an overwhelming global position in terms of subscribers, deployment,

and services. Its success will continue to marginalize other wide-area wireless
technologies.

In current deployments, HSPA users regularly experience throughput rates well in excess
of 1 megabit per second (Mbps) under favorable conditions, on both downlinks and
uplinks, with 4 Mbps downlink speed commonly being measured. Planned enhancements
such as dual-carrier operation will double peak user-achievable throughput rates.

HSPA+ provides a strategic performance roadmap advantage for incumbent GSMHSPA

operators. Features such as multi-carrier operation, Multiple Input Multiple Output
(MIMO), and higher-order modulation offer operators multiple options for upgrading
their networks, with many of these features (e.g., multi-carrier, higherorder modulation)
being available as network software upgrades. With all planned features implemented,
HSPA+ peak rates will eventually reach 168 Mbps.

HSPA+ with 2x2 MIMO, successive interference cancellation, and 64 Quadrature

Amplitude Modulation (QAM) is more spectrally efficient than competing technologies
including Worldwide Interoperability for Microwave Access (WiMAX) Release 1.0.
Page 25

The 3GPP OFDMA approach used in LTE matches or exceeds the capabilities of any
other OFDMA system. Peak theoretical downlink rates are 326 Mbps in a 20 MHz
channel bandwidth. LTE assumes a full Internet Protocol (IP) network architecture, and
it is designed to support voice in the packet domain.

LTE has become the technology platform of choice as GSM-UMTS and Code Division
Multiple Access (CDMA)/One Carrier Evolved, Data Optimized (EV-DO) operators are
making strategic, long-term decisions on their next-generation platforms.

GSM-HSPA will comprise the overwhelming majority of subscribers over the next five
to ten years, even as new wireless technologies are adopted. The deployment of LTE and
its coexistence with UMTS-HSPA will be analogous to the deployment of UMTSHSPA
and its coexistence with GSM.

3GPP has made significant progress on how to enhance LTE to meet the requirements of
IMT-Advanced in a project called LTE-Advanced. LTE-Advanced is expected to be the
first true 4G system available. Specifications are scheduled to be completed in March of
2011, with earliest availability for deployment in 2012.

HSPA-LTE has significant economic advantages over other wireless technologies. 1 This
papers use of the term GSM-HSPA includes GSM, EDGE, UMTS, HSPA and
HSPA+. UMTS-HSPA refers to UMTS technology deployed in conjunction with
HSPA capability. Transition to 4G: 3GPP Broadband Evolution to IMT-Advanced,
Rysavy Research/3G Americas, Sept 2010 Page 6

WiMAX has developed an ecosystem supported by many companies, but it will still
represent only a very small percentage of wireless subscribers over the next five years.

EDGE technology has proven extremely successful and is widely deployed on GSM
networks globally. Advanced capabilities with Evolved EDGE can double and eventually
quadruple current EDGE throughput rates, halve latency, and increase spectral
efficiency.

EPC will provide a new core network that supports both LTE and interoperability with
legacy GSM-UMTS radio-access networks and non-3GPP-based radio access networks.
Policy-based charging and control provides flexible quality-of-service management,
enabling new types of applications, as well as billing arrangements.
Page 26

Innovations such as EPC and UMTS one-tunnel architecture will flatten the network,
simplifying deployment and reducing latency.

This paper begins with an overview of the market, looking at trends, EDGE and UMTS-HSPA
deployments, and market statistics. It then examines the evolution of wireless technology,
particularly 3GPP technologies, including spectrum considerations, core-network evolution,
broadband-wireless deployment considerations, and a feature and network roadmap. Next, the
paper discusses other wireless technologies including Code Division Multiple Access 2000
(CDMA2000) and WiMAX. Finally, it compares the different wireless technologies technically,
based on features such as performance and spectral efficiency. The appendix explains in detail
the capabilities and workings of the different technologies including EDGE, Evolved EDGE,
WCDMA2, HSPA, HSPA+, LTE, IMT-Advanced, LTEAdvanced, IMS, and EPC.
In 2012, the global mobile market grew strongly to nearly 7 billion connections, representing a
growth rate of 13.7% p.a. since 2008 . The number of individual subscribers increased by 38% in
the four years from the end of 2008 and the number of connections grew by 67% over the same
period (an increasing number of people have multiple connections, e.g. for work and personal
use or for phone and tablet). As the global market continues to grow, 2013 is expected to be a
landmark year, with for the first time more SIMs active than people alive. Despite challenging
economic headwinds, the global mobile market is expected to continue to grow over the next five
years, with annual growth in the number of connections of 7.6% expected between 2012 and
2017. This is slower than the growth rate of 13.7% over the period 2008 to 2012, which is to be
expected given subscriber market saturation in some countries. In absolute terms, however, this
still represents 3 billion new connections, 10% more than was added between 2008 and 2012. As
a result of this growth, global SIM penetration is forecast to reach 129% by 2017 from the
current 94%, breaking the 100% mark during 2013, while subscriber penetration should increase
from 45% to 52% in the same period. However, as we explore later in this chapter, the dynamics
differ significantly by region.
The headline growth in number of connections hides an important shift taking place in the types
of connections that make up the total. In terms of numbers of connections, 2G technology which
provides digital quality voice, messaging and low bandwidth data connections still accounts for
the majority of global connections in 2012, 5 billion of the 6.8 billion total. However, the growth

Page 27

in connections will be driven by increased uptake of 3G and 4G connections, which are forecast
to increase from 26% to 53% of global connections over the period 2012 to 2017.

5 Small and Medium Enterprises in Pakistan

Traditionally an SME, (a small and/ or medium enterprise) is defined as an enterprise and is
considered to be any entity engaged in an economic activity, irrespective of its legal form. This
includes in particular, self-employed persons and family businesses engaged in craft or other
activities, and partnerships or associations regularly engaged in an economic activity. However,
when we talk about the exact composition of an SME it tends to differ from one province to
another. In Punjab an industry is categorized as an SME if its fixed investment consists up to Rs
20 million excluding its land and building. However, in the province of Sindh, an SME is
defined as any entity engaged in producing handicrafts or in the manufacturing industry with a
fixed capital not more than Rs 10 million including its fixed investments.

In Pakistan, cottage or household industries hold an important position in rural set-up. Most
villages are self-sufficient in the basic necessities of life. They have their own carpenters,
blacksmiths, potters, craftsmen and cotton weavers. Many families depend on cottage industries
for income. The industry has immense potential in terms of its input in the total GDP growth of
the country. However due to the lack of financial opportunities and other hindrances the small
scale businesses are unable to work in its full potential and therefore only makes up to 5% of the
total GDP growth. Special measures need to be taken for the improvement in the promotion of
such industries in the economy since such industries in particular have created large scale
employment opportunities. Since the industry is labor intensive in nature 25% of the Pakistani
labor force is currently employed in the different SMEs especially in the different parts of Punjab
like Sailkot, Faisalabad and Gujranwala. Areas of Sindh include Hyderabad and Karachi in
particular. Apart from these major city centers, there exist many different small scale enterprises
in the remote areas of KPK and Kashmir.

6 Problems of SMEs
Due to the low financial investments available to the entrepreneurs of the SMEs, there is a large
Number of problems and barriers for the proper functioning of such industries. Some of the
major problems are:
Page 28

1. The revenues generated tend to have a very small monetary value due to which the
individual profits generated is so less that most of it is spent on the daily expenditures.
Extra capital is not available for expansion purposes.
2. There is a lack of standardization and quality control. In some cases they do not meet the
standards of foreign markets. A lack of coordination between different industries also
creates differences in prices.
3. Due to the low literacy rate of the investors, the production methods and technology used
is outdated.
4. The wholesaler, who takes most of the profits, exploits the owners of the small-scale
industry. In some cases goods are sold to wholesalers at cost price, which discourages the
owners and they reduce the quality and quantity the produced.
5. In rural areas, where the electricity is not provided, small-scale industries are difficult to
set up. Even the great fluctuation in voltage and power break-downs cause damage to the
electric motors. The commercial rates of electricity have also increased significantly
which hinders the growth.
6. The craftsman and artisans learn their skills and production methods from their elders.
The provision of technical advice and further training is limited.
7. Due to the lack of trade barriers and the promotion of free trade, the markets are flooded
with internationally produced goods which over shadow the domestically produced
output.
The small and medium enterprises of Pakistan play a very important role in the economic
development of the country. In fact some of the products produced by this sector of the economy
not only caters to the GDP growth rate but also forms the cultural identity of Pakistan. Hence the
preservation, protection and promotion of the sector should be the top most priority of the
government and it should take strong and immediate action in help in the development of such
industries since these are the basic milestones to the road to economic success.

7 Aim of the study

The study will help to understand the impact of 3G on SMEs working at local level. It would
also evaluate the advantages and disadvantages of 3G. Further it would be beneficial for SMEs
to enhance their productivity through inforation technology and by using 3G.
Page 29

8 Research Methodology
8.1 Data Collection &sample
We used questionnaires to collect data from our respondents. We collected data from 50 SMEs;
each SME was given four questionnaires for filling. The base of our unit of analysis was
individual. Our unit of analysis was role of 3G in SMEs at local level. The objective of our study
was to check the impact of 3G technology in SMEs at local level. The respondents were selected
from Gujranwala, hafizabad and Wazirabad. Convenient sampling technique was more
appropriate for our research. This sampling technique suits in our study because approaching to
all employees is quite difficult. Thats why we select this technique.

8.2 Time Horizon:

Our study was one shot cross sectional because we are going to collect data at just one point in
time and derived conclusions on that data. Cross sectional means to collect the data at one time
only and no need to collect data again and again for research. This time period is also very
suitable for us as we do not have sufficient time to conduct the research in more detailed form.

8.3 Data Analysis Software:

We have used two softwares for analysis:
1. SPSS
2. Microsoft word

8.4

Instrument Development/Selection
According to our literature review we had addressed that adaption of question is better

option. So we had adapted a questionnaire according to our need. All variables are measured
through likert scale (1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree).

9 Data Analysis
We collected data from 21 SMEs .SPSS software is used for data analysis. Different tools were
used to analyze the collected data:

Demographic Analysis

Reliability Analysis
Page 30

Correlation analysis

9.1 Demographic Analysis:

9.1.1 Gender:
Serial

Variables

Frequency

Percent

Female

28

14%

Male

172

86%

Total

200

100%

Serial

Variables

Frequency

Percent

19 and under

2%

20-29

80

40%

30-39

16

8%

40-49

52

26%

50-59

48

24%

Total

200

100%

9.1.2 Age:

9.1.3 Interpretation:
Demographic tables show the response of males and females of different age groups. In above
table 86% males and 14% females responded to our questionaire.2% of the sample is those
employees which are under 20 years of age. Respondents belonging to age of 20 to 29 are
40%.From 30 to 39 years of age respondents were 8% in our data and whose age was 40 to 49
years were 26% and 24% were of age 50 to 60 years.

9.1.4
9.1.5

Page 31

9.1.6 Awareness:

Serial

Variables

Frequency

Percent

yes

160

80%

Some what

32

16%

no

4%

Total

200

100

9.1.7 Interpretation:
We also checked awareness level of our respondents 80% said yes they are aware of 3G
technology and 4% were unaware of 3G.Other 16% were aware of 3G but not so much aware of
it.

9.1.8 Meanings of 3G:

Serial

Variables

Frequency

Percent

Fast internet speed

88

44%

video calling

4%

Better quality signals

24

12%

More applications of mobile phone

80

40%

Total

200

100%

9.1.9 Interpretation:
After checking the awareness level of respondents we asked them about the meaning of
3G.Among all the respondents 44% said that the meaning of 3G is fast internet speed,4% said 3G
is just video calling from mobile phone,12% said that 3G means better quality of signals and
40% respondents said that 3G means more applications of mobile phones. This shows that more
of the respondents understand what 3G technology is.

Page 32

9.1.10 Company of 3G:

Serial

Variables

Frequency

Percent

Mobilink

76

38%

Ufone

12

6%

Warid

42

24%

Telenor

30

12%

Zong

40

20%

Total

200

100%

9.1.11 Interpretation:
Then we asked from respondents about the company, from which company they will purchase
3G connection. Most respondents said that they will use mobilink and warid 3G
services.Mobilink customers were 38% and warid customers were 36%.others were, Ufone 6%
and telenor were 20%.

9.1.12 Advantages of 3G:

Serial

Variables

Frequency

Percent

High access speed

80

40%

More application of mobile phone

32

16%

Mobile phone with better performance

48

24%

Better signal quality

32

16%

Easy to use

4%

Total

200

100%

9.1.13 Interpretation:
After that we asked about the advantages of 3G technology.40% respondents said that they will
use 3G due to high access speed,16% said that they will use due to more applications and 24%
Page 33

said that mobile phone will give better performance. This shows that customers are aware of
advantages of 3G technology.

9.1.14 Purpose of 3G:

Serial

Variables

Frequency

Percent

Entertainment

76

38%

communication

68

34%

Business

56

28%

Total

200

100%

9.1.15 Interpretation:
This table shows purpose for which customer will use 3G services.38% of the respondents will
use 3G for entertainment purpose.34% for communication and 28% for business purpose. Ratio
of entertaiment is high then other variables.

9.2 Reliability
It is necessary to check the instrument for stability and consistency. In other words instrument
should be reliable. There are various ways to check the reliability of the instrument. However,
we have calculated the reliability on the basis of inter-item consistency. From the SPSS we
obtained following results:
Serial

Variables

Cronbachs alpha

No. of items

Perceived usefulness

.716

Perceived ease of use

.747

Perceived enjoyment

.685

Image

.616

Personal innovativeness

.682

Networks effect

.664

Networks adoption

.710

4
Page 34

According to Nulleiy (1967) value of Cronbachs alpha should be greater than 0.6 for an instrument to be
valid. In our case the value of cronbachs alpha for all the variables (calculated individually) is greater
than 0.6. It means that there is high stability and consistency of items measuring any variable.

9.3 Correlation
Correlation tells us about the relationship between two variables. It tells us about the intensity
and direction of the relationship between the variables. Intensity is assessed through the
magnitude and direction is judged by the sign.
Variables

Perceived

Perceived Perceived

Usefulness Ease of

Image

Enjoyment

Personal

Network

Innovativeness Effects

Adoption
of 3G

Use
Perceived

Usefulness
.416**

.376**

.552**

Image

.464**

.565**

.432**

Personal

-.105

-.031

-.155

.435**

.455**

.485**

.551**

.409**

-.104

.551**

-.033

.565**

-.232

.427**

Perceived
Ease of Use
Perceived
Enjoyment

Innovativeness
Network
Effects
Adoption of

.443**

3G

Above table represents the correlation between the variables. The correlation between Perceived
Usefulness and Perceived Ease of Use is positive and its value is .416. It means that if usefulness
Page 35

of 3G increases then it will b easy to use. They are moderately correlated. Correlation between
Perceived Ease of use

and

Perceived Enjoyment

is also positive and is .552.They are

moderately correlated. It means that if usefulnes of 3G increase then the user enjoyment will
increase. For perceived enjoyment and image correlation is .432.It means if the user enjoy the
services of 3G then the image of 3G will increase because the user will suggest others to use 3G
technology. Correlation between image and personal inovativeness is also positive and it is .409.
it means that if the network of 3G will bwtter then image will enhance .Correlation between
network effects and adoption of 3G is also positive and its value is .427.it means if network
quality is good then adoption of 3G will increased because customer wants better quality of
network.
10 Discussion:
Business is selling goods and services to customers. Small and Medium Enterprises (SMEs) are
doing business and having the latest information is very important for their business. The ones
that have the latest information technology will get the latest products and will increase their
market share. 3G Mobile technology will provide data transfer ability and allow immediate
access anywhere and

anytime with better speed and accuracy. 3G Mobile technology is

becoming important for communication in their business.This research investigated the role of
3G mobile technology in SMEs at local level.Data was gathered by filling questionaire from 50
SMEs. The findings of the research pointed out that most SMEs were using mobile devices for
communication. This study may help SMEs to appreciate the role of 3G mobile technology as
important communication tools in their business. The study findings may be useful for
manufacturers and application developers to target mobile devices especially for SMEs
market.Mobile devices have gained popularity in the present world. Non IT professionals such as
students, farmers and doctors use mobile devices . Mobile devices can be used for long distance
communication. First & second generation cell phones allowed people to talk and listen to each
other anywhere and anytime without the wire. The third generation (3G) phones allow people to
see each other anywhere and anytime in addition to exchange of speech . Previously SMEs
manually records their information for their business(Chau & Turner, 2001). SMEs spent lots of
time and human resource in recording and saving the data. In spite of manual work, they made
mistakes. Lately they have started using computers instead of manual work. Internet has also
Page 36

been adopted as a part of this change. With greater use of in mobile devices, SMEs are able to
work differently from how they used to do earlier.

11 Role of 3GMobile technology in SMEs at local level:

The impact of mobile devices in SMEs can be divided between mobile data and mobile device
functions. SMEs can be divided into three types: classical SMEs, SMEs adopting IT/eCommerce
and SMEs adopting mobile data technologies.
12 Conventional SMEs
Some SMEs still exist in the classical mould. They still use conventional practices for
communication. The mobile devices in these SMEs are playing only a limited role in doing their
business. Mobile devices are the most important way of communication between SMEs and
customer. Mobile devices also help communication within SMEs. These SMEs use only some
mobile device functions to improve their communication. Mobile devices can be used for
recording information and reminding people. The impact of mobile devices on this functioning
of SMEs is mainly for personal communication. It is unlike the impact of mobile data on SMEs
which is only for business. However, mobile devices improving personal communication helps
the SMEs indirectl
13 Conclusion
Today, the majority of mobile services used via 3G networks are already available in current
2,5G networks (GPRS, EDGE) such as browsing the Web, sending and receiving multimedia
messages (like pictures and video), and e-mailing. Therefore, 3G should not be viewed as a
new technology surpassing the existing 2,5G networks, or a revolution in mobile
communication. Instead, 3G should be considered to be evolution of existing mobile
communications. In the light of the discussion in this paper, there is strong evidence to suggest
that the main outcome of using 3G networks and services will be to get access to the same
services with faster data connection speed. Furthermore, it seems that the success of 3G lies in
its ability to serve not only mobile users but in providing access to the Internet with data
cards inserted in laptops. Thus, 3G networks will serve the same purpose as LAN and WLAN
networks.
In terms of business opportunities, telecommunication companies main source of income is
Page 37

still coming from voice-centric services. For example, the mobile operator Hutchinson,
offering services purely in 3G networks, announced this autumn 2004 that its main source of
income comes from discount packets that offer free speech time in 3G networks. Moreover,
as long as the price of the network time is high in 3G, operators cannot wait fast diffusion of
data centric mobile services. According to mobile operators,
3G is needed in congested places where the demand on current mobile networks exceeds the
capacity.
Another important factor affecting future of 3G is the availability of reasonably priced
handsets. 3G devices launched to the market during 2004 have also suffered from various
problems such as high power consumption that limits usage time.

Page 38

14 APPENDIX

Page 39

14.1 Questionnaire
We are students of MBA in GIFT University Gujranwala and doing research on Role of 3G
technology in SMEs at local level. Therefore, you are kindly requested to fill this questionnaire.
The information provided will be kept confidential and will be used for academic purpose only.
It will take 15-20 min to complete the questionnaire. Thank you for anticipation.
Strongly Disagree = 1..Strongly Agree = 5
Strongly

Perceived Usefulness

Disagree

3G mobile services will allow me to do things

faster
3G mobile services will make me more
productive
3G mobile services will increase my degree of
mobility
3G mobile services will increase the quality of
communication
Additional services that will be available with 3G
are useless for me
Mobile phones are not comfortable enough for
using high speed internet

Strongly
Agree

Strongly

Perceived Ease of Use

Disagree Neutral Agree

Disagree

Disagree Neutral Agree

Strongly
Agree

Using 3G services seems complicated for me

It will be easy to learn using 3G services.

Using

and 1

3G

services

will

be

clear

Page 40

understandable
4

3G will help more to handle job problems

1
Strongly

Perceived Enjoyment

Disagree

Disagree Neutral Agree

Strongly
Agree

Using 3G mobile services seems to be unpleasant

Upcoming 3G mobile services excite me

It will be interesting to use 3G mobile services

Strongly

Image

Disagree

People who use 3G mobile services will have

more prestige than those who wont

Disagree Neutral Agree

Strongly
Agree

Using 3G mobile services will be a status symbol

I have clear understanding of 3G

I can specifically point out 3G advantages

Strongly

Personal Innovativeness

like

to

Disagree
purchase

new

information/communication technologies
Among my peers, I am usually the first to try out
new information/communication technologies
In general I am hesitant to try out new
information technologies
Network Effects

1
2

I think my contacts are eager to use 3G services

My contacts usually follow the innovations about
mobile phones closely.
Adoption of 3G

I can easily plan my daily life by

Disagree Neutral Agree

Strongly
Agree

Strongly
Disagree

Disagree Neutral Agree

Strongly
Agree

Strongly
Disagree
1

Disagree Neutral Agree

2

Strongly
Agree
5

Page 41

using 3G service
2
3
4

I can communicate with others more unrestrained

and fast by using 3G service
3G service saves more time on my work
I can get latest information anywhere and at
anytime by using 3G service

We would like to have some additional information.

1. In what age group are you?
1. 19 and under

2. 20 29

3. 30 39

4. 40 49

5. 50 - 59

2. Gender:
1. Female

2. Male

3. Are you aware of 3G technology?

1. Yes

2. No

3. Some what

4. What does 3G means for you?

1. Fast internet speed

2.video calling

3.Better quality signals

4.More

applications of mobile phone

4. Which 3G agency will you choose to offer services?
1. Mobilink

2. Telenor

3. Ufone

4. Zong

5. What characteristics of 3G agency you thought is the most important to choose a 3G agency?
1. Good services

2. Lower rates 3. Discounts

4. Packages

5. Others______

6. Which of following advantages of 3G technologies will attract your attention?

Page 42

1. High access speed

2. More application of mobile phone 3. Mobile phone with better

performance 4. Others_________
7. For what purpose do you want to use 3G multimedia services?
1. Entertainment 2. Communication (voice/video calling)

3. Business

4. Location

Page 43

15 References

(An Investigation of Third Generation (3G) Mobile Technologies and Services) by

Heikki Karjaluoto.

(The Deployment of Third-Generation Mobile Services: A Multinational Analysis

of Contributing Factors) July 2009 by Sang won Lee, Ph.D. Assistant Professor
Communication Department Jamestown College

(transition to 4G,3gpp broad band evolution to IMT advanced).September 2010

(Investigate consumers attitude and their choice towards mobile service china:
between 2G and 3G)by Jun Sun

(2G and 3G mobile communication)

( RFID, GPS, and 3G)by Lori Bowen Ayre

( The mobile economy 2013) by AT Kearny

SMEDA 2014

Page 44