History Of Mobile Phones In Egypt Marketing Essay

Published Date: 23 Mar 2015

Technology and innovation become more important determinants of corporate competitiveness, and the telecommunications sector is no exception. Many developed and developing countries have approached telecommunications reform by opening the market for mobile telephones to private participation and competition. One result of this strategy is the astounding worldwide growth in mobile communications, with developed countries like Britain accounting for the fastest growth. It is believed that mobile phones are complementary to fixed-line telephony in developed countries, but they appear to be substitutes for main lines in developing regions where access is low or non-existent. While in Egypt, despite the recent significant developments, Smart phone adoption has still moved very slowly. This study has focused on a comparison between the mobile phone usage amongst students in developing countries like Britain and developing countries like Egypt and the reasons behind the differences. A detailed well-structured online survey designed to accommodate more details about mobile phone usages and habits was developed. Also unstructured interviews were conducted to gather more information with different aspects than the survey. The research was conducted with 150 participants responding to the survey; however, only 86% of Egyptian students own a smart phone while all students in the UK own a smart phone. Based on the analysis of survey Price of the mobile phone and the Internet bundle have an impact on Egyptian students not owning a smart phone.

Chapter 1: Introduction

 Introduction to Chapter 1

This chapter introduces the research context, provide an account of the background information on the country being researched and the rationale for the research, and outlines the research questions, aim, and objectives.

Background and Context

The digital divide between developed and developing countries is supposed to reflect the differential benefits of information in rich as opposed to poor countries. It is accepted that the digital gap is larger for the Internet than mobile phones. This is partly because the Internet is more demanding in terms of skills, affordability, infrastructure and partly because it is the relatively poor countries that are most lacking in these features. In some ways in which the digital divide is comparable to alternative technological gaps between wealthy and poor countries. The equivalent time information technology is totally different from alternative foreign products from developed countries as a result of what is described as "general purpose" (meaning, among alternative things, that it involves changes that transform house hold life as well as the ways in which companies conduct business). The digital divide is owing to the "digital willingness indicators" that covers a broad spectrum of variables, like skills, the regulative and legal environment. The concept is that the digital divide in phones contributes to the general readiness index, thereby endorsing growth and poverty reduction (since the two are better-known to be closely related).

Scope

The Internet and the mobile phone have disrupted many of our conventional understandings of our relationships, and ourselves raising anxieties and hopes about their effects on our lives. People have always responded to new media with confusion, its time for rapid innovation and diffusion, it is natural to be concerned about their effects in our lives. That is why this topic was chosen as to identify the differences between the mobile technology usages in a developed county like Britain and a developing country like Egypt and to identify and explain why people in developing countries tend to leapfrog.

Research Question, Aim and Objectives

1.4.1. Research Question:

What are the reasons that developing countries seem to leapfrog in terms of mobile network technology and the difference between the usages of both countries?

1.4.2. Aim:

Is finding solutions and explaining the reasons why people in developing countries lack usage of mobile commerce.

1.4.3. Objectives:

To conduct a literature review.

To set the Methodology.

To analyze the results of the primary research.

To summarize all research findings and results.

Overview of Dissertation

1.5.1.   Chapter 1 Introduction

This chapter introduces the dissertation topic with a brief note on the research problem, research inspiration and focus. The rationale for the research, the questions that the research attempts to address, research aim, objectives, and finally the dissertation outline is briefed.

1.5.2.   Chapter 2 Literature review

This chapter demonstrates the level of understanding of the related topic of the research. Several arguments and discussions studied in the existing literature and theories have been facilitated in this chapter to demonstrate the level of knowledge gathered from relevant publications. The chapter is devised into three parts first part is the introduction to the topic second part is History of mobile phones in Egypt and UK. The third part has recent figures and previous researches about mobile phone penetration nowadays and how both countries are acting towards the mobile technology.

1.5.3.   Chapter 3 Research Methodology

This chapter defines the methodology used for the research study. At the beginning it discusses the research approaches in the research onion and provides the justification for every choice. Also it discusses on the methodology adopted, which was Mixed methodology, justification for the choice, survey design and interview. In addition to that, it defines the research outline that has been used for the research and the ethical issues.

1.5.4.   Chapter 4 Findings and Analysis

This chapter solely dedicated to present the data collected from the online survey and interviews with showing figures from survey results and comparing values.

1.5.5.   Chapter 5 Discussion

This is the most significant chapter, which facilitate a discussion on the results presented from the online survey and interviews in Chapter 4. This discussion is structured with reference to the findings published in the existing literature in Chapter 2 (Literature review). This also compares and contrasts with the hypothesis predefined in the chapter 3 as a verification process.

1.5.6.   Chapter 6 Conclusion

This chapter draws the conclusions based on the findings and related discussions with regards to the proposed hypothesise. Also this chapter evaluates the defined research question, aims and objectives as to verify whether the research has the met the answer to the research question, aim and the set of objectives. Finally discusses the limitations confronted during the research study and provide suggestions for related further studies.

1.5.7.   References and Appendices

This is where the list of Bibliography, references and relevant information, which have not been included into the main body of text, are provided.

Chapter 2: Literature review

2.1. Introduction

When the telephone entered our life early within the twentieth century, it was primarily served as an associate extension to face-to-face relations. Neighbours and business colleagues may communicate with one another while not caring about the inconvenience of transporting themselves bodily. (Gergen et al, 2003) In several countries, the social landscape is changing as a result of people understanding the routines and rituals to incorporate mobile communication; therefore the mobile phone is into the standard of living. However how people socialize and behave in public areas, as well as cafes and train stations, is now changed and formed by the presence of the mobile phone. The physical landscape is also changing; billboards are now encouraging people to subscribe to mobile phone services. (Aakhus et al, 2003)

The arrival of the mobile phone and its fast and widespread growth is seen in the historical context as the foremost important developments within the fields of communication and in data technology over the past twenty years (Plant, 2000). The expansion has been phenomenal by many standards. Rice and Katz claim that currently worldwide there are more mobile phone subscribers than fixed line subscribers and possibly TV house owners. By 1999, there have been slightly below 500 million mobile telephones being used worldwide. (Aoki and Downes, 2003)

Mobile phones became a necessity within the daily life of individuals all over the world, as well as the developing world. According to the International Telecommunication Union (ITU), mobile subscriptions within the developing world increased from 53% at the end of 2005 to 73% at the end of 2010 (ITU, 2010a). Till the arrival and uptake of mobile phones, individuals within the developing countries had minimal access to telecommunication technologies since the uptake of landline networks. (Esselaar et al, 2005). In 2010 only 1.5 per 100 inhabitants of the African continent had a fixed landline connection, compared to 40.3 per 100 inhabitants in Europe (ITU, 2010b). Because of promoting basic and low cost mobile phones, the introduction of pay non-subscription plans (Minges, 1999) even the individuals at the bottom of the financial gain pyramid have mobile phones. For the first time they are participating within the telecommunication society, which signals a crucial landmark for the ways in which individuals communicate. (Castells et al. 2006)

A lot of analysis has been done on the social and cultural impact of mobile phones and their existence in developing countries, and how mobile phones will be applied for developmental process functions. (Forestier et al., 2002) For example, mobile use will foster economic growth and also the well-being of the poor and how mobile phones will eliminate the 'digital gap' that exists between the developed and also the developing world. (Velghe, 2012)

Understanding the causes and consequences of the digital divide between developing and developed countries has recently become a preferred area of research. Yet the stakes of properly understanding the digital divide are important, since information technologies play a vital role in social development round the world (Weber and Bussell, 2005). Indeed, some researches have already pointed to a powerful positive relationship between access to information and communication technologies and a country's level of income, in addition to its prospects for democracy (Quibria, 2002). However, the causes of the digital divide aren't clear. Throughout most of the Nineties, the digital divide was primarily one that was technical in nature: international connections to the internet were created through dial-up services, few countries had their own domain names, and few countries had the capability to maintain (much less manufacture) computer technologies.

Historically, most of the world's technologies were combined through scientific exhibitions that allowed developing countries to compare technical systems and choose the best technologies to meet their national needs (Rogers, 2003). More recently, market-driven international adoption and complex patterns of diffusion have emerged that are not simply explained by regime type or economic wealth (Howard, 2007). Often, individuals adapt to a particular technology but do a significant amount of work adapting and redesigning it to fit their own needs and capabilities. As an example, consider the alternative kinds of digital technologies that people around the world use to connect to the Internet. Mobile phones have now become an important way of accessing the Internet, especially in poor countries where connectivity through mobile phone providers is relatively cheap and ownership of personal computers is relatively expensive. Indeed, the number of connected mobile phones has surpassed the number of computers connected to the Internet. Global differences in technical standards and capabilities, diverging market prices of various technologies, and the presence of local adaptations and innovations all make the process of technology diffusion both uneven and complex-and understanding the digital divide all the more difficult.

Early analysis found that economic factors outweighed others so much in determining on which side of the digital divide a country fell. However recent studies recommend that political and social variables may also have a sway (Corrales and Westhoff, 2006). For several numbers of studies, income, education, telecommunication infrastructure, and also the regulatory system are all key determinants of technology diffusion (Chinn and Fairlie, 2004). In Dedrick and Kraemer (2003) study of 31 countries throughout the time 1985-95, as an example, it is found that a country's economic structure, financial gain level, telecommunication infrastructure, and human capital help increase the cross-national patterns of investment in ICTs. However, alternative studies have pointed to the role of literacy, core-periphery status within the world economy, further as a country's level of "cultural cosmopolitanism" as statistically vital predictors (Guillén & Suarez, 2005). Several of those sizable amounts of studies conceive to measure the impact of regime kind or politics on technology adoption; however, they are doing thus with terribly broad indices of democratic character, or perception rankings of the final business surroundings. In distinction, it is proposed that it is crucial to specialize in the general public policy reforms that governments initiate specifically to improve technology adoption.

2.2. History of mobile phones in Egypt

In 1994, Orascom Telecom acquired interest in Egypt's initial ISP, InTouch, marking its beginning in providing services within the communications marketplace. Since the communications sector in Egypt began to be privatized, Orascom continued to feature additional service firms to its portfolio, and was a participant during a venture that was awarded Egypt's initial license for VSAT technologies, and a lead member to make Egypt's initial personal payphone network.

Within the year 1996 was the first Installation of the mobile network in Egypt adopting the GSM technology. Privatization of the telecommunications operator has greatly improved in many developing countries like Egypt (Kelly, 1995). Telecom Egypt was given exclusive concession to supply basic national and international telecommunications service and infrastructure, with associate exception for personal VSAT networking (UN-ECA, 1999). Telecom Egypt additionally includes a producing arm, the Egyptian Telephone Company (ETC), that has entered into venture agreements with Siemens, Alcatel, and Ericsson for the manufacture and assembly of digital switches, PBX's, and telephone sets. Additionally, restricted competition has been allowed within the mobile telephone industry since 1997 (ITU, 1999). An offer of a 30% stake in the state- run Egyptian Mobile Phone Service Company was more than 50 times oversubscribed (ITU, 1999). The National Bank of Egypt stated that the offer had closed after 10 days because of the intense demand for the 18 million shares being sold. By the end of 1998, Egypt's teledensity was well above 5.0 per 100 people (UN-ECA, 1999).

By 1997, Orascom was in a position to participate within the bidding method for a GSM license in Egypt, having tested itself within the marketplace as associate IT and medium hardware leader, additionally to assembling up the ability and skills in managing giant scale comes and understanding native market conditions. Orascom continued to add more service companies to its portfolio, and was a participant in a joint venture that was awarded Egypt's first license for VSAT technologies, and a lead member of a consortium formed to create Egypt's first private payphone network.

In 1998, Vodafone Egypt (formerly Misrfone Telecommunication Company/Click GSM) entered the Egyptian telecommunication market because as the second operator; as an association between Vodafone international, Air Touch, and local/international partners. In 1999, Vodafone acquired Air Touch share and in 2002, it acquired International Partner VIVENDI France share. In January 2002, Click GSM was rebranded to Vodafone Egypt. Since 2007, Vodafone Egypt's shareholders structure consisted of Vodafone cluster with 54.93%; telecom Egypt with 44.94% and a minority free float of 0.13%. (Vodafone)

Since May 1998, Mobinil has strived to keep up its position as the leading Mobile service operator in Egypt. Honouring the trust of quite thirty million customers, Mobinil is providing the most effective quality service for the customers, high worth for our shareholders and proudly contributing to the development of the community. Shareholders, Orange and Orascom telecommunication Holding are international leaders within the realm of telecommunication. Mobinil has benefited from years of expertise in a world context to become the biggest wireless service supplier within the Middle East. A recent nationwide survey by the National Telecommunications Regulatory Authority [NTRA], where Mobinil customers reported over 97% satisfaction rate in the products, services, and customer service levels offered. (Mobinil)

Egypt is seen as the leading country for GSM development and innovation, in Northern Africa. Conference Producer Carolyn Davies told the press that the growth has been tremendous among the spectrum of growth, Egypt stands at the forefront of a race that business individuals say is not slowing down. The region grew by 30% in 2002 and expected to grow once a year, said John Everington, Africa and Mideast analyst. The amount of subscribers for geographic region reached 12.11 million at the tip of 2002, with 99% of these being GSM. Increased competition has controlled the introduction of exciting new services and valuation among the region and operators are presently considering their client desires. With fixed line users quickly adopting to mobile phones in many of the countries among the region, additionally because the entry of second and third operators in Egypt, Nigeria, Algeria, Republic of Tunisia and Morocco, as new sources of investment to expand new and existing networks, the North African market provides potential investment opportunities. The number of mobile phone users in Egypt soared from 3.39 million in December 2001, to 4.39 million just 12 months later. By March 2003, the amount jumped to 4.65 million. Figures for North Africa shows a whole promise of future growth. In December 2001, North African cellular subscribers numbered 9.29 million, climbing to 12.11 million one year later, and up once more to 13.01 million in March 2003 according to the EMC World Cellular information. (El-Rashidi, 2003)

Etisalat is a leading international telecommunication company operative in eighteen countries around the world. Egypt was one in all the countries where operation was launched in May 2007 as the initial 3.5G operator. Etisalat's entry to the Egyptian market accompanied a new era for the telecommunication trade. Etisalat Misr primarily introduced the market to 3.5G services, such as video calling, mobile TV, mobile broadband Internet and data services. During a bolder step, 3.75G was introduced and assumed absolute market leadership in providing the quickest broadband Internet within the market through USB modems and 3G mobile handsets. Etisalat's entry dropped at the market an array of competitive and innovative rate plans that attracted one million subscribers within the initial fifty days of operation. Due to the entry of Etisalat to the market, mobile users in Egypt currently have wider choices, higher service quality, a lot of innovative services and higher worth for cash. (Etislat)

In 2007, the common wholesale price of a mobile was at $174 and kept trending downward. By 2009, it was only $161. In other words, the yearly revenues from telephone sales are on constant order as the recent gross domestic product of nations like, Egypt. It has to be taken under consideration that these revenues represent only a part of the cash flow that spurs the technology's rise. Not simply the financial gain from device sales, however additional networks, energy offer, replacement parts and re pairs, and in particular usage contracts and costs, to call a couple of, yield giant earnings for the arena. (Reller, 2009) The market is growing, the choices are growing and population penetration is most positively on the rise. From ranking businessmen to the men selling bread on the road, the nation as a full is thanking God for having mobile phones. If experts are right, it will be a while before mobile phones to become things of the past. (Kalba, 2008)

2.3. History of mobile phones in UK

In the UK the primary land mobile services were introduced within the 1940's.

During the summer of 1954, The Duke of Edinburgh, has been seen possessing a telephone integrated coupé sports car that had a radiotelephone with which, via associate Admiralty frequency and a Pye relay station au fait the Hampstead hills in north London, he may speak directly to Buckingham Palace. (Ager, 2010)

When expensive mobile phones first appeared business users largely adopted them. These first car-phones were too heavy, cumbersome, and expensive to use for more than a handful of subscribers and it was not until the mid of 1960's the Post Office were beginning, reluctantly, to change their policy on interconnection. An experimental South Lancashire Radiophone Service had begun around Manchester, Liverpool and Preston in 1959. In 1965, an extremely

Exclusive and expensive service, called System 1 had been launched in the well-to-do Pimlico area of West London. The chauffeurs of diplomats and company chairmen used it. The radio set cost £350, the service cost over seven pounds a quarter year, and calls cost one shilling and three pence for three minutes.

By 1968, there were 6,100 private mobile systems authorized, a complete 74,000 stations altogether, and a growth rate of 17% per year, the official attitude was still that the integrity of the telephone network was paramount and any interconnection of the noisy, lawless mobile radio to the state-owned system may barely be countenanced: 'The policy of refusing affiliation of private mobile systems to the general public network has lasted nearly twenty years. (Lacohée et al, 2003)

In fact in the 1980's within Great Britain, there was a negative image of mobile phones, as they were possessed by a certain type of brash, young, usually male business users, especially ones working in the financial centres of the city of London. Pictures of them using their mobile phones circulated in the media drawing attention to themselves through their ostentatious use of mobile phones in public spaces (Green, 2009). In the 1990's, not just the wealthy had mobile phones in fact one British study argued that certain users had served to make mobile phones familiar and visible. These didn't carry negative connotations and in this sense they prepared the way for a consumer product (wood, 1993)

1985, The Vodafone analogue network was the first cellular network to launch within Great Britain - and therefore the first decision was created from St Katherine's Dock in London to Newbury on one Gregorian calendar month. Vodafone simply had a dozen masts covering London and therefore the M4 passageway whereas Cellnet launched with one mast, stuck on the BT Tower. Neither company had any glimmering of the large potential of wireless communications and therefore the dramatic impact that mobile phones would wear society over future quarter century. Within the year 1991, Vodafone launches its digital (GSM) portable service - the primary within the Great Britain.

1994, Vodafone is the first network operator within the Great Britain to launch knowledge, fax and text electronic messaging services over the digital network. 1996, Vodafone is the 1st network operator within Great Britain to launch a Pay monthly analogue package Per-second asking on the digital network is introduced, additionally as choices to shop for 'bundled' minutes and create off-season native calls to landlines.

1999 5th January, Vodafone connects its five-millionth Great Britain client. (Vodafone uk)

Ericsson and Motorola pioneered mobile phones within the Sixties and the Seventies, the first mobile phone call in Great Britain was created by Vodafone to celebrate New Year's Eve, 1985. By the peak of the Eighties boom, yuppies were regularly carrying mobiles larger than purses. Those handsets used on first generation, analogue networks like Vodafone's were usually dominated by massive batteries, and evolved in tandem with mobile phone technology itself. Increasing networks demanded new mobile phones to deal with increasing numbers. However as every mast creates its own cell, the industry had to solve the problem of one phone call being handed over between different cells without it being dropped. (Warman, 2010)

The first ringtone was downloaded in 1998. Statistically, by 2004, there were more mobile phones within the country than individuals. (Wray, 2010)

Digital networks, solved several issues, and offered a lot of new possibilities. This was the time of explosive growth in mobile phone usage driven by Nokia's basic, easy-to-use handsets, weighing just a pound, and by the beginnings of text electronic messaging within the middle Nineties. These 2G networks additionally allowed information traffic, which meant that the Internet as it evolved, was accessible on mobile phones too. Advanced handsets like the Motorola StarTAC began to feature in films. These new services drove demand for information services, and for the 3G networks that currently offer the majority of Britain's coverage. These modify theoretical most information transfers of higher than 300kbps; enhancements to 3G referred to as HSDPA (high-speed downlink packet access) enable speeds of up to 14mbps, that puts most broadband networks to shame. (Farley, 2005)

2.4. Mobile phone usage and smart phone penetration in Egypt

2.4.1. Recent mobile phone statistics in Egypt

The number of mobile phone subscriptions in Egypt rose 18 percent to 83.43 million during the last years, shrugging off an economic crisis sparked by the overthrow of President Hosni Mubarak. In December 2010, Egypt's three mobile operators - Etisalat Egypt, Mobinil and the Egyptian unit of Vodafone - had 70.66 million subscriptions. Vodafone and Mobinil - controlled by Egypt's Sawiris family and France Telecom -have been competing fiercely for market leadership. Subscriptions now roughly equal the country's population and the companies are seeking to maintain revenue growth by encouraging customers to use more data services. Egypt is the Arab world's most populous country, with more than 80 million people. (Egypt independent, 2012)

The latest report by the Ministry of Communications and Information Technology has revealed that the number of cell phone users in Egypt is 92 million, with a prevalence rate of 113 percent, and an annual increase of 27.8 percent.

The same report, published on the ministry's website, said the number of Internet users is 30 million, with a prevalence rate of 37 percent and an annual increase of 26 percent. ADSL users have reached 2 million, with a yearly increase of 29 percent, according to the report.

Mobile Internet users, meanwhile, hit 11 million, with an annual growth of 33 %, it added. There are 3 million USB Internet users, jumping by 73 % per year, it said.

The same report detected a drop in the number of fixed-line telephone users, now 8.5 million, with a prevalence rate of 11 percent, and an annual drop of 12 percent.

The report showed that the number of firms working in the communication and information technology field now stands at 4,500, with an annual growth rate of 13 percent. The number of individuals undergoing professional training in information technology reached nearly 43,000, a yearly increase of 3 percent. (Egypt independent, 2012)

Although Egypt has a young population eager for new technology and keeping up with the latest trends, household incomes have decreased during the Jan-March period, leading to much lower usage of mobile phone services and products, another official explained. Talaat Moustafa, the Chairman of the Telecommunications Engineers Association, said that the majority of the Egyptians have reduced their usage of mobile phone service since January 25 to save money. (The Egyptian Gazette Online)

2.4.2. Recent mobile phone Adoption statistics in Egypt

Egypt has shown a fast adoption towards mobile phone usage-the International Telecommunication Union estimates that there were 83.4 million mobile phone connections in 2011 among a total population of about 82.1 million. But smartphones have made slower progress in penetrating the population. A January-March 2012 survey of individuals in Egypt commissioned by Google as part of their "Our Mobile Planet" study, conducted by third-party research firms, found the smartphone adoption rate to be only about 26%. (emarketer,2013)

But those who do have smartphones and other internet-enabled mobile devices have quickly adapted to using both the mobile Internet and apps, according to an April poll in Egypt conducted by mobile advertising network Plus7. The survey found that more than six in 10 respondents accessed a mobile website or used an app several times a day, while about one in 10 did so at least once a week.as shown in figure 1.1,

Description: E:\145276.gif(figure 1.1)

Users in Egypt also demonstrated a greedy appetite for apps. Two-thirds of those surveyed had downloaded more than 10 apps, with downloading activities most common among those ages 19 to 24. Web presence seemed to be the most important factor in driving downloads-41% of respondents said they had gotten an app because they had seen it online somewhere, while 35% cited its presence on an app store. Word-of-mouth recommendations from friends trailed both of those sources, at 17%.(emarketer,2013)

Description: Macintosh HD:Users:yasmineshehata:Downloads:145279.gif

(Figure 1.2)

As shown in figure 1.2, Given Egypt's uncertain political climate and the low rate of fixed broadband subscriptions, it's expected that the most popular use of the mobile Internet was to access news and information, an action performed by 57% of users. That was followed by social network use (43%), searches (42%) and email (40%). Younger people in Egypt were more likely to use smartphones to play games or send instant messages, much like younger smartphone users everywhere else. (Emarketer, 2013)

The high growth in mobile use will be driven by the appearance of new operators in the market, which will serve rural areas, says the report.

It also forecasts 15 per cent of mobile subscribers will be using 3G by the year 2015. (Ahram online, 2012)

2.5. Mobile phone usage and smart phone penetration in The UK

Description: Macintosh HD:Users:yasmineshehata:Downloads:149879.gif

(Figure 1.3)

As shown in figure 1.3 The UK is a world leader in mobile adoption and mobile advertising. Advertisers spend more per mobile Internet user on mobile advertising in the UK than any other country in the world, according to eMarketer estimates. Smartphones are driving that trend, with data from Portio Research anticipating continued growth in the market in the UK.

Description: Macintosh HD:Users:yasmineshehata:Downloads:149878.gif

(Figure 1.4)

As shown in Figure 1.4 at the end of 2012, the UK had 83 million mobile subscribers, according to January estimates from the research firm. Of these, 36 million were smartphones and 47 million were non-smartphones. This represents a market penetration of 130%, according to Portio, which means there isn't much room to add new mobile subscribers. Instead development in the market is happening around the shift toward smartphones and away from feature phones. Portio expects the number of smartphones in use to increase each year, with corresponding decreases in the number of non-smartphones.

These two trends may combine to push UK smartphone penetration above 50% this year, the study found. eMarketer's slightly more conservative estimate has UK smartphone user penetration at 45.5% by year end, reaching 55% by 2014.

By 2016, Portio Research expects that roughly three-quarters of UK mobile devices will be smartphones, creating a mobile advertising environment in which smartphones are the rule, not the exception. Portio estimates that there will be 63 million smartphones and 21 million non-smartphones in the UK at that time.

According to eMarketer's forecast, UK smartphone penetration will reach 78% of mobile phone users in 2016, continuing to stretch its lead as the country with the highest smartphone penetration in Western Europe. eMarketer projects that the UK's smartphone penetration will overtake the US's in 2016 as well-only South Korea, Japan and Australia will have higher percentages of mobile users on smartphones. 

2.6. Summary

This chapter, by reviewing previous literature, has summarised the development of Mobile phone technology in both countries Egypt and Uk. Most of the reviewed papers are chosen from the period 2003 to 2013 with a few papers dated before 2003 to discuss historical facts. Mobile computing that encompasses the technology hardware, infrastructure and applications that enable all the aspects of business, personal and social interaction.

These days we can conduct banking, business deals, buying, emailing, web searching product comparisons, holiday bookings, and meetings so on with the touch of a hand screen. Consequently, that brings to the work life balance and issue traditional boundaries between work and non-work life that has become blurred in recent years through the use of mobile technologies and people's desire to stay connected. And these are the usages of mobile phones in most developed countries like the UK. However as stated in previous research that in a developing country like Egypt people only use their phone to open social networks, play games, email, and online search and send instant messages. And not having the full benefit of owning a smart phone. As seen in (figure 1.5) Uk has the highest mobile phone penetration rate in Europe and the third amongst the world with a rate of 45.5% in 2013. And that doesn't compare to the whole Middle East and Africa that has a penetration rate of 19.3% also in the year 2013. Although some papers state that the mobile phone adoption rate in developing countries is increasing by time, it is still a very low percentage compared to many other developed countries.

Smart phone world wide penetration rate (Figure 1.5)

CHAPTER 3: Methodology

3.1. Introduction

This chapter presents the philosophy, approach, design and methods used to address the research. According to (sanuders et al,.2003) research onion See figure 2.1. This study will use a mixture of methods (Tashakkori & Teddlie, 2003), for collecting, analyzing, combining both quantitative and qualitative data at some stage of the research process within a single study, to understand the research problem more completely (Creswell, 2002). The rationale for mixing is that neither quantitative nor qualitative methods are sufficient by themselves to capture the trends and details of the situation, When used in combination, quantitative and qualitative methods complement each other and allow for more complete analysis (Green, Caracelli et al, 1998)

Untitled1(Figure 2.1)

3.2. Research philosophy

Research philosophy is an approach of understanding and writing information that is gained by conducting the analysis. There are two philosophies that are used in this research. These are positivism and interpretivism (Mackenzie and Knipe, 2006). As business and management analysis is usually a mix between both. (Saunders et al. 2007) every one of those philosophies represents a model that's called "paradigm for research". In keeping with Mackenzie & Knipe (2006), positivism is the oldest and most generally used philosophy within research papers.

Positivism is a scientific method that is based on rationale and empiric of the research (Burke, 2007). Within the positivism paradigm, several ideas are used. These ideas are quantification, hypothesis and objective measures in the positivism paradigm; the research is based on evident social reality, explanation and experiences to achieve on ending of the analysis.

3.2.1. Justification to the adapted philosophy

According to Burke (2007), interpretivism is used to recognize the human experiences. In interpretive paradigm, Critical paradigm ideas like distribution of power within the society and political ideology are used (Mackenzie and Knipe, 2006). According to Mackenzie and Knipe (2006), Positivism paradigm is most typically aligned with quantitative methods of data collection and analysis (Easterby-Smith et al, 2002). On the opposite hand, interpretive paradigm and critical paradigm are aligned with mixture of each qualitative and quantitative method that is called mixed methodology (Burke, 2007).

3.2.2. Brief on other philosophies

On the opposite hand realism relies on the idea that a reality exists that is dependent of human thoughts and beliefs. However, that real external world is simply imperfectly and probabilistically apprehensible (Guba and Lincoln, 1994). Realism acknowledge variations between the real world and the specific views of it and take a look at numerous views of this reality in terms of which of them are relative in time and place (Riege, 2003). As such, the underlying structures investigated during a scientific discipline are only contingently connected to the experiences that researcher has within the field. In different words, the combined effects of underlying structures and mechanisms lead to patterns in experiences, however those patterns won't continually occur and cant be employed in this analysis.

3.3 Research Approach

When conducting a research it is necessary to define the approach being implemented, as a result of "scientific inquiry in practice typically involves alternating between deduction and induction. Both methods involve interplay of logic and observation. And both are routes to the construction of social theories" (Babbie, 2010).

According to Saunders et al. (2007) research approach is divided into two categories: deductive approach and inductive approach. Walliman (2009) mentions that the approaches are utilized in cultural studies: content analysis, semiotics, and discourse analysis. Each is utterly totally different from one another (shown in Figure 2.2).

YASMINE:Untitled-1.jpg

Deductive and inductive approaches Figure (2.2) Trochim (2001)

3.3.1. Deductive Approach

A deductive approach is about developing a hypothesis supported by an existing theory, therefore arising with a new strategy to see the hypothesis (Wilson, 2010)

Monette et al (2005,) creates a case for deductive approach by the suggestion of hypotheses, which could be derived from the propositions of the thought. However, deductive approach is about deducting conclusions from premises or propositions. Deduction begins with an associate expected pattern that is tested against observations, whereas induction begins with observations and seeks to hunt out a pattern at intervals (Babbie, 2010).

In different words, once a deductive approach is being followed among the analysis, a set of hypotheses is developed that need to be tested. Then, through implementation of relevant methodology the study goes to prove developed hypotheses right or wrong, this doesn't apply to the pattern of this analysis.

3.3.2. Inductive Approach

Neuman (2003) affirms inductive analysis to start with elaborated observations that move towards additional abstract generalisations and concepts. In alternative words, when following inductive approach, starting with a subject, then empirical generalisations are developed and establishing preliminary relationships as the research progresses.

Inductive approach starts with the observations and theories that are developed towards the end of the analysis and as results of observations (Goddard and Herman Melville, 2004). Inductive analysis involves the search for pattern from observation and also the development of explanations (theories) for those patterns through series of hypotheses (Bernard, 2011). In alternative words, no theories would apply in inductive studies at the start of the analysis and also the research is free in terms of altering the direction for the study once the analysis method has commenced.

It is noted, inductive research is usually named as a "bottom-up" approach, during which the observations are created to build an abstraction or to explain an image of the development that's being studied" (Lodico et al, 2010). In other words, in inductive studies no well-known theories or patterns ought to be tested throughout the analysis method.

3.3.2.1 Justification of adapted approach

The current study utilises inductive research. Saunders et al. (2003) noted that the inductive approach offers the prospect to own a lot of clarification of what is occurring. The analysis method has started by exploring and collection the information from completely different sources and by using multiple sources of evidence: semi-structured interviews, direct observation and document analysis. The secondary sources of data used in this analysis, involves: critically reviewing previous analysis, reports and statistics whereas primary knowledge was collected by an internet survey, interviews and a focus group, Easterby-Smith et al. (2002) and grey (2004) indicated that qualitative analysis is usually related to inductive analysis within which a range of methods are used to collect the information and explore the matter from completely different perspectives.

3.4. Research strategies

Research Strategies help the investigation of the research issues, consistent with Saunders (2003), analysis strategy is a general plan that helps in answering research questions in a systematic method. An efficient analysis strategy contains clear objectives, research questions, data collection resources and numerous constraints that affects the analysis in different ways that like access limitations, time limitations, location and money limitations, ethical issue constraints etc. research strategy is additionally useful for the utilization of specific information assortment strategies to support the arguments (Saunders 2003).

3.5. Time Horizon: Cross-sectional

This research is a cross-sectional study; where a particular phenomenon is being studied whereby new priorities like usability is taking a predominant place. This study is a 'snap-shot' of the mobile phone behaviour of our time in both countries. Saunders et al. (2007) finds that most of the academic studies will be using a cross-sectional technique due to the time constrains involved.

3.5.1. Brief on Other Time Horizons

According to Saunders et al. (2009) there are cross-sectional and longitudinal time horizons. If the cross-sectional study is a 'snap-shot', then longitudinal research is considered a journal of snapshots. This will need the researcher to keep on observing the subjects over a time-period, which makes a longitudinal study ideal for studying change and long-term development.

3.5.2. Justification of the Adapted Time Horizon

A phenomenon of our time is being described; cross-sectional study will be more suited for the study. A longitudinal study is would have been more appropriate if there was a focus on the changing behaviours of the customers. It is also understood that longitudinal studies take more time and resources.

3.6 Data Collection and Analysis

3.6.1. Primary Data Collection: Open-end Questionnaire

Open-end questionnaire is used to collect primary data. The open-ended nature of the questionnaire will allow the participants to answer without any outside influence or limitations (Fink 2003).It also allows the collection of large amounts of primary data in a short time. It is more suited for a qualitative research as it can bring out the personal feelings and attitudes of the participants. In addition to the questions related to the research it also aids the formulation of a working hypotheses.

Observation of participant groups, interviews and open- end questionnaires as the data collection method is preferred for a qualitative study (Saunders et al. 2007). Among them, interviews and open-end questionnaires are the only valid options if the researcher is pursuing open-ended survey as the research strategy. Interviews can be defined as data gathered as one-to-one conversations with the participants. Marschan-Piekkari & Welch (2004) writes that interviews can generate highly accurate qualitative data, but at the price of high cost and restricted participation.

3.6.2. Interviews

Interviews are versatile were data on the far side of the survey boarders are often obtained. And are sometimes either structured or unstructured in this research Unstructured interviews are conducted to begin with some broad queries or areas of interest, also techniques like prompting and searching to elicit responses from the participants is used. One-on-one interviews are sometimes helpful wherever people open up concerning private or personal matters, while group interviews allow people to interact and create group dynamics.

3.6.3. Justification of the Adopted Data Collection Method

The primary reason for choosing an open-ended questionnaire survey is due to it being a quick way of collecting qualitative data when compared to personal interviews. It is also noted that it is relatively inexpensive when compared to interviews; particularly in context of a limited dissertation budget. The open-endedness of the questionnaire means that most of the participants will give spontaneous and truthful answers much like that to an interview. The open-ended interviews will be an added advantage to collect broader information.

3.7. Secondary Data

In this research, secondary data will be used to verify the various working hypotheses developed from the primary data. In reference to this research, secondary data will be in form of figures and previous analysis about mobile phone usage in both countries and information about history for the quantitative analysis. For the benefit of validity and reliability of the research, only official websites from the university's electronic library are consulted for the secondary data. Online recourses like journals and magazines are also used to collect secondary data.

3.7.1. Data Analysis: Content Analysis

Defined by Markel (1998) as a systematic and meticulous analysis of recorded message characteristics, content analysis is becoming increasingly popular among qualitative researchers. An open-end questionnaire can be analyzed for different keywords & frequencies and can be categorized for a quantitative examination.

3.7.1.1. Survey results

According to Trochim (2006), "the statistics are always used describe the basic features of data in a study". After enough respondents finished the survey, the results were downloaded from the survey website, www.esurveyspro.com, and analysed. The results could be downloaded separately by each question or all answers together. The data were compiled by the website automatically, downloaded were categorized to separate results from each country. Also, there were some tools available on esurveyspro including the filter tool, which was highly useful. The filter tool allowed organisation and view of data subsets for advanced analysis. This filter tool was similar to Excel's equivalent tool, but it was more convenient and easier to use. Due to the creation of data filters, the set of responses from each country can be separated. This function allowed the display subsets and find patterns, and by filtering some of the data, this data could be analysed more easily. For example, the number of respondents who used their mobile phone to buy things online because they thought that it's easier to have wallet free purchase could be calculated. Also the data from "esurveyspro" could be downloaded in a range of different figures and presentations: such as bar graph, pie graph and line graph. The style and colour of the figures could be customised as well. For each question, the proper figure was chosen for download, yet some tables needed to be created for comparison. By comparing findings with the previous data it might be possible to identify trends as to the choices behind students' mobile phone purchasing practices.

3.7.1.2. Interview results

Content analysis of the interview data was used to identify and categorise the feelings and factors involved in mobile phone usage. All the results of interviews were recorded in Microsoft Word 2007 files. The results are attached in the Appendix are compiled according to question and category. The interviewees' answers from the same category were then put together and the interviewees were identified with a unique letter, such as Student A, Student B and so on. Finally, similarities in answers from the interviewees were calculated for analysis whereby the answers from different categories were compared and analysed. Some Internet and mobile phone usage factors were analysed by interview results more effectively and in more detail than through the survey results.

3.8. Ethical Issues

While collecting primary data, it is likely to face many ethical issues in relation to voluntary participation and informed consent. In order to avoid this, there is an introductory paragraph to the participants about the procedures of the research and involved risks. Principles of anonymity and confidentiality will be strictly adhered and no personally identifiable data will be collected. The analysis of the data collected will be submitted in a form that does not identify the participants. While analyzing the collected data, it should be taken care of, so as to not to misinterpret the data, which might lead to serious implications. Plagiarism will be effectively negated by proper usage of Harvard-referencing system and turn-it-in service. Will be more comfortable and honest while answering a questionnaire. The open-ended nature of this type of survey also reduces bias as the same questionnaire is presented to everyone, limitations are set not affect the answers.

3.9. Conclusion

The mixed methodology, combining qualitative and quantitative methods, was chosen for this dissertation. By using a mixed methodology, more comprehensive information could be collected to analyse the difference between mobile phone usage in both countries and the reasons why developing countries leapfrog. In this research, the quantitative data for analysing the mobile phone usage habits were collected as survey results. The survey results were comprehensive and standardised with survey questions being of the multiple choice question type. The survey had an added benefit that it did not take too much time to complete. Also, as the survey was accessible online, it was easy to be delivered to target students. Tools from www.esurveyspro.com, as well as Microsoft Excel were used for analysing the survey results. The survey results were filtered for categorising and comparing .The interview results for qualitative data provided further data for analysing the mobile phone daily usage habits. The interview results helped the analysis of some factors that were not easily analysed via survey results. All interview results were recorded in Microsoft Word files. By analysing survey results for quantitative data and interview results for qualitative data, the factors that affect developing countries not to easily adapt to new mobile phone technologies were defined, explained and analysed.

Chapter 4: Findings and Data Analysis

4.1. Introduction

This chapter will bring in the presentation of the findings and analysis derived from the online survey. A total of 150 responses were received from the targeted 80 potential Egyptian respondents, and 50 UK responses, which constitutes a 38% UK response and 61% Egyptian rate for the survey. Out of 150 respondents, 83% have completed all of the questions that were required to be answered and 16% have either exited the survey half way or have not attempted to answer some of the questions. The responses gathered from the online survey have been analysed using the embedded tool from esurveyspro.com and Microsoft excel. This chapter solely focuses on presenting the gathered data in a meaningful way to facilitate the discussion, which will be presented in this chapter.

This chapter at the outset provides the background to the respondents by analysing their demographic details. This is followed by findings and analysis of data, and the summary. The findings and analysis has incorporated general and cross tabulation analysis primarily on four broad themes that include demographics, Mobile phone owner ship, mobile phone usage, Mobile expenditure and payments. Figures have been used to facilitate a simplistic reader-friendly writing. Finally, the summary of this chapter is provided.

4.2. Survey Results

4.2.1. Demographic Profiles

The profile of the respondents is looked upon in terms of occupation, age, gender, educational attainment, income and country.

4.2.1.1. Age of the Respondents

Figure 1 shows the age range of the respondents. 3% of the respondents were students between 12-18 years old. 1% of the respondents were between 35 - 49 years old.  Respondents' aged 50-59 is 1% of the total respondents. On the other hand, 99% of the Egyptian respondents were undergraduate university 19-25 years old, while 90% of uk responses are aged from 19-25 showing that most of them were already are considered among the young adult members of the population.

4.2.1.2. Gender of the Respondents

The number of the female respondents (53%) is closed to the male (47%) with the total of 80 for female and 70 for male. However the number of UK Female respondents is 20 and 30 Male, While in Egyptian responses are 60 Female and 40 Male respondents. Based on the figure, the dominated gender among the respondents is female. Based on the collated questionnaires, over a half of the population is composed of female respondents while 47% are males. This shows that there are mostly female who have interest in participating in research studies.

3.2.1.3. Educational Attainment of the Respondents

Likewise, the respondents were asked for their educational attainment and the report shows 89 % of them are university undergraduate. The survey indicates that most of the respondents are college graduate that is engage to the study. 5% are high school students, 5% Masters students and 1 % Doctorate student. The diversity of the population is further asserted when the respondents were asked regarding their professional history. This data illustrate the maturity of the respondents particularly in terms of experience.

3.2.1.4. Income per month (Family income in case of students)

Most Egyptian students are funded by their family until graduation, unlike in the Uk where students have part time jobs and be somehow independent of the families. That's why 47% of Egyptian students chose their family income of L.E 5000+, While 21% of UK students said their income is only £ 0-500.for more see Figure 3.1

Income (Figure 3.1)

3.2.2. Mobile phone Ownership

3.2.2.1. Which of the following devices do you own?

As shown in Figure (3.1) 34% of respondents own a computer on the other hand, 18% said that they own a tablet/ipad. This shows computers are being replacing by mobile devices

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Owned devices (Figure 3.2)

3.2.2.2. Do you own a smart phone?

93% from the respondents have a smart phone all of the 50 UK respondents own a smart phone, however 7% from the Egyptian students don't own a smart phone. This is due to the cultural life in Egypt that doesn't necessitate or promote owning a smart phone and it could be expensive for some people. Going to talk more about this in the interview.

3.2.2.3. Which brand of mobile phone do you use?

10% of student in the uk own a blackberry, 52% own an Apple iphone, 20% own a Samsung, 8% own a Nokia and the rest is divided between HTC and Sony phones.On the Other hand in Egypt 33% of students own an iphone , 24% own Blackberry, 25% own a Samsung and 10 % own a Nokia Phone. For more details see Figure 3.3. Samsung's smartphones recently have been best sellers all over the world, marketing their phones to consumers, not businesses. While apple sales have been increasing selling mobile phones to both businesses and consumers, Blackberry will remain to target businesses with their fast and famous email app and BBM.

Mobile phone brands (Figure3.3)

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3.2.2.4. Why did you choose this brand over others?

56% of Egyptian students mentioned that they chose their phone because it had better features compared to others also 50% of Uk students mentioned that they chose their phone for the same reason. See figure 3.4 for more details.

Reasons for choosing a smart phone brand (Figure3.4)

3.2.2.5.How important are the following factors for buying a new mobile device either than it being new to the market?

50% of Egyptian responses said that price is important and 37% said it is very important factor when buying a phone, On the other hand in the Uk 66% of responses said that Price is very important factor when buying a new phone also 24% in the Uk said price is unimportant while neither in Egypt said it is unimportant. This shows that some people in uk are willing to buy a smartphone and be updated with the latest technology and somehow don't care about the price, while in Egypt all responses indicate how important the price is for buying a smart phone.

For more details see Figure 3.5

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Factors for buying a smart phone (Figure 3.5)

3.2.2.6. How old is your mobile phone?

In Egypt 35% said their phone is less than ½ year old, 32% said that it is ½ to 1 year old also 32% said it is 1 to 2 years old, neither said that they have had their phone from 2 to 4 years. On the other Hand in the Uk 40% mentioned that they have had their phone for 1 to 2 years, 30% had their phone 2 to 4 years ago. This shows that most Egyptian students are newly adapted to smart phones and have had them from ½ to 2 years, while students in the Uk have had their phones from much longer time that range from 1 to 4 years.

3.2.2.7. which brand of mobile phone did you previously own?

59% of Egyptian students had a Nokia phone before their current phone, 40% mentioned that they had a Blackberry; this shows the late adaption of smart phones with the high percentage of owning a Nokia phone. On the other hand in Uk 30% previously owned a blackberry 20% previously owned an iphone.

3.2.2.8.  How often do you change your mobile phone?

60% of Uk students mentioned that they change their phone every 2+ years also 56% of Egyptian students mentioned that they change their phone every 2+years. (See figure 3.6)

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Mobile phone change (Figure 3.6)

3.2.2.9. Would you prefer to stick with your current mobile phone brand in the future or will you be willing to purchase a different brand?

Uk students are more open when it comes to buying new smart phones as 64% mentioned that they would be open to try a different brand and only 15% mentioned that they prefer the same brand.

But 36% of Egyptian students mentioned that they would prefer sticking with the same brand and 60% would be open to try new brands.

3.2.3. Mobile phone usage

3.2.3.1.

3.2.3.2. Please list the most annoying things of other people using mobile phones (e.g. some ringtones, excess use of the phone)

This was an open end question, Here are some examples of some Uk respondents said "Constantly checking your phone during meetings and while in conversations" " texting while driving" " Walking (Or Rather, Not Walking) and Texting at the Same Time"

Egyptian responses "excess of using blackberry phones and it's really annoying when you see all people using its chatting services even they are walking in the streets." "The eager desire of having the latest and most fashionable version of phones regardless their economic status or that of society" "it limits your privacy there are applications now that shows where you are all the time parents keep bugging us about them to turn them on so if your like kidnapped or something they would know where to find you and stuff no trust in the world of technology  "

3.2.3.3. Which of these mobile service operators are you on?

52% of Egyptian respondents said that they join Vodafone Egypt's first mobile network. 27% said that they join Mobinil Egypt's second network and 25% said they join Etisalat the third last mobile network in Egypt, unlike in the Uk Egypt only has 3 mobile networks 30 % of Uk students join o2 network, 12 % join GiffGaff that is a low cost network that runs on o2, 16 % join Vodafone Uk and 10% join the Orange network. See Figure 3.8

Macintosh HD:Users:yasmineshehata:Desktop:Screen Shot 2013-04-23 at 01.57.59.pngMobile Networks (Figure 3.7)

3.2.3.4. Are you satisfied with the overall performance of your mobile phone provider?

This was also an open-end question most people in the Uk agreed that they are dissatisfied with Spam texting, calls and with the network coverage in some places especially at Cardiff met. Campus some are satisfied with the cheap tariff of payment.

However, In Egypt some of the responses were "Internet bundle is a bit expensive" "Satisfied with the quality of service, not with the offers, pricing or customer service." "Not so much with the speed of internet connection."

3.2.3.5. How did you hear about the mobile services Operator you use?

In Egypt all three mobile operators are always in competition it became a trend that each operator make an enjoyable TV advertisement every now and then in special occasions where its know that people watch a lot of TV at that time. These ads often go viral and every one talks about them. That's why 30% of Egyptian respondents mentioned that they heard about their operator from TV advertisements, 38% said they heard about if from their parents. However, in the Uk 44% of respondents mentioned that they heard about their operator from parents 22% from colleagues - the power of word of mouth- and 14 % from TV advertisements.

3.2.3.6. Mobile services

3.2.4. Mobile expenditure and payment

3.2.4.1. How much did you pay for your phone?

11% of Uk responses paid £500+ for their phone, 9% paid from £300-£400,while 5% paid from £200-£300 however 6 % paid from £100-£200.

On the other hand in Egypt 3 % paid 5000+L.E for the