The adoption of 3G in India on the customers’ front is facing some issues Expensive plans, costly handsets and most importantly failure in demand establishment are the factors causing drawbacks in 3G adoption in India

2. Acknowledgement
• I am highly indebted to Prof. R.A.Dakshina Murthy
• Gratitude towards my Parents
• Thankful to Prof. R.Sreedhar, Prof. Venkatesha Bhagavath &
other members of CUIM
• My special gratitude to the Mr. Mohan Sharma, Mr.Anand
Khanduri.
• My thanks also go to “Indian Telecom Brief” group, in which
specially to Mr.Sreekumar, Mr.Akhil Rane, Mr.Zunzar Patil
for giving me such attention and time.

3. 1 - Introduction
• The increasing demands and requirements for wireless
communication
• The 3G spectrum auction in India began on 9 April 2010.
• At the time when the world is moving towards 4G
implementation, India is still crippling to implement 3G
• 3rd Generations Mobile Telecommunications could not be such
a success story
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No -8

4. 1.1
Problem Statement
• Background –
The adoption of 3G in India on the customers’ front is facing some issues
Expensive plans, costly handsets and most importantly failure in demand
establishment are the factors causing drawbacks in 3G adoption in India
• Statement-
“Whether India can learn anything from 3G
issues, and can it ultimately lead to a
successful 4G implementation”.
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No -10

5. 2 - Literature Review
• There are not many studies available in the parlance of 4G as well as the
drawbacks of 3G
• Hiren j Patel, Jigar Makwana, Shailesh Desai, titled “Marketing
Mastermind” An IUP Publication Vol. XI No-7 July 2011
• Mr. Parvin patil finds out in the report “3G Wonderland: The World is not
enough”
• Total Article Reviewed - 20
Indian telecommunication industry depends on five major factors-
• Availability of Low Cost Handset
• Relevant services, application and content
• Affordability of tariffs
• Innovation in service & offers
• Network rollout in term of reach & Connectivity
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No -9 & 12 - 24

6. 3 - Research Methodology
The study requires quantitative data collection and analysis
of the same to come out with fruitful conclusions
Data Sample
current 2G and 3G users
9million in April & 14 Million In November 2011 users of 3G services in India
852 million 2G users in which 650 are active connections
141+ , 2G and 3G users and a few licensed service providers will be the
sample for the study
Sampling
Judgemental Sampling
ensure equal probability of every potential user to be part of the study
Mode of Enquiry
A questionnaire method
The questions will include the identification of both the users and non users
of 3G services
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No - 25 - 27

7. 3 - Research Methodology Cont.
Ingredients of Questionnaires
Two questionnaires are circulated specific for
• Who are not using 3G - Question to customers who are not using 3G
• The existing 3G user - Question to customers who are using 3G
Data Analysis
Factor Analysis and T Test
Limitation
Geographic Location, Time
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No - 25 - 27

8. 4 - Data Analysis
 For the purpose of study the service users were
divided into two segments-
• Those who are not using- “I am not using 3G”
• Those who are using – “I am using 3G”
 Tool - SPSS & MS Excel are used for the analysis
 Reference –
• Marketing Research (K.Malhotra, 2010)
• Operation Management (Frazier, 2004)
• Operation Research (A.M. Natrajan, 2006)
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No - 29

9. 4.1 - Data Analysis
“I am not using 3G”
• While 3G has been positioned as a 'faster' and 'superior' service, most
customers feel that telcos have failed to demonstrate the relevance for this
platform. There are various reasons which the customers have identified for
the failure in implementation of 3G services.
• Total Sample Size 113
• Factor Analysis
• T Test
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No - 30

10. 4.1.1
Factor Analysis
“I am not using 3G”
 The 4 main variables for the study are:
• Un-usefulness KMO and Bartlett's Test
• High Tariff Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .509
Bartlett's Test of Sphericity Approx. Chi-Square 19.987
• Poor Speed
df 6
• High price of Smart Phones Sig. .003
 DETERMINE THE NUMBER OF FACTOR
• Only those factors which have eigne value greater then 1.0
• The factors extracted should account for at least 60 percent of the variaton
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 31 -34

11. 4.1.1
Factor Analysis
“I am not using 3G” cont.
INTERPRETING THE FACTORS
Variables - Poor Speed &Un-Usefulness are at the end of horizontal axis, hence form Factor1
Variables – High Tariff & Smart Phone are at the end of vertical axis, hence form Factor 2
It could be summarized that the individual decision
“I am Not Using 3G” is based on two major kinds of elements-
Factor 1- Resulting Benefits
Factor 2- Total Investment
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 34 -35

12. 4.1.1
Factor Analysis
“I am not using 3G” cont.
Factor 1 (Resulting Benefits) = (.557) x Poor Speed + (.668) x Un-Usefulness
Factor 2 (Total Investment) = (.686) x High Tariff + (.580) x Cost of Smart Phone
Note – Higher value shows disapproval of individual
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 36

13. 4.1.1
Factor Analysis
“I am not using 3G” cont.
 I AM NOT USING 3G BUT WILL USE 4G
Following variables have been identified for the 4G use purpose-
• Internet Browsing
• Video Call
• Business Application
• Office Application
• e Application
• Online Gaming
• Factor 1 (Fundamental Application) = (.319) x Internet Browsing + (.448) x
Business Application + (.371) x Office Application
• Factor 2 (Supplementary Application) = (.510) x e-Shopping + (.663) x Video
Call + (.172) x Online Gaming
• Note – Higher value shows approval of individual
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 37-41

14. 4.1.2
Hypothesis Testing
“I am not using 3G”
 I am not using 3G Factors
As per data analysis 3 variable are playing critical role to take decision “Not using 3G” are
•High Tariff
•High Price of Smart phone
Un- usefulness
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 43

15. 4.1.2
Hypothesis Testing
“I am not using 3G” cont.
 Hypothesis
• Ha01: = Variable “High Tariff “is not significant for not using 3G services
Ha11: = Variable “High Tariff “significant for not using 3G services
• Ha02: = Variable “High Price of Smart phone” is not significant for not using 3G services
Ha12: = Variable “High Price of Smart phone” is significant for not using 3G services
• Ha03: = Variable “un- usefulness” is not significant for not using 3G services
Ha13: = Variable “un- usefulness” is significant for not using 3G services
 Outcome
• Significant level is less than .05 Rejecting the Null Hypothesis Ha01:
It means “High Tariff” (Mean = 3.6726) is significant for not using 3G services.
• Significant level is less than .05 Rejecting the Null Hypothesis Ha02:
It means “High Price of Smart phone” (Mean = 3.2566) is significant for not using 3G services.
• Significant level is greater than .05 Accepting the Null Hypothesis Ha03:
It means Variable “un- usefulness” (Mean = 3.0265) is not significant for not using 3G services.
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 44-45

16. 4.1.2
Hypothesis Testing
“I am not using 3G” cont.
 I AM NOT USING 3G BUT WILL USE 4G
Internet Browsing, Video Call , Business Application, Office Application, e-Shopping, Online Gaming
• Significant level is less than .05 so Rejecting the Null Hypothesis Hb01:
It means “Internet Browsing” (Mean = 4.4312) will be significant for using 4G services
• Significant level is less than .05 so Rejecting the Null Hypothesis Hb02:
It means “Video Call” (Mean = 4.0917) will be significant parameter or using 4G services
• Significant level is less than .05 Rejecting the Null Hypothesis Hb03:
It means “Business Application” (Mean = 4.1651) will be significant parameter or using 4G services
• Significant level is less than .05 Rejecting the Null Hypothesis Hb04:
It means “Office Application” (Mean = 4.0642) will be significant parameter or using 4G services
• Significant level is less than .05 Rejecting the Null Hypothesis Hb05:
It means “e-Shopping” (Mean = 3.5185) will be significant parameter or using 4G services
• Significant level is greater than .05 Accepting the Null Hypothesis Hb06:
It means Variable “Online Gaming” (Mean = 3.0093) will not be significant for using 4G services
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 46-48

17. 4.2.1
Factor Analysis
“I am using 3G”
 The respondents mainly used the 3G services mainly for the following
purposes.Internet Browsing, Video Call, Business Application, Office
Application, e Application, Online Gaming
• KMO = .601
• Factor Identified – 2 (Based on EIGENVALUES, >1, 69.847%)
• Factor 1 (Fundamental Application) = (.216) x Internet Browsing +
(.402) x Video Call + (.382) x Business Application + (.291) x Office
Application
• Factor 2 (Supplementary Application) = (.433) x e-Shopping + (.709) x
Online Gaming
• Note – Higher value shows approval of individual
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 53-57

18. 4.2.1
Factor Analysis
“I am using 3G” cont.
 I AM USING 3G, WILL ALSO USE 4G
• High Internet Speed, Reasonable Tariff , High Quality Video Service
• KMO = .739
• Factor Identified – 2 (Based on EIGENVALUES, >1, 69.847%)
• Factor 1 (Conventional Applications) = (.403) x Internet Browsing +
(.531) x Video Call + (.266) Business Application
• Factor 2 (Advanced Applications) = (.217) x Office Application + (.531) x
e- Shopping + (.468) Online Gaming
• Note – Higher value shows approval of individual
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 58-62

19. 4.2.2
Hypothesis Testing
“I am using 3G”
The respondents mainly used the 3G services mainly for the following
purposes.Internet Browsing, Video Call, Business Application, Office
Application, e Application, Online Gaming
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 67

20. 4.2.2
Hypothesis Testing
“I am using 3G” cont.
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 68

21. 4.2.2
Hypothesis Testing
“I am using 3G” cont.
• Significant level is less than .05 so Rejecting the Null Hypothesis Hd01:
It means “Internet Browsing” (Mean = 3.7692) is significant when using 3G
services
• Significant level is greater than .05 Accepting the Null Hypothesis Hd02:
It means Variable “Business Application” (Mean = 3.1154) is not significant
when using 3G services
• Significant level is greater than .05 Accepting the Null Hypothesis Hd03:
It means Variable “Office Application” (Mean = 3.1923) is not significant
when using 3G services
• Significant level is greater than .05 Accepting the Null Hypothesis Hd04:
It means Variable “e-Shopping” (Mean = 3.1538) is not significant when
using 3G services
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 69

22. 5
Findings
• Findings “I am not using 3G”
• Findings “I am using 3G”
If the growth of technology
Is faster
than
The growth of market
Demand
“Technology fails”
From - The Innovator’s Dilemma – by – Clayton M. Christensen

23. 5.1
Findings
“I am not using 3G”
 Customers are not using 3G services mainly because of
following reasons-
• There are not much of the resulting benefits
• The investment for the service is quite high
• It is better to wait for the 4G services
 From the hypothesis testing it is proven that the “investment”
criteria (the tariff of the service and the cost of the smart
phones) are a major obstacle in the successful implementation
of the 3G.
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 76-77

24. 5.2
Findings
“I am using 3G
“Early Adopters” Like Tech savvy of the technology, sales force, Traders etc
• The current 3G customers are focusing on two main factors-
• Fundamental Applications = Internet Browsing, Video Cal, Business
Application, Office Application
• Supplementary Applications= e-Shopping, Online Gaming
• Even though 3G customers have a lot of expectations from services but it
is identified & proven through hypothesis testing that the main advantage
of 3G only comes in Internet Browsing & other applications do not hold
much good for the customer
• Video calling & On Line Gaming still do not have significant impact.
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 78-79

25. 6
Conclusion
• Lack of proper strategy can also be seen as a major contributor in the
failure of 3G technology.
• The loopholes in the Indian regulations and strategic performances are the
main reasons for the poor performance of 3G
• Learning’s for 4G
• The service providers to make sure that there is an established demand
for the technology service and the resulting benefits
• Factors such as cost of technology for the user, cost of implementation for
the service provider as well as the speed of the data flow should be duly
considered
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 81

26. 7
Recommendations
 For 3G service providers-
• need to start penetrating the rural market as soon as possible, because it will
give them first mover advantage & help them reaching out for
sustainability
• Develop & provide the support platform for business, offices & e-
commerce applications
 For 4G service providers-
• Bandwidth License & Roll out plan
• Channel Partner selection
• Interface Device
• Data Demand Creation
• Voice on data Platform
• Rural Market penetration
• E-Commerce synchronization
Source - “3G Underperformance - Reasons & Learning’s for Successful 4G Implementation” page No – 82 - 85