an investigation into the impact of the adoption of third generation (3g) wireless technology on the...

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CHAPTER ONE INTRODUCTION AND BACKGROUND INFORMATION 1.1 INTRODUCTION The free flow of information and communication has become paramount to the progress of society. Globally, 3G technologies have over the years benefited countries by supporting the proliferation of information, enabling citizens to access vital communication services and promoting the development of technology advancements. 3G networks, devices and services in countries worldwide, especially the least and medium developed countries, has enhanced the quality of life and expanded economic opportunities, both in the public and private sectors. The expansion of economic opportunities has resulted in increased competition, and development of innovative new services for consumers. Today, a decade later after its first adoption, 3G technologies are viewed as essential elements for socio-economic development for countries worldwide. Chapter one introduces and provides background information to the study, which investigates the impact of the adoption of third generation (3G) wireless technology on the economy, growth and competitiveness of Botswana. This chapter also depicts an analysis of the problem statement and aims. It also portrays the research questions and research objectives that this study will be based on. The chapter also justifies the topic of study and provides an outline of chapters. Page 1 of 83

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A finance degree thesis of the impact of 3G wireless technology on an economy.

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CHAPTER ONE

INTRODUCTION AND BACKGROUND INFORMATION

1.1 INTRODUCTION

The free flow of information and communication has become paramount to the progress of

society. Globally, 3G technologies have over the years benefited countries by supporting the

proliferation of information, enabling citizens to access vital communication services and

promoting the development of technology advancements. 3G networks, devices and services in

countries worldwide, especially the least and medium developed countries, has enhanced the

quality of life and expanded economic opportunities, both in the public and private sectors. The

expansion of economic opportunities has resulted in increased competition, and development of

innovative new services for consumers. Today, a decade later after its first adoption, 3G

technologies are viewed as essential elements for socio-economic development for countries

worldwide.

Chapter one introduces and provides background information to the study, which investigates

the impact of the adoption of third generation (3G) wireless technology on the economy, growth

and competitiveness of Botswana. This chapter also depicts an analysis of the problem

statement and aims. It also portrays the research questions and research objectives that this

study will be based on. The chapter also justifies the topic of study and provides an outline of

chapters.

1.1.1 Aim and objective of the study

The aim of this research is to investigate the impact of the adoption of third generation (3G)

wireless technology on the economy, growth and competitiveness of Botswana, with the view of

customer perspectives to analyze the success of the technology and recommending ways it can

be improved in the future.

1.1.2 Research questions

What does the World Economic Forum use to rank countries’ IT competitiveness in the

global economy?

How does extending the information & communication services of Botswana help

enhance the economy?

Page 1 of 58

What are the factors that can influence users to adopt a new technology?

How is Botswana capitalizing on the benefits, if any, of the adoption of 3G technology?

What are the limitations of the 3G wireless technology in Botswana?

1.1.3 Research objectives

To review literature and establish how countries are ranked based on the factors used

by the World Economic Forum.

To establish the impact and role of Information, Communication and Technology on a

growing economy like Botswana’s.

To determine the factors that can influence users to adopt a new technology.

To determine the benefits that can arise from the adoption of 3G technology and if

Botswana is capitalizing on any of those opportunities.

To determine the weaknesses of 3G technology in Botswana and recommend a way

forward.

1.2 BACKGROUND INFORMATION

1.2.1 History

It is crucial to analyse Botswana before all the technological advancements before we could

establish any benefits or impacts that have come with modern information technology. After

gaining independence from the British in 1966, the poor and sparsely populated southern

African country had to rely on international aid to support her budget (at the time, with a Gross

Domestic Product per Capita of about US$70 a year) (Central Intelligence Agency, 2013).

However, with significant capital investment, Botswana has since transformed itself into one of

the fastest growing economies in the world. Agriculture was the main source of foreign

exchange after independence accounting for 40% of the country’s Gross Domestic Product

(GDP), which according to Parkin et al. (2008) is the market value of all final goods and services

produced within a country in a given time period – usually a year. However, around the mid

70’s, the mining sector, principally diamond extraction became dominant over agriculture and

other sectors.

1.2.2 Economy

Botswana is one of the largest producers of diamonds in the world and this has undoubtedly

fuelled the growth of her economy. However, reliance on diamonds has proved to be risky. Not

only because of the concerns that diamonds are predicted to dry out in Botswana over the next

Page 2 of 58

twenty years, but also for what occurred during the global economic recession in 2009, where

we saw the industrial sector shrinking by 30%, after the global crises reduced demand for

Botswana’s diamond.

In an attempt to diversify the economy from diamonds, the government has placed more

emphasis on other sectors. In the 2012 Budget Speech, Matambo (2012) stated that Botswana

has national development plans in place to accomplish economic diversification largely by

reinvesting the proceeds of high returns from the mineral sector into other sectors such as

tourism, manufacturing and agriculture.

Another sector that can be vital to an economy’s growth is the Information, Communications and

Technology (ICT) and telecommunications sector. The telecommunications sector has

continued to dish out opportunities for economic growth in both developed and developing

markets and have become an essential part of how economies work and function. Mobile and

wireless services have become the universal providers of communications services because of

the often undeveloped fixed-line. According to a study by Deloitte (2012), mobile telephony has

transformed the way in which consumers and business operates in developing markets and has

the potential to impact economic development.

1.2.3 Technology

Up until the end of the 20th Century, there was undoubtedly a clear division between the cellular

or wireless industry and other telecommunications industries which at the time offered basic

telephone, television, radio and computer services. Most mobile operators at the time had

adapted to using the second generation (2G) digital wireless technologies to enable voice

communications and limited data services, while most of the wire-line, cable and satellite

systems provided the bulk of the older telecommunications services. Like any other service,

wireless communications have had its limitations but at the same time have led to tremendous

success, surpassing fixed line connections worldwide in 2001, just 12 years after its market

introduction. This has been especially evident in developing markets where, due to their lower

deployment costs, and greater network flexibility, wireless technologies have become the

primary means of communication for millions of people, spurring the economic and social

development of these markets.

The beginning of the 21st Century came with it a whole new dimension of telecommunications.

With the introduction of the third generation (3G) of wireless technologies came the high

expectations and desire for high speed internet, and high speed transfer of data. 3G’s abilities to

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provide a wide variety of audio, video and data services, combined with high speed added to its

perceived attractiveness.

1.2.4 Competitiveness

Countries worldwide have come to the realisation that an integrated informational and

communicational technologies industry can go a long way in enhancing the competitiveness and

creativity of their economies and fuel the sustainable growth of the global economy.

A country’s ICT competitiveness is determined by its rankings on the Global Information

Technology Report, which is released by the World Economic Forum (WEF) annually. Through

the evolved methodological framework known as the Networked Readiness Index (NRI), this

report aims to measure the extent to which 142 economies worldwide take advantage of ICT

and other new technologies to increase their growth and well-being. The report provides

detailed profiles of the 142 economies and also included with it data for each of the 53

indicators used in the computation of the NRI.

Botswana has one of the highest mobile market penetration rates in Africa. The average

revenue per user is also one of the highest on the continent. In an attempt to generate new

revenue streams and secure market share, three mobile operators – Mascom Wireless (an

affiliate of South Africa’s MTN), Orange Botswana (backed by France Telecom) and Be Mobile

(a subsidiary of fixed-line incumbent Botswana Telecommunications Corporation) – have

entered the underdeveloped ICT sector with different strategies including 3G mobile, LTE,

WiMax and ADSL services. These strategies and services have the potential to drive the

country into a new dimension of technology that will see them within arm’s-length of the world’s

leaders.

Botswana made her debut in the GITR in 2003 with a ranking of 55 from 102 countries.

Botswana climbed to 50th position out of 104 countries in the 2004-2005 edition but by 2008,

she had deteriorated by 27 places. She was 77th in 2008 and the deterioration continued as she

downsized by 14 places to position 91 in the 2010-2011 report. Botswana has however risen to

89th (out of 142 countries) in 2012.

1.3 PROBLEM STATEMENT

With the implementation of the 3G wireless technologies, Botswana is striving to keep up with

technological developments across the world, which would assist them in economic growth and

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also a higher ranking in global competitiveness. The technological environment is changing

every day, and it is the need for innovation by customers that will not make this easy.

The research problem under investigation is the “impact that customer perspectives can have

on the adoption and impact of technology,” on the economy, growth and competitiveness of

Botswana.

1.4 RATIONALE

After revealing its technological aspirations to the world in the early 1980s when Botswana

Telecommunications Corporation (BTC) was established, Botswana has become well known to

have one of the most modern and innovative telecommunication infrastructure in Africa. BTC

was the only telecommunications provider in Botswana until 1996 when Mascom Wireless and

Vista (now known as Orange Botswana) came onto the scene.

At the end of 2011, there were a total of 22 commercial Internet service providers, serving a

population of just above 2 million. This has been noticeable in the Information and

Communication Technology (ICT) global rankings. In 2012, the World Economic Forum ranked

Botswana sixth in Africa, up from tenth in 2011. According to the report, Botswana leapfrogged

Senegal, Morocco, Namibia, Kenya and Gambia in terms of ICT competitiveness. The report

measures the degree to which economies leverage ICT to enhance competitiveness by

assessing ten pillars ranging from digital content, policy, infrastructure, affordability, efficiency,

skills, usage, economic, environmental and social impacts. Regional powerhouse, South Africa,

has a higher ranking for its infrastructure and economic impact of ICT, which also being slightly

cheaper than Botswana in service and product offerings (WEF, 2012).

Botswana’s rise in ICT competitiveness can be traced to the Governments’ P70 million

(548653.000 British Pounds) investments in the East Africa Submarine Cable System which is

to provide local data users with fast internet at low costs. However, as Tlale (2012) reports,

there is a need for improvement in the area of individual usage of ICT as well as the affordability

of IT to ensure a positive economic impact. The findings of this research are expected to give

the ICT industry, with the aid of customer perspectives and knowledge, the necessary

knowledge to come up with new and innovative ways to help Botswana benefit more from ICT

and in this situation, 3G technologies, and climb up the global competitive rankings.

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1.5 OUTLINE OF CHAPTERS

There are 6 chapters in this study, with Chapter 1 providing the scope and background

information, and Chapter 2 being assigned with the reviewing of current literature related to the

study. The methodology which has been used to collect data is stated and explained in Chapter

3. This is then followed by the presentation of findings and data analysis in Chapter 4. Chapter 5

sees the discussion and synthesising of key findings in relation to the literature review and

primary data: encompassing conclusions and recommendations. The final chapter, Chapter 6,

provides the researcher’s personal reflection on conducting this research.

1.6 CHAPTER SUMMARY

What this introductory chapter has done is provide a framework to which this research paper is

based on. The aims of the study and the research questions and objectives presented will

provide a road map to how to collect data relevant to achieve the aim. The motive of this

research has also been brought forward, together with the technological developments of

Botswana and her ICT Competitiveness history.

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CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This chapter discusses the theoretical and empirical literature from previous studies concerning

the adoption of mobile and wireless services. The focus is mainly on the 3G wireless technology

and its impact on economic growth and competitiveness, with the logic that customer

perspectives have a major influence in the success and penetration of a new service. Another

key area of interest will be the evolved Network Readiness Index structure and how it is suited

to measure economies’ competitiveness.

2.1GLOBAL ICT COMPETITIVENESS

In its decade of existence, the World Economic Forum’s Global Information Technology Report

(GITR) has relied on the Networked Readiness Index (NRI) for measuring the degree to which

economies across the world leverage ICT for enhanced competitiveness (Churu, 2012). During

this period, with the help of the NRI, the GITR has helped policymakers and relevant

stakeholders monitor their economies’ strengths and weaknesses as well as their progress over

time. In addition, the report has assisted in the identification of the best practices in networked

readiness and has designed strategies for establishing optimal ICT diffusion to boost

competitiveness (WEF, 2012, p.3).

Apart from a few minor adjustments in the variable level to better reflect the dynamic trends in

the technology landscape, the NRI has remained relatively stable and unchanged since its

adoption in 2002. Dutta and Jain (2003) proposed that this has allowed for meaningful

comparisons across time and created a valuable database of technology metrics. However, the

ICT industry is not the same as it was back in 2002 and Katos (2010, p.16) asserts that it’s

affecting our societies differently and increasingly transforming our economies. We now live in a

world where the internet and its related services are a necessity and are accessible by the

average person and where the business world has become so competitive and complex that

instant communication is a daily requirement. More precisely, over the past decade, the world

has become increasingly “hyperconnected” (WEF, 2012). Social media and the rapid growth of

mobile devices are all drivers of this process of hyperconnectivity. Society has changed and so

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have the patterns and relationships between consumers and enterprises, and citizens and the

state.

According to Fredette et al. (2012) hyperconnectivity is arguably the most important trend in

today’s world, with so many new possibilities and opportunities to increase productivity and well-

being by re-defining business as we all know it, innovation and improving the way public

services are delivered. However, Wang and Huang (2011) warns that with the increasing

hyperconnectivity comes the challenges and risks in terms of cybercrime, the flow of personal

data and access to information. Despite all of this though, there is no denying that the impact on

societies today is growing due to the world’s increasing hyperconnectivity.

In this context, it is important that any methodology adopted to monitor and measure the

adoption and impacts of ICT on an economy or society must be able to incorporate the evolving

environment and deal with the fact that we are living in a hyperconnected world. The 2012/2013

edition of the GITR has undertaken a reviewed NRI framework which has gone through

revamping to ensure its relevance and to remain at the fire-front of measuring and

benchmarking the role of ICT for competitiveness and well-being for the next decade (WEF,

2012). According to Geiger et al. (2012) the NRI framework is inspired by four underlying

principles:

Measuring the economic and social impacts of ICT is crucial.

An enabling environment determines the capacity of an economy and society to benefit

from the use of ICT.

ICT readiness and usage remain key drivers and preconditions for obtaining any

impacts.

All factors interact and co-evolve within an ICT eco-system.

The framework should provide clear policy orientations and identify public-private

partnership opportunities.

As a result, the framework gauges:

the friendliness of a country’s market and regulatory framework in supporting high levels

of ICT uptake;

the degree of a society’s preparation to make good use of an affordable ICT

infrastructure;

Page 8 of 58

the efforts of the main social agents—that is, individuals, business, and government—to

increase their capacity to use ICT as well as their actual use of ICT in their day-to-day

activities; and

The broad economic and social impacts accruing from ICT and the transformation of a

country toward an ICT- and technology-savvy economy and society.

Figure 2.0: the evolved Networked Readiness Index Structure

Source: WEF (2012, p.6)

GITR uses 10 pillars of ICT growth and development to rank economies: Politicaland regulatory

environment, Business and innovation environment, Infrastructure and digital content,

Affordability, Skills, Individual usage, Business usage, Government usage, Economic impacts

and Social impacts. Within these 10 pillars there are a total of 53 variables which are used to

come up with the score for each pillar (WEF, 2012).

Page 9 of 58

2.2 BOTSWANA’S ICT COMPETITIVENESS

WEF (2012) has awarded Botswana with a score 3.58. Even though this places Botswana in

89th position from 142 countries, it is still just 0.08 units above the score considered to be of the

worst ICT competitive countries (See Figure 2.1). Botswana has been placed sixth in Africa

behind Tunisia, Mauritius, South Africa, Cape Verde and debutants Rwanda. The fact that

Botswana is sixth in Africa with a rather unsatisfactory performance globally shows how Africa is

still lagging behind the rest of the world.

Figure 2.1: Networked Readiness Index map

Source: WEF (2012, p.9)

Figure 2.1 shows that overall, European countries continue to dominate and remain at the

forefront of the efforts to leverage ICT to transform its economy and society. According to the

European Commission (2013) the reason behind Europe’s success in technology is the

integration of ICT in their competitive strategies, which will then boost innovation. Another

reason is that they are able to incorporate ICT in all aspects of society, be it healthcare or

education.

Botswana’s global ICT competitiveness has been deteriorating since 2008 and this can be

attributable to the fact that she has not been performing particularly well in some of the

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important pillars especially in comparison with other African countries such as Tunisia, Mauritius

and South Africa. For example, South Africa and Mauritius has for the past five years out

performed Botswana on the pillar of political and regulatory environment which reflects a

country’s ability to develop business ideas and assess ICT penetration. Despite a relatively

good performance on the social impact pillar, Botswana has also been out performed on the

affordability and government usage pillar which considerably affects the economic usage pillar.

These trends have led to a 12 places decline between 2008 and 2012, 77th position in 2008/09,

86th and 91st in 2009/10 and 2010/11 respectively and a slight rise to 89th in 2011/12 (see Figure

2.2).

GITR 2011/12 Rank out of 142

GITR 2010/11 Rank out of 138

GITR 2009/10 Rank out of 133

GITR 2008/09 Rank out of 134

70

75

80

85

90

95

Figure 2.2: Botswana's Overall ICT Competitiveness (2008-2012)

2.2.1 Environment sub-index

The environment sub-index gauges the friendliness of a country’s market and regulatory

framework in supporting high levels of ICT uptake and the development of entrepreneurship and

innovation-prone conditions (WEF, 2012, p.7). In order to maximise on the potential impacts and

benefits of ICT, a country should have a supportive environment (Microsoft, 2004; Taylor and

Zhang, 2007). WEF’s environment sub-index includes a total of 18 variables distributed into two

pillars.

The political and regulatory environment pillar (nine variables) examines the quality of

the national legal framework of a particular country and assesses the extent to which it

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facilitates ICT penetration and development. The assessment of the regulatory

environment includes the protection afforded to property rights, the independence of the

judiciary, and the efficiency of the law-making process, and the passing of laws relating

to ICT and software piracy. This pillar has been one of the best performing pillars for

Botswana, clocking in a ranking of 47th, 45th, 47th and 40th in 2008/09, 2009/10, 2010/11

and 2011/12 respectively (WEF 2008; WEF 2009; WEF 2010; WEF 2011; WEF 2012).

According to The Heritage Foundation (2013), the overall regulatory environment of

Botswana encourages entrepreneurial activity, together with a fairly well developed

financial sector. The labour regulations are relatively flexible and support the

development of a modern labour market. The legal system is also sufficient to ensure

commercial dealings, and also the protection of intellectual property rights has improved

significantly over the years. However, Keetshabe (2012) states that in Botswana there is

still no legislative framework to facilitate and enable the provision of e-services. He

continues to assert that current laws tend to prohibit, rather than promote the use of ICT

to provide services and gives an example of how the legislation does not provide the

recognition of electronic signatures, authenticity of electronic documents and

admissibility of electronic evidence, to name a few.

To address these legal issues, Botswana must aim at developing a simple, consistent

and technology-neutral legislation to recognize ICT processes and transactions –

including recognition of electronic signatures as a valid authentication method for

electronic transactions which will ultimately give assurance and confidence to

consumers, the business community and Government agencies to engage and adopt in

electronic transactions.

The business and innovation environment pillar (nine variables)gauges the quality of the

business framework conditions to boost entrepreneurship, taking into account

dimensions related to the ease of doing business (Geiger et al. 2012). This pillar also

measures the presence of conditions that allow innovation to flourish by including

variables on the overall availability of technology, the demand conditions for innovative

products, the availability of venture capital for financing innovation-related projects, and

the presence of a skillful labor force.

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As an effort to raise the level of investment and provide financial assistance to citizens

looking to venture into innovation-related projects, or any project for that matter, the

Government of Botswana has set up institutions such as the Citizen Entrepreneurship

Development Agency (CEDA), Botswana Development Corporation (BDC) and the

National Development Bank (NDB) (BIDPA, 2009). Launching a business costs less

than 2 percent of the level of average annual income and requires no minimum capital

(The Heritage Foundation, 2013). With the availability of financial support and with a

growing economy and society demanding the latest in technological advancements, it

comes as no surprise that this is one of the best performing pillars of Botswana.

2.2.2 Readiness sub-index

The readiness sub-index measures the degree to which a society is prepared to make good use

of an affordable ICT infrastructure and digital content (WEF, 2012, p.7). The readiness sub-

index has a total of 12 variables distributed into three pillars:

The Infrastructure and digital content pillar (five variables) monitors and measures ICT

infrastructure development, in terms of the state of the mobile network coverage,

international internet bandwidth, secure internet services and also the accessibility of

digital content.

Botswana is a well endowed country in terms of developed and modern

telecommunications infrastructure. There is a fixed-line telecommunications network in

place – including a complete fibre-optic ring that could reach 80% of the population if

fully utilised (BTA 2010, cited in Sesigo 2011). Despite Botswana’s impressive

infrastructure, the main problem is that its citizens have not really benefited from it.

According to Sesigo (2011), Botswana, in common with other developing nations, has

lagged far behind in providing access to and usage of the latest ICT tools and resources

to its citizens.

The affordability pillar (three variables)is a very important one in terms of ICT adoption

as it assesses the costs associated with accessing ICT services, whether it is via mobile

telephony or fixed broadband internet, as well as the level of competition in the internet

and telephony sectors that determine this cost.

Botswana telecommunications costs are high, and even though in real terms, they have

been reducing for the past decade, they are still high by international standards.

According to Chere (2011), this has been a major factor in disabling investment

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opportunities in the country. The fact that there are only three prominent cellular and

telecommunications providers could explain a lot in terms of the level of competition, but

investments such as the expansion of terrestrial networks Nteletsa 2 and E-PORTAL,

and investments on the east and west African Sub-marine cables; one has to wonder

why costs are still high.

The skills pillar (four variables) will assume that there is a cost effective and well

developed ICT infrastructure, and will analyse another important aspect that influences

ICT adoption, and that is the ability of a society to make effective use of ICT thanks to

the existence of basic education provided by the countries’ educational system, the rate

of secondary education enrolment and level of adult literacy.

The Government of Botswana has invested heavily into the development and growth of

its education system in-line with the country’s Vision 2016 pillar of “An Educated and

Informed Nation.” The Ministry of Education and Skills Development takes up the largest

share of the country’s budget and in 2013, this budget will among other things cater for

an increase in bursaries for post secondary students and open new secondary schools

(Matambo, 2013). The adult literacy rate in Botswana currently stands at 82.9%, which is

above most SADC countries (BEDIA, 2013).

2.2.3 Usage sub-index

The usage sub-index (15 variables) assesses the individual efforts of the main social agents –

that is individuals, businesses and government – to increase their capacity to use ICT, as well

as their actual use in their day-to-day activities with other agents (WEF, 2012, p.7).

The individual usage pillar (seven variables) looks at the ICT penetration at individual

level and also measures ICT diffusion with the help of indicators such as the number of

mobile phone subscriptions, individuals using the internet, households with a personal

computer (PC), households with internet access, both fixed and mobile broadband

subscriptions, and the use of social networks.

Botswana ranked 95th from 133 economies in 2009 on this pillar with an estimated

120,000 internet users (WEF, 2009; Internet World Stats, 2009). In 2012, there was an

increase of users to 294,000, which is 14% of the population. This resulted in the slight

change in rankings in the individual usage pillar, this time 102nd from 142 economies.

The 294,000 Facebook subscribers as at December 2012 will also have a positive effect

on the individual usage ranking.

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The business usage pillar (five variables)measures the extent to which businesses utilise

the internet as well as their efforts to integrate ICT into an internal, technology-savvy,

innovation-conducive environment that generates productivity gains. This pillar also

measures a business’s technology absorption capacity as well as its overall capacity to

innovate and the production to technology novelties measures by the number of PCT

patent applications. It also establishes the availability of staff training within business’s,

which will ultimately indicate the extent to which management and employees are better

capable of identifying and developing business innovation (WEF, 2012).

The government usage pillar (three variables)looks into the efforts governments make to

implement their visions for ICT development, and the number of government services

they provide online.

Botswana has moved forward with its National e-Government Strategy 2011-2016,

which according to Molale, (2011), to be successful, will need all of the ministries and

agencies to introduce minor changes in technology, business processes and

organisational structures. The making available of all government services online will not

only improve public sector service delivery but will also increase the use of ICT across

all segments of society.

2.2.4 Impact sub-index

Comprising of a total of eight variables, the impact sub-index measures the social and economic

impacts accruing from ICT to boost competitiveness and well-being and that reflect the

transformations toward an ICT and technology-savvy economy and society.

The economic impacts pillar establishes the effect of ICT on a country’s competitiveness

in relation to the generation of technological and non-technological innovations in the

shape of patents, new products or processes, and organizational practices. This pillar

also measures the overall shift of an economy toward more knowledge-intensive

activities (Dutta et al. 2012).

The social impact pillar aims at assessing the ICT-driven improvements in well-being

thanks to its impact on the environment, education, energy consumption, health

progress, or more-active civil participation. It establishes the extent to which ICT is

present in education as a proxy for the potential benefits that are associated with the use

of ICT in education (WEF, 2012).

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2.3 ICT MARKET

Undoubtedly, the market size of any economy and or economic sector will affect its productivity

because a large market will allow companies to exploit economies of scale. The bigger the

market, the higher the expected return from investments. This is no different with the ICT market

of Botswana.

Mobile telephony networks of the Public Telecommunications Operators (PTOs) namely

Botswana Telecommunications Corporation (BTC), Be Mobile, Orange Botswana and Mascom

Wireless are estimated to cover at least 95 percent of the Botswana population (Lute, 2011).

These are the main service providers as they are currently the only licensed telephony

operators which are permitted to provide both mobile and fixed telephony services. However,

despite the permissive nature of the license, BTC remains the only PTO to provide both mobile

(Be Mobile) and fixed telephony while Orange Botswana (Pty) Ltd (Orange) and Mascom

Wireless Botswana (Pty) Ltd (Mascom) provide mobile telephony only (BTA, 2012).

2.3.1 Market share in mobile telephony

For the period ending March 2012, Mascom continuesto hold the lion’s share in the mobile

telephony market like it did for the period ending March 2011,recording 54% of the total

subscriber base, followedby Orange at 35% and lastly BTC (Be Mobile) at 11%. See Chart 2.0

and Chart 2.1 below:

14%

34%52%

Chart 2.0: Market share 2011

Be Mobile Orange Mascom

11%

35%54%

Chart 2.1: Market share 2012

Be Mobile Orange Mascom

2.3.2 Financial performance

The two mobile operators, Mascom and Orange, as at December 2011 had accumulated total

revenue of P2.24 billion, which can be seen as a moderate increase of 1.8% compared to

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P2,20billion in December 2010. There was also a rise from P680 million of total net profits for

the year in December 2010, to P700 million in December 2011 (BTA, 2012, p.35).

These figures can be traced to the increase in internet uptake in Botswana (See Figure 2.5)

more specifically mobile internet for Mascom and Orange.

Figure 2.5: Internet uptake in Botswana: March 2011 and March 2012

ADSL Fixed Wireless Mobile Internet0

50000

100000

150000

200000

250000

300000

Mar-11Mar-12

Figure 2.5 shows that the overall internet uptake has increased from 203,885 subscribers in

March 2011 to 279,429 in March 2012 (294,000 at December 2012). According to BTA (2012),

fixed mobile internet and ADSL constitute only 6% of the internet subscribers whilst mobile

internet accounts for 94%. ADSL and fixed wireless internet witnessed slight changes to their

number of subscribers between March 2011 and March 2012. Mobile internet performed better

with an increase of subscribers from 185,971 to 259,486 between March 2011 and March 2012.

According to the World Bank (2012), this has had a positive impact on the overall internet

penetration in Botswana as it moved from 10% in 2011 to 13.8% in 2012.

The increase in mobile internet subscribers has come about mainly due to the rigorous attempts

to generate new revenue streams and the securing of market share by the three PTO’s. Over

the years the companies have moved forward from the EDGE and Second Generation (2G)

wireless technologies to more advanced 3G and 3.5G technologies. As previously stated in this

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research, these services have the potential to drive a country into a new dimension of

technology that will see them within arm’s length of the world’s most technologically advanced

countries.

2.4THIRD GENERATION (3G)

The world of telecommunications has changed rapidly as we enter the era of convergence

between wireless networks, broadband communication and the content sector. According to

Prakash and Behera (2010) demand for advanced services such as mobile internet and mobile

video have risen immensely and have been labelled as the main catalyst for the continuous

growth of the telecommunications industry. The mobile industry has been gaining momentum

for years now. In 2009, mobile technology was dubbed the most rapidly adopted technology in

history with an estimated 4.6 billion subscriptions globally. Today figures published by the

United Nation’s International Telecommunications Union (ITU) reveal the impressive spread of

mobile connectivity. According to ITU (2013) “Facts and Figures” report, mobile-cellular

penetration rates stand at 96% and there are now 6.8 billion mobile-cellular subscriptions

globally. This is literally almost as many people as there are in the world (7.1 billion).

For mobile technology to thrive it requires a pedestal on which it can succeed and the Third

Generation of wireless technologies (3G) has been such a pedestal since its first adoption in

2001. According to Lee et al. (2009) the successful diffusion of 3G technology is necessary for

the provision of many advanced applications via the mobile platform such as mobile broadband

internet and video. From a global perspective, deployment of 3G services is significantly more

developed in some countries than others.

The first 3G network offered for commercial use was launched in Japan in 2001 (Chen, 2007).

And the first African country to adopt the network was Mauritius in 2004. Botswana introduced

this network in 2008 and the coverage of the network is mostly concentrated in and around the

country’s two largest cities, Gaborone and Francistown (Garg and Garg, 2011). 3G services are

therefore a recent development in Botswana hence literature on the network in Botswana is

scarce and scattered.

Research by Garg and Garg (2011) aiming to assess the usage patterns and adoption of 3G

services in Botswana, revealed that there is a high level of mobile penetration in Botswana.

However, the research also revealed that 62% of the researcher’s participants were aware of

3G services in Botswana and only 8% of the 62% actually using it. BTA (2012) asserts that even

though internet penetration is perceived to be low in Botswana, there are still signs that mobile

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internet via 3G is on the rise as there is an increasing number of individuals accessing the

internet through mobile handsets. BTA confirms that the exact number of such individuals is yet

to be measured and until then, low estimates will continue to be cited in various literatures.

Qualcomm (2009) states that 3G networks play a vital role in expanding access to essential

communication (voice) and value-added information (data) services, as well as improve the

overall level of tele-density. An improved tele-density in Botswana can lead to benefits such as

an enhanced GDP and job creation opportunities in the telecommunications sector.

Shapiro and Hassett (2012) suggests that 3G services are enabling employers to provide

employees with real-time access that can help assist them in responding to customers’ claims

more quickly and effectively, hence increasing productivity.

3G technology is also set out to improve people’s quality of life. Communication services used

on a daily basis have improved tremendously with 3G technology. 3G has the ability to provide

healthcare services to people in rural areas as soon as new wireless healthcare services and

devices enter the market (Qualcomm, 2009). For instance, wireless health services ranging

from medication reminders to remote diagnostic and monitoring services have the potential to

improve and extend life.

Qualcomm further mentions that other industries that can benefit from the adoption of 3G

technology include the financial services and mobile commerce. Mobile financial services such

as mobile banking supported by 3G technologies will provide a new level of convenience,

visibility and safety when it comes to managing finances, no matter what the consumer’s socio-

economic status may be.

However, in light of all the success and impact of the technology, 3G and its applications have

encountered obstacles that have hindered the technology’s development and user acceptance.

Botswana might have an infrastructure that is up to international standard, but the cost of

cellular infrastructure is high. According to Diare (2013), the implementation of 3G is very

expensive as it requires closer base stations and upgrading base stations is very costly. There

are high spectrum-license costs and network deployment costs. A positive with 3G is that it can

be captured by a wide variety of handsets, but the problem lies with the fact that most of those

handsets are expensive and cannot be afforded by most people. Another drawback of 3G is its

high energy consumption. Assessing 3G will have a negative effect on a handsets’ battery life.

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2.5USER ACCEPTANCE

Information technology acceptance and use is a topic that has captured the attention of many

technology researchers for many years now. Bugembe (2010) suggests that this is because IT

usage has risen beyond its traditional role of operational support and now plays a central role in

formulating business strategies and enhancing productivity.

The main aim of technology acceptance theories used in recent literature is to explore the

factors that could possibly influence the adoption and diffusion of new technologies throughout a

social system. According to Rocker (2009), one of the best and mostly used models for this task

is the Technology Acceptance Model (TAM) developed by Fred Davis. What makes TAM similar

to most technology acceptance theories is that it also assumes that users can be persuaded to

adopt a certain technology based on cost-benefit considerations. What makes it different to

some is that it presupposes that two particular constraints can also influence user’s acceptance

of a technology; Perceived ease of use (PEOU) and Perceived usefulness (PU).

Based on the original definitions of (Davis et al. 1989 cited in Baran 2009), PEOU refers to the

degree to which a user expects the target system to be free of effort. PU on the other hand

describes the individual’s subjective probability that using a specific application system will

increase his or her job performance within an organizational context.

PEOU consists of determinants such as; easy to use, easy to read, the understandability and

complexity. Venkatesh (2000) describes PEOU as an individual’s perception on how easy the

innovation is to learn and use. In some situations, users and prospective users may have the

belief that a certain technology may be successful but at the same time believe the technology

is too difficult to understand and use and that the benefits of usage are outweighed by the effort

of application. Users look for a technology that is capable of being used advantageously and

according to Bugembe (2010), if we look at it from an organizational context, where people are

generally reinforced for good performance by raises and bonuses, a system high in perceived

usefulness is one for which a user believes in the existence of a positive use-performance

relationship.

2.6CHAPTER SUMMARY

Even though Botswana is among the top ten countries in Africa, her global ICT competitiveness

ranking has been on the decline for the past four years. Botswana has been performing well for

its political, business and innovation environment, but the main reason for this decline has been

the poor performance in the readiness and usage sub-indexes. The country is trying to improve

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its competitiveness by implementing new policies and strategies, of which some will aim at

improving the government and individual usage and also the educational system. The internet

uptake in Botswana, due to the improving mobile market, has been doing particularly well. This

is also attributable to the adoption of 3G technology, which since its adoption into the mobile

market of Botswana has attracted more customers to use mobile internet.

Botswana has to aim at giving greater focus to improve the pillars incorporated in the readiness

and usage sub-indexes in order to improve her overall competitiveness.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter discusses the methodology that has been used to collect data for this research. It

is organized into six different but inter-related segments; the research philosophy, strategy, data

collection methods, data analysis, sampling, ethics and limitations of the research. When we

talk of research methodology we not only talk of the research methods but also consider the

logic behind the methods we use in the context of our research study and explain why we are

using a particular method or technique and why we are not using others so that research results

are capable of being evaluated either by the researcher himself or by others (Kothari, 2004,

p.8). The methodology for this research has been based on the framework known as the

research onion.

3.2 RESEARCH ONION

The research onion is a framework which is used to provide a systematic process for carrying

out primary research (Saunders et al, 2009). It also helps the researcher in choosing the

relevant philosophy, approach, strategy, data collection methods and instruments in relation to

his/her research topic.

Figure 3.0: Research Onion

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Figure 3.0 show that there are six different research layers which must be understood clearly in

order to carry out research and obtain primary information. There is the research philosophy,

which according to Saunders et al (2009) contains important assumptions about the way in

which the researcher view the world. The philosophy the researcher adopts (for example;

Positivism, Realism, Interpretivism, Pragmatismetc) is influenced by practical considerations

and his/her particular view of the relationship between knowledge and the process by which it is

developed.

Another level on the onion is the research approach, in which the researcher decides to use

either the deductive or the inductive approach. This is followed by the research strategy that the

researcher is planning to employ. The onion also shows the use of data collection methods (and

the decision to use mono, mixed or multi methods), time horizons (cross-sectional and

longitudinal) and lastly procedures of data collection. However, it is important for the researcher

to understand all the items presented by the onion in order to know which are relevant to his

research. It is also important for the reader to understand the onion as well in order to relate to

the researcher and understand his reasons for adopting some of the items on the onion.

3.2.1 Research Philosophy

As indicated by figure 3.0, there are ten possible philosophies a researcher can adopt when

conducting research. However, it is vital that a researcher understands that no one philosophy

is better than another. Fact is they are better at doing different things. It all depends on the

research questions the researcher is seeking to answer. The research philosophy can be

branched into three different ways; Epistemology (which constitutes what is acceptable

knowledge), Ontology (which is concerned with the nature of reality) and Axiology (which is a

branch of philosophy that studies judgements about value). Each contains important differences

which influence the way in which the researcher might view and think about the research

process. It is then based on these three branches that the researcher is able to align himself

with the appropriate philosophy. And because this research is a management research, there

are mainly four philosophies that can be possibly be relevant and adopted for this research.

3.2.1.1 Positivism

This philosophy presents the idea that reality is stable and can be observed and described

objectively (Saunders et al, 2009). The assumption is that the researcher is independent, which

means he/she will neither affect or be affected by the subject of the study. If your research

philosophy reflects the principles of positivismthen you will probablyadopt the philosophical

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stance of the natural scientist. You will prefer working with anobservable social reality and that

the end product of such research can be law-like generalizations similar to those produced by

the physical and natural scientists (Remenyi et al, 1998). In order to formulate the research

strategy to collect data, the researcher is likely to use existing theories to develop hypotheses

which will go through rigorous testing leading to the further development of theory.

3.2.1.2 Realism

Realism is an epistemological position which like the positivism approach relates to scientific

enquiry. It is similar to positivism in that it assumes a scientific approach to the development of

knowledge. The essence of realism is that what the senses show us as reality is the truth: that

objects have an existence independent of the human mind (Saunders et al, 2009). The meaning

and in particular the relevance of realism for business and management research becomes

clearer when two forms of realism are contrasted. The first type of realism is direct realism. It

simply asserts that what you see is what you get (what we experience through our senses

portrays the world accurately). The second type of realism is critical realism which argues that

what we experience are just sensations, images of the real world not the things directly (Sellers

2011).

3.2.1.3 Interpretivism

This approach advocates that it is important for the researcher to understand differences

between humans as social actors and requires the researcher to understand the term “social

actors” and grasp the subjective meaning of social action as the emphasis is on the difference

between conducting research among people rather than objects (Bryman and Bell, 2007;

Saunders et al, 2009). According to Descombe (2010) this philosophy is concerned with taking

interest in social sciences, describing human experiences, dealing and presenting matters the

way other people perceive them and appreciate that people see things differently.

Interpretivism is critical of the positivism because it seeks to collect and analyze data from parts

of a phenomena and, in so doing, positivism can miss important aspects of a comprehensive

understanding of the whole.Interpretivism proposes that there are multiple realities, not single

realities of phenomena, and that these realities can differ across time and place (Neill, 2006).

3.2.1.4 Pragmatism

This is the fourth philosophy available to be adopted by the researcher and it argues that the

most important determinants of the researcher’s choice of epistemology, ontology and axiology

are the researcher’s choice of epistemology; ontology and axiology are the research questions

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because one may be more appropriate than others in answering particular questions. In a

situation where the research questions do not clearly indicate whether to adopt the positivism or

interpretivism philosophy, the researcher can take up the pragmatism because it allows the

researcher to work with variations in epistemology. Tashakkori and Teddlie (1998, cited in

Saunders et al, 2009) suggests that pragmatism is intuitively appealing because it avoids the

researcher engaging in rather pointless debates about concepts such as truth and reality, and

Descombe (2010) suggests that it places much emphasis on what is ‘practical’ than the

‘abstract’ when it comes to issues of knowledge and truth.

With this basis and knowledge and that from the aforementioned philosophies, and because of

the researcher’s inability to affect or be affected in any way by the ways and factors that the

World Economic Forum uses to rank countries’ competitiveness in the global economy (making

it a positivism) and the researcher’s freedom to undertake the research in a subjective way that

allows him to find out the factors that can influence users to adopt a new technology (making it

interpretivism), this research has been conducted using the pragmatism philosophy.

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3.2.2 Research Approach

According to Luck and Rubin (1987) as cited in Chordia (2012, p.17), a research design is the

determination and statement of the general research approach or strategy adopted for a

particular project. The research approach will be an essential guide for the researcher and his

data collection and analysis and will always be associated and divided into two approaches,

being the Deductive and Inductive approaches. In this research, since the researcher has

already adopted the pragmatism philosophy, it is much more appropriate that the research be

conducted using a mixture of both deductive (apply/test theory) and an inductive approach

(collect data and apply theory) because, according to the Stanford Encyclopedia of Philosophy

(2008), pragmatism suggests that the value of any theory can only be judged by how well it will

work in answering real practical needs and how well it works in practice.

3.2.2.1 Deductive

A deductive approach owes much to a scientific research and it involves the development of a

theory that is subjected to a rigorous test (Saunders et al, 2009). The characteristics and stages

through which deductive research will progress can help in searching for the casual

relationships between variables, like a country’s ICT competitiveness and the users’ perceived

attractiveness and usefulness of new technology. To establishing the relationship between

these two variables, it is important to select samples of sufficient size in order to generalize

conclusions.

3.2.2.2 Inductive

On the other hand, the inductive approach, which is associated with interpretivism, differs from

the deductive in that it is mostly used by social science researchers who are critical about an

approach that enables a cause-effect relationship to be made without taking time to understand

how humans interpret their social world. It is a theory building process, where the researcher

starts by observing specific instances and then seeking to establish generalizations about the

phenomenon under investigation. It involves the collection of qualitative data.

3.2.3 Research Design

With the aim of gaining more insights to the factors that can influence users to adopt a new

technology, the benefits that can arise from the adoption of 3G technology and its overall impact

on the economy and competitiveness of Botswana, a case study will be used. This is because a

case study is used for ‘theory-testing’ and ‘theory-building’ which fits well with the adopted

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research approach. A case study involves the empirical investigation of a particular

phenomenon within its real life context using multiple sources of evidence.

3.2.4 Research Methods

3.2.4.1 Target population and samples

The research population chosen for analysis in this research will consist of upper senior

management and research consultants and also users of the mobile networks under

investigation, from which a sample is to be selected for the research. Quinlan (2011) argues that

a sample is a subset of a population and is representative of the overall population

(Population=P). In this research, two populations (P1 and P2) will be targeted as shown in Table

3.0. The population will be selected based on their experience and possible affiliations with

wireless data technology.

Table 3.0: Population and samples

Organization Population Size

Sample Size Participant Position

Notation

Botswana Telecommunications Corporation

3 2 Research consultants

P1

500,000+ 50 Mobile subscribers

P2

Total 500,000+ 52

3.2.4.2 Sampling

For some research questions in other studies it might be possible to collect data from an entire

population, probably because it is of a manageable size. However, this does not necessarily

mean the researcher will obtain more useful results than from collecting data from a sample.

There are two types of sampling methods, one being the Probability (random) method and the

other being the Non-probability (non-random) sampling method. With the probability method,

subjects are randomly chosen from a population, and this means that it’s possible to answer

research questions and to achieve objectives that require the researcher to statistically estimate

the characteristics of a population from the sample.

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Alternatively, there is non-probability sampling. It provides a range of alternative techniques to

select samples based on the researcher’s subjective judgement. Non-probability sampling

consists of five techniques: Quota sampling, Snowball sampling, Convenience sampling,

Purposive sampling and Self-selection sampling.

3.2.4.2.1 Quota sampling

Quota sampling is entirely non-random and is normally used for interview surveys. It is based on

the premise that the researcher’s sample will represent the population as the variability in the

sample for various quota variables is the same as that in the population (Barnett 1991, cited in

Saunders et al, 2009).

3.2.4.2.2 Snowball sampling

This technique is commonly used when it is difficult to identify members of the desired

population. The researcher using the snowball sampling technique will then have to find one

participant, conduct the research and ask the participant to recommend another participant. The

researcher goes through the same procedure with the next participant and when finished, asks

that participant to recommend another participant. This goes on until no more participants are

given (Quilan 2011).

3.2.4.2.3 Self-selection sampling

With this technique, it is the participants who are to identify themselves and their desire to take

part in the research after a public request from the researcher. They do so by their free will and

maybe influenced by the research question(s) or objective(s) (Kothari 2004).

3.2.4.2.4 Convenience sampling

This sampling technique (also known as Haphazard sampling) involves selecting haphazardly

those cases that are easiest to obtain for your sample, such as the person interviewed at

random in a shopping centre. The sample selection process is continued until the required

sample size is met (Saunders et al, 2009).

3.2.4.2.5 Purposive sampling

This last technique, purposive sampling (also known as judgemental sampling), will be adopted

for this research. This is because it enables the researcher to use his own judgement to select

participants who will be best suited to answer research questions and make sure objectives are

met. The purposive sampling approach is also appropriate because it works well with very small

samples and this research only has two samples. Reasons for sampling in this research are that

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there are time and budget constraints that will prevent the researcher from assessing the entire

population.

3.2.4.3 Data Collection Instrument

Primary data will be obtained by using semi-structured interviews and both open and close

ended questionnaires and this is because the interviews provides the researcher with an insight

into the participants attitude and ideas towards a subject and open ended questionnaires allow

for the in depth discussion of topics and allows the researcher to better access the respondents’

true feelings on the issue presented to them. Close-ended questions are more specific and are

easily analyzed and appropriate for simple responses.

3.2.4.4 Data Collection Procedure

Data will be collected through the interviewing of experienced participants in the field of wireless

technologies and a total of 50 questionnaires will be distributed to mobile subscribers. Only 50

will be distributed because of the time constraints and inability to analyse a large amount of data

in a short period of time. The researcher believes 50 will contain sufficient data to help reach the

objective of finding out the factors that influence users to adopt new technology. Secondary data

will be collected from books, newspaper articles and reviewed electronic journals.

3.2.4.5 Data Analysis Procedure

Primary data collected will then be summarized. In other words, key points that emerged will be

broken down from long statements to short statements and might have to be rephrased to be

able to understand it better.

3.2.4.6 Measures to ensure trustworthiness

Validity and reliability are two fundamental elements in the valuation of a research instrument. It

is the duty of the researcher to create reliability and validity tests, be it to survey questionnaires

or any instrument he is using to obtain primary data. Validity is concerned with the extent to

which an instrument measures what it is intended to measure, and reliability is concerned with

the ability of an instrument to measure consistently (Tavakol and Dennick, 2011). It should be

understood that the reliability of an instrument is closely associated with its validity. However,

according to (Bernstein 1994, cited in Tavakol and Dennick 2011) the reliability of an instrument

does not depend on its validity and it’s actually possible to objectively measure the reliability of

an instrument.

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Interviews

Interviews have been recorded using a digital voice recorder in an attempt to ensure the validity

and credibility of the data collected and presented in this paper. The recordings were converted

to word document format and returned to interviewees for verification. Actual dialogue will be

used in the data analysis to further ensure credibility and validity.

Questionnaires

A total of 50 completed questionnaires were collected and to measure their reliability, the

Cronbach’s alpha was used (calculated). Developed by Lee Cronbach in 1951, the alpha is

expressed as a number between 0 and 1 and it sets out to provide a measure of the internal

consistency of a test or scale. Internal consistency describes the extent to which all the items in

a test or scale measure the same concept, hence it is connected to the inter-relatedness of the

items within the test (Tavakol and Dennick, 2011). Therefore, the internal consistency should be

measured to establish validity. The incorrect use of Cronbach’s alpha has sometimes seen off

tests and scales as unreliable and not generating trustworthy results, so it is very important that

it is understood very well by the researcher.

Table 3.1 and Table 3.2 in Appendix show the reliability statistics of the researchers’ collected

questionnaires; number of items in the questionnaire and the alpha value, and the Item-total

statistics respectively.

3.3 ETHICAL CONSIDERATIONS

Consent letters were written to all the organizations involved in this research requesting for

permission to solicit information. Their rights and responsibilities were explained to them,

concerning things like withdrawal from the study and their safety by being involved in this

research. All data was kept confidential and for educational purposes only.

3.4 LIMITATIONS OF THE STUDY

3.4.1 Time

The availability of adequate time proved to be the main limitation to the study. Since the

commencement of the independent studies, the researcher had four other research

assignments to work on and at the same time preparing for the very challenging final year

examinations. Despite this the researcher was still able to come up with a solid piece of work

but there is no doubt that more time could have yielded a better final paper.

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3.4.2 Response from participants

It was difficult to schedule interviews because of company policies not to get involved in

academic researches that the researcher had hoped to acquire information from. Only one

interview was conducted. Participants took long to respond to questionnaires which prompted

the researcher to do a lot of follow-ups to speed up the response rate to have time to analyze

the data.

3.5 CHAPTER SUMMARY

This chapter was mainly an explanatory chapter on how primary data was collected. The

philosophy adopted was the pragmatism, because of the researcher’s inability to affect or be

affected in any way by the ways and factors that the World Economic Forum uses to rank

countries’ competitiveness in the global economy, and the researcher’s freedom to undertake

the research in a subjective way that allows him to find out the factors that can influence users

to adopt a new technology. The research is not theory-based and does not seek to develop a

new theory of its own, hence the use of questionnaires and semi-structured interviews.

Typical with many research papers, this one was also subject to limitations. Time proved to be

the main problem encountered by the researcher, as well as participants taking long to respond

to questionnaires.

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CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

The aim of this research is to investigate the impact of the adoption of third generation (3G)

wireless technology on the economy, growth and competitiveness of Botswana, with the view of

customer perspectives to analyze the success of the technology and recommending ways it can

be improved in the future.

In order to achieve the above aim and comprehensively answer the research questions

mentioned in Chapter 1, the researcher has opted to use interviews, closed and open-ended

questionnaires to collect data. The purpose of this chapter is to present and analyse the data

collected. Firstly, the chapter will present the respondents’ profiles, and the next part of the

chapter will see the presentation of findings and followed by the interpretation and analysis of

individual research questions.

4.2 Research objectives

To review literature and establish how countries are ranked based on the factors used

by the World Economic Forum.

To establish the impact and role of Information, Communication and Technology on a

growing economy like Botswana’s.

To determine the factors that can influence users to adopt a new technology.

To determine the benefits that can arise from the adoption of 3G technology and if

Botswana is capitalizing on any of those opportunities.

To determine the weaknesses of 3G technology in Botswana and recommend a way

forward.

4.3 Textual analysis techniques

Data analysis and interpretation is the process of assigning meaning to collected data and

determining the conclusions, significance and implications of the findings (Office of Institutional

Research and Assessment, 2013). It involves the organisation of raw unorganised field data,

processing it in order to obtain its true meaning. In order to investigate the impact of 3G wireless

technology on the economy, growth and competitiveness of Botswana, this research had to be

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broad and exploratory, and fairly descriptive to be able to analyse the role of customer

perspectives in the success of new technology; hence adopting a qualitative analysis.

One of qualitative data’s characteristics is its diverse nature. Because of this, there is no

standardized procedure for analysing such data. However, according and as explained by

Saunders et al (2009), there are three ways of possibly grouping this type of data for analysis.

4.3.1 Categorisation (grouping) of meanings

This process involves two activities: developing categories and, subsequently attaching those

categories to meaningful chunks of data. By doing this, the researcher is able to recognize and

develop and test propositions.

4.3.1 Structuring (ordering) of meanings, using narrative

This process commences with the use of verbatim transcripts or complete sets of notes that

have been produced. This is applicable where research is based on individual’s accounts of

their experiences and the ways in which they explain these through their subjective

interpretations and relate them to constructions of the social world in which they live.

4.3.1 Summarising (condensation) of meanings

This is whereby long statements collected from interviews and open-ended questionnaires are

summarized into short statements and rephrased in order to extract the key points and make

sense of what has been said or stated.

Categorisation seems to be more about the fragmentation of qualitative data to further the

process of analysis. However, the researcher believes in what Musson (2004) has asserted and

that is that researchers should retain the integrity of the data they have collected. The

structuring process is irrelevant to this research because it is based on the narrative approach,

which this research has not adopted. So, based on the above reasons, the researcher has

decided to adopt the condensation technique. It will assist the researcher to become conversant

with the key themes and any relationships that may have emerged from interviews.

4.4 Background data of participants

Primary data was collected from two samples, not three as the researcher had initially hoped

and planned, as one of the respondents did not return the questionnaire she was requested to

complete. The two samples consist of Respondent A and Respondent B, both from Botswana

Telecommunications Corporation (BTC), occupying different senior positions at the organization

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(See Table 4.0). Respondent B also works closely with BTC’s subsidiary, Be Mobile. Both were

asked to answer questions relating to among others the role of information, communication and

technology on a growing economy like Botswana’s and the benefits that can arise from the

adoption of 3G technology and if Botswana is capitalizing on any of those opportunities.

Table 4.0 – Background Information of Respondents

Respondent Code Position Qualification Experience (years)

A Network planning and optimization engineer

Degree 3 years

B Data management manager

Diploma and Degree

5 years

4.6 MAJOR FINDINGS

This is a section of this chapter where results will be analysed and interpreted in relation to the

research objectives stated earlier in Chapter One and at the beginning of this chapter. In non-

standardised (qualitative research) interviews, the interview is normally audio-recorded and

subsequently transcribed (Saunders et al. 2009), and that is exactly what the researcher has

done in this research; producing a written (word-processed) account of the actual words said in

the interview. The verbatim will be used to satisfy research objectives two, four and five.

Objective one has already been dealt with in Chapter Two (Literature Review). Finally, data

extracted from questionnaires handed out to mobile subscribers has been used to deal with

Objectives three and five.

4.6.1 Objective 1

To review literature and establish how countries are ranked based on the factors used by the World

Economic Forum:

As stated in the Literature Review in Chapter Two, the World Economic Forum (WEF), for the

past decade, has released a document known as the Global Information Technology Report

(GITR), which according to the WEF (2012, p.3) has assisted relevant stakeholders and

policymakers in monitoring their economies’ strengths and weaknesses as well as their

progress over time. The literature reveals that the GITR is not a stand-alone report and it

actually relies on a comprehensive tool for measuring the degree to which economies across

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the world leverage ICT for enhanced competitiveness. This tool is known as the Networked

Readiness Index (NRI) and based on its 10 pillars of ICT growth and development, the GITR

and the WEF is able to rank countries accordingly to their ICT progression. Within these 10

pillars (Political and regulatory environment, Business and innovation environment,

Infrastructure and digital content, Affordability, Skills, Individual usage, Business usage,

Government usage, Economic impacts and Social impacts) there are 53 variables used to come

up with the score for each pillar (WEF, 2012). Not only does the NRI help in the ranking of

economies but it also assists in the identification of the best practices in networked readiness

and designs strategies for establishing optimal diffusion to boost competitiveness.

4.6.2 Objective 2

To establish the impact and role of Information, Communication and Technology on a growing economy

like Botswana’s.

Information, Communication and Technology offers opportunities to developing countries such

as Botswana and aims at playing an important role in the promoting of sustainable local

development and the acceleration of economic growth. Economies utilize ICT to achieve a

variety of development objectives including the expansion of education opportunities, reduction

of unemployment and the access to government services.

The Government of Botswana has invested a lot of money in educating its citizens. Evidence of

this is the fact that the Ministry of Education has been awarded the biggest share of the

country’s budget, which is set to go a long way in building more schools and sponsoring post

secondary students. Education in Botswana is free but not compulsory. The Ministry of

Education has authority over all the primary, junior and senior secondary schools. Even though

primary education is probably the most important stage in the educational structure, and the

government strives to make it available for everyone, Botswana has invested most in secondary

education. Currently there are 212 junior community secondary schools and 28 senior schools.

“Botswana can be commended for the effort to provide resources to junior and secondary

schools. It is understood that most of them have fully equipped computer laboratories, but

the problem is that most schools struggle with their effective use. The government has

introduced the national ICT Policy, Maitlamo, which is to provide a guide to accomplish

social, economic and political transformation through the effective use of ICT. Under

education, the policy has the ThutoNet Program which aims to provide all schools with

modern PC’s and internet access, design and implement an ICT content and curriculum

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development programme for the primary, secondary and tertiary sectors, and secure

funding to sustain ICT in education.”Respondent B

With the assistance of Information, Communication and Technology, the Government of

Botswana is looking to make available all Government services online for the public to utilise,

with the hope that if correctly implemented, there will be an improvement in public sector

delivery and an increase in the use of ICT in society.

“…the provision of government services in electronic form. We believe it has become

essential for the efficiency and effectiveness of the public service. The government has

also made an undertaking through the Maitlamo Policy which is set to take ICT services

to the people and also to meet the aspirations of Botswana as per Vision 2016 pillars of

an innovative, informed and educated nation. With the help of ICT, we can ensure that

Botswana has a skilled and productive workforce that is digitally literate.” Respondent A

4.6.2 Objective 3

To determine the factors that can influence users to adopt a new technology.

Part of this objective was addressed in the Literature Review of this research paper (Chapter

Two), where the researcher presented a brief explanation of the Technology Acceptance Model

(TAM). The literature revealed that TAM suggests that there are two particular constraints that

can influence user’s acceptance of a technology, being the user’s Perceived Ease of Use and

Perceived Usefulness. The literature reviewed suggests that technology should be capable of

being used advantageously and ease to operate for it to be adopted.

A question was also asked on the open-ended section of the questionnaire distributed to mobile

subscribers asking them about how Botswana’s service providers are attracting them as the

users to adopt their services. Most of the respondents, if not all, advocated to the fact that a

good marketing strategy was vital to lure them in. Even though some respondents found the

vigorous advertising strategy usually adopted by the country’s mobile service providers irritating

at times, majority hailed it for being the reason they adopt the services. Most of the respondents

believe they should be well-informed on a service; its cost and its benefit in order to adopt it.

Additional questions were included in the closed-ended section of the questionnaire which can

further address the aforementioned objective. See Table 4.1, Table 4.2 and Table 4.3 below:

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Table 4.1: I become motivated to learn about new technology

Frequency Percent Valid Percent Cumulative

Percent

Valid

Strongly agree 5 10.0 10.0 10.0

Agree 16 32.0 32.0 42.0

Neutral 20 40.0 40.0 82.0

Disagree 7 14.0 14.0 96.0

Strongly disagree 2 4.0 4.0 100.0

Total 50 100.0 100.0

Table 4.2: When I see someone I know using new technology, I am interested in

learning how to use the technology

Frequency Percent Valid Percent Cumulative

Percent

Valid

Strongly agree 9 18.0 18.0 18.0

Agree 21 42.0 42.0 60.0

Neutral 13 26.0 26.0 86.0

Disagree 7 14.0 14.0 100.0

Total 50 100.0 100.0

Table 4.3: I will use a particular technology device if someone I know uses it

Frequency Percent Valid Percent Cumulative

Percent

Valid

Agree 3 6.0 6.0 6.0

Neutral 32 64.0 64.0 70.0

Disagree 12 24.0 24.0 94.0

Strongly disagree 3 6.0 6.0 100.0

Total 50 100.0 100.0

40% of the respondents believed they had a neutral standing when asked if and when a new

technology becomes widespread, they become motivated to learn about the technology. 32%

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agreed, suggesting some users will prefer to wait for a technology to be widely used and

accepted by the public before considering to adopt it.

When asked if seeing someone they know using new technology makes them more interested

in learning how to use the technology, 42% agreed. This can be interpreted that influence from

friends and colleagues could be another influential factor to whether to adopt a new technology.

When participants were asked if they will use a particular technology because someone they

know uses it, 64% were neutral on the matter and 6% agreed.

4.6.2 Objective 4

To determine the benefits that can arise from the adoption of 3G technology and if Botswana is

capitalizing on any of those opportunities.

Most part of this objective was dealt with in the literature review. But one point that was omitted

from the literature review was the fact that Botswana’s mobile service providers have fully

utilised and taken advantage of the perceived attractiveness of the 3G technology to gain a

competitive edge and gain more market share with wide coverage of the network.

“3G technology [has basically] helped our company Be Mobile/ Botswana

Telecommunications [Corporation] to be more competitive [along-side other service

providers like Mascom Wireless and Orange Botswana] and has also attracted more

customers as 3G technology provides high speed internet.”

With reference to the internet uptake statistics by the Botswana Telecommunications Authority,

mobile internet users have increased significantly in recent years. This is mainly attributable to

the 3G technology. However the penetration rate is still not seen as high enough in international

standards and this is due to the high costs of telecommunication in Botswana. The necessary

infrastructure is available, but costs incurred by mobile operators to commercialise the network

are still high.

Interviewer: What challenges have you encountered in your attempt to make 3G

technology available for all Batswana across the country?

Respondent: As we know 3G is a good technology, it comes with some [challenges] as

well for deploying it, because it is so expensive. And also, you have to do a research first

of how many customers will be able to get the technology, use it or will they manage to

buy the devices which compatible with the 3G technology. So it’s really (pauses)…it was

really tough to deploy it.

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4.6.2 Objective 5

To determine the weaknesses of 3G technology in Botswana and recommend a way forward.

The aim of this research was to determine the benefits and impacts of the 3G technology on the

economy, growth and competitiveness of a country (i.e. Botswana). But just like with other

services, there are loopholes and weaknesses that can be associated with 3G technology. This

has been incorporated in the literature reviewed concerning the technology and

recommendations will be made in Chapter Five

4.7 DISCUSSION OF FINDINGS

4.7.1 Reinforcing what is already known

4.7.1.1 ICT Competitiveness determination

Political and regulatory environment, Business and innovation environment, Infrastructure and

digital content, Affordability, Skills, Individual usage, Business usage, Government usage,

Economic impacts and Social impacts, are the major determinants of ICT competitiveness.

Botswana’s ICT competitiveness has been on the decrease for the past four years. Botswana

has not been performing well in the usage sub-index, which assesses the individual efforts of

the social agents – that is individuals, businesses and government – to increase their capacity

to use ICT. These two facts concur with the literature reviewed that ICT readiness and usage

remain key drivers and precondition for obtaining any impacts. An increase in government

usage can motivate society to adopt technology in their everyday lives, which will in-turn

encourage foreign investors to come invest in Botswana.

4.7.1.2 National ICT Policy

ICT is a key driver of economic growth, poverty reduction and global competitiveness. This is

what the National ICT Policy of Botswana is based on. Approved and branded “Maitlamo Policy”

in August 2007, aims to create enabling environment, universal service and access to

information and communications facilities, and make Botswana a regional ICT hub.

4.7.1.3 ICT in education

ICT resources in schools in the country are up to standard. The problem is that those students

do not receive the necessary education from the teachers to actually say that they are fully

utilizing the resources. This may be due to the fact that before a program under the Maitlamo

Policy called ThutoNet was introduced, the education system for primary, secondary and tertiary

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sectors did not have a curriculum program to educate students on incorporating ICT in their

daily lives.

4.7.1.4 E-Government

The provision of government services online will improve the efficiency and effectiveness of the

public sector. Civil servants tend to prefer to work at their own pace because at the end of the

day to them it does not matter if they are outperformed by private sector workers where

bonuses are based on performance. E-government hands the initiative back in the hands of the

public, but to ensure effective use of the online government services, the Maitlamo Policy must

set out to take ICT to the people, especially in rural regions to educate and advise them on the

importance of everyday adoption of technology.

4.7.2 What is new and different in the findings

4.7.2.1 Implementation Strategy

Due to the enormity of the work that need to be undertaken in designing and implementing the

programs and strategies that the Maitlamo Policy is recommending, relevant and effective tools

must be in place to ensure a high rate of implementation success. It is a norm with governments

that some of their policies are implemented pre-maturely and without thorough research and

planning being done. If extensive research was conducted in the first place, it can save

government money of having to review policies because they are failing to carry out what they

were intended to do.

4.7.2.2Prepaid vs.Post-paid

Historical data has shown that prepaid services are dominating post-paid services in the mobile

telephony market. In the year end March 2012, prepaid services had 98% share compared to

2% of the post-paid services in the market. Post-paid subscription comes with the convenience

of uninterrupted service without having to manage usage. On the other hand, prepaid services

are mainly for seasonal users who are really not concerned about not having to always be

connected to the internet. The reason people opt for prepaid is because there is a perception

that there are many hidden issues associated with post-paid. First of all, most people do not

want to be tied up to a two or three year contract with monthly fees. Furthermore, most users

believe there are extra hidden fees associated with post-paid because the idea of ‘always

online’ worries them. There is billing issues associated with every post-paid plan. The carrier will

send you a monthly bill that must be paid to continue service. Users could possibly prefer

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prepaid over post-paid because they can track their usage and expenses. No added fees or

taxes. You pay for what you use.

CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1 INTRODUCTION

This research was investigate the impact of the adoption of third generation (3G) wireless

technology on the economy, growth and competitiveness of Botswana, with the view of

customer perspectives to analyze the success of the technology and recommending ways it can

be improved in the future. The research paper was guided by research questions and objectives

outlined in the introductory chapter of the paper (Chapter One) and were further elaborated in

Chapter Two as part of the literature review process. Chapter Three saw the development and

presentation of the research methodology and Chapter Four saw the presentation, analysis and

discussion of findings.

The purpose of these chapters has been to carry out an investigation on not only the impact of

3G technology but also on Botswana’s overall ICT competitiveness, and this has been done

through a systematic research process based on primary and secondary data. The following are

the conclusions and recommendations of the research findings.

5.2 CONCLUSIONS

Botswana’s global ICT competitiveness has been deteriorating for the past four years. The

decline is mostly attributable to the fact that Botswana has been performing badly in the

requirements put forward by the World Economic Forum for the individual usage, business

usage, government usage and the readiness sub-index in its entirety. With ICT readiness and

usage as the key drivers, a poor performance on their respective pillars will result in poor impact

results. Botswana is a well endowed country in terms of developed and modern

telecommunications infrastructure. However, the problem lies with the fact that she has not

done much to make sure her citizens benefit much from it. This has become a norm among

developing countries especially in Africa, where we have seen that compared to European and

Asian countries, they still lag behind in providing access to and usage of the latest ICT tolls and

resources to its citizens. For the past five years, there is evidence that policies and strategies

have been formulated in an attempt to engage the public in incorporating ICT into their daily

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lives. However, this is just theoretical evidence. The pursuit of promoting ICT adoption in every

corner of the country has been heavily hindered by the pace of implementation of the policies

and strategies, and this does not help the country’s competitiveness in any way.

These policies incorporate strategies aiming to improve the efficiency and effectiveness of the

public service sector. The National e-Government strategy will make available all government

services online. This is a good strategy as it also encourages the use of ICT across all

segments of society. The country also has to divert its attention to the individual usage pillar –

collaborate with public and private service providers and formulate strategies that can benefit

them all with the main aim of improving ICT diffusion and ICT penetration at individual level.

The affordability of ICT services has been a hindering factor to the progress and

competitiveness of Botswana’s ICT market. This is puzzling to say the least considering all the

investments the government has made in an attempt to reduce costs being heavily incurred by

consumers.

However, the overall ICT competitiveness of the country needs a joint effort by the government,

public and private sector and all other stakeholders who can influence the growth and adoption

of ICT, in order to grow.

5.3 RECOMMENDATIONS

5.3.1 ICT and Education

As already mentioned, ICT resources in schools in the country are up to standard, and that the

online limitation has been that students have not received the necessary education to actually

assert that they are fully utilizing the resources. Before the ThutoNet program, there was no

curriculum program incorporated into the education system that could educate students on

incorporating ICT in their daily lives. With the new curriculum, it is important that it is up to the

levels of international standards to better equip students with skills relevant to ICT growth. To

make sure of this, the curriculum can be matched up with that from countries such as South

Africa and Mauritius who have performed better in the skills pillar. The curriculum should be

more engineering and technologically oriented to make sure students grasp the main

foundations of Information, Communication and Technology.

5.3.2 E-Government

Without e-government, the provision of government services meant waiting for long periods of

time to get assistance and going through many complicated and sometimes unnecessary

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procedures. So the benefits of e-government should not be undermined at any point because it

saves time for the public and also allows public servants to concentrate on other pressing

issues. Government databases will be loaded with everything related to the country and this will

even allow potential investors to learn about the country without having to visit.

5.3.3 Implementation

As already mentioned, the enormity of the work needed to be undertaken in designing and

implementing programs and strategy requires for relevant and effective tools to be in place to

ensure a high rate of implementation success. The government should form an implementation

committee, where their job will be to oversee the implementation of every program and strategy.

With such a committee in place, extensive and thorough research and planning can be made

before any implementation, thus reducing any chances of failure on the part of the strategy.

5.3.4 4G Mobile Networks – Technology beyond 3G

On the 12thof June 2012 Mascom announced that it will be extending its 3G network coverage to

further parts from the main cities and towns. Another major announcement was that they will be

launching a limited 4G network. What is this 4G one may ask. Well, basically, the fourth

generation of wireless technology standards and the successor of the 3G technology. Some

analysts argue that 4G is nothing but faster internet, while others believe it will change and

benefit businesses and countries more than how 3G did. What is all the fuss about? Well, we

are talking about technology that should supposedly set peak download speeds of about 100

megabit per second for high mobility communication and 1 gigabit per second for low mobility

communication. It was just four years ago when Mascom Wireless, Botswana’s biggest cellular

network provider, announced that they were launching the 3G network. An upgrade that

reportedly cost them P50 million (US $7.7 million). We have seen what 3G can do, its benefits

and its flaws. An upgrade to 4G couldn’t come at a better time, when Botswana needs

technology to come in and raise them up the competitiveness rankings. Once completely rolled

out, the 4G network is expected to provide heighted and cheaper connectivity for the 2 million

plus Mascom sim cards in Botswana.

This has opened up the door for further research on this topic, maybe a thesis to investigate the

benefits of the transition from 3G to 4G technology on the economy and competitiveness of

Botswana; with reference to the expanding of opportunities in the business sector and improved

information and communication services; and customer knowledge and acceptance of the 3G

network (which will definitely contribute to how successful the 4G will become.)

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CHAPTER SIX

PERSONAL REFLECTION

The journey to the completion of this dissertation has been a bitter-sweet one. It was definitely

challenging but mostly enjoyable. Hurdles encountered along the way at the end of the day

turned out to be very valuable lessons that the author will cherish for a long time. This

dissertation has been a priceless and precious development tool to the knowledge of the author

concerning research.

The author believes that to get through this programme, one should be extremely disciplined

and be able to manage the time he or she has been granted. It was very tough pursuing this

dissertation under the schedule that was put forth by the University. At the same, the author had

to prepare for his final examinations. It requires one to dig deep within themselves, persevere

and not give up. A lot of personal sacrifices had to be made, but if given the opportunity to round

back the clock, the author would probably start working on the dissertation much earlier than he

did, but apart from that, would not do anything differently.

The author had the option to choose whatever topic he saw appropriate. The programme has

taught the author to research extensively on a wide range of topics, not only relating to

Accounting and Finance, and write comprehensive reports on them. This ability will be used

someday when the author pursues a master’s degree in mathematical finance. Opportunity

granted by the University of Derby and Botswana Accountancy College, it was an honour to

investigate Botswana’s ICT competitiveness.

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BIBLIOGRAPHY

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thesis.Lulea University of Technology, Lulea.

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BIDPA (2009) Performance and competitiveness of small and medium sized manufacturing

enterprises in Botswana. Botswana Institute for Development Policy Analysis, Gaborone.

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Matambo: Minister of Finance and development planning – Delivered to the National Assembly

on 7th February 2012.Gaborone, Government Printing and Publishing services.

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Matambo: Minister of Finance and development planning – Delivered to the National Assembly

on 4th February 2013. Gaborone, Government Printing and Publishing services.

Botswana. Sesigo (2011) Pathways to making Botswana an educated, informed nation.

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Botswana Telecommunications Authority (2012) Annual Report 2012. Gaborone, BTA.

Chou, L. (2001) An analysis of wireless internet industry in the Networked Economy. Masters of

Arts thesis.Georgetown University, Georgetown.

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GSM Association [Internet]. London, New Street Square. Available from

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Analysis Framework. Switzerland, World Economic Forum.

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hyperconnectivity for organizations and society. Switzerland, World Economic Forum.

Geiger, T., Dutta, S. and Osorio, B. (2012) The Networked Readiness Index 2012:

Benchmarking ICT progress and impacts for the next decade. Switzerland, World Economic

Forum.

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technology: evaluating the transitions from 2G to 3G and from 3G to 4G. New Policy Institute,

USA.

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International Publishers.

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Botswana.

Parkin, M., Powell, M. & Matthews, K. (2008) Economics. Harlow, Pearson Education Limited.

Prakash, S. and Behera, S. (2010) Study and implementation of 3G mobile security.BSc

dissertation.National Institute of Technology, Rosrkela.

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Incorporated, USA.

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Applications in Office Environments. In: M. Kuroso (Ed.): Human-Centered Design, HCII 2009,

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APPENDICES

APPENDIX 1: QUESTIONNAIRE TO MOBILE SUBSCRIBERS

QUESTIONNAIRE

My name is GaleakelweKolaatamo. I am a final year BA (Hons) Accounting and Finance

student studying at the Botswana Accountancy College (in conjunction with the University of

Derby in the United Kingdom). As part of my degree, I am currently doing a dissertation entitled

“the impact of the third generation (3G) wireless technology on the economy, growth and

competitiveness of Botswana.”

Technology is part of our everyday lives. We deal with technology at work, schools and even in

our homes, and it is important to familiarize ourselves with innovation and the latest

technological advances. It will be greatly appreciated if you complete this questionnaire which

will go a long way in assisting me with my research. It will take you approximately 20 minutes to

complete.

Name: …………………………………………………………………………………….

Age (indicate with an X): 18-21 22-25 26-35 35+

Occupation: ………………………………………………………………………………

Gender: …………………………

Date: …………………………….

For the following statements, please indicate your position regarding the use of technology.

Circle the response that best describes your level of agreement to each statement. (1= strongly

agree, 2= agree, 3= neutral, 4= disagree or 5= strongly disagree)

1. I am computer literate 1 2 3 4 5

2. I am comfortable using technology 1 2 3 4 5

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3. I get nervous when I have to use technology 1 2 3 4 5

4. I try to avoid using technology 1 2 3 4 5

5. I frequently read articles or other sources of information that describe new technology.

1 2 3 4 5

6. I am motivated to use technology in my everyday life

1 2 3 4 5

7. I regularly use technological devices to communicate with others

1 2 3 4 5

8. When a new technology becomes widespread, I become motivated to learn about the technology

1 2 3 4 5

9. I believe technology can help society’s problems

1 2 3 4 5

10. I am eager to learn how new technologies can benefit me personally

1 2 3 4 5

Questions 11-18: The following statements addresses the general attitudes toward the

technicality of technology and seeking help with technology. Please indicate your position, with

the assumption that “Someone I know” can refer to anyone in your social network such as

friends, neighbours, relatives and associates.

11. When I see someone I know using new technology, I am interested in learning how to use the technology

1 2 3 4 5

12. I will use a particular technology device if someone I know uses it

1 2 3 4 5

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13. If I don’t understand something, I ask someone I know for help

1 2 3 4 5

14. I am afraid to ask people who I know to help me because I don’t want to appear ignorant

1 2 3 4 5

15. I am confused by the terminology associated with many technological devices

1 2 3 4 5

16. I enjoy talking to technical support because it helps me to understand the terminology

1 2 3 4 5

17. I avoid calling technical support because I get more confused

1 2 3 4 5

18. I become more interested in technology if it is well explained to me

1 2 3 4 5

Questions 19-23: The following questions will require an open answer from your knowledge

and experience with Information and Communication Technology.

19. In 2012, an authoritative World Economic Forum report ranked Botswana sixth in Africa in

terms of Information and Communication Technology (ICT) competitiveness. The report

measures the degree to which economies leverage ICT to enhance competitiveness by

assessing ten pillars ranging from digital content, policy, infrastructure, affordability, efficiency,

skills, usage, economic, environmental and social impacts. How has Botswana’s technological

aspirations affected, and or, benefited you?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

……………………………………………………………………………………………………………….

20. Botswana’s rise in ICT competitiveness can be traced to the Government’s P70 million

investments in the East Africa Submarine Cable system which is to provide local data users with

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fast internet at low costs. How are Botswana’s service providers attracting you, as the user, to

adopt their services?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

……………………………………………………………………………………………………………….

21. Botswana’s adoption of the third generation (3G) wireless internet technology means the

country is right up there with the world’s developed countries in terms of technological

advancements. What is your view on an adoption of this magnitude?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

22. There is a need for improvement in the area of individual usage of ICT as well as the

affordability of IT to ensure a positive economic impact. How important do you think customer

perspectives, like Perceived ease of use and Perceived usefulness, are in the wide acceptance

of new technology?

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

……………………………………………………………………………………………………………….

23. Between a scale of 1 and 5 (1= doing BAD and 5= doing GOOD) how is Botswana doing in

terms of providing its population with the latest technological advancements? (Please circle the

appropriate answer)

BAD 1 2 3 4 5 GOOD

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APPENDIX 2: QUESTIONNAIRE TO BTC OFFICER

QUESTIONNAIRE

My name is GaleakelweKolaatamo. I am a final year BA (Hons) Accounting and Finance

student studying at the Botswana Accountancy College (in conjunction with the University of

Derby in the United Kingdom). As part of my degree, I am currently doing a dissertation entitled

“the impact of the third generation (3G) wireless technology on the economy, growth and

competitiveness of Botswana.”

Technology is part of our everyday lives. We deal with technology at work, schools and even in

our homes, and it is important to familiarize ourselves with innovation and the latest

technological advances. It will be greatly appreciated if you complete this questionnaire which

will go a long way in assisting me with my research.

Name: Kabelo Europa

Position: Data management manager

Organization: Botswana Telecommunication Corporation

Date: 15 May 2013

1. How long have you been occupying your current position?

Five years in September

2. ICT offers opportunities to developing economies such as Botswana’s and aims at

playing an important role in the promoting of sustainable local development and the

acceleration of economic growth. Which development objectives is Botswana utilizing

ICT in order to achieve?

At the moment, Botswana is very concerned and involved with the expansion of

education opportunities and how she can use ICT to educate Batswana to become

a computer and technologically-literate population. Another region that the

government is investing a lot of money on is the provision of government services

online. Yes theoretically it is believed that this will improve the public services

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delivery to the nation but for this initiative to take off and be successful, a good ICT

structure must be in place.

3. How is Botswana utilizing ICT to achieve the development objectives aforementioned?

To start off with the education sector, Botswana can be commended for the effort to

provide resources to junior and secondary schools. It is understood that most of

them have fully equipped computer laboratories, but the problem is that most

schools struggle with their effective use. The government has introduced the

national ICT Policy, Maitlamo, which is to provide a guide to accomplish social,

economic and political transformation through the effective use of ICT. Under

education, the policy has the ThutoNet Program which aims to provide all schools

with modern PC’s and internet access, design and implement an ICT content and

curriculum development programme for the primary, secondary and tertiary sectors,

and secure funding to sustain ICT in education. In respect to e-government,

basically, following in the trail of other developing countries, Botswana aims to make

available all government services online. Organizations and Ministries will be

required to adopt the necessary technology to get ready for this.

4. How is Botswana doing in terms of having the necessary infrastructure and resources in

place to support a solid ICT sector?

ICT infrastructure is very good in Botswana, but one can argue that it is not fully

utilized. Internet usage is still relatively low and there is still concern on the

differences between the urban and rural areas’ access to ICT services.

5. Any suggestions on how the overall performance of the ICT sector can be improved?

Botswana is on the right track. An educated nation will fully utilize the technological

advancements the country is aiming to provide.

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APPENDIX 3: INTERVIEW WITH BTC OFFICER

INTERVIEW

My name is GaleakelweKolaatamo. I am a final year BA (Hons) Accounting and Finance

student studying a University of Derby program at the Botswana Accountancy College. As I

have already mentioned, I am currently doing a dissertation entitled “the impact of the third

generation (3G) wireless technology on the economy, growth and competitiveness of

Botswana.” This is basically a research studying Botswana’s economy and competitiveness as

she strives to keep up with technological developments across the world, which would assist her

in gaining a higher ranking in global ICT competitiveness.

Name of respondent: KeaobakaDiare

Organization: Botswana Telecommunications Corporation

Position: Network planning and Optimization engineer

Date: 02 May 2013

Interviewer: First of all, I would love to know how long you have been holding onto your current

position.

Respondent: Well, for about three years now.

Interviewer: Okay. The 2012 edition of the World Economic Forum’s (WEF) Global Information

Technology Report (GITR) has ranked Botswana sixth in Africa, up from tenth in 2011, in terms

of ICT competitiveness. Botswana has scored well for its political and regulatory environment,

as well as its business and innovation environment. How would you say these factors have

influenced Botswana’s high ranking?

Respondent: Alright. I think the more Batswana invests more in business the more they get to

use ICT skill. This helps [innovation] companies across the world [to invest] in Botswana and

this has put Botswana [in the] spotlight and be a recognized [country] worldwide.

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Interviewer: We have recently learnt that the government have invested large amounts of

money believed to be around the amounts of P70 million in the East Africa Submarine Cable

system. What would you say are the benefits of this investment beyond just fast internet at low

costs?

Respondent: [Well], in the past most African countries including Botswana’s

telecommunications carriers heavily relied on radio or satellite system to carry the bulk of their

international traffic. Botswana government is now committed to positioning Botswana as an

economy driven by innovation to attract investment, grow the economy and promote interaction

between local and international companies. The East African Submarine cable system is

therefore an optimum means to improve the communications sector in the region, allowing more

people to access at the same time and at cheaper rates; not only that, but the government is

hopeful that this will improve inter-connectivity between Botswana and the rest of the world and

make business transactions faster. The education, health and business sector will benefit from

this connectivity. ICT undoubtedly can greatly improve the economic and social and emergency

services and help distribute social, cultural and economic benefits more efficiently. ICT,

especially the internet is no longer a luxury in this day and age. Pushing even further, Botswana

has now recently collaborated with Namibia to buy into the West African Submarine Cable

system, which is expected to be far superior that the east cable; providing speeds up to 5.12

Terabits per second compared to 3.8 of the east cable.

Interviewer: Botswana is moving forward with its e-government strategy which will ultimately

result in the provision of most government services online, enhancing efficiency, lowering costs

and boosting access. How else is Botswana making sure they capitalize on the improving

information and communication services?

Respondent: Indeed we will soon see the provision of government services in electronic form.

We believe it has become essential for the efficiency and effectiveness of the public service.

The government has also made an undertaking through the Maitlamo Policy which is set to take

ICT services to the people and also to meet the aspirations of Botswana as per Vision 2016

pillars of an innovative, informed and educated nation. With the help of ICT, we can ensure that

Botswana has a skilled and productive workforce that is digitally literate.

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Interviewer: Undoubtedly, Botswana’s rise In ICT rankings can also be traced to the adoption

of the 3G technology. How has this technology helped Be Mobile/ Botswana

Telecommunications Corporation increase its market share of users in Botswana?

Respondent: 3G technology [has basically] helped our company BeMobile/ Botswana

Telecommunications [Corporation] to be more competitive [along-side other service providers

like Mascom Wireless and Orange Botswana] and has also attracted more customers as 3G

technology provides high speed internet.

Interviewer: What challenges have you encountered in your attempt to make 3G technology

available for all Batswana across the country?

Respondent: As we know 3G is a good technology, it comes with some [challenges] as well for

deploying it, because it is so expensive. And also, you have to do a research first of how many

customers will be able to get the technology, use it or will they manage to buy the devices which

compatible with the 3G technology. So it’s really (pauses)…it was really tough to deploy it.

Interviewer:Between a scale of 1 to 5 how would you rate Batswana’s acceptance of the

technology?

Respondent:I’ll really say 4 [out of 5] because there are more…in our system we can see that

there are a lot of customers using internet services.

Interviewer: In conclusion, how do you think the overall ICT competitiveness of Botswana can

be improved?

Respondent:Okay. This I think can be done by trying by all means to educate each Motswana

in the whole country to know a lot about ICT and its benefits and how it can improve their day-

to-day lives and furthermore their business ventures.

Interviewer: Thank you very much. Am sure your answers have been relevant and very useful

in helping me complete my dissertation.

Respondent:Okay, it is my honour.

Interviewer: Thank you Sir.

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APPENDIX 4: RELIABILITY ANALYSIS WITH CRONBACH’S ALPHA FOR

‘QUESTIONNARE TO MOBILE SUBSCRIBERS’

Reliability Statistics

Cronbach's Alpha N of Items

.784 17

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha if Item

Deleted

I am computer literate 42.88 36.312 .805 .744

I am comfortable using

technology42.42 32.657 .853 .726

I get nervous using

technology40.04 51.304 -.658 .841

I frequently read articles or

other sources of information

that describe new

technology.

41.14 34.490 .595 .753

I am motivated to use

technology in my everyday

life

42.04 33.794 .814 .733

I regularly use technological

devices to communicate with

others.

42.62 37.098 .738 .750

I become motivated to learn

about new technology41.54 33.519 .858 .729

I believe technology can help

society’s problems42.30 43.071 .028 .799

I am eager to learn how new

technologies can benefit me

personally

42.24 35.778 .828 .740

When I see someone I know

using new technology, I am

interested in learning how to

use the technology

41.88 34.230 .819 .734

I will use a particular

technology device if

someone I know uses it

40.94 41.853 .209 .784

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If I don’t understand

something, I ask someone I

know for help

42.26 43.462 .062 .790

I am afraid to ask people

who I know to help me

because I don’t want to

appear ignorant

40.16 42.994 .081 .791

I am confused by the

terminology associated with

many technological devices

40.98 46.591 -.265 .821

I enjoy talking to technical

support because it helps me

to understand the

terminology

40.90 44.173 -.053 .798

I avoid calling technical

support because I get more

confused

41.16 43.770 .007 .793

I become more interested in

technology if it is well

explained to me

42.34 38.637 .717 .757

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