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Top1. Introduction
Mobile technology has taken rapid strides in its diffusion across the global. These quantum leaps in penetration are not only global phenomenon but one also experienced in the local context of Sri Lanka. In 1992 Sri Lanka had 2,644 mobile phone subscribers. Today 27 years later the number stands at 24.43 million (Telecommunication Regulatory Commission of Sri Lanka, 2018). While mobile penetration rates are impressive, with 50%-60% average annual growth rates experienced in Sri Lanka, the strategic prospects of the mobile telecommunication industry are up for discussion. Across the globe the average revenue per unit (ARPU) are significantly depreciating (Mälarstig, 2007). These issues are compounded with increase competitive structures and global market competition. The industry seized on an emerged opportunity in the early 1990 with a new application called Short Messaging Service (SMS). The mobile phone and its use were viewed in a different light than a simple communication device, rather the gateway to a plethora of mobile data services. The industry spent the next decade investing in high bandwidth, high capacity and new mobile data services product lines, awaiting the next killer application (Carlsson, 2005). SMS still remains the most popular mobile data service in Sri Lanka due to economic feasibility of the community. It is expected that a behavioral model can be produced which can be identify scientifically the relationships between the drivers of consumer attitude to adopt and intension to adopt mobile data services. While there are models researched and developed in countries like Finland (Carlsson, 2006), Korea (Kim, 2018) and USA, development of an indigenous technology adoption model is essential in the context of Sri Lanka because of the different socio-economic cultural paradigms. Further due to the regional similarities in South East Asia, the inter-portability of this model may help diffusion of mobile data services in similar regional countries.
Information technology adoption including empirically tested models such as the Technology Adoption Model (Davis, 1989) and diffusion of innovation models (Rogers 2005). Further as this model involves operations within the consumer context, it is proposed that research into better understanding the variables that influence the attitude towards adoption and intension to adopt be researched. Further, research done on developing a unified theory for technology adoption (Kulviwat, 2007; Kulviwat, 2008;) provides an important starting point. Therefore, it was decided that the study would focus on the logical motives and hedonic motives of ‘Fun and entertainment’. While motives guide the decision, what nature of value propositions influence these motives. The second focus of the research would be on value propositions and their interrelation to technology adoption.
It was decided that the research would study two mobile data services products. One which has primarily a cognitive utilitarian value proposition and another that has primarily a hedonic value proposition. This study would then enable a better understanding of the behavior of the model in a different context.
The mobile data services adoption in Sri Lanka remains at a very low rate in comparison to the penetration of mobile phone technology which is estimated to be at 50% (Telecommunication Regulatory Commission of Sri Lanka, 2018). Research indicates that the future revenues of mobile telecommunication industry will depend on the provision of mobile data services rather than on voice calls (Carlsson, 2005). The dramatic drops in average revenue per user on voice calls across the globe are an indication of future trends. Further in most matured telecommunication markets, where mobile penetration has exceeded 60% reach of the general population, the industry was compelled to look for more viable sources of revenue other than voice and new subscriber connection fees (Mälarstig, 2007). While the strategic response of the mobile industry was to invest in expensive 3G technology, the global adoption rates of mobile services that use this platform remains very low. To proposition an analytical model that identifies the key attitudinal influences involved in the adoption of selected Mobile Data Services in the Sri Lankan market context. This model could be used by the telecommunication industry and mobile data services (MDS) application vendors to identify key consumer relationship variables that influence the adoption and diffusion of their products and services and behavior of existing relationships between cognitive utilitarian motives, hedonic motives, social influences and their impact on the consumer’s attitude and intension to adopt key mobile data services and short message services (SMS’s) in Sri Lanka.