Mobile commerce-: Exploring the prospects, applications and identifications of barriers to adoption in Pakistan

Abstract

There has been an unprecedented growth in the cellular industry world over. The popularity of the cellular mobile sector can be gauged from the fact that in the year 1991 when mobile telephony was at an early development stage the number of the fixed-line subscribes was 546 million , compared to the mere 11 million mobile cellular subscribers . At the end of 2002 cellular subscribers grew to 1.3 billion, compared to 1.1 billion fixed line subscribers.. Pakistan also catches the cellular mobile fever in 2001 with the introduction of Caller Party Pays (CPP) regime and launch of 211 GSM based cellular service, i.e. Ufone This proliferation of mobile Internet devices and connections is creating an unparallel opportunity for electronic commerce to leverage the benefits of mobility. Mobile commerce has all the potential for successful adoption because of its specific advantageous features of ubiquity, convenience, localization and personalization. This research explores the existing awareness of mobile operators and financial institutions regarding the opportunities and benefits of m-commerce as well as the practical and perceived barriers in adoption and assimilation of m-commerce in Pakistan. Based on the qualitatively survey results, this study discusses the impact of factors that may lead to hindrance in the growth of mobile commerce in these organizations. We found that despite recent strong performance, Pakistan's cellular sector lacks competition and wide customer base, which stifles the sector growth. Both Pak-tel and Insta phone are technologically inferior companies, which restricted the subscribers' choice. Ufone, though technologically most advanced, is suffering from small i infra structure base, as its sale window has been shut down due to supply constraints. Mobilink, another GSM based operator, has emerged as an eventual beneficiary of this whole situation as it 44% of the market. Our analysis shows that the complete deregulation and liberalization of telecom sector from state control to private sector in Pakistan is expected to create more opportunities of investment in the cellular industry of Pakistan. To catch this opportunity , mobile operators and financial institutions need to devise such business strategies that lead to development and prosperity of all key players of m commerce value chain. These organizations must also ensure quality of services and outreach such as client appropriate & secure billing system. They must open new doors of services by means of appropriate pricing policies, low connection fees and roaming charges. It is widely perceived that these organizations have not fully identified the opportunity and most of them are not either aware of the openings or are just beginning to recognize . The potential for m-commerce is considerable for those organizations which are prepared and well aware of the baniners that may negatively impact growth of mobile business . This study also answers the fundamental question of whether the key players in the m-commerce value chain are aware of the oppo11unities and applications and most importantly to the possible barriers in the adoption of m- commerce. Our Findings suggest that mobile operators and financial institutions in Pakistan are facing barriers in implementing the applications of M commerce which is creating hindrances in their growth. In this context we have discussed the role of a number of internal and external factors which are causing lag ii in the adoption of m-commerce. Favorable government (PTA) policies, adequate investment in the telecommunication infrastructure, high degree of management autonomy in the formation of operational policies compliment the success of mobile operators and financial institutions. The result of this study is also helpful in proposing suitable m-commerce applications keeping in view the perceived barriers that can inhibit the growth of m-commerce in Pakistan .