1. Telecom use on a shoestring: Some findings from a study of the Financially Constrained in South Asia
Ayesha Zainudeen, Rohan Samarajiva, Ayoma Abeysuriya, Harsha de Silva, Divakar Goswami, Mariam Hameed, Tahani Iqbal, Malathy Knight-John, Sriganesh Lokanathan, Avanti Moonesinghe, Chanuka Wattegama.
Usable Knowledge for Growing the Sector:
ICT Policy & Regulation Research from LIRNEasia
19 December 2005, Colombo
shoestrings/LIRNEasia/ColNewsConf 19Dec05

2. Objectives of the Study
Understand the use of telecom services by the ‘financially constrained’ in South Asia
To what extent do they use it?
What benefits do they gain from use?
How do they use it?
Why do they use it the way that they do?
shoestrings/LIRNEasia/ColNewsConf 19Dec05

3. Sample Surveys in India & Sri Lanka (3199 in total) ‘Users’
Not representative of India & Sri Lanka as wholes
‘Users’
those who have used a phone in the last three months
‘Financially constrained’ users:
Socio-Economic Classification (SEC) groups B,C,D & E Monthly income < USD100
Mix of urban (37.5%) and rural (62.5%) respondents
Sample was selected from those above the age of 18
SEC is determined by occupation and education of the head of the household.
SL – SECs B,C,D,E
India – a different but comparable classification is used – urban: SEC B,C,D,E; Rural: R1,R2,R3,R4 (determined by education of the chief wage earner and material used to build chief wage earner’s house)
shoestrings/LIRNEasia/ColNewsConf 19Dec05

4. Methodology Face-to-face interviews Questionnaire: Closed-ended
Pilot-tested (in India and SL) and refined
Designed by LIRNEasia team (6) with implementing partner
Sampling
Purposive selection of localities
Random selection of households
KISH grid used to select within households
KISH – random sampling technique selects 1 respondent from many eligible respondents. ensures that there is no skewing toward gender or age.
Eligibility:
Over 18
Used phone in last 3 months
Monthly income < USD100
PILOTS
Sri Lanka – 20
India – 40 (according to contract)
shoestrings/LIRNEasia/ColNewsConf 19Dec05

5. Sri Lanka: 1100 respondents, 4 localities, 2 languages
Jaffna – post conflict area, high migration
Note –NOT a study to represent ‘India’ and ‘Sri Lanka’
Sample size:
Colombo (Western Province) : Urban
Jaffna (Northern Province) : Urban, Rural 282
Hambantota (Southern Province): Urban, Rural 301
Badulla (Uva Province): Urban, Rural 311
Badulla – rural, plantation economy, hill country
Colombo - capital city, urban landscape
Hambantota – rural, tsunami affected
shoestrings/LIRNEasia/ColNewsConf 19Dec05

6. India: 2099 respondents, 7 localities, 5 languages
Kasargod – fisheries & remittance based economy
Gorakhpur – agrarian economy
Mumbai – metropolitan, in Asia’s largest slum
Dehradoon – agrarian economy, foothills of Himalayas
Cuttack – poor area, high migration
Sivaganga – trading, fishing & agrarian economy
Neemuch - flat, arid area
India: 2099 respondents, 7 localities, 5 languages
‘Northern’
‘Southern’
Mumbai (Maharashtra) : Urban 304
Kasargod (Kerala) : Urban, Rural 300
Sivaganga (T.Nadu) : Urban, Rural 300
Gorakhpur (Uttar Pradesh): Urban, Rural 300
Cuttack (Orissa): Urban, Rural 300
Dehradoon (Uttaranchal) : Urban, Rural 295
Neemuch (Madhya Pradesh) : Urban, Rural 300
shoestrings/LIRNEasia/ColNewsConf 19Dec05

7. Questionnaire ‘Mode’ of access: Reasons for selecting mode
fixed, mobile, ‘public access’
Reasons for selecting mode
Ownership & use by other people
How telecom services are used
Usage patterns
What they are used for (purposes)
Ways in which they are used (strategies)
Difficulties faced
Use of Internet & telegrams
shoestrings/LIRNEasia/ColNewsConf 19Dec05

8. Limitations
Difficult to make accurate comparisons with groups not studied (financially ‘unconstrained’)
Closed ended questionnaire
Could have been supplemented with Focus Group Discussions
Calling patterns based on recall data
Weaknesses in a few questions
shoestrings/LIRNEasia/ColNewsConf 19Dec05

9. Findings How the financially constrained communicate
Why they choose fixed, mobile or public phones
What they use them for
How they use them
Constraints & considerations
Expenditure & cost perceptions
shoestrings/LIRNEasia/ColNewsConf 19Dec05

10. Everyone in uses phones…
some higher than income bracket we required, not speaking the language, refused to be interviewed, no body at home, not a household, no adult in the house, not in the age group, someone in the household works in a ad agency/ research/ media, participated in a survey in the last 6 months, SEC higher, no number for the house, couldn't find the household with the number, no one at home.
All these entries what field team came across when following the KISH grid.
shoestrings/LIRNEasia/ColNewsConf 19Dec05

11. shoestrings/LIRNEasia/ColNewsConf 19Dec05
shoestrings/LIRNEasia/ColNewsConf 19Dec05

12. …but 58% do not own one!
Phone ownership doubles in higher income groups
What people own
Sri Lanka
India
< USD 50
USD50-100
Landline Only 2 20 19 37
Mobile Only 21 28 3 8
Landline + Mobile 1 4 6
shoestrings/LIRNEasia/ColNewsConf 19Dec05

13. 66% use public access phones
Fixed
(49%)
Mobile
(19%)
‘Public’ access (66%)
21% 2%
11% 3%
23%
37%
Base: 3199
shoestrings/LIRNEasia/ColNewsConf 19Dec05

14. Non-owners (fixed) mostly use PCOs and payphones to make calls
shoestrings/LIRNEasia/ColNewsConf 19Dec05

15. Higher reliance on public access in India
{14.3} Mode of access used by respondents in Sri Lanka, Northern India and Southern India.
shoestrings/LIRNEasia/ColNewsConf 19Dec05

16. I allow ‘others’ to use my phone
Fixed users
Mobile users
{25.0} {25.1}
FIXED: India – 32%* Sri Lanka – 25%
Mostly 1-4 people per month, making/receiving calls 1-4 times per week
Most often, the problems faced relate to the inconvenience of having to go out and pass messages or go and call the person when a call is received
Charging for calls – only outgoing: 23% [India – 19% Sri Lanka – 42%*]
Usually to cover the cost of the call (56%), sometimes below cost (31%)
Why? Most often as a ‘public service’ or for the sake of ‘friendship’
MOBILE: India – 10% Sri Lanka – 6%
Most often 1-4 people per month, making/receiving calls 1-2 times per week (v.low bases)
Most often, the problems faced relate to the inconvenience of having to go out and call the person when a call is received
19% charge for outgoing calls, Usually to cover the cost of the call or sometimes below cost.
shoestrings/LIRNEasia/ColNewsConf 19Dec05

17. …reflects availability of service
wide availability of PCO in India
India & Sri Lanka almost same penetration on fixed
Sri Lanka higher in mobile but India growing too
Sri Lanka had mobile since 1989; India since 1994
India converted to CPP in 2003; Sri Lanka is still RPP
Subscribers per 100 inhabitants (Sept 2005)
Sri Lanka
India
Mobile
15.6
5.96
Fixed
5.7
4.4
Source: TRAI, TRCSL (2005)
[ITU (2004) ITU Internet Reports: The Portable Internet, pp.A8-A9]
shoestrings/LIRNEasia/ColNewsConf 19Dec05

18. ...and larger group of poorer people in Indian sample10 20 30 40 50 60 70 80 90
100
Sri Lanka
India
% of respondents
USD50-100
per month
<USD50
{13.1}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

19. Usage patterns: mobile users make more calls than fixed users in Sri Lankan and Northern Indian sample 10 20 30 40 50 60
outgoing
incoming
fixed
mobile
average number of calls per month
Sri Lanka
Northern India
Southern India
{8.1}
(incl. public phone users)
shoestrings/LIRNEasia/ColNewsConf 19Dec05

20. SMS use is low… What they use SMS for: Why they use it:
personal communication
88%
emergency communication
37%
business communication 7%
to minimize comm. expenditure
88%
as a signal
58%
to make sure message is received
48%
59% of SMS users use English language for messages
shoestrings/LIRNEasia/ColNewsConf 19Dec05

21. 83 % of mobile users on pre-paid
{11.1}
Base: all respondents
shoestrings/LIRNEasia/ColNewsConf 19Dec05

22. Prepaid cheaper than postpaid in India…
shoestrings/LIRNEasia/ColNewsConf 19Dec05

23. … and Sri Lanka shoestrings/LIRNEasia/ColNewsConf 19Dec05
shoestrings/LIRNEasia/ColNewsConf 19Dec05

24. Basket methodology Based on OECD methodology with modifications
RPP
Prepaid & post-paid
Based on monthly tariffs of cheapest tariff package of largest operator in each country
India – Airtel (Bharti) – 28% (July’05)
Sri Lanka – Dialog Telkom – 60% (July ’05)
Basket includes airtime (in/out), SMSs, rental & connection charges + free airtime & SMSs
Outgoing calls/month
SMS/month
Low user 25 30
Medium user 75 35
High user
150 42
shoestrings/LIRNEasia/ColNewsConf 19Dec05

25. Why people choose phones: Cost & convenience
% of users who chose a mode for reason... 20 40 60 80
social status
fashion
value added services
privacy
mobility
easy to use
easy to access
can use at any time
save on travel time and cost
clear connection
no other choice
control costs
economical to receive calls
economical to make calls
Fixed
Mobile
Public access
COST
CONVENIENCE
Base: full
sample
Fixed:1580
Mobile: 616
Public
access: 2106
SYMBOLIC
Top two reasons:
FIXED: economical to receive; clarity of connection
MOBILE: can use at anytime (emergency); mobility (can be on the move)
PUBLIC ACCESS: easy to use; economical to make calls
Higher rating of ‘most economical way to receive calls’ on mobiles in Indian locations (72% vs. 35% in SL)
Despite India being CPP since 2003!
{15 a 2}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

26. What they use phones for: relationship maintenance20 40 60 80
100
keeping in touch (local)
keeping in touch (international)
send news & messages
receive news & messages
financial transactions
business transactions
/enquiries
arranging logistics
access Internet
fixed
mobile
public access
BASES:
Fixed: 1580
Mobile: 616
Public:
2106
INSTRUMENTAL
RELATIONSHIP MAINTAINANCE
Higher sending and receiving messages in India {Indpurp}
{16.1}
Although non-owners also use the phone for relationship maintenance purposes, they tend to focus on sending/receiving news & messages, rather than purely keeping in touch.
shoestrings/LIRNEasia/ColNewsConf 19Dec05

27. Use of mobiles: relationships in SL; also some instrumental use in India20 40 60 80
100
keeping in touch (national)
keeping in touch (international)
send news & messages
receive news & messages
financial transactions
business transactions/enquiries
arranging logistics
access Internet SL
India
Bases:
SL: 374
India: 242
International communication in SL is higher on mobiles
Some evidence of more instrumental use on mobiles in India
{16.3}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

28. Gender Patterns: Fixed: men use the phone for relationship maintenance as much as women*
Statistically significant difference *
Extensive literature on developed countries, showing significant differences between men and women’s use of phones [our findings]
Relationship building purposes are higher in women, instrumental purposes higher in men [no sig. diff]
Women use the phone more than men [# of calls is not sig. differences]
Women spend more time on the phone (longer call duration) [no sig. diff in call durations]
[Reasons behind choice of access (f/m/p) do not differ either; both consider economic and convenience factors]
Relationship maintenance
instrumental
shoestrings/LIRNEasia/ColNewsConf 19Dec05

29. Same story on mobiles (minor difference on business transactions) …*
Relationship maintenance
instrumental
shoestrings/LIRNEasia/ColNewsConf 19Dec05

30. Relationship maintenance
…and public access * *
Relationship maintenance
instrumental
shoestrings/LIRNEasia/ColNewsConf 19Dec05

31. How is the phone used: ‘strategies’ on mobile
shoestrings/LIRNEasia/ColNewsConf 19Dec05

32. 43 % of mobile owners switch off their phone: not for cost reasons
COST FACTORS
{0.1}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

33. Time of day that users make calls
{6.3} {6.3 SL}
On fixed, no difference between india and SL patterns
* No peak-off peak differentials on mobile in India
shoestrings/LIRNEasia/ColNewsConf 19Dec05

34. Little strategic use…
Little discretion in the few calls that they make
Heavier users use a few more strategies
Few options to make use of strategies
69% have access to only one mode
Majority are using other people’s phones
58% don’t own phones
shoestrings/LIRNEasia/ColNewsConf 19Dec05

35. Heavier users use more strategies (back)
shoestrings/LIRNEasia/ColNewsConf 19Dec05

36. Use of installment plans on fixed phones
Getting connected: Financing fixed line connections slightly harder in Sri Lanka – use of installment plans
Use of installment plans on fixed phones
{21.1(2)} {23.1}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

37. Reflects connection charges for fixed phones
Sri Lanka incumbent = USD 180 (min.)
Sri Lanka entrants = USD 120
India incumbent = USD 16
shoestrings/LIRNEasia/ColNewsConf 19Dec05

38. Where owners got money for the connection from
Opposite case in mobiles in Sri Lanka: less people had money available for connection
Where owners got money for the connection from
{21.1.1}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

39. Getting handsets: 10% got it free; 33% of Indians bought second-hand handsets
{4.151}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

40. Difficulties in getting fixed connections: waiting time, paper work, & other inconveniences in India10 20 30 40 50 60 70
difficulty in finding the money
had to wait for service to become available
lack of information on phone options
had to go to another town to get connected
waiting time of over 1 year
too much paper work
had to make many visits to office
had to pay bribes
wasn't treated well because didn't have 'contacts'
phone did not get connected immediately
no difficulties
% who faced difficulty
India
Sri Lanka
Base:
SL: 212
India: 647
(fixed owners)
{20.2}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

41. Obtaining a mobile connection: it’s relatively easier…10 20 30 40 50 60 70
difficulty in finding the money
had to wait for service to become available
lack of information on phone options
had to go to another town to get connected
waiting time of over 1 year
too much paper work
had to make many visits to office
had to pay bribes
wasn't treated well because didn't have 'contacts'
phone did not get connected immediately
no difficulties
% who faced difficulty
India
Sri Lanka
Base:
SL: 322
India: 187
(mobile owners)
{20.2.1}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

42. Cost of using the phone: Mobile is perceived to be the least affordable
100 80
extremely high / very high / high 60
extr.high/v.high/high
% of users who find the cost...
affordable 40
Full sample
Bases
fixed: 1580
{7.5} 20
affordable
public: 2106
mobile: 616
Fixed
Public
Mobile
mode of access
shoestrings/LIRNEasia/ColNewsConf 19Dec05

43. But more affordable in India
100
extremely high / very high / high 80 60
% of users who find the cost... 40
Bases
SL: 374
India: 242 20
affordable
{7.4}
affordable
Sri Lanka
India
Mobile
affordable
extr.high/v.high/high
shoestrings/LIRNEasia/ColNewsConf 19Dec05

44. Fixed users spend less than USD4 per month (approx)
shoestrings/LIRNEasia/ColNewsConf 19Dec05

45. Mobile users spending much higher amounts
shoestrings/LIRNEasia/ColNewsConf 19Dec05

46. 33 % of Jaffna sample spend more than USD12 per month on mobile
shoestrings/LIRNEasia/ColNewsConf 19Dec05

47. ‘on average, around the world, people spend about 2-3% of their income on telecommunication’
Telecommunications Regulation Handbook, infoDev, module 6, p.6.6
Graph taken from Telecommunications Regulation Handbook, infoDev; module 6
shoestrings/LIRNEasia/ColNewsConf 19Dec05

48. Rural respondents perceive fixed phones to be more affordable, and less likely to change use if price changed
Perception of current costs
Base: fixed (only) users
Change in usage if costs were halved
Reflects telecom/transportation trade-off
Access deficit charge in India ensures lower cost of rural fixed phones
shoestrings/LIRNEasia/ColNewsConf 19Dec05

49. Mobiles perceived to be more costly & use would increase if costs were halved; rural users a little happier about cost
Perception of current costs
Base: mobile (only) users
Change in usage if costs were halved
Reflects the said reasons for choice of mobile : convenience
shoestrings/LIRNEasia/ColNewsConf 19Dec05

50. Public access: more affordable in rural areas
Perception of current costs
Base: Public access (only) users
Change in usage if costs were halved
Despite respondents in India perceiving current costs to be affordable, they are willing to increase phone usage if costs were halved.
shoestrings/LIRNEasia/ColNewsConf 19Dec05

51. Difficulties in use of fixed phones20 40 60 80
phone is often disconnected
repair time is too long
repair costs are too high
inaccurate billing
bill is not reader-friendly
have to travel far to pay bills
get disconnected without warning (red notice)
no difficulties
% who faced difficulty
India
Sri Lanka
Base:
SL: 212
India: 647
(fixed owners)
{22.1a}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

52. Less complaints about mobile use20 40 60 80
Phone is often disconnected
cannot make calls despite having credit
Some features don't always work
Difficult to make/receive calls
no difficulties
% who faced difficulty
India
Sri Lanka
Base:
SL: 322
India: 187
(mobile owners)
{22.1b}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

53. Problems with the connection: fixed10 20 30 40 50 60
% who face difficulty
India
Sri Lanka
Base:
SL: 212
India: 647
(fixed
owners)
Cannot get a call through
Poor audio connection (including cross connections)
Weak signal
Line disconnection due to not paying the bill on time
Customer service is not efficient
Calls dropped
{22.2b}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

54. Problems with connection: mobile
Problems with connection: mobile - some complaints of poor quality connection
{22.2b}
shoestrings/LIRNEasia/ColNewsConf 19Dec05

55. In conclusion Neglected, silent group of consumers
Most rely on shared access
Little discretion
Not entirely happy with cost, esp. on mobile
Spend considerable amount on telecom services
shoestrings/LIRNEasia/ColNewsConf 19Dec05