Network Effects and QoS as Determining Factors in Selection of Mobile Operator: A Case Study from Higher Learning Institution in Dodoma Municipality in Tanzania

The use of mobile phones is growing tremendously all
over the world. In Tanzania there are a number of operators licensed
by Tanzania Communications Regulatory Authority (TCRA) aiming
at attracting customers into their networks. So far
telecommunications market competition has been very stiff. Various
measures are being taken by mobile operators to survive in the
market. Such measure include introducing of different air time
bundles on daily, weekly and monthly at lower tariffs. Other
measures include the introduction of normal tariff, tourist package
and one network. Despite of all these strategies, there is a dynamic
competition in the market which needs to be explored. Some
influences which attract customers to choose a certain mobile
operator are of particular interest. This paper is investigating if the
network effects and Quality of Services (QoS) influence mobile
customers in selection of their mobile network operators. Seventy
seven students from high learning institutions in Dodoma
Municipality in Tanzania participated in responding to prepared
questionnaires. The data was analyzed using Statistical Package for
Social Science (SPSS) Software. The results indicate that, network
coverage does influence customers in selection of mobile operators.
In addition, this paper proposes further research in some areas
especially where the study came up with different findings from what
the theory has in place.

• Justinian Anatory
• Ekael Stephen Manase

• Network effects
• Quality of services
• Consumer Buying
• mobile operators.

[1] J. Ellig, “Costs and Consequences”, Journal of Telecommunications
Regulation, Vol.28, No. 3, 2005, pp. 40-44.
[2] Vodacom Tanzania Ltd, https://www.vodacom.co.tz/, site visited on
16/9/2014
[3] Tigo Tanzania, http://www.tigo.co.tz/, site visited on 16/9/2014.
[4] Airtel Tanzania, http://www.africa.airtel.com/wps/wcm/connect/
africarevamp/Tanzania/ site visited on 16/9/2014.
[5] Zantel Tanzania, http://www.zantel.co.tz/, site visited on 16/9/2014.
[6] TTCL, http://www.ttcl.co.tz/ , site visited on 16/9/2014.
[7] Sasatel Tanzania, http://www.sasatel.co.tz., site visited on 16/9/2014.
[8] Smile Tanzania, http://smile.co.tz/#page. Site visited on 16/9/2014.
[9] Dar es Salaam, http://www.dsm.go.tz/. Site visited on 16/9/2014.
[10] Justinian Anatory and Ekael Stephen Manase, Tariff as a Determining
Factor in Choosing Mobile Operators: A Case Study from Higher
Learning Institution in Dodoma Municipality in Tanzania, WASET
International Journal of Social, Management, Economics and Business
Engineering Vol: 8 No: 4, 2014, pp. 1190-1197
[11] A. Goolsbee, and J. P. Klenow, Valuing Consumer Products by Time
Spent Using Them: An Application to the Internet, Department of
Economics, Stanford University, 579 Serra Mall, Stanford, CA, 94305-
6072, 2002
[12] J. Laffont, P. Rey, and J. Tirole, “Network Competition: II Price
Discrimination”, RAND Journal of Economics, 1998, Vol. 29, No. 1,
38-56.
[13] H.S. Kim, “Determinants of Subscriber Churn and Customer Loyalty in
the Korean Mobile Telephony Market”, Telecommunication Policy,
2004, Vol. 9, No. 10 pages 751-765.
[14] D. A. K., Nagoor, Ericsson Annual Report: “Industry Trend and
Development- Trends in the Mobile Market”, Chairman’s Statement,
Malaysia, 2005 (http://www.ericsson.com/my/ericsson/press/2005/
050203.html) site visited on 16/9/2014
[15] N. Hrovan, D. Cibic, M. Švigelj, Slovenian Communications Market:
Why is the Incumbent Still so Dominant? In: Kittl, J. (ed.),
Telecommunications Markets in Central and South Eastern Europe:
Market Developments and Regulatory, 2006
(http://www.activecampaign.com) site visited on 16/09/2014.
[16] Doganoglu, Toker and Grzybowski Lukasz, (), “Estimating Network
Effects in Mobile Telephony in German”, Centre for Information and
Network Economics, University of Munich, (http://www.lrzmuenchen.
de/~grzybowski/de-moboles.pdf), 2006, site visited on
17/09/2014.
[17] N. Hrovatin, S. Matej, "The Choice of Mobile Operators in Slovenia,
University of Ljubljana, Faculty of Economics- Unpublished paper,
Ljubljana, Slovenia, 2007
[18] D. Birke, G. M. P. Swann, “Mobile Phones: How Mobile Consumers
Choose, 2006
[19] Kaveh Peighambari, “Development and Testing a Model for Explaining
Customer Retention Formation”, MSc. Thesis, Lulea University of
Technology, India, 2006.
[20] Dalkin, R. James, “Consumer Buying Behaviour”, Journal of
Professional Services Marketing, 1994, 0748-4623, Volume 10, No. 2,
169 – 180
[21] Moneimne, Walid, “Factors Influencing Mobile Consumers in choosing
operators” Nokia Publication in New Growth Markets, Moscow, Russia,
2005.
[22] Moneimne, Walid, “New Consumer Research by Nokia Lifts Lid on
What Really Drives New Growth Markets”, Press Release Moscow,
Russia, 2005.
[23] John Shaughness, J. Zechmeister, B. Eugene and Jeanne S. Zechmeister,
Research Methods in Psychology, Mc Graw-Hill Companies, 2002
[24] Donna Fluss, Customer Retention is a Priority for Mobile Phone
Providers, Unpublished report, DMG Consulting LLC, New Jersey,
USA, 2009.
[25] Lohr, S.L. Sampling: Design and Analysis. Duxbury Press, Pacific
Grove, CA, 1999.
[26] J. W. Creswell, Research Design: Qualitative and Quantitative
Approaches: Sage Publications: Thousand Oaks, CA, 1994.
[27] Jurek Kirakowski, “Questionnaires in Usability Engineering”,
Unpublished Report, Human Factors Research Group, Cork, Ireland,
2000.
[28] Statgun Online Dictionary, (http://www.statgun.com/tutorials/logisticregression.
html site visited on 18/09/2014.
[29] Philip Kotler, Armstrong Gary, Saunders John and Wong Veronica,
“Principles of Marketing, Consumer Buyer Behaviour, 2nd European
Edition, Prentice Hall International (UK), 1999.
[30] G. E Belch, & M. A. Belch, Advertising and Promotion: An Integrated
Marketing Communication Perspective, 7th edition, McGraw Hill/Irwin,
New York, 2007.
[31] Phillip Kotler, Marketing Management, Prentice Hall International
(UK), 2000.