Why Gsm Tech Is More Preferred Than Cdma Tech in Yemen

Research Proposal Prepared by: Khaled Al-Gahuri Prepared for: Dr. Murad Al-Nashmy Acknowledgement I am honored to prepare this research paper which titled “Why GSM Tech is more preferred than CDMA Tech in Yemen”. And I would like to pay my special thanks to Dr. Murad Abstract The cellular industry is in Yemen dominated by two technologies – Global System for Mobile Communication (GSM) and Code Division Multiple Access (CDMA).

The number of subscriber’s mobile industry has increased significantly since 2001. The first company lunched in Yemen introduced the GSM technology which was the only choose for Yemenis people to grant, but in 2005 other company has been lunched by the government introduced the CDMA technology which provide a better services for the clients with privileges to overcome the GSM technology.

After around five years a big number of people have subscribed with CDMA, but GSM was still demonstrated the market with a bigger number of subscribers until nowadays.

It is necessary for us to understand the basic differentiation of the two technologies as they may have an impact on the subscribers.

GSM stand for Global System for Mobile Communications, one of the leading digital cellular systems. It uses narrow band TDMA, which allows eight simultaneous calls on the same radio frequency. GSM digitizes and compresses data, then sends it down a channel with two other streams of user data, each in its own time slot. It operates at either the 900 MHz or 1800 MHz frequency band.

GSM was first introduced in 1991. As of the end of 1997, GSM service was available in more than 100 countries and has become the de facto standard in Europe and Asia.

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CDMA stand for Code-Division Multiple Access, a digital cellular technology that uses spread-spectrum techniques. Unlike competing systems, such as GSM, that use TDMA, CDMA does not assign a specific frequency to each user. Instead, every channel uses the full available spectrum. Individual conversations are encoded with a pseudo-random digital sequence.

CDMA consistently provides better capacity for voice and data communications than other commercial mobile technologies, allowing more subscribers to connect at any given time, and it is the common platform on which 3G technologies are built. 3 Problem Statement The tendency of choosing The GSM technology over the CDMA in Yemen is very obvious. Thus, there is a need to identify the factors that can influence the choice patterns of either GSM technology or CDMA technology as well as why consumers prefer to choose GSM rather than CDMA even though CDMA is has more privileges and uses advanced techniques.

Objectives Our main objectives of this study are as following: To identify and analyze the factors that can influence the choice patterns of either GSM technology or CDMA technology. To investigate the relationship between those factors. To find out why GSM is more preferred than CDMA. Significance of the Study This research will help to recognize the factors that lead to the lack of use CDMA technology in Yemen as well as this study can contribute to the body of knowledge by examining the different variables and implement them. Scope of study The scope of this study is basically limited to the consumers o the mobile industry in Yemen. 4 Chapter 2 Introduction Literature Review This chapter will bring a clear idea about the factors that can influence consumer choice such as perceived services quality, choice of handset as well as international roaming and their relationship. In addition some previous researches will be included.

Consumer Choice The GSM Association is an international organization founded in 1987, dedicated to providing, developing, and overseeing the worldwide wireless standard of GSM. CDMA was established earlier and thus has a bit more coverage than GSM. However GSM networks continue to make inroads in Yemen. There are camps on both sides that firmly believe either GSM or CDMA architecture is superior to the other, Richard (2009) stated that there is no clear winner in the CDMA and GSM it all depends on your needs. There are many factors that could influence on consumer choice patterns, different factors have different influence on consumer, and these factors should be taken into consideration in order to formulate consumer choice patterns. Mobile sector must focus on customer satisfaction as serious marketing strategies.

Nadine (2001) examined that attitude of the respondents using cell phones was not influenced by either education or occupation and income. Haque (2007) suggested that coverage, service quality, data transfer speed, and choice of handset play a main role during the time to choose either GSM or CDMA technology. Chris (2006) noted that in recent years the telecommunications market has witnessed major developments, with rapid expansion in access to telecommunications networks and a surge in the number of available services and applications.

While many factors have contributed to the transformation of the telecommunications industry, competition has played a key role in driving telecom industry to develop new techniques, to innovate and to offer new services. 5 With the advent of cellular phones doing double and triple duty as streaming video devices, podcast receivers and email devices, Simon (2007) Stated that speed in data transfer is important to those who use the phone for more than making calls. Other thing advertisement can take a place when choosing technology Kalpana (2006) found that advertisement play a dominant role in influencing the customers.

Perceived Service Quality Perceived service quality defined as a global judgment or attitude relating to the superiority of the service and it’s the rank to which the technology provides key customer requirement and how reliable those requirement are delivered(NQRC,2001). Basically consumers are adapted to the services that either GSM or CDMA could provide Kumar (2005), in his study analyzed that, services plays a major role in the telecom industry are the most active and attractive.

In addition the quality of service is a driving of choice Seth et al (2006), in his study analyzed that there is relative importance of service quality attributes and showed that responsiveness is the most importance dimension followed by reliability, customer perceived network quality, assurance, convenience. The development of a reliable and valid instrument for assessing customer perceived service quality for cellular mobile services. (Backlund and Holmqvist, 2006) pointed that customer choice is achieved through good qualitative and quantitative services.

Customer choice normally can indicate to customer response to the state of satisfaction and customer opinion of satisfied condition (Oliver, 2003). Palkar (2004) proposed that perceived services is an important factor that has greater influence on costumer choice. (Serkan 2005) determined that the balance of power between service quality and customer satisfaction with an emphasis on these two constructs is the concept that is different from the view of customer. Zeithaml and Bitner, 2002, indicated that both service quality and customer satisfaction have some things in common.

Furthermore, Fornell et. al. ,(1998) reported that satisfaction is a consequence of service quality. 6 Choice of handset Liu (2002) found that the choice of a cellular phone is characterized by two attitudes: attitude towards the mobile phone brand on one hand and attitude towards the network on the other. Samuvel (2002) observed that most of the respondents consider coverage area, quality of services are an important factors for selecting the either GSM or CDMA while majority of the respondents are considered that choice if handset is the most important factor.

Kalus stated that If you travel a lot to foreign countries, then GSM phone is better for you. Also santos(2006) indicated that GSM phones work more widely across the world than do CDMA models. International Roaming This is when you connect to an overseas network and calls are routed via that network provider instead of your home provider. Johson(2002) defined roaming as extension of connectivity service in a location that is different from the home location where the service was registered. Roaming ensures that the wireless device is kept connected to the network, without losing the connection.

Roaming allows mobile wireless customers to automatically make and receive voice calls, send and receive data, or access other services, including home data services when they are outside of the area covered by their provider’s network regardless of their location. Forneil(2004) stated that roaming plays a major role in the quality of GSM/CDMA technology, Susan J. Campbell (2007) stated that there are number of different technology trends, but most significant is the rise of mobile roaming.

Source of Data The study undertaken to be mainly based on the primary data and secondary data. The primary data is collected directly from the target respondents through tructured questionnaire and personal interview. The secondary data for the study is collected from different sources such as technical and trade journals, articles, newspapers, magazines, internet, books, reports. RESEARCH DESIGN First and the most important phase in determining method of this research is designing phase. This phase should be given serious attention to make sure that the research can be done without mistakes.

Designing includes choosing the best method for collecting, measuring, analyzing data. Quantitative method such as survey method has been used for collection data. Research Framework Perceive service quality Choice of Handset Choice of Technology International Roaming 8 Population and Sampling Research The population of this study is all the consumers who has cellular phone which a huge amount of number, in this case we use Exploratory and Random sampling to analyze data. ? Data Collection The data is collected randomly irrespective of the category of the people in the form of questionnaire and the sample size is 100 respondents.