2010

SAMUELAPPIAH KUBI

ASURVEYONTHEFACTORS INFLUENCINGMULTIPLESIM USAGEIN GHANA:IMPLICATIONFOR MARKETINGSTRATEGY

ThepurposeofthisresearchistofindoutthefactorsthatinfluencetheGhanaian consumertousemultipleSIMcardsandimpactofmultipleSIMusageonthe telecomindustry

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ABSTRACT
The purpose of this research is to find out the factors that influence the Ghanaian consumer to use multiple SIM cards and impact of multiple SIM usage on the telecom industry. Quantitative and qualitative research methods have been used to analyze data collected for this research.

The type of research design employed in this research study is a survey. Close-ended questions were administered to a sample size of three hundred (300) mobile phone users living in the Greater Accra Region. The questionnaires were administered mainly in Accra Mall and Makola Market. The choice of these research locations helped us to get data from a cross section of people in our society and to enable generalization of the findings in Ghana.

Multiple SIM usage is predominantly practiced by the youth who have attained tertiary education and earn between GH251 and GH350 The research found that multiple SIM usage are influenced by factors such as overcoming patchy or poor network coverage, saving money by making on-net calls, benefiting from discounted or sales promotions and avoiding network congestion. In view of the findings it is imperative for telecom companies to consider charging low and competitive rates for all calls, improving network coverage and service quality and introduce better sales promotion and incentives to customers. SIM card registration can be introduced to give an indication of relative market shares and growth of the telecom market. The research limitation was time constraint and lack of data. There is a need for more extensive surveys to identify reasons for ownership of multiple SIM cards. The analysis can be incorporated into policy and regulatory decision making.

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TABLE OF CONTENT
DECLARATION
DEDICATION ACKNOWLEDGMENT ABSTRACT CHAPTER ONE 1.0 BACKGROUND

PAGES

1.1 INTRODUCTION

1.2

REFORMS OF THE TELECOM INDUSTRY IN GHANA

1.3

MARKET OVERVIEW OF WEST AND CENTRAL AFRICA

1.4

MOBILE PHONE SUBSCRIPTION IN GHANA

1.5

DUAL SIM PHONE

1.6

TERMS OF REFERENCE

1.7

STATEMENT OF PROBLEM

1.8

OBJECTIVES OF THE STUDY

1.9

RESEARCH METHODOLOGY

1.10

SAMPLE AND SAMPLING TECHNIQUES

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1.11

SOURCES OF DATA

1.12

DATA COLLECTIONS PROCEDURES

1.13

DATA ANALYSIS AND PRESENTATION

CHAPTER TWO LITERATURE REVIEW 2.0 INTRODUCTION 2.1 LITERATURE REVIEW ON FACTORS INFLUENCING MULTIPLE SIM USAGE

CHAPTER THREE RESEARCH METHODOLOGY 3.0 INTRODUCTION

3.1 RESEARCH METHODOLOGY 3.2 RESEARCH DESIGN 3.3 POPULATION DESCRIPTION 3.4 SAMPLING METHOD 3.5 SAMPLING SIZE 3.6 QUESTIONNAIRE DESIGN 3.7 DATA ANALYSIS AND PROCEDURE / PRESENTATION CHAPTER FOUR 4.0 DATA ANALYSIS OF FINDINGS 4.1 DESCRIPTIVE ANALYSIS 4.2 RESPONSE ON NUMBER OF SIM CARD USAGE 4.3 RESPONSE ON USE OF MULTIPLE SIM PHONES

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4.4 RESPONSE ON BRAND OF MOBILE PHONES 4.5 RESPONSE ON NUMBER OF SIM CARDS WITH MAIN MOBILE PHONE 4.6 RESPONSE ON SIM CARD USAGE 4.7 RESPONSE ON HOW OFTEN YOU USE YOUR VARIOUS SIM CARDS 4.8 FACTORS INFLUENCING WHICH SIM CARD ONE USE AT A PARTICULAR TIME 4.9 RESPONSE ON CALLS YOU CONSCIOUSLY DECIDE WHICH SIM CARD TO USE 4.10 WHY RESPONDENTS USE MORE THAN ONE SIM CARD 4.11 RESPONSE ON THE NUMBER OF CALLS MADE TO PEOPLE WHO USE THE SAME NETWORK AS YOU CHAPTER FIVE 5.0 DISCURSSION OF FINDINGS 5.1 CONCLUSION AND RECOMMENDATION 5.2 IMLICATION FOR TELECOM OPERATORS 5.3 IMPLICATION FOR GOVERMENT 5.4 IMPLICATION FOR CONSUMERS 5.5 RECOMMENDATION

REFERENSES APPENDIX 1 QUESTIONNAIRE

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CHAPTER ONE TITLE: A SURVEY ON WHY GHANAIAN CONSUMERS CHOOSE TO HAVE MULTIPLE NETWORKS (SIM OR CHIP). IMPLICATIONS FOR MARKETING STRATEGY

BACKGROUND

INTRODUCTION The explosive growth of Global System for Mobile (GSM) Communication services over the last two decades has changed mobile communications from a niche market to a fundamental constituent of the global telecommunication markets. GSM is a digital wireless technology standard based on the notion that users want to communicate wirelessly without limitations created by network or national borders. In a short period of time, GSM has become a global phenomenon. The explanation for its success is the cooperation and coordination of technical and operational evolution that has created a virtuous circle of growth built on three principles: interoperability based on open platforms, roaming, and economies of scale. GSM standards are now adopted by more than 200 countries and territories. It has become the main global standard for mobile communications; 80% of all new mobile customers are on GSM networks. GSM has motivated wireless adoption to the extent that mobile phones now globally out number fixed-line telephones. In February 2004, more than 1 billion people, almost one in six of the worlds population were using GSM mobile phones. Some developed European nations such as the United Kingdom, Norway, Finland, and Spain have penetration levels of between 80 to 90% with other European nations not far behind. However, there are some countries such as Hong Kong and Italy that have a 100% penetration level. The importance of the mobile telecommunication industry is now apparent: A recent study commissioned by a UK mobile operator establishes that the United Kingdoms mobile-phone sector now contributes as much to the UK gross domestic product as the total oil and gas extraction industry.
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Technical developments, competition, and deregulation have contributed to a strong growth in the adoption of mobile phones in the third world. In Africa, recent research has shown that mobile telephony has been extremely important in providing an African telecommunications infrastructure. The number of mobile phone users on the African continent has increased by over 1,000% between 1998 and 2003 to reach a total of 51.8 million. Mobile-user numbers have exceeded those of fixed line, which stood at 25.1 million at the end of 2003. The factors for success in this region include demand, sector reform, the licensing of new competition, and the emergence of important strategic investors. The competition currently in the telecom industry is enormous and various network providers are using diverse means of marketing strategies in order to stay on the market. The communication industry worldwide has continuous to experience rapid developments unprecedented by any other industry before it in the 20th century. The introduction of network service providers in the early 1980s has seen such dynamism and innovations that it is now possible to send and receive messages, emails, surf as well as download data from the internet. The technology of network services is moving from what is now the first and second generation into a more advanced communication system being referred to as third, fourth, and even fifth generation. The new generation of network services has even more enhanced features, combining high speed technology with multimedia data services. In this wise, it is evident that the role of an efficient telecommunication in infrastructure in the development of any economy cannot be overemphasized. Indeed it is the engine that drives business success, enhancing every facet of human life and instrumental in the creation of thousands of jobs. No doubt communication has become the universal tool that enables businesses as well as family and friends organize their every day lives while saving time and money. Furthermore, social services such as emergency numbers for police and other security services has greatly facilitated the work of these agencies as communities are able to reach them instantly for assistance. The introduction of telecommunication networks in Ghana revolutionalised the face of communication enabling businessmen and women to stay in touch with their offices 24 hours a day, 365 days a year while assuring family and friends of constant communication whether at home or on the move.
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Telecommunication network services initially covered the big cities of the country, for example Accra, Kumasi and Tema but now extend to every region and almost every nook and cranny of the nation. Telecommunication is the fastest growing service sector in the century today and one the most competitive. The government of Ghana, realizing the technological advancement globally with the introduction or advent of numerous telecommunication network providers and its positive Impact, opened up the telecommunication industry to private firms such as MTN, Tigo, Kasapa, Zain, Globacom and others.

REFORM OF THE TELECOM INDUSTRY IN GHANA The early part of the 1990s witnessed another dimension of the market reforms implemented under the Economic Recovery Program (ERP)/ Structural Adjustment Program (SAP) that was launched in April 1983. In line with the objective to carry out far-reaching reforms that will transform every facet of the economy under the ERP/ SAP, the telecommunication sector reforms were initiated in 1993/94. But what conditions necessitated these reforms? Before the reforms the postal and telecommunication services were handled solely by the Ghana Post and Telecommunication Corporation (GP&T). The general deterioration in the Ghanaian economy in the late 1970s and early 1980s affected the performance of GP&T. However; GP&T did not see any significant transformation with the economic revival that came with the ERP until early 1990s. As at 1992, the general performance of GP&T was poor and reflected variedly in low and stagnant telephone penetration rates, poor quality of service for those who had access and higher international tariffs for those who managed to get through with the international direct dial. The rate of access to phone in homes was 3 phones per 1,000 inhabitants and its distribution was skewed in favor of urban dwellers especially those in Accra. For instance, according to International Telecommunications Union (ITU) (1994), over 80% of all phone lines were in urban areas while estimated phone lines in Accra in 1990 were about 53.6% of the total lines in the country. It must be pointed out quickly that the failure of GP&T to expand at a rate higher than the rate of 1,000 lines per annum in the 1980s and early 1990s was not due to lack of demand for telephone
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services. In fact, it was on record that, about the same time, demand was estimated to be in excess of supply by 150,000 lines (3 times the existing number of lines). The emergence of communication centers which provided fax and phone services at rates ten times higher than the GP&Ts tariffs shows that demand was not a constraint on GP&Ts expansion (Haggarty et al, 2002). GP&Ts failure to expand rapidly could not be attributed to lack of funds either since the World Bank and other multilateral donors made available US$173 million for investment in the telecommunication sector in 1988 but this project was executed three and a half years behind schedule. This apparent inefficiency in execution of projects could be partly attributed to tied-aid investments that the sector received over the period, resulting in GP&T having switches from six different manufacturers contributing to long repair times and high maintenance costs (Haggarty et al, 2002). By and large, the failure of GT&P to expand its network was largely due to poor management and inefficiency resulting partly from tied aid investments in the sector. The reforms began with the launch of the Accelerated Development Plan (ADP) for the telecommunication sector in 1994. Its main objectives were to ensure sustained improvement in the availability, reliability and quality of communication services; expand employment opportunities in the sector; improve public access to telecom services in rural and urban areas by way of payphone and mobile phone facilities; and to ensure that telecom tariffs are affordable and competitive and confer economic returns on telecom operators (Frempong, 2002; Haggarty, 2002). To realize these goals, the Plan spelt out strategies such as privatization of Ghana Telecom, creation of a competitive duopoly in the telecom sector, liberalization of value added services, and establishment of a regulatory body for the sector. Thus, in 1995, GP&T was split into Ghana Post and Ghana Telecom (GT) as separate\ companies. Ghana Telecom was privatized and a second network operator Western Telesystems (Westel) Ltd was licensed. A license was also issued to Capital Telecom Ltd, a private indigenous telecommunication company, to provide rural telephony to some villages and towns in the southern parts of Ghana. One feature of state-owned monopolies in the utility services sector prior to the reforms was that they tended to combined operational responsibilities with policy and regulatory roles. Thus, to a large extent, GP&T was acting as a player and a referee at the same time before the reforms. As the telecommunication sector in Ghana underwent privatization and liberalization, there was the
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need to assign the regulatory roles to an independent body that will oversee the development of the sector. Consequently, the National Communications Authority Act (Act 524) was promulgated in 1996 paving the way for the establishment of the NCA. A host of telecom value added providers emerged with the liberalization of the telecommunication sector. Notable among them are the mobile phone operators most of whom were licensed before the establishment of the NCA. In fact, multiple licenses for cellular operators were awarded as far back as 1992. Millicom Ghana Ltd began its operations in 1992/93 with Mobitel as its network name. Celltel started its operation in 1995 with a network name Celltel which was later changed to Kasapa. Scancom also entered the market in the same year using a network name Spacefon. In 2001, Ghana Telecom introduced its mobile phone services under a network name One Touch. The telecommunication industry regulator is the National Communications Authority. The National Communications Authority (NCA) was established by an Act of Parliament, Act 524 of 1996. Act 524 was repealed and replaced by Act 769 of 2008 which now forms the legal framework for the establishment of the NCA and regulation of communications in Ghana. The NCA is an independent institution with duties and powers to protect the interest of subscribers and users and to promote effective and fair competition among communication network operators. Since the establishment of the NCA, they have been able to establish and monitor the implementation of national communications standards and ensure compliance accordingly. They have also ensured fair competition amongst licensees, operators of communications networks and service providers of public communication. In Ghana currently we can boast of six mobile

telecom industries which are MTN, TIGO, ZAIN, GLO, KASAPA and GT/VODAFONE as they are ordinarily referred to, are all either wholly or largely owned by foreign multi-national telecom industry. The simple history of their coming into Ghana is that of either complete buy outs of local interest or foreign-local partnership, where the foreign investor holds the majority shares Invest com bought 98 per cent of Scancom and changed Areeba to MTN Everywhere you go; Zain bought Western Telesystems Limited (WESTEL) and changed the brand name Westel to
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Zain A wonderful world; Millicom International Cellular S. A. re-branded Mobitel/Buzz to Tigo- Express yourself and Kasapa re-branded Celltel Ghana into Kasapa The power of 028. Globacom Rule your world, obtained a direct license from the National Communication Authority (NCA) and most recently Vodafone bought 70 per cent shares in Ghana Telecom, but still uses the linking people everywhere slogan for the network and proud to be Ghanaian and stay in touch for the GSM service, One touch. Due to the intense competition on the market for limited customers, there is a scramble for client. The companies therefore are coming out with promotional strategies through advertisement, personal selling and sales promotion. This they intend to use to acquire client and to get them to be loyal to their network provider. Despite this attempt from the network operators, customers continue to use more than one network. This research work-studys is intended to find out what influence Ghanaian consumers to choose multiple network, understanding of why they buy several networks and the factors that influences the buying process. It is in the light of this background that the study will be conducted to explore the factors that affect the Ghanaian consumer in the choice having several SIM or chip from the various networks MARKET OVERVIEW OF WEST AND CENTRAL AFRICA Despite the global economic downturn, the West and Central African (WECA) mobile market grew steadily and recorded a 34% increase over the year to June 2009. The number of subscriptions exceeded 147 million in June 2009 and Information forecasts it to pass the 300 million mark by the end of 2014 when the SIM-card penetration rate will be around 66%, up from 36% in June 2009. WECA accounted for 35% of Africas mobile subscriptions in 2009, which made it the largest sub-region in Africa. Despite a wide coverage (24 countries), the subregion is dominated by the Nigerian market, which accounted for 45% of the subscriptions in 2009. Over the coming years, the mobile growth rate in WECA will be fuelled by increased connections in the lower-end segments and multiple SIM cards/connection usage. The level of
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competition is toughening in each market with new entrants, lower entry fees SIM cards often cost less than US$1 and offerings increasingly addressing the low income segments (location based tariffs, lower denomination recharge value, extension of credit validity period). Since 2008, there have been 15 network launches in WECA, including eight from new operators, five WCDMA networks and three data-only networks. Among the data dedicated networks was Monacoms mobile-WiMAX deployment in Nigeria, the first to go live in WECA. In the meantime, operators are increasing their coverage in rural areas, which represent over 50% of the population. Incomes are lower in rural environment and operators are increasingly looking into cost-reducing solutions including infrastructure/site sharing and managed services. Nigeria and Ghana are leading the pace in terms of network sharing regulation. In 2007, the Nigeria Communications Commission set up a framework to issue Infrastructure-sharing and Co-location Service licenses to third parties. The number of licensees increased from three in 2008 to 10 in 2009. In April 2009, Ghanas National Communications Authority announced they were preparing a similar framework. Cheaper services and competition has increased the level of multiple SIM card usage. Information estimates that in 2009, around 30% of the mobile subscriptions in Africa were multiple connections. This proportion is likely to near 40% in 2010. The data segment is also playing a significant role in the number of multiple connections.

Data usage increased by around 46% in WECA with subscriptions nearing 4 million in 2009. As at 2009, over 90% of data subscriptions in WECA were GPRS/EDGE connections. However, mobile broadband connections over HSPA or EV-DO are growing faster and rose by nearly 400% to exceed 300,000 in 2009. The mobile broadband uptake is fuelled by poor performances from fixed broadband operators (lack of coverage and expensive tariffs).

The number of ADSL subscriptions is still fewer than 200,000 in 2009 across WECA. Nigeria, Senegal and Cote dIvoire between them produced nearly half of WECAs ADSL subscriptions. The growth in internet usage will be boosted by increased capacity with new cable systems to go live by early 2010. Currently six projects are in progress across the Western coast of Africa, including Main One, Glo-1, ACE and a SAT-3 upgrade.

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MOBILE PHONE SUBSCRIPTION IN GHANA

There has been an astounding increase in mobile phone subscriber numbers since 2005 (see chart below),

Projections by industry analysts indicate that within the next year or two, the six operators would have a little over two million potential subscribers to compete for. Data from the NCA ending August 2008, indicated that out of a total of 10,242,916 mobile phone subscribers in the country, MTN has 5,539,065, representing 52 per cent of the market; Tigo following half way with 2,668,316 subscribers; followed by GT/Vodafone with 1,648,544 subscribers; whiles Kasapa trails far behind with a meager 386,991 subscribers. With the growing number of subscribers, an understanding of who buys the service, why they buy and what influence the consumer to have multiple SIM card taking into account the distortion in statistics resulting from multiple SIM card ownership is of keen interest in the industry today. It is in the light of this background that the study will be conducted to explore the factors that influence the Ghanaian consumer to choose two or more service providers. In

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addition an effort will be made to consider the relationship between dual SIM phones and multiple SIM card customers.

DUAL SIM PHONE A dual SIM mobile phone is one which holds two SIM cards. Initially, dual-SIM adapters were made available to use in regular mobile phones to allow them to contain two SIMs, and to switch from one to the other as required. This combination is called a standby dual-SIM phone. More recently, some phones have been produced that can natively work with two SIMs, both of which may be active at the same time. These are active dual-SIM phones. There are also some Chinese triple-SIM phones. Dual-SIM operation allows the use of two services without the need to carry two phones at the same time.

1.2

TERMS OF REFERENCE

As part of the academic requirement it is expected that every bachelor degree student undertake a research work concerning his/her field of study in school and that in a way can be of benefit to an organization and the society as a whole.

1.3

STATEMENT OF PROBLEM The growing number of subscribers has made companies in the telecommunication industry to lay a claim to an unrealistic market shares primarily due to multiple SIMs reporting. This phenomenon is pushing penetration rates significantly in the telecommunication market, but these figures inevitably include large numbers of inactive subscribers. With the growing number of subscribers, what influence the consumer to have multiple SIM card taking into account the distortion in statistics resulting from multiple SIM card ownership and how multiple-SIM ownership will impact the industry is of keen interest in the industry today. The increasing rates of multiple SIM use contribute to falling revenues per registered SIM card.

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1.4

OBJECTIVES OF THE STUDY

The following are the objective we intend to achieve at the end of this project. The objectives are. The factors that influence the consumer to use multiple SIM cards The impact of multiple SIM usage on the Telecom industry Recommend strategies to overcome challenges posed by multiple SIM usage

1.5

RESEARCH METHODOLOGY

1.5.1 SAMPLE AND SAMPLING TECHNIQUES We will be sampling 300 people who use GSM within Accra and surrounding towns, the promotions manager as well as consumers from the general publics will also be interviewed as well as the sales promotions team. This will enable data reflect the actual situation on the ground 1.5.2 SOURCE OF DATA Source of data are primary and secondary. Articles, report, journals and brochures will be used as a source of secondary data. 1.5.3 DATA COLLECTION PROCEDURE Self-administrated questionnaires, interviews and observations will be used. 1.5.4 DATA ANALYSIS AND PRESENTATION Data analysis will be done with the aid of tables, diagrams and figures

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CHAPTER TWO LITERATURE REVIEW INTRODUCTION This chapter reviews the literatures on factors influencing multiple SIM usage. FACTORS INFLUENCING MULTIPLE SIM USAGE Mobile telecommunication figures released by ITU (International Telecommunication Union) gives global mobile cellular penetration, by region , for the year 2009 as hundred and eighteen point six (118.6) percent, hundred and six point six (106.6) percent, eighty one (81) percent, fifty seven point six (57.6) percent, forty six point four (46.4) percent and thirty one point five (31.5) percent for Europe, C I S (Commonwealth of Independent States), Americas, Arab states, Asia and the Pacific and Africa respectively. The global mobile cellular subscription for the same year stood at 67 persons per 100 inhabitants and estimated at four billion and three hundred million (4.3bn) people across the globe. Two regions (Europe and the Commonwealth of Independent States) already have a mobile subscription penetration in excess of 100 per cent. The Asia and the Pacific and Africa regions have yet to reach this figure. Based on the regional compound annual growth rates (CAGR) for the last three years, all regions except Africa will have surpassed a mobile penetration of 100 per cent by the end of 2015. Based on ITU projection Africa mobile cellular subscription penetration would reach 80 per cent by 2015. The main problem with these data is that not every subscription maps onto one discrete individual. This is as a result of mobile SIM card duplication culminating into subscription data overstating the actual number of people that possess a mobile phone. Reasons for duplicate subscriptions are as a result of the same user having more than one subscription to separate work from personal calls and to benefit from cheaper on-net tariffs in countries that have not introduced number portability. India, for example, does not offer number portability, so mobile subscribers cannot keep the same phone number when switching operators. Instead, subscribers buy new SIM cards, a trend that has been accelerated by the recent introduction of phones with multiple SIM cards.

Ewan Sutherland, Independent telecommunication policy analyst based in Brussels, Belgium (2009) conducted a research on the topic: Counting customers, subscribers and mobile phone
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numbers. The purpose of the research was to identify policy issues arising from discrepancies between the various sources of numbers of customers for mobile networks. The possible reasons for an individual having more than one SIM card that Ewan Sutherland gave includes perceived quality of the networks, lower charges for calls to numbers on the same network, operators issuing SIM cards with special offers, such as free on-net calls or a bundle of free SMS and the availability of devices that can hold multiple SIM cards.

A dissertation by Araba Sey, The Information School, University of Washington (2008) cited multiple SIM holding as one of the consumer strategies of managing the cost of mobile communication. The topic of the dissertation was: Shaping communicative practices. The findings explain that subscribers choose to own multiple SIM cards to be able to make innetwork calls. The purpose of the dissertation was to find the strategies employed by low-income mobile phone users to manage the cost of mobile communication. On the 22nd of July, 2009, mmC Group organised a 4th Mobile Pricing Symposium on the topic: Multiple SIM ownership in Emerging Markets. Drivers and Best Strategy. Under this symposium the multiple SIM usage phenomenon was identified to be driven by factors related to operator, mobile ecosystem, mobile market and society. Operator related factors are specific actions of operator such as promotions and pricing differences that drive multiple SIM usage. Mobile ecosystem drivers include availability of unlocked handsets, availability of multiple SIM handsets and availability of niche devices such as SIM-slot net-books and blackberries. Mobile market drivers are quality of mobile network coverage and aggressive acquisition behaviour by market followers as a result of large market share disbalance. Social composition, norms, rhythm of life and cultural specifics do affect the multiple SIM phenomenon. Among the society related drivers of multiple SIM usage there are a number of non-rational factors such as social status, image and relationships.

OFTEL (Office of Telecommunications, telecommunications regulator in the United Kingdom) conducted a research on the topic: Use of multiple SIM cards in mobile phones, by consumers in Italy, Finland & Portugal from April-May 2001. The purpose of this research was to examine
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whether consumers make greater use of more than one SIM card in countries where there is no SIM locking. The research found out that the proportions of mobile customers using more than one SIM card were thirteen percent (13%) of mobile customers in Italy, seven percent (7%) in Finland, and four percent (4%) in Portugal. This equates to five million eight hundred thousand (5,800,000), two hundred and seventy two thousand (272,000) and two hundred and eighty eight thousand (288,000) customers respectively. A cheaper on-net call charge by mobile operators was the main reason for consumers using more than one SIM card. Multiple SIM use was most popular among younger consumers and to a lesser extent those without a fixed phone at home. Overall, about two-thirds of multiple SIM card customers said they used one card the most and the others only occasionally. The reason for not using more than one SIM card was that they were satisfied with the service packages provided by their service operator. The most popular circumstances which influenced which SIM card consumers decided to use included whether they were calling a fixed or mobile phone, which mobile network they were calling, and whether they had inclusive minutes or credit available. Absence of SIM locking did not seem to result in greater overall switching because previous research by Oftel found that SIM locking was an issue for twenty three percent (23%) of consumers who had changed their mobile handset.

In April/June 1999, the marketing department of Mobitel (Ghana) conducted a research to determine the customers primary preference in choosing a mobile phone service an exercise similar to the subject matter of this study. Respondents who were mainly Mobitel and Spacefon customers were interviewed over the phone. Customers were asked to determine which attributes they considered most important in choosing a mobile phone service some of the attributes included, coverage, quality of speech, connection fee, value added services, airtime changes, monthly line rental changes, brand name and image, billing accuracy and customer care packages. The attributes were in order of preference on a scale 1 to 5, with 5 being the most important. Mobitel and Spacefon topped the list in coverage followed by quality of speech.

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A survey conducted by LIRNEasia (2008) on the topic: Innovative strategies to reduce communication expenditure; studied the factors influencing the consumer decision to use more than one SIM card. This survey was conducted across the following countries Bangladesh, India, Pakistan, Sri Lanka, Philippines and Thailand. In this survey multiple SIM use is influenced by communication cost minimization, network quality issues and separation of contact lists. Respondents were aware of the networks used by most of their social circle and as a result, they try to acquire SIMs of the same networks. Multiple SIM cards usage allows users to take advantage of onnet calling rates whenever they are calling. In the Philippines, multiSIM ownership is also influenced by promotional offers, for example free calls on offer from various service providers at different times of the day. The second most important reason for the use of multiple SIMs is poor network reception. The third important reason for using multiple SIM cards is to use a number with a specific individual or a specific group of people. Innumerable stories are available in each country of such usage with younger generations saying they use a separate SIM to contact their boyfriends or girlfriends. Richard Heeks (April 29th, 2010) give factors that influence multiple SIM usage in his research mobile technology in Uganda published on Word Press Entries. The factors that influence multiple SIM usage in Uganda are network availability, cost and network coverage. In Uganda the mobile phone networks often go down without warning for many hours. If you have a second phone line, you simply switch to a different provider. It is cheaper to call people on the same network in Uganda. In Uganda when you get out of the big cities and towns, coverage is spotty and not consistent across networks hence it becomes necessary to get another network that reaches these cities and villages.

A market overview of West and Central African mobile market undertaken by Informa Telecoms & Media UK (2010) found multiple SIM usage in the West and Central African region. Informa estimates that in 2009, around thirty percent (30%) of the mobile subscriptions in Africa were multiple connections. Cheaper services and competition is the factors that have

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increased the level of multiple SIM card usage in the region. This proportion is likely to near forty percent (40%) in 2010. Another mobile phone market overview by Informa Telecoms & Media UK (2010) in the Middle East, multi-SIM ownership plays a strong feature of the markets in the region. Informa Telecoms & Media believes that the Middle East is the region with the highest rate of multiple SIM card ownership in the world, with about thirty eight percent (38%) of subscriptions at the end of 2008. A number of countries in the region will have penetration rates well in excess of hundred percent (100%) by 2012. They include the UAE two hundred and fifty seven percent (257%), Bahrain two hundred and ten percent (210%) and Qatar one hundred and seventy six (176%). Factors that tend to encourage multiple-SIM ownership include a preponderance of prepaid services, which do not require a commitment to one particular network operator, and competitive markets in which operators frequently promote particular price offers and low-cost SIM cards. The findings of a research by Harsha Da Silva and Dimuthu Ratnadiwakara on social influence in the adoption of mobile phones in Bottom of the Pyramid (BOP) countries in Asia found multiple SIM usage by consumers. The BOP countries are Bangladesh, Pakistan, India, Sri Lanka and the Philippines. With the findings multiple SIM card usage was fairly significant; going up to almost a quarter of mobile phone owners having more than one SIM card. This phenomenon adopted by consumers was primarily to take advantage of on-net calling rates; by acquiring a particular SIM cards just to belong to a particular network.

According to Pyramid Researchs Q1 2009 mobile forecast in Russia it was found that growth in new subscriptions was as a result of multiple SIM ownership. The factors influencing multi-SIM usage in Russia are availability of mobile handsets that support multi-SIM usage, unlocked mobile handsets and cheaper services from different providers. Many handsets from leading manufacturers support dual and even triple SIM features. Russia is perhaps the best example in Europe of the popularity of multi-SIM handsets. Russian mobile operators do not locked handsets to their networks, so customers are used to benefiting from different operators SIMs on a daily basis. Cheaper services provided by operators have made consumers acquire more than one SIM card.
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In a session with representatives of major telecom operators in south and mid-Africa (December 14, 2008) published on Consultant Value Added website; Carlos Valdecantos attributed the cause of multiple SIM phenomenon in Africa to acquisition campaigns adopted by telecom network operators. The topic of that session was on the challenges of multiple SIM

management. The objective of acquisition strategy adopted by telecom operators is to increase the total number of SIM penetrating the market and obtain market share. The purpose of acquisition strategies is to prevent loosing out on competitive position. Acquisition campaigns have been pursued by promoting among other things free traffic and subsidies. Jukka Pakola et al (1996) conducted an investigation on factors affecting the choice of a mobile phone and an operator in Finland. On factors affecting the choice of a mobile phone, price and features of the handset were regarded as the most important motives affecting the decision to purchase current mobile phone model among the respondents. According to the survey close to eighty percent (80%) and over eighty-five percent (85%), felt that price and features of the handset had affected their decision making respectively. The choice of the operator was affected primary by price and audibility. Eighty-three percent (83%) felt that price the operator charges had affected their choice. In addition, audibility was the second most important motive. Eightytwo percent (82%) felt that audibility had affected their decision. Other motives of significant importance were friends choice of operator and free calls.

In an article written by Rajeesh S. Kurup (August 24, 2009) on Business Standard website, the factors influencing the decision to use multiple SIM cards in India were among other factors, change in consumer lifestyle, advancement in technology and the cost of the SIM card sold. Change in consumer lifestyle, with subscribers keeping one number for professional and another for personal use, is one of the reasons for the growth in multiple SIM ownerships. The advancement in technology has helped in lowering the costs of handsets, especially that of dual SIM phones, and thats a reason for the increased adoption of handsets. Another major reason for the multiple card boom is the low price charged for the SIM card sold. For a user, the idea behind multiple SIM cards is to bring down costs. With new telecom service providers rolling

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out an array of schemes, including free minutes of usage, the subscriber would be keen to try out these schemes, but without immediately moving over to the new operator.

Rajiv Sharma an analyst with HSBC securities and capital market in an article on multiple SIM written by Shauvik Ghosh (November 25, 2009 liveMint.com, Wall Street Journal) has also attributed multiple SIM cards phenomenon in India to new schemes such as free minutes of usage roll out by network operators. New schemes by service operators coupled with over capacity in urban centers has accelerated the multiple SIM phenomenon.

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CHAPTER THREE RESERCH METHODOLOGY 3.1 Introduction This chapter examines the research methods used in collecting data for the study on the factors influencing the usage of multiple SIM in Ghana. Information is also gathered to assess the impact of dual SIM usage on the telecommunication industry in Ghana.

3.2 Research Methodology

There are various types of research methods but for the purpose of this study, quantitative and qualitative research methods has been used to analyze data collected for this research. Quantitative research aims to quantify attitudes and behaviors, measure variable on which they hinge, compare and point out correlation (Saunders, Lewis and Thornhill, 2007), this deals with facts, figures and measurement and produce data, which can readily be analyzed. It is most often conducted via a survey or sample that must be representative so that the result can be reflective to the entire population studied. It required the development of standardized and modifiable measurement instrument (structured questionnaire) this type of research relies on the principle of variability (confirmation, proof or substantiating). Measurable data is gathered from a wide range of sources, and it is the analyses and interpretation of the relationship across the data that gives the information researchers are looking for. This research method is used because it helps in analyzing the gathered information by putting them into quantifiable terms, it also helps to incorporate the statistical elements, design to quantify the extent to which the telecom industry contributes to the success of multiple SIM usage in Ghana and lastly it also helps in the collection of numerical data in order to explain the levels of telecommunication industry contribution to multiple SIM usage in Ghana

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3.3 Research Design

Research design is a scheme, outline or plan that is used to generate answers to research problems (Kombo and Delno 2006). It is also a detailed documentation of plan for the Research design is the

collection, measurement and analysis of data (Kothari 2003).

arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose. It constitutes the blue print for the collection, measurement and analysis of data (Saunders et al., 2007). This is used to structure the research, show how all the major parts of the research project, the samples or groups, measure, treatments, and methods of assignment of work together to address the central research questions.

The type of research design employed in this research study is a survey. It is a research design that allows the collection of a large amount of data from a sizable population in a highly economical way. It is based most often on a questionnaire and the data is standardized and allows easy comparison. It is authoritative in general because people perceive it to be easily understood and gives more control over the research process (Saunders et al., 2007).

3.4 Population Description

The population refers to the number of people for the study. It is also a group of individuals, objects, or items from which samples are taken for measurements. The population covered is SIM card users in the Greater Accra Region with emphasis on those having more than one SIM card. People less than eighteen (18) years were not selected for this research because they are classified by the laws of the land as minor and the constitution of Ghana also prevents them from working to earn an income.

3.5 Sampling Method Sampling is the process of selecting a number of individuals or objects from a population such as the selected group contains elements representative of the characteristics found in the entire
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group (Orodho and Kombo, 2002). Sampling is the analysis of elements in a population, which provides useful information on the entire population. It is also defined as the set of respondents (people) selected from a larger population for the purpose of a survey. In addition, purposive sampling method is used in selecting respondents from the population as it involves a more deliberate effort to secure a sample that conforms to some predetermined criteria the researcher is looking for. Purposive sampling enables a researcher select cases that will best enable him/her answer research questions and to meet the research objectives. The sample is most useful in studying those elements which will provide the researchers with adequate information. According to Adolph Jenson, purposive selection denotes the method of selecting a number or groups of units in such a way that the selected groups together yield as nearly as possible the same averages or proportion as the totality with respect to these characteristics which are already a matter of statistical knowledge.

3.6 Sample Size

Three hundred (300) questionnaires were administered to users of SIM cards. The three hundred (300) sample size was taken from people who go to Accra Mall and Makola Market to do shopping. These places were selected because of the different categories of people who converge at these places. The people who go to these places includes the rich and the poor, the educated and the uneducated, people from different income groups and people from different age groups. The choice of these places helped us to get data from the different kinds of people in our society in order to arrive at a meaningful conclusion with regards to multiple SIM usage.

3.7 Questionnaire Design Data collection is the means by which information or data is obtained and recorded for research purposes. Data collection is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research

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questions, test hypothesis and evaluate outcomes. It also refers to the gathering of information to serve or prove some facts.

The main sources of data used for this project work were primary or original data sources. Primary data refers to the original data gathered specifically for a particular project work. It is a type of data collected directly from people and organization via questionnaires or surveys before being analyzed to reach conclusions concerning the issues covered in the questionnaire or survey. This form of data was collected from the field using questionnaires. The primary source of data gives a greater detail as compared to secondary data because secondary omits part of the information. A week before the questionnaires were sent out, a pilot project was carried on GIMPA campus on students. Concerns raised from the study helped in adjusting some of the questions and also knew beforehand estimated total time required to complete the questionnaire.

The data was collected within two weeks.

This prevented and reduced biases that changes in

seasons bring. The two weeks was chosen because of time and financial constraints. Ten (10) people were deployed into the field within the weeks to collect data from the respondents. This is to eschew biases that the researchers would have caused if they are to administer the questionnaire.

A questionnaire is a set of questions (measures) to which respondents records answers. It is also a set of well-formulated questions to probe and obtain responses from respondents. Questionnaire provides an efficient way of collecting responses from a large sample prior to quantitative analysis because each person is asked to respond to the same set of questions. A good questionnaire will ensure the collection of precise data the researcher will require to answer research questions and achieve the research objectives. There are two major types of

questionnaires. These are close- and open ended questionnaire.

With the close-ended questions, the respondent is given the option from a number of predetermined answers. The questions have multiple responses out of which the respondents have to select one or more choices. It is also associated with rating scale with discrete responses
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or continuous range. An open-ended question places no constraints on respondents who are free to answer in their own words.

Close-ended questions are employed because it helped in getting specific information and better analysis of the data. It also helped respondents to express their opinions or attitudes by choosing ratings on a scale. Close-ended questions provide a number of alternative answers from which the respondent is instructed to choose (De Vaus, 1991). It is usually quicker and easier to answer as they require minimal writing. predetermined. Responses are also easier to compare as have been

Youngman 1986 (cited in Bell 1993) identifies six types of closed-ended

questions which are list, category, ranking, scale, quantity and grid. For the purpose of this research, the list method of close-ended questions was used. This is because respondents were offered a list of items to be selected from.

On the basis of data collection from population, questionnaires were designed. The researchers distributed the questionnaires personally. The questionnaires were given to SIM card users. The objectives and purpose of the study was explained to the target groups. It helped in promoting mutual and healthy understanding between the researchers and the target group.

3.9 Data Analysis and Procedure/Presentation Data analysis is the examination of what has been collected in a survey or experiment and making deductions and inferences. It involves uncovering underlying structures, extracting important variables, detecting my anomalies and testing any underlying assumptions (Saunders et al., 2007). According to De Voss et al., (2002), data analysis is the process of bringing order, structure and meaning to the mass of collected data.

The research used some numerical data that was usefully quantified to help answer research questions and meet the researchers objectives. This ranged from creating tables and diagrams (bar and pie charts) and establishing statistical relationships between variables. Frequency distribution table is used in analyzing or challenges faced by the industry.
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Tables were used to summarize data for individual variables so that specific values can be read. The tables also summarized the occurrence or frequency in the various categories. Diagrams like bar and pie charts can provide visual clues although data may need grouping (Henry, 1995). Bar charts provide a more accurate representations and this was used for this research. In the bar chart, the height or length of each bar represent the frequency of occurrence. Although bar charts have been shown to give equally good results, it has been shown that the most frequently used diagram to emphasize the proportion or share of occurrence is the pie chart (Henry, 1995). A pie chart is divided into proportional segment according to the share each has of the total value. However, it is more difficult to interpret pie chart with more than six segments (Morris 2003). Hence data was grouped into less than six segments for easy interpretation.

In establishing statistical relationship between variables, possible relationship between data variables was explored by plotting the dependent variables that is, the variable that changes in response to the changes in the other (independent) variable against the independent. The

strength of the relationship is indicated by the closeness of the points to an imaginary straight line. If as the values for one variable increases, so do those for the other, a positive relationship will be established. If as the values for one variable decrease and those for the other variable increase, a negative relationship may be the outcome

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CHAPTER FOUR DATA ANALYSIS OF FINDINGS

This chapter analyses data collected from a sample size of 300 mobile phone usres in the Greater Accra region.

DESCRIPTIVE ANALYSIS Descriptive analyses of samples used in the survey seek to find out factors leading to the use of multiple sim card. The table below talk about all the demographic factors covered under this research, it shows the number of respondents for each demographic variable as well as the its percentages. The result of the survey (table 1) below indicate that 65 percent of all respondent were male while 35 percent were female. Respondents for multiple Sim users were 200 which represent 67 percent and non multiple sim users were 100 which represent 33 percent of the total respondent

Table 1 DEMOGRAPHIC FACTORS PROFILE ALL MOBILE PHONE USERS % MULTIPLE SIM USERS % NON MULTIPLE SIM USERS %

GENDER Male Female Total AGE GROUP 18-29years 30-39years 120 69 40% 23% 102 50
24

195 105 300

65% 35% 100

120 80 200

60% 40% 100

75 25 100

75% 25% 100

51% 25%

18 19

18% 19%

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40-49years 50years and above Total EDUCATIONL LEVEL

56 55 300 ALL MOBILE PHONE USERS 20 83 165 25 7 300

19% 18% 100 %

28 20 200 MULTIPLE SIM USERS

14% 10% 100 %

28 35 100 NON MULTIPLE SIM USERS

28% 35% 100 %

Primary Secondary Tertiary Post university Illiterate Total MONTHLY INCOME Below 100 100-250 251-350 351-500 501 and above Total

7% 28% 55% 8% 2% 100

13 37 128 18 4 200

7% 18% 64% 9% 2% 100

7 46 37 7 3 100

7% 46% 37% 7% 3% 100

49 63 87 48 53 300

23% 29% 21% 12% 14% 100

22 46 76 24 32 200

11% 23% 38% 12% 16% 100

27 17 11 24 21 100

27% 17% 11% 24% 21% 100

Out of the 300 mobile phone users sampled, 200 which represent 67 percent were multiple SIM users. 60 percent of multiple SIM users were males and 40 percent were females.

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From the table, 51 percent of multiple SIM users were between the ages 18-29years, 25 percent were between the ages 30-39years, 14 percent were between the ages 40-49years and 10 percent were between the ages 50 years and above. The educational level for multiple SIM users was mostly dominated by those in the tertiary or has acquired education up to the tertiary level with a percentage of 64%, followed by 18% who had their education to the secondary level. 9% and 7% of the respondents had their education to post university and primary level respectively. A significant 2% of the responses for this case were illiterate. Out of 200 multiple SIM users 38% earn between Gh251 and Gh350, followed by 23% for those who earn between Gh100 and Gh250, 16% earn Gh501 and above, 12% earn between Gh351 and Gh500, and 11% earn below Gh100.

TABLE 2: HOW MANY SIM CARDS ARE YOU USING? This table gives a summary of the number of SIM cards being used by the respondents. Responses Two Three Four Five or more Total No. of Respondents 117 60 17 6 200 Percentage 39% 20% 6% 2% 100

Respondent with two SIM card users constitute 39%, followed by three SIM card users 20%, four SIM card users were 6% and five or more SIM card users were 2%. The diagram below shows the information above. Figure 1
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two three four fiveormore

TABLE 3: DO YOU USE MULTIPLE SIM PHONE Base on the research topic, this research went ahead to find out whether these phone users do have a multiple SIM phone or they have several phones. Even though there have been a quick technological improvement in mobile handsets, a large number of the respondents were yet to have multiple SIM phones.

Responses Yes No Total

No. of Respondent 50 150 200

Percentage 25 75 100

Out of 200 respondents 75% do not have multiple SIM phone but 25% do have multiple SIM phone.
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Fig 2

TABLE 4: BRAND OF MOBILE PHONE This table gives a summary of the brand of handset the respondent mostly used and perhaps would have influence the use of multiple SIM. Phone brands Nokia Sony Ericsson Samsung Motorola Others Total No. of respondents 52 19 21 27 81 200 Percentage 26% 9% 11% 13% 41% 100

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From the research it was gathered that 26% of the population used the Nokia brand of phone, 13% for Motorola, 11% for Samsung, 9% for Sony Ericson and 41% for other phones users. Other phones are phones different from the ones listed above, these are mainly China brand of phones like techno, dorado etc. The graph below displays the information above. Figure 3

Nokia SonyEricsson Samsung Motorola Others

TABLE 5: HOW MANY SIM CARDS DO YOU USE WITH YOUR MAIN MOBILE PHONE? Table 5 gives a summary of how many SIM cards the respondents use with their main mobile phone.
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Responses One Two Three four

No. of Respondents 150 44 6 0

Percentage 75 22 3 0

Total

200

100

75% of multiple SIM users use one SIM phone, 22% use dual SIM phones, 3% use tri SIM phones and none use four (4) SIM cards with their main mobile phone. The diagram below shows the information above Figure 4

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TABLE 6: HOW DO YOU USE YOUR SIM CARDS? From table 6, in order to find out what motivates the choice of SIM card or cards, we would like to know how the respondents use more than one SIM card in their mobile handset. Responses I have more than one mobile handset My phone holds more than one sim card One mobile handset and more than one SIM card which I change manually No. of Respondent 110 Percentage 55

43

22

34

17

I have multiple SIM phone and other single SIM mobile handsets

13

Total

200

100

From this table 55% do have more than one mobile handset for each SIM card, 22% do have mobile phone which can hold more than one SIM card at a time, 17% responded they own one mobile handset and more than one SIM card which they change manually and 6% own multiple SIM phone and other SIM cards which they change manually. This information is displayed in the diagram below.

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Fig 5

Ihavemorethanonemobile handset

Myphoneholdsmorethan onesimcard

Onemobilehandsetand morethanoneSIMcard whichIchangemanually

IhavemultipleSIMphone andothersingleSIMmobile handsets

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TABLE 7: WHICH BEST DISCRIBES HOW OFTEN YOU USE YOUR VARIOUS SIM CARDS Table 7 answers the question as to which option best describe how often one uses his/her different SIM cards.

Responses Use one sim card most and others occasionally Use one sim card most but the others fairly regularly Tend to use all or most of my sim cards in fairly equal amounts

No. of Respondent 118

Percentage 59

46

23

36

18

Total

200

100

The number of multiple SIM users who use their SIM card most often and other SIM cards occasionally were 59%, 23% uses the one SIM card most but the others fairly regularly and 18% tend to use all or most of the SIM cards they have in fairly equal amounts. The pie chart below shows the information above.

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Fig 6

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Table 8: WHICH FACTORS MAY INFLUENCE WHICH SIM CARD YOU DECIDE TO USE AT A PARTICULAR TIME. Table 8 gives a summary of the factors that influence which SIM to use when making calls Responses Time of day Calling locally or longer distance Calling within the country or to abroad Calling from home or abroad Calling a mobile or fix line phone Which mobile network am calling Making voice call or using other type of service Receiving and making call Quality of the call or the ability to complete the call Have inclusive free minute available When calling for personal or business reasons Total No. of Respondent 14 20 26 Percentage 7 10 13

10 4 56

5 2 28

8 6 14

4 3 7

26

13

16

200

100

The number of respondents who would like to use a particular SIM depending on the network they are calling were 28%, 13% would use a SIM if calling within the country or to abroad, 13% would also use a particular SIM if the network have inclusive free minutes available, 10% said if calling locally or longer distances, 8% would use a particular time of calling for personal or business reasons, only 7% considers the quality of the call or the ability to complete the call,
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followed by 7% of mobile phone users who considers the time of the day. There are only a few people who considers calling from home or abroad (5%), making voice call or other services (4%) receiving or making calls (3%) and calling a mobile or fixed line phone (2%). The diagram below shows this information.

Fig 7

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TABLE 9: HOW MANY OF YOUR CALLS DO YOU CONSCIOUSLY DECIDE WHICH SIM CARD TO USE IN THESE CIRCUMSTANCES As part of the research, we wanted to know how many of the calls, do respondents deliberately decide which particular SIM card to use Responses No. of Respondent Percentage All my calls For at least three-quarters of my calls For at least half of my calls For at least a quarter of my calls For less than a quarter of my calls Total 110 22 55 11

30 16 22 200

15 8 11 100

From the table , 55% of the population said they deliberately decide which SIM card to use for all their calls, followed by at least half of the calls with 15%, 11% for at least three quarters of their calls, 11% for less than a quarter of their calls and then 8% for at least a quarter of my calls. The content of table 9 is displayed in the graph below.

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Fig 8

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TABLE 10: WHY DO YOU USE MORE THAN ONE SIM CARD There are so many factors that influence the use of multiple SIM card. The factors include overcoming patchy or poor network, saving money by making on-net calls and benefiting from discounts or sales promotion

Responses Overcoming patchy or poor network coverage Avoiding net congestion Saving money by making on-net calls Benefiting from discounted or sales promotions Prestige or social status Business

No. of Respondent 52

Percentage 26

32 42

16 21

38

19

6 26

3 13

Others ( please specify)

Total

200

100

The respondents who chose overcoming patchy or poor network coverage as the main factor that influences their decision to have more than one SIM card were 26%. This is followed by 21% of respondents attributing their decision to have multiple SIM to saving money by making on-net call. Benefiting from discount calls or sales promotion were 19%, avoiding network congestion were 16%, business were 13% and prestige or social status (3%). This information is captured in the diagram below.

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Fig 9

TABLE 11: HOW MANY OF THE CALLS ARE MADE TO PEOPLE WHO USE THE SAME NETWORK AS YOU? From this table, we wanted to know, how many of the on-net calls are made Responses About three-quarters About half About a quarter Less than a quarter None Dont make call to other network Total No. of Respondent 70 100 16 12 2 0 200
40

Percentage 35 50 8 6 1 0 100

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The number of the respondents, who said they make about three quarters of their calls to the people using the same network that they are using were 50%, followed by about half of their calls 35%. Eight percent (8%) was recorded for about a quarter, 6% for less than a quarter and 1% was recorded for NONE. All the respondents do make calls to other mobile networks. This information is shown in the diagram below.

Fig 10

Aboutthreequarters Abouthalf Aboutaquarter Lessthanaquarter None Dontmakecallsto othernetworks

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CHAPTER FIVE DISCUSSION OF FINDINGS Many researches have been carried out in the past and recently to find out the factors that influence multiple SIM usage in other parts of the world, but this research was restricted to Ghana. This chapter discusses the findings from a survey to investigate factors which influence mobile phone consumers use of multiple SIM cards, the impact of multiple SIM usage on the industry and recommend strategies to overcome challenges posed by multiple SIM usage. Multiple SIM usage has become a phenomenon among mobile phone users in Ghana. This has brought about distortion in statistics of subscribers within the telecommunication industry and has made mobile telecom companies to lay claims to unrealistic subscriber base. The increasing rates of multiple SIM usage have also contributed to falling revenues per registered SIM card. The objective is to seek and explore the factors that make a consumer want to use an additional SIM card or cards and recommend strategies that can be used by telecom operators to overcome this problem. The sample size chosen for this research was three hundred (300) which is a representation of the entire telecom customer population in Ghana, which total 10,242,916 according to national communication authority. This number was chosen due to the time constraint within which we have to work. The questionnaires were administered at the Accra mall, Mokola market and Lapaz community all in the Accra Metropolitan Assembly of the Greater Accra Region. The choice of these research locations helped us to get data from a cross section of people in our society and to enable generalization of the findings in Ghana. The descriptive statistic revealed that 60% of multiple SIM users were male, this is justifiable because in our community males are fond of using electronic garget and mostly like to show off. According to a research conducted by Sheffield Hallam University (2007), British men consider having more than one mobile handset, makes them more desirable to female and also as an important status symbol.

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Multiple SIM users found to be young between the ages of 18-29years, had fifty one percent (51%) using multiple SIM cards. The results show that young Ghanaian seem to be open to new ideas and are ready to test new electronic devices, such as cell phones are usually found with them. Older people from ages fifty (50) years and above were found to be less enthusiastic in using multiple SIM. The results confirms study conducted by the Department of Software Engineering, Faculty of Computer Science and Information Technology, University of Malaya, that indicates people above the ages of fifty (50) years do not patronize the use of mobile phone. Most complains are related to displays that are too small and difficult to see, buttons and characters that are too small causing them to push wrong numbers frequently. They also avoid using more complex function, non user-friendly menu arrangement and unclear instruction on how to find and use a certain function and services that are too expensive.

In Ghana, it is obvious that majority of mobile phone users are literate. The survey indicated that sixty four percent (64%) of multiple SIM users had tertiary education and only two percent (2%) were illiterate. A cell phone user needs to be a literate in order to enjoy most of the facility that comes with the phone since phones are configured in English language. Technology keeps advancing on daily bases which help manufacturers to produce handset at a cheaper cost and faster rate. On the Ghanaian market you can get a handset for as low as 25 Ghana cedis (GH25) and a dual SIM phone at a price of 50 Ghana cedis (GH50). Moreover, the price of SIM card cost as low as 50 Ghana Pesewa. This reflected in our finding as Eleven percent (11%) of consumers earning below one hundred Ghana cedis (GH100) use multiple SIM cards and thirty eight percent (38%) earning between GH251 and GH350. The number of users of multiple SIM cards are increasing, this trend is partly driven by the increasing use of SIM cards in non-handset devices such as PCs. The key driving factors are users seeking to overcome patchy or poor network coverage, saving money by making on-net calls, benefiting from discounted or sales promotions and avoiding network congestion. This in turn is a driving demand for handsets capable of supporting two or even three SIMs.

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The low cost vendors from China and India have driven the market for multiple SIM handsets and now dominate it. But gradually other companies like Samsung, LG (Life is Good) have also started making their presence felt. We are now seeing other players like Nokia and Micromax introducing dual SIM handsets.

From this research, we realized that three quarters of the respondent use multiple SIM due to reasons such as overcoming patchy or poor network coverage, saving money by making on-net calls, benefiting from discounted or sales promotions and avoiding network congestion. The reasons influencing multiple SIM stated by the respondents are similar to findings made by Ewan Sutherland, OFTEL and 4th Mobile Pricing Symposium (2009). The practice of multiple SIM usage is found mostly in developing countries such as India, Pakistan, Saudi Arabia, Bulgaria, Brazil and Sub Saharan Countries like Nigeria, Togo and Ghana where telecom services are not satisfactory. SIM locking is not a common practice in these developing countries making it easier for customers to swap SIMS or use two or more SIM cards in one phone. We realized from this research that, most men between the ages of eighteen (18) and twenty nine (29) responded to this survey. This indicates the affection younger men who have acquired education at most to the tertiary level, have for mobile phones and other gadgets that require multiple SIM usage. Considering the brand of mobile phone used by the mobile phone users, namely Nokia, Samsung, LG, Sony Ericsson and Motorola which held only one SIM at a time, it was not surprising that only twenty five per cent (25%) of the mobile customer population do use multiple SIM phones. Despite the driven demand for mobile phones which are capable of holding more than one SIM at a time, effort is yet to be made by mobile phone producing companies like Nokia, Sony Ericsson and others in producing such phones. This has given the low-cost phones from China the chance to dominate the multiple SIM card phones. A large number of the respondents do own more than one mobile handset for each SIM card that they have. From the data 55 percent of multiple SIM users were own more than one mobile handset for each SIM card.
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More than half of the customer population decides deliberately for all of their calls of which particular SIM card is used at a particular time. The factors which influence this includes which mobile network one is calling, calling within the country, having inclusive free talk time and calling locally or longer distance. Its cheaper to call within the same network and also some network charge higher rate for calls to foreign countries. Free talk time and bonus credit by network providers influence which SIM card to use at a particular time. Three quarters of the respondent used multiple SIM due to reasons such as overcoming patchy or poor network coverage, saving money by making on-net calls (a call on the same network), benefiting from discounted or sales promotions and avoiding network congestion.

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CONCLUSION AND RECOMMENDATIONS This study has examined the various factors that influence consumers to use multiple SIM cards. The multiple SIM usage are due to reasons such as overcoming patchy or poor network coverage, saving money by making on-net calls, benefiting from discounted or sales promotions and avoiding network congestion. As a result it is imperative that telecommunication companies like MTN, Vodafone, Zain and Kasapa should consider the introduction of low but competitive pricing of their tariffs, introduction of better sales promotional incentives and maintaining better and wider network coverage for their respective customers. IMPLICATION FOR TELECOM COMPANIES Charging low and competitive rate for both on-net and off-net calls is one of the ways to avoid multiple SIM usage. The telecommunication companies should also adopt pre-emptive strategies that build customer loyalty through operational excellence and retention initiatives to prevent the need for a second SIM card by the customer. Another key element in tackling the multiple SIM usage is the ability to perform advance analysis of customer behaviour. Specifically, there is the need to detect constant usage, which will reveal the possibility that the user holds another SIM for specific types of calls. For example: usage of a SIM for limited phone numbers might point that the user has a personal SIM and a SIM for work purposes. Other indicators can be split of destination changes such as off-net and on-net usage patterns, daily silence periods and balance rates. It is necessary for the operator to measure calls distribution on a weekly basis and track changes. High and consistent increase of on-net calls and decrease of total call might indicate a secondary SIM purchase. Using the data gathered will enables service providers to offer real-time personalized and contextual price and products offers. In using the above process, it allows the operator to follow the behavior of its entire customer base on an individual basis, while constantly verifying the response rates in order to fine tune personal offers and ensure customer satisfaction.
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Telecom managers should place much emphasis on customers usage rate (how often customers recharge and use of the network) to evaluate their performance than merely focusing on the increase of their customer base since their customer base might have been inflated by multiple SIM usage. IMPLICATIONS FOR GOVERNMENT The National Communication Authority (NCA) should speed the process in introducing Mobile Number Portability (MNP). Multiple Number Portability is a regulated facility that enables subscribers of publicly available telephone services (including mobile services) to change their service provider whilst keeping their existing telephone number can also help to eliminate the multiple SIM usage phenomenon. Its purpose is to foster consumer choice and effective competition by enabling subscribers to switch between providers without the costs and inconvenience of changing telephone number. Government through the National Communication Authority (NCA) should encourage all the Telecom operators in the country to take the ongoing SIM card registration exercise serious, this is because it will enable them to know the actual number of subscribers they have and enable government to know the true numbers of people using mobile phones in the country. This will go a long way to assist government in various policy formulations. IMPLICATION FOR CONSUMERS The consumer stands to benefit from high quality service should telecom operators decide to improve service quality. The consumer will also benefit from low and competitive rate from mobile operators. The cost of buying additional phone or SIM card will be a thing of the past.

RECOMMENDATION In view of the forgoing and conclusion from the study, the following recommendations are made for the consideration of the appropriate authorities and all who might find them useful.
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1. Charging low and competitive rates for on-net and off-net calls. 2. Improving network coverage and service quality 3. Introducing better sales promotion and incentives to customers 4. Adopting pre-emptive marketing strategies that build customer loyalty through operational excellence and retention initiatives to prevent the need for a second SIM card by the customer. 5. Performing advance analysis of customer behavior to detect multiple SIM usage by customers and offering real-time personalized and contextual price and products offers. 6. Mobile Number portability which is a facility that enables telecom subscribers to change their service provider whilst keeping their existing telephone number can also help to eliminate multiple SIM phenomenon. 7. SIM locking can prevent customers from acquiring another SIM card to practice SIM swapping

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REFERENCES
AHORTOR C. K. REGOBETH (2003), REGULATORY IMPACT ASSESSMENT: STRENGTHENING REGULATION POLICY AND PRACTICE. DE VAUS D. (2002). RESEARCH DESIGN IN SOCIAL RESEARCH PAGES 17 TO 69 DOWUONA SAMUEL (2009), TELECOM IN GHANA - A GAME OF MULTINATIONALS FREMPONG, G. (2004). RESTRUCTURING OF THE TELECOMMUNICATION SECTOR IN GHANA: EXPERIENCES AND POLICY IMPLICATIONS. UNIVERSITY OF GHANA HEEKS RICHARDS (2010) MOBILE TECHNOLOGY IN UGANDA INFORMA TELECOMS & MEDIA UK (2010), A MARKET OVERVIEW OF WEST AND CENTRAL AFRICAN INTERNATIONAL TELECOMMUNICATION UNION (ITU) 2009, TELECOM WORLD KOTHARI C. R. (2009) RESEARCH METHODOLOGY, METHODS AND TECHNIQUES PAGES 31 TO 69 LIRNEASIA (2008), INNOVATIVE STRATEGIES TO REDUCE COMMUNICATION EXPENDITURE MMC GROUP (2009): MULTIPLE SIM OWNERSHIP IN EMERGING MARKETS. DRIVERS AND BEST STRATEGY. MOBITEL GHANA (1999), CUSTOMERS PRIMARY PREFERENCE IN CHOOSING A MOBILE PHONE SERVICE OFTEL (2001), USE OF MULTIPLE SIM CARDS IN MOBILE PHONES, BY CONSUMERS IN ITALY, FINLAND & PORTUGAL

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OLLA PHILLIP, BRUNEL UNIVERSITY UK (2005) EVOLUTION OF GSM NETWORK TECHNOLOGY - INTRODUCTION, FOCUS: EVOLUTION OF GSM NETWORKS PAKOLA JUKKA (1996) FACTORS AFFECTING THE CHOICE OF A MOBILE PHONE AND AN OPERATOR IN FINLAND PYRAMID RESEARCH (2009), MULTI-SIM OWNERSHIP DRIVES MOBILE GROWTH IN RUSSIA SAUNDERS, THORNHILL AND LEWIS (2007) RESEARCH METHODS FOR BUSINESS STUDENTS, 4TH EDITION PAGE 130 TO 148 SEY A. (2008). MOBILE COMMUNICATION AND DEVELOPMENT: A STUDY OF MOBILE PHONE APPROPRIATIONINGHANA.UNIVERSITYOFSOUTHERNCALIFORNIA. SILVA D. HARSHA AND RATNADIWAKARA DIMUTHU (2008), SOCIAL INFLUENCE IN THE ADOPTION OF MOBILE PHONES IN BOTTOM OF THE PYRAMID (BOP) COUNTRIES SUTHERLAND EWAN, INDEPENDENT TELECOMMUNICATION POLICY ANALYST BASED IN BRUSSELS, BELGIUM (2009). COUNTING CUSTOMERS, SUBSCRIBERS AND MOBILE PHONE NUMBERS. VALDECANTOS CARLOS 2008, EMERGING MARKETS MOBILE MARKET REVIEW WWW.NCA.ORG.GH WWW.WCAFRICA.COMWORLDSERIES.COM WWW.WIKIPEDIA.ORG/WIKI/DUAL_SIM

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QUESTIONNAIRE ON THE TOPIC: A SURVEY ON THE FACTORS INFLUENCING MULTIPLE SIM USAGE: IMPLICATION FOR MARKETING STRATEGY

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A SURVEY ON THE FACTORS INFLUENCING MULTIPLE SIM USAGE: IMPLICATION FOR MARKETING STRATEGY Aim of the study
The purpose of this study is to explore the factors influencing multiple SIM usage by mobile phone subscribers in Ghana. The study is aimed at finding out from consumers the factors that influence their decision to have more than one SIM card. The value of the data collected from this survey is aimed at assisting telecommunication companies come with strategies to deal with multiple SIM usage phenomenon and increase customer satisfaction. Nature of the research This questionnaire is anonymous and participation is voluntary. Please ensure that you do not write your name or any other comments that will make you identifiable. You are assured that the information obtained will be kept highly CONFIDENTIAL. The data collected will be analyzed at the aggregate level to establish findings and conclusions arising from the study. By completing the questionnaire, you are consenting to take part in this research. As such you should read the disclosure statement carefully as it explains fully the intention of this project. You may however, withdraw from participating in this study at any time without penalty. To complete this questionnaire The questionnaire is relatively short and should take about 15 20 minutes to complete. It is important that each question is read carefully and that all questions are answered. Please return the completed questionnaire to the person who gave it to you. Thanks. Offer for this study Upon request, participants in this study will afford you the opportunity to receive a copy of the result. The name and address to be provided for this purpose will be detached from the questionnaire immediately it is received. Thank you for your co-operation and assistance. Any enquiries pertaining to this questionnaire must be directed to Dr. M. Crabbe, GIMPA, Mobile: 0248043399 and Samuel Appiah Kubi, Mobile: 0248331414.

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Instructions to complete the questionnaire To complete the questionnaire please ensure that 1. All questions are answered. 2. Please tick only once for each item.

Questionnaire on factors influencing multiple SIM usage

Q1. What is your gender? Q2. What age group are you in? 18-29 30-39 40-49 50 and above Q3. What is your educational level? Primary/Junior Secondary School Senior level Tertiary level Post University level Male Female

Q4.Which category best describe your job position? Manager Accountant Supervisor Technician Salesperson Others (please indicate)

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Q5. What is the range of your monthly income tax (in Ghana Cedi)? Below100 100-250 251- 350 351-500 501 and above

Q6. How long have you been using mobile phone? 1-2yrs 3-4 5-7 Others please specify
Q7. Do you have multiple SIM phones? Yes No

Q8. Which type of mobile phone brand do you use? Nokia Sony Ericsson Samsung Motorola Others specify: ..

Q9. Why do you prefer this particular mobile phone brand? Durability Cheapness Availability User-friendliness Others specify

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Q10. What percentage (%) of your monthly salary did you use to acquire your mobile handset? Below 10% 10% - 20% 20% - 30% Above 30% Others please specify.

Q11. How much do you spend on a particular network in a month? Below GH 50 GH 100 GH 150 Above GH 200

Q12. How many mobile networks are you using? 1 2 3 4 5+

Q13. How will you rate the services of the networks you are currently using in terms of satisfaction? MTN TIGO VODAFONE KASAPA ZAIN dissatisfied dissatisfied dissatisfied dissatisfied dissatisfied satisfied satisfied satisfied satisfied satisfied very satisfied very satisfied very satisfied very satisfied very satisfied

Q14. Which of the mobile network is your preferred choice? MTN TIGO VODAFONE KASAPA ZAIN

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Q15. How long have you used your preferred mobile network? Below 6Months 6Months- 1Year 1Year-2Years Above 2Years Q16. If you have the choice to register one network which one will you register? MTN TIGO VODAFONE KASAPA ZAIN

Q17. Mobile phones contain a smart card subscriber identity module (SIM) which is used to identify which network that handset is connected to for billing and service access purposes. These can be changed to enable you to use your phone with different service providers. How many SIM cards do you use with your main mobile phone? 1 2 3 4 5+

Q18. Taking your answer from this card, how do you use more than one SIM card on your mobile phone? My mobile phone holds one SIM card only, which I change manually as required My mobile phone holds more than one SIM card at once My mobile phone holds more than one SIM card at once and I also have other SIM cards which I change manually as required

Q19. Thinking about all the SIM cards you use, and taking your answer from this card, which of the following best describes how much you use these different SIM cards? I tend to use one SIM card most, and use the other(s) only occasionally I tend to use one SIM card most, but use the other(s) fairly regularly I tend to use all or most of my SIM cards in fairly equal amounts

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Q20. Which factors may influence which SIM card you decide to use at a particular time? Choose as appropriate Time of day Whether Im calling locally or longer distance Whether Im calling within the country or to abroad Whether Im calling from home or abroad Whether Im calling a mobile or fixed line phone Which mobile network Im calling Whether Im making voice calls or using other type of service e.g. text messaging, WAP Whether Im receiving or making a call Quality of the call / ability to complete the call Whether I have inclusive free minutes available Whether I am calling for personal or business reasons Q21. How many of your calls do you consciously decide which SIM card to use in these circumstances? For All my calls For at least three-quarters of my calls For at least half of my calls For at least a quarter of my calls For Less than a quarter of my calls

Q22. Why do you use more than one SIM card? Choose as appropriate Overcoming patchy or poor network coverage; Avoiding network congestion; Saving money by making on-net calls; Benefiting from discounted or sales promotions Prestige or social statue For business Others please specify

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Q23. How many of the calls are made to people who use the same network as you? About three-quarters About half About a quarter Less than a quarter None Dont make calls to other mobiles

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