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Trends in mobile services in Finland 20042006 from ringtones to mobile internet

Identifieur interne : 000880 ( Istex/Corpus ); précédent : 000879; suivant : 000881

Trends in mobile services in Finland 20042006 from ringtones to mobile internet

Auteurs : Harry Bouwman ; Christer Carlsson ; Pirkko Walden ; Francisco J. Molinacastillo

Source :

RBID : ISTEX:638B904B24EB85420454047450E43F27C029F253

Abstract

Purpose The purpose of this paper is to discuss the development in the Finnish telecommunication market and trends in actual and future user behavior with regard to three groups of mobile services. It is the authors' view that service characteristics cannot be ignored. Designmethodologyapproach The research is based on data collected over a period of three years using independent samples. To test the core of our conceptual model the study used structural equation modeling. Findings The analysis based on the data collected over three years shows that we cannot understand the actual and future use unless we take the subtleties and usability of services, i.e. the specific characteristics, and user values of the services involved, into account. The research clearly indicates that complementary services are dependent on positive attitudes towards mobile innovations and on perceived flexibility. Service composition is of critical importance to the success of 3G and beyond. Originalityvalue This paper is unique due to the fact that longitudinal data are presented concerning one of the most successful countries in Europe in terms of the adoption and use of advanced mobile services.

Url:
DOI: 10.1108/14636690810862820

Links to Exploration step

ISTEX:638B904B24EB85420454047450E43F27C029F253

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<p>For a long time Finland has time been considered one of the most advanced and sophisticated test‐markets for new mobile services. The distribution and penetration of mobile handsets is among the highest in the world and comparable to Japan and Korea. The number of mobile phone subscribers in Finland is approximately 5.4 million, which represents a penetration rate of more than 100 percent. The future of mobile telecommunications depends on the development of mobile internet services. Mobile internet services can be defined as an activity or a set of activities of an intangible nature, which occur when consumers are mobile, and when the activity or set of activities are supported by a mobile telecommunication provider who uses a combination of mobile and Internet networks, enabling activities between customers, and a service provider or system supporting the service (
<xref ref-type="bibr" rid="b41">Van de Kar, 2004</xref>
). Content or information services are a subset of mobile internet services aimed at making information available in different modalities. Messaging services are another subset of mobile internet services enabling the exchange of either text messages or multimedia messages. Furthermore, there is a broad range of mobile commerce service‐enabling transactions. In this paper we focus on mobile internet services and use mobile data services and mobile services as interchangeable and generic concepts, while travel service, m‐commerce and message services are viewed as more specific concepts. We look at the role of innovativeness and the benefits of mobile services in relation to the actual and future use of mobile data services, which is why this paper is organized as follows. In the next section we present an overview of the Finnish mobile telecommunications market in the years for which we have collected data, i.e. 2004, 2005 and 2006. Next, we discuss literature on which we have based our hypotheses regarding the future use of mobile services. We then test our hypotheses, which are summarized in a structural equation model, using data from surveys among Finnish respondents from the years 2004, 2005 and 2006. Finally, we discuss our findings and implications for research and practice.</p>
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<sec>
<title>2. Mobile telecommunication in Finland</title>
<p>Finland is one of the forerunners when it comes to new mobile services. It is evident that Nokia – a Finnish company and the world's leading mobile handset provider – plays a crucial role. The world's first commercial GSM network was launched in Finland (1991), it was the first country in the world where mobile phones outnumbered fixed connections (1998), and it was the first to launch WAP‐services and to license 3G networks in Europe, based on a beauty contest (March 1999). Key mobile network operators are Telia‐Sonera, Elisa Communications, DNA and Saunalahti, while there is also a number of small players, mainly MVNO's. All the main MNO's operate GSM 900/1800 and UMTS networks. The market shares for mobile telecommunications are approximately 48 percent for TeliaSonera, 35 percent for Elisa Communications and 15 percent for the others (
<xref ref-type="bibr" rid="b7">Budde, 2006</xref>
).</p>
<p>In 1999, four national 20‐year licenses were awarded free of charge, while, in contrast to most other European countries, no requirements were set with regard to the coverage of the network, the timing of the network roll‐out or deadlines with regard to the start of commercial services. Initially, licenses were awarded to Sonera and Telia Mobile. However, when these two companies merged in 2002, Telia was forced to sell one of the 3G licenses. Experiments with 3G took place in 2003 in major Finnish cities like Helsinki, Turku, Tampere and Oulu. The roll‐out of the UMTS network was delayed until 2004. In 2004 and early 2005, both TeliaSonera and Elisa offered UMTS on an experimental basis, followed by Finnet by the end of 2005. In 2006, the Finnish government offered a 20‐year license for mobile television broadcast and service, based on digital video broadcast‐handheld (DVB‐H) mobile TV. The license was acquired by Digita Oy. In 2005, an experiment with mobile TV took place in Helsinki.</p>
<p>An important breakthrough in the regulation domain was the new telecommunications bill in 2006, allowing operators to bundle phones and subscriptions in a single offering, which actually boosted the subscription to 3G networks. Since 1999, a wide variety of services for mobile devices has been marketed, ranging from ringtones and icons, instant messaging and presence services via WAP based mobile banking, lottery, m‐commerce and travel services (in 1999) and games (enabled by Nokia's N‐Gage in 2003 and latter smart‐phones), and location‐based services (on an experimental basis in 2002, and GPS‐based in 2006) to multimedia messaging service (introduced in 2003), like mobile television (2005) and online music services (Musiikkikilataamo). At times gaining access to these services was a rather cumbersome affair. In 2006, TeliaSonera started offering video calling and MobileTV. However, it was not only MNO's that were important in pushing the use of advanced mobile services. The municipality of Helsinki, for instance, promoted the use of mobile phones for accessing public transport systems, an initiative that was soon followed by the City of Tampere.</p>
<p>Although there have been many relevant initiatives, developments in mobile services in Finland have recently slowed down compared to many other countries, for example Japan, Korea and Italy, and the optimistic and experimental mood of five years ago has been replaced by a more cautious atmosphere (
<xref ref-type="bibr" rid="b5">Bouwman
<italic>et al.</italic>
, 2007</xref>
). Fewer risks are being taken in the development and marketing of new services. Due to regulatory reform (number portability led to lower entry barriers for new entrants, higher churn‐rates and eroding prices) and an increase in overcapacity after the introduction of UMTS, Finland is considered to be a difficult market, as indicated by a rapid decrease of the ARPU. Finnish mobile prices are very low (
<ext-link ext-link-type="uri" xlink:href="http://www.mintc.fi">www.mintc.fi</ext-link>
). The total value of the Finnish mobile services market in 2004 was €246 million (a growth of 11 percent compared to 2003); the corresponding numbers were €258 million in 2005 (+5 percent) and €267 million in 2006 (+3 percent). This shows a slowing growth in mobile services, i.e. the mobile phone users are not adopting new services as quickly as before. Understanding why consumers adopt new mobile services is relevant, both from a practical and a more fundamental perspective.</p>
</sec>
<sec>
<title>3. Literature review</title>
<p>
<xref ref-type="bibr" rid="b5">Bouwman
<italic>et al.</italic>
(2007)</xref>
have extensively discussed existing literature with regard to the adoption of and attitude towards mobile innovations, as well as the barriers and benefits of mobile services. Although some relatively holistic models try to explain the adoption of mobile devices (
<xref ref-type="bibr" rid="b39">Sarkar and Wells, 2003</xref>
), there are still many gaps concerning the adoption of mobile services. A distinction can be drawn between literature that differentiates barriers to the adoption of new technologies on the one hand, and literature that looks at the perceived benefits or added value of those new technologies. The diffusion research theory and the theory of reasoned action and planned behavior (
<xref ref-type="bibr" rid="b3">Ajzen and Fishbein, 1980</xref>
) provide a deeper understanding of customer acceptance of emerging mobile technologies and services. In IS literature the diffusion of innovation (
<xref ref-type="bibr" rid="b38">Rogers, 1995</xref>
), the technology acceptance model, the extended technology acceptance model (
<xref ref-type="bibr" rid="b11">Davis, 1989</xref>
), and the unified theory of acceptance and use of technology (UTAUT) (
<xref ref-type="bibr" rid="b42">Venkatesh
<italic>et al.</italic>
, 2003</xref>
) are used to explain possible adoption and acceptance patterns of new technologies among consumers.</p>
<p>From
<xref ref-type="bibr" rid="b38">Rogers (1995)</xref>
we adopt the concept of innovativeness. Generally speaking, a positive attitude with regard to new information technologies can be found among the younger, male and high‐income categories (
<xref ref-type="bibr" rid="b6">Brown and Vemnkatesh, 2005</xref>
;
<xref ref-type="bibr" rid="b15">Gefen and Straub, 1997</xref>
;
<xref ref-type="bibr" rid="b16">Ilie
<italic>et al.</italic>
, 2005</xref>
;
<xref ref-type="bibr" rid="b37">Rice and Katz, 2003</xref>
;
<xref ref-type="bibr" rid="b44">Wei and Lo, 2006</xref>
). In the past, the term “toys for the boys” was coined to indicate the fact that new information technologies would be adopted by this type of users. In line with the diffusion of innovation theory, we expect these groups to be more likely to own advanced mobile handsets. These advanced handsets not only support basic mobile communication functionality, but evolve into small handheld computers that allow users to take pictures, support multimedia messages, process calendar data, and carry software that can be found on PC's. It is clear that the attitudes towards mobile innovations and possession of advanced handsets will be covariates, and both will enable the actual use of mobile services. We therefore hypothesize that:</p>
<p>
<italic>H1a</italic>
. Males have a more positive attitude than females towards mobile innovations.</p>
<p>
<italic>H1b</italic>
. Males own more advanced handsets than females.</p>
<p>
<italic>H1c</italic>
. Males use mobile services more than females.</p>
<p>
<italic>H2a</italic>
. Younger age groups have a more positive attitude than elder age groups towards mobile innovations.</p>
<p>
<italic>H2b</italic>
. Younger age groups own more advanced handsets than older age groups.</p>
<p>
<italic>H2c</italic>
. Younger age groups use mobile services more than older age groups.</p>
<p>
<italic>H3a</italic>
. High‐income groups have a more positive attitude than low‐income groups towards mobile innovations.</p>
<p>
<italic>H3b</italic>
. High‐income groups own more advanced handsets than low‐income groups.</p>
<p>
<italic>H3c</italic>
. High‐income groups use mobile services than low‐income groups.</p>
<p>Furthermore we hypothesize that:</p>
<p>
<italic>H4a</italic>
. A positive attitude towards mobile innovations has a positive effect on the ownership of advanced mobile devices.</p>
<p>
<italic>H4b</italic>
. A positive attitude towards mobile innovations has a positive effect on the actual use of mobile services.</p>
<p>In accordance with
<italic>H3</italic>
, we also hypothesize that:</p>
<p>
<italic>H5</italic>
. Ownership of advanced handsets has a positive effect on the actual use of mobile services.</p>
<p>
<xref ref-type="bibr" rid="b8">Carlsson
<italic>et al.</italic>
(2005)</xref>
suggest the existence of more or less stable patterns in the actual and future use of services. We are interested in how the actual and future use of these services is related to the concepts of (positive or negative) attitude towards mobile innovations and benefits. We hypothesize that:</p>
<p>
<italic>H6</italic>
. The actual use of mobile services will have a positive direct effect on the future use of mobile services.</p>
<p>The TAM/UTAUT literature and research pay attention to perceived usefulness and perceived ease of use, some papers discuss TAM/Utaut and wireless (mobile) internet (
<xref ref-type="bibr" rid="b26">Lu
<italic>et al.</italic>
, 2003</xref>
). The TAM/UTAUT research has been criticized because actual use is rarely measured, but only expected use (
<xref ref-type="bibr" rid="b23">Legris
<italic>et al.</italic>
, 2003</xref>
). As an extension to the TAM and UTAUT literature we will therefore include (self‐reported) actual usage behavior and relate this information to the benefits associated with the use of mobile services. The obvious benefits of mobile services are related to mobility in space. Mobile devices and services allow people to move around while maintaining access to relevant services and staying (socially) connected (
<xref ref-type="bibr" rid="b17">Jarvenpaa
<italic>et al.</italic>
, 2003</xref>
). The nomadic value of mobile services is reflected in concepts like “anytime, anyplace”, which are mentioned in virtually every paper discussing the potential of mobile services.
<xref ref-type="bibr" rid="b33">Pagani (2004)</xref>
mentions mobility, availability (anytime, anyplace), and personalization as important benefits of (multimedia) mobile services. The perceived flexibility provided by mobile technology is seen as one of the most important benefits. Consequently, we propose the following hypothesis:</p>
<p>
<italic>H7a</italic>
. The actual use of mobile services will lead to a positive evaluation of the benefits of (perceived) flexibility.</p>
<p>
<italic>H7b</italic>
. A positive evaluation of the benefits of (perceived) flexibility will have a positive effect on the future use of mobile services.</p>
<p>A number of quantitative and qualitative studies emphasize the fact that self‐expression (status, fashion), as proposed by
<xref ref-type="bibr" rid="b25">Ling (2003)</xref>
and others (
<xref ref-type="bibr" rid="b14">Fortunati and Contrarello, 2002</xref>
;
<xref ref-type="bibr" rid="b31">Oksman and Turtianinen, 2004</xref>
;
<xref ref-type="bibr" rid="b44">Wei and Lo, 2006</xref>
), and entertainment value, also described by TAM‐researchers as perceived playfulness or enjoyment (
<xref ref-type="bibr" rid="b10">Cheong and Park, 2005</xref>
;
<xref ref-type="bibr" rid="b24">Leung and Wei, 2000</xref>
;
<xref ref-type="bibr" rid="b29">Nysveen
<italic>et al.</italic>
, 2005a</xref>
;
<xref ref-type="bibr" rid="b20">Kleijnen
<italic>et al.</italic>
, 2004</xref>
;
<xref ref-type="bibr" rid="b34">Pedersen, 2005</xref>
), are important drivers with regard to the use of (mobile) internet services:</p>
<p>
<italic>H8a</italic>
. The actual use of mobile services will lead to a positive evaluation of the benefits of (perceived) status of the use of new mobile services.</p>
<p>
<italic>H8b</italic>
. The actual benefits of (perceived) status of the use of new mobile services will have a positive effect on the future use of mobile services.</p>
<p>
<italic>H9a</italic>
. The actual use of mobile services will lead to a positive evaluation of the benefits of (perceived) entertainment value of new mobile.</p>
<p>
<italic>H9b</italic>
. The positive evaluation of the benefits of (perceived) entertainment value of new mobile services will have a positive effect on the future use of mobile services.</p>
<p>Thus far we have discussed mobile services in a generic way. We agree with
<xref ref-type="bibr" rid="b32">Orlikowski and Iacono (2001)</xref>
that technology cannot be treated as a black box, as is done in TAM/UTAUT research, but that we have to open the black box and examine the specific characteristics of the research object. Specific services, with service‐specific attributes, appeal to specific needs.
<xref ref-type="bibr" rid="b1">Anckar and D'Incau (2002)</xref>
, for instance, see time‐critical needs, spontaneous needs/decisions, entertainment needs, efficiency needs and mobility‐related needs as relevant value sources. Not every service fulfils one of these specific need or all of them at the same time. News services relate to all the needs except the mobility‐related needs. Mobile internet auctions only relate to time‐critical needs. Reserving cinema tickets is only related to spontaneous needs/decisions and the receipt of personalized shopping offers is related to none of the sources of mobile value.</p>
<p>Research into more advanced 2.5G or 3G services relates a wide range of value sources to contact services (
<xref ref-type="bibr" rid="b30">Nysveen
<italic>et al.</italic>
, 2005b</xref>
), location‐based services (
<xref ref-type="bibr" rid="b36">Pura, 2005</xref>
), mobile advertising (
<xref ref-type="bibr" rid="b40">Tsang
<italic>et al.</italic>
, 2004</xref>
) mobile banking (
<xref ref-type="bibr" rid="b20">Kleijnen
<italic>et al.</italic>
, 2004</xref>
;
<xref ref-type="bibr" rid="b22">Lee
<italic>et al.</italic>
, 2003</xref>
;
<xref ref-type="bibr" rid="b29">Nysveen
<italic>et al.</italic>
, 2005a</xref>
), mobile commerce (
<xref ref-type="bibr" rid="b27">Massoud and Gupta, 2003</xref>
;
<xref ref-type="bibr" rid="b34">Pedersen, 2005</xref>
), mobile chat services (
<xref ref-type="bibr" rid="b29">Nysveen
<italic>et al.</italic>
, 2005a</xref>
), mobile gaming (
<xref ref-type="bibr" rid="b20">Kleijnen
<italic>et al.</italic>
, 2004</xref>
;
<xref ref-type="bibr" rid="b30">Nysveen
<italic>et al.</italic>
, 2005b</xref>
;
<xref ref-type="bibr" rid="b43">Verkasalo and Hämmäinen, 2007</xref>
), mobile multimedia services (
<xref ref-type="bibr" rid="b33">Pagani, 2004</xref>
;
<xref ref-type="bibr" rid="b43">Verkasalo and Hämmäinen, 2007</xref>
), mobile parking services (
<xref ref-type="bibr" rid="b34">Pedersen, 2005</xref>
), text messaging (
<xref ref-type="bibr" rid="b30">Nysveen
<italic>et al.</italic>
, 2005b</xref>
;
<xref ref-type="bibr" rid="b43">Verkasalo and Hämmäinen, 2007</xref>
), wireless internet via mobile devices (
<xref ref-type="bibr" rid="b26">Lu
<italic>et al.</italic>
, 2003</xref>
) and mobile services in general (
<xref ref-type="bibr" rid="b8">Carlsson
<italic>et al.</italic>
, 2005</xref>
;
<xref ref-type="bibr" rid="b9">2006</xref>
). We have identified some of the benefits (values), i.e. entertainment, flexibility and status, that respond to these needs for specific services (
<xref ref-type="fig" rid="F_2720100206001">Figure 1</xref>
). We will specify and test the hypotheses (
<italic>H6</italic>
,
<italic>H7</italic>
,
<italic>H8</italic>
and
<italic>H9</italic>
) for the following services: mobile travel services, early added value services, for instance icons and ringtones, and mobile internet services.</p>
</sec>
<sec>
<title>4. Methodology</title>
<sec>
<title>4.1. Sample and data collection</title>
<p>The empirical data to which we refer in this paper were collected in spring 2004, 2005 and 2006, via a self‐administered questionnaire that was mailed out to a sample of Finnish consumers
<xref ref-type="fn" rid="fn1">[1]</xref>
. The sample was selected from the electronic sampling frame provided by the Finnish Population Register Centre, based on a stratified sampling procedure. To select the sample we used a simple random sampling method, and the framework we used offered a complete representation of the target population, which was defined as the Finnish population between the ages of 16 and 64, whose mother tongue was either Finnish or Swedish and who resided in mainland Finland. To encourage respondents to complete and return the questionnaire, they were offered a chance to win a top‐of‐the‐line mobile phone. For all three years the effective response rate was about 50 percent. The information is based on the information provided by 484 (2004), 460 (2005) and 428 (2006) respondents, respectively.</p>
</sec>
<sec>
<title>4.2 Questionnaire</title>
<p>The questionnaire consists of three parts, the first of which contains questions about devices and subscriptions. Most of these variables are categorical in nature. In the second part items are presented that have to do with the benefits of and attitudes towards mobile devices, services and innovation, comparable to items used in (
<xref ref-type="bibr" rid="b1">Anckar and D'Incau, 2002</xref>
;
<xref ref-type="bibr" rid="b10">Cheong and Park, 2005</xref>
;
<xref ref-type="bibr" rid="b12">De Marez and Verleye, 2004</xref>
;
<xref ref-type="bibr" rid="b29">Nysveen
<italic>et al.</italic>
, 2005a</xref>
;
<xref ref-type="bibr" rid="b30">2005b</xref>
). In the third part questions with regard to the actual and future use of 31 mobile services available on the Finnish market are presented to the respondents. The items serve as the starting point for the measurement tools used for our core constructs.</p>
</sec>
<sec>
<title>4.3 Measurements and scales</title>
<p>Before testing
<italic>H6</italic>
to
<italic>H9</italic>
(including
<italic>H4b</italic>
), we discuss the scale depuration and reliability of all the measures discussed in this study. Note that we do not include categorical measures (income, type of mobile handset owned) or demographic measures (age, gender), as they are not needed for this type of analysis. We conducted a confirmatory factor analysis (CFA) using LISREL 8.7 (
<xref ref-type="bibr" rid="b18">Joreskog and Sorbom, 1996</xref>
) for travel services (reservation of hotel, tickets, time tables), early mobile services (ringtones and icons) and mobile internet (MMS, mobile e‐mail, news and surfing) for each year. The ten factor model including each of the services, attitude toward innovations and benefits for the year 2004 (χ2=1,078.90, df=389,
<italic>p</italic>
=0.00, GFI=0.87; CFI=0.95; RMSEA=0.06; IFI=0.95) year 2005 (χ2=1,230.27, df=389,
<italic>p</italic>
=0.00; GFI=0.85; CFI=0.95; RMSEA=0.06; IFI=0.95) and year 2006 (χ2=1,231.95, df=389,
<italic>p</italic>
=0.00; GFI=0.84; CFI=0.95; RMSEA=0.07; IFI=0.95) suggested a good fit. All loadings of the items on their respective constructs were large (smallest loading=0.61) and significant (smallest
<italic>t</italic>
–value=11.29), which provides evidence of convergent validity (
<xref ref-type="bibr" rid="b4">Bagozzi and Yi, 1988</xref>
). The reliability of the multi‐item scales was assured by calculating the
<xref ref-type="bibr" rid="b4">Bagozzi and Yi (1988)</xref>
composite reliability index and the
<xref ref-type="bibr" rid="b13">Fornell and Larcker (1981)</xref>
average variance extracted index. Finally, evidence of discriminant validity among the dimensions of each construct was provided by three different procedures recommended in the literature as follows: when a 95 percent confidence interval constructed around the correlation estimate between two latent variables never includes the value 1 (
<xref ref-type="bibr" rid="b2">Anderson and Gerbing, 1988</xref>
); when the hypothesized ten‐factor model has a significantly better fit to the data than an alternative model in which the correlation estimate between latent constructs is constrained to the value 1 (
<xref ref-type="bibr" rid="b2">Anderson and Gerbing, 1988</xref>
); and finally, when the individual average variance extracted for each latent variable exceeds the squared correlation between the two latent variables (
<xref ref-type="bibr" rid="b13">Fornell and Larcker, 1981</xref>
) (
<xref ref-type="fig" rid="F_2720100206009">Table I</xref>
).</p>
</sec>
</sec>
<sec>
<title>5. Results</title>
<sec>
<title>5.1 Descriptive results</title>
<p>Although we base our analysis on the data relating to the period 2004‐2006, we have been collecting the same data since 2002. In this descriptive part we refer to the 2002‐2006 data. First of all, we see a shift in the types of handsets being used over the period 2002‐2006. In 2002, about 77 percent of the respondents used GSM handsets, about 18 percent used WAP‐enhanced devices, 8 percent used GPRS enabled and about 16 percent used all kinds of advanced handsets, ranging from handheld devices with telephone functionality to handsets with a camera functionality. Since 2002, we have seen a gradually decline in the use of WAP devices to 7 percent, and a stable use of GPRS devices, never exceeding the 8 percent mark. The use of advanced devices gradually increased from 16 percent (2002), via 23 percent (2003), 28 percent (2004), 43 percent (2005) to 58 percent in 2006.</p>
<p>
<xref ref-type="fig" rid="F_2720100206002">Figure 2</xref>
shows the increasing levels of the actual use of the services over the period 2002‐2006. On average, we see a slow increase in the actual use of the services included in our survey. SMS reaches a high level throughout (90‐96 percent of the respondents). Searching facilities come in second (62‐70 percent) and ringtones third: fluctuating around 55 percent. The use of most services slowly increases over the years. Mobile video is used by 8 percent in 2005 and 7 percent in 2006, which means that this newly introduced service is still among the least favorite services.</p>
</sec>
<sec>
<title>5.2 Testing the hypothesis on actual use of the mobile services</title>
<p>
<italic>H1</italic>
to
<italic>H5</italic>
are related to respondent characteristics, their attitudes towards mobile innovations and mobile handsets ownership, and the actual use, all of which are tested for each individual year. Hypotheses in which gender is related to other variables (attitude towards mobile innovations and the actual use of specific services) are tested via
<italic>t</italic>
‐tests as well as χ
<sup>2</sup>
‐tests (handset owned). Although age is a continuous variable, it is also used as a categorical predictor in some analysis, specifically with the purpose of testing
<italic>H2b</italic>
. Income is also a categorical variable. Either an χ
<sup>2</sup>
‐test or ANOAVA is used to test
<italic>H1c</italic>
, and
<italic>H3c</italic>
. To measure people's attitudes towards mobile innovations and the actual use of services we use the factor scores as derived from exploratory factor analysis. In this factor analysis the same items have been include as in the confirmatory factor analysis (
<xref ref-type="fig" rid="F_2720100206003">Figure 3</xref>
).</p>
<p>There are direct positive effects from gender and negative effect from age on attitudes towards mobile innovations and the use of advanced handsets. Males do have a more positive attitude than females, and they also use the more advanced handsets. Women tend to stick to GSM‐handsets. The same goes for age: younger people have a positive attitude towards mobile innovations and tend to have more advanced handsets. Income shows no significant effects, either with regard to a positive attitude towards mobile innovation or with regard to owning an advanced handset. This implies that
<italic>H1c</italic>
and
<italic>H2c</italic>
are rejected, while
<italic>H1a</italic>
,
<italic>H1b</italic>
,
<italic>H2a</italic>
, and
<italic>H2b</italic>
are accepted for all the three type of services under study: early mobile services, mobile travel services and mobile internet services.</p>
<p>There are no direct effects between gender and the actual use of early mobile services and mobile travel services. There is, however, a direct effect of gender on the actual use of mobile internet services. With regard to mobile internet services, we see that males continue to be more frequent users than females. This indicates that it takes women longer to get used to the new possibilities offered by mobile internet services. Nevertheless, the indirect effects are noticeable. Women who tend to be more innovative are also more likely to use actual mobile internet services. The use of advanced handsets is a covariate (
<xref ref-type="fig" rid="F_2720100206004">Figure 4</xref>
).</p>
<p>Age clearly have a negative effect on the use of early mobile services and mobile internet services, although it has a small positive effect on the use of mobile travel services.</p>
<p>To test
<italic>H4</italic>
we used ANOVA analysis. We tested whether the owners of less or more advanced mobile handsets, show a different score in terms of their attitudes towards mobile innovations. Users of advanced mobile handsets tend to be more innovative, while GSM users lag behind. The difference between GSM‐owners and owners of WAP‐enabled devices are not very significant. GPRS‐owners are somewhere in the middle.
<italic>H4a</italic>
is confirmed.
<italic>H4b</italic>
is also confirmed for all the different services. We will see later on that this is confirmed by the LISREL analysis.</p>
<p>The results with regard to the fifth hypothesis with regard to the use of early mobile services and mobile internet services are fairly coherent. Respondents who own an advanced mobile handset are more likely to use early mobile and mobile internet services. The picture with regard to mobile travel services is mixed and hardly coherent. In 2004, the WAP‐owners lag behind. Owners of GSM, GPRS or advanced handsets vary only slightly in their use of mobile travel services. In 2005, the figures are lowest for advanced mobile hand set users, while in 2006 this is the case for the GSM and GPRS owners (
<xref ref-type="fig" rid="F_2720100206005">Figure 5</xref>
).</p>
</sec>
<sec>
<title>5.3 Testing the hypothesis on future use of the mobile services</title>
<p>To test
<italic>H4b</italic>
,
<italic>H6</italic>
to
<italic>H9</italic>
we discuss three models. Once the reliability of all the measures had been checked, we tested our hypotheses using LISREL 8.7, as well as separate structural equation models for each of the services in 2004, 2005 and 2006. For each of the models the overall adjustment indexes are inside the recommendations presented in literature: RMSEA values are below 0.08 and CFI, GFI are above 0.90.</p>
<p>As can be observed in
<xref ref-type="fig" rid="F_2720100206006 F_2720100206007 F_2720100206008">Figures 6‐8</xref>
, most of the relationships were confirmed. Also, important differences arise between the various years, which clearly confirms that users vary in their perceptions of the benefits and actual and future use of each kind of service. We emphasize that, in contrast to the earlier analysis, here we report completely standardized solutions for all the proposed relationships.</p>
<p>Specifically, the positive impact of attitude towards innovation on the actual use of services was verified for all the years, which confirms
<italic>H4b</italic>
, although there are significant differences. In 2005, there is a dip with regard to the impact of being innovative. The effect of being innovative is the weakest for early mobile services like icons and ringtones. Also, for mobile travel services the relationships is weak, while the effect is strongest for mobile internet services.</p>
<p>The relationship between the actual and future use of services can be observed for all three types of services, which indicates that people who use a certain service will continue to do so in the future, which confirms
<italic>H6</italic>
.</p>
<p>If we take a more detailed look at the results regarding the use of the services, i.e. the benefits, we can confirm that they play an important role. Most of the hypotheses (
<italic>H7a</italic>
,
<italic>H8a</italic>
and
<italic>H9a</italic>
) were confirmed for most services, which demonstrate that benefits are important to customers when they assess the value of specific types of services. The use of early mobile services (icons and ringtones) moderately relates to all the benefits: entertainment, flexibility and status. The same applies more clearly to mobile internet services. However, we would expect the benefits of flexibility to be most relevant in the case of travel services. In fact, the benefits are least explicit for mobile travel services.</p>
<p>If we look at the intermediating role of the benefits in explaining the future use of the services, some interesting conclusions can be drawn. First of all, the key role of the benefit of flexibility as an intermediary between the actual and future use is reconfirmed.
<italic>H7b</italic>
can be moderately accepted for all the services. Second, the entertainment value only appears to be relevant for early mobile services. Third, the intermediating role of status benefits is negative for early and internet services, or non‐existing for mobile travel services. In general we can conclude that
<italic>H8b</italic>
is more likely to be rejected and
<italic>H9b</italic>
to be accepted, even though the relationship is negative rather than positive as was hypothesized.</p>
</sec>
</sec>
<sec>
<title>6. Conclusion, limitations and discussion</title>
<p>With regard to the years 2004‐2006 we found that there are relatively rather stable patterns in the preferences of Finnish consumers concerning mobile services. The actual use of the services is slowly increasing. The use of mobile services differs is affected by gender and age. Income does not have a clear effect. A positive attitude towards mobile innovation and as a consequence the ownership of advanced mobile devices is important. Compared to earlier analyses, we see that the role of benefits is also important. Furthermore, our research shows that the markets for mobile services are differentiated, and that a careful analysis of specific clusters or bundles of services is needed. As
<xref ref-type="bibr" rid="b5">Bouwman
<italic>et al.</italic>
(2007)</xref>
have argued earlier, it is necessary to look at the specific characteristics of the mobile services. Technology cannot be treated as a black box, the way it is treated, for instance, in TAM and UTAUT research. Different types of mobile services may attract different types of users and offer different types of benefits. Because benefits play such a significant role in explaining the future use of these services it may be interesting to consider potential moderator effects that could modify previous findings in this area.</p>
<p>For the reader's convenience we summarize the test results in
<xref ref-type="fig" rid="F_2720100206010">Table II</xref>
. Most of our hypotheses are (moderately) supported. Actual use predicts future intention to use. Perceived flexibility is a relevant predictor of future use. Basically, this finding is as much a tautology as the assumption used in TAM/UTAUT research that intention to use leads to actual use. In contrast to TAM/UTAUT, we have used reported behavior measurements.</p>
<p>From a practical point‐of‐view we have to conclude that service composition is of critical importance to the success of 3G and beyond. Our research clearly shows that complementary services are dependent on positive attitudes towards mobile innovations and on perceived flexibility. Research into the subtleties involved in the preferences for specific mobile services will become more and more important if these mobile services are to be widely used and investments in mobile networks regained.</p>
<p>With regard to further research we focus on multi‐group analysis under LISREL 8.7 to analyze the differences between the various years under study, as well as longitudinal analyses, the condition being that we have enough data points. The multi‐group procedure can be used to verify the significant and non‐significant differences for each of the models. The longitudinal study can provide insight into causalities over time. Another important recommendation will be to test these models in different countries, allowing us to look for differences in customer behavior with regard to the use of types of services. We are actually in the process of collecting data in other countries. In upcoming papers we will continue to discuss these concepts in conjunction with the analysis presented in this paper</p>
</sec>
<sec>
<fig position="float" id="F_2720100206001">
<label>
<bold>Figure 1
<x> </x>
</bold>
</label>
<caption>
<p>Conceptual model</p>
</caption>
<graphic xlink:href="2720100206001.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206002">
<label>
<bold>Figure 2
<x> </x>
</bold>
</label>
<caption>
<p>Use of services 2002‐2006</p>
</caption>
<graphic xlink:href="2720100206002.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206003">
<label>
<bold>Figure 3
<x> </x>
</bold>
</label>
<caption>
<p>Hypothesis testing for the actual use of early mobile services</p>
</caption>
<graphic xlink:href="2720100206003.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206004">
<label>
<bold>Figure 4
<x> </x>
</bold>
</label>
<caption>
<p>Hypothesis testing for the actual use of mobile travel services</p>
</caption>
<graphic xlink:href="2720100206004.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206005">
<label>
<bold>Figure 5
<x> </x>
</bold>
</label>
<caption>
<p>Hypothesis testing for the actual use of mobile internet services</p>
</caption>
<graphic xlink:href="2720100206005.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206006">
<label>
<bold>Figure 6
<x> </x>
</bold>
</label>
<caption>
<p>The actual and future use of early mobile services</p>
</caption>
<graphic xlink:href="2720100206006.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206007">
<label>
<bold>Figure 7
<x> </x>
</bold>
</label>
<caption>
<p>The actual and future use of mobile travel services</p>
</caption>
<graphic xlink:href="2720100206007.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206008">
<label>
<bold>Figure 8
<x> </x>
</bold>
</label>
<caption>
<p>The actual and future use of mobile internet services</p>
</caption>
<graphic xlink:href="2720100206008.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206009">
<label>
<bold>Table I
<x> </x>
</bold>
</label>
<caption>
<p>Scale properties</p>
</caption>
<graphic xlink:href="2720100206009.tif"></graphic>
</fig>
</sec>
<sec>
<fig position="float" id="F_2720100206010">
<label>
<bold>Table II
<x> </x>
</bold>
</label>
<caption>
<p>Summary of acceptance of hypotheses</p>
</caption>
<graphic xlink:href="2720100206010.tif"></graphic>
</fig>
</sec>
</body>
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<title>Notes</title>
<fn id="fn1">
<p>We have been collecting data on the same variables since 2002.</p>
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<title>Trends in mobile services in Finland 20042006 from ringtones to mobile internet</title>
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<title>Trends in mobile services in Finland 20042006 from ringtones to mobile internet</title>
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<namePart type="given">Harry</namePart>
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<affiliation>Delft University of Technology, Faculty of Technology, Policy and Management, Delft, The Netherlands</affiliation>
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<name type="personal">
<namePart type="given">Christer</namePart>
<namePart type="family">Carlsson</namePart>
<affiliation>Institute for Advanced Management Systems Research, bo Akademi University, bo, Finland</affiliation>
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<namePart type="given">Pirkko</namePart>
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<affiliation>Institute for Advanced Management Systems Research, bo Akademi University, bo, Finland</affiliation>
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<namePart type="given">Francisco J.</namePart>
<namePart type="family">MolinaCastillo</namePart>
<affiliation>University of Murcia, Murcia, Spain</affiliation>
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<abstract>Purpose The purpose of this paper is to discuss the development in the Finnish telecommunication market and trends in actual and future user behavior with regard to three groups of mobile services. It is the authors' view that service characteristics cannot be ignored. Designmethodologyapproach The research is based on data collected over a period of three years using independent samples. To test the core of our conceptual model the study used structural equation modeling. Findings The analysis based on the data collected over three years shows that we cannot understand the actual and future use unless we take the subtleties and usability of services, i.e. the specific characteristics, and user values of the services involved, into account. The research clearly indicates that complementary services are dependent on positive attitudes towards mobile innovations and on perceived flexibility. Service composition is of critical importance to the success of 3G and beyond. Originalityvalue This paper is unique due to the fact that longitudinal data are presented concerning one of the most successful countries in Europe in terms of the adoption and use of advanced mobile services.</abstract>
<subject>
<genre>Keywords</genre>
<topic>Mobile communication systems</topic>
<topic>Internet</topic>
<topic>Finland</topic>
</subject>
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<topic authority="SubjectCodesSecondary" authorityURI="cat-ICT">Information & communications technology</topic>
<topic authority="SubjectCodesSecondary" authorityURI="cat-IMG">Information management & governance</topic>
<topic authority="SubjectCodesSecondary" authorityURI="cat-CNWK">Communications & networks</topic>
<topic authority="SubjectCodesSecondary" authorityURI="cat-IPOL">Information policy</topic>
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<identifier type="ISSN">1463-6697</identifier>
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<identifier type="DOI">10.1108/info</identifier>
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<date>2008</date>
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<caption>vol.</caption>
<number>10</number>
</detail>
<detail type="issue">
<caption>no.</caption>
<number>2</number>
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<extent unit="pages">
<start>75</start>
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