A New Conceptual Model of Mobile Multimedia Services (MMS) and 3G Network Adoption in Indonesia

Though Indonesia had implemented the third generation mobile networks (3G) in late 2006, the number of subscribers to 3G mobile network is still low. The percentage of 3G subscribers to total mobile subscriber in Indonesia is only 8.2%, whereas in other countries, it is relatively high; for instance, Japan 80%, Taiwan 28.5%, and South Korean 14%. Indonesia presents huge opportunity for 3G network penetration, comparing current 3G subscribers (7.5 million) to the population of Indonesia (around 238 million). But this potential huge market is yet to be approached and exploited. To capitalize on this market, however, it is important to understand the potential use of the 3G mobile networks in Indonesia which is a developing country and address the questions such as: Whether or not 3G network applications or use in Indonesia is same or similar to those in other countries such as Europe, Japan, or Taiwan? What can be done by the 3G network/service providers in Indonesia to increase the use of 3G mobile networks? In this paper, in an attempt to answer these questions, we review and critically analyse varying perceptions about the 3G mobile network, 3G mobile network adoption and adoption models, and the success story of 3G operators in other countries from published literature and publically available information. Using the insights from an extensive review of literature and discussion with people in 3G business, we propose a new conceptual model of 3G adoption that integrates the influences of several adoption factors and takes into consideration Indonesian situation. From our study, we find that in order to increase the usage of 3G mobile network, the operators should market services based on 3G mobile network technology rather than just 3G mobile network technology since customers are interested about services that are offered to them not just the technological features – in fact, most of them do not care of technology used, but they do care about benefits or value they can gain from technology. Mobile multimedia services (MMS) are key services that are being rolled out as part of 3G network. These services can become a demand driver and help to increase 3G mobile network traffic and usage. Another finding from this study is that customers’ key adoption factors for MMS are performance expectancy, effort expectancy, social influence, facilitating conditions, and, especially for Indonesia, the cost of the services. The degree of influence of those adoption factors differ from one group of customers to other groups - the adoption factors depend on sex, age, hobby, and especially in Indonesia is affordability of customers. Those variable become control variable to the adoption factors.