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Factors Affecting Mobile Internet Usages in Bangladesh

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 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 17

Factors Affecting Mobile Internet Usages in

Bangladesh

Md. Mahfuz Ashraf PhD *

Md. Abdul Hannan Mia, PhD **
Najmul Hasan ***

Abstract: This study examines mobile internet users behavior towards

telecommunication operators in Bangladesh. People in Bangladesh are becoming
more familiar in using internet than past. People in various occupations and income
levels are using internet intensively for their occupational purpose and personal
purpose as well. There are six mobile operators providing different internet facilities
providing easy access to internet to the mobile users in Bangladesh. Both primary
and secondary data were used and data were collected from respondents by means
of a survey method, using self-administered questionnaires distributed to the
respondents at the study area irrespective of respondents' socio-demographic
characteristics.

Keywords: Mobile internet, User's behavior, Situation Analysis, Bangladesh.

1. Introduction
Over past 20 years, the world has been experiencing a huge paradigm shift from traditional
industrial society to digital society. Mobile devices have been at the center of this change,
bringing totally different life style (Baek, et al. 2013). The mobile phone is a modern-day
invention, which has reached many parts of the world, since their introduction in a few
countries in the 1980's. People are using mobile phones not only voice communication but
also other purposes as Short Message Services (SMS), Multimedia Message Services
(MMS), recording, calculating, playing games as well as using Internet thought Mobile
device etc.(Adikari, 2013). Since the mid 1990's the cellular communication industry has
witnessed explosive growth and the wide spread adaptation of wireless communication was
accelerated in this time (Patil, et al. 2012). That is why it is important to use a media device
like mobile phone. The main reason for the rapid growth in the mobile internet market is the
mobility and reach provided to the customers. Customers or users may engage in a real-time
contact with others and connect with other systems at the right time when they need and
wherever they are (Kim, et at. 2007).

*
Associate Professor, Department of MIS, University of Dhaka, Bangladesh
The author can be reached through e-mail: [email protected]
**
Professor, Department of MIS, University of Dhaka, Bangladesh
***
Analysis officer, MRC-MODE Limited, Dhaka, Bangladesh
 Factor Affecting Mobile Internet Usages in Bangladesh 18

Nowadays when 24/7 communication is in paramount, most mobile phones tend to offer
some degree of internet access. There are currently six providers of mobile network service
industry competing in the mobile internet market in Bangladesh. Today internet has become
the most powerful tool throughout the world (Prensky, 2009). Almost half of the population
of the world is getting benefit from internet (Fehler & Bilodeau, 2007). It's a globe in a
room. It provides us with a huge collection of numerous searches and various resources. It
not only provides information but has lot more to offer like social networking, the checking
our friends' updates, communicate with our contacts while on the go etc are becoming an
integral part of owning a mobile phone (Ellison, et al. 2007). In recent years, mobile phones
communication has become a fundamental part of personal communication across the world
and the adoption of mobile phones communication has been exceptionally rapid in many
parts of the world (Castells, et al. year). Like other countries in the world, Bangladesh has
adopted information and communications technologies (ICTs) as tools for development. In
Bangladesh mobile phone companies started to penetrate the market in large quantities after
1997. When Bangladesh liberalized its telecom policy by allowing multiple private telecom
operators to operate their business in the country. At the same time, operators, especially
internet service providers (ISPs) were also allowed to use VSAT (very small aperture
terminal) satellite systems for overseas communication, resulting in internet connectivity
being opened up in the country. Moreover, government of Bangladesh has declared its
vision for "Digital Bangladesh" by 2021 (Hasan, et al. 2013). Follows At there is in recent
years the use of mobile phones and internet have witnessed tremendous growth in
Bangladesh.

Mobile internet user's behavior is related to different factors like information, entertainment,
services, e-commerce, learning, news, low cost of usages and trust of using (Wu, et al.
2007). In today's world internet has become the part and parcel of our daily life. It is crucial
to identify for any one specific reason because internet facilitates an array of services to its
users simultaneously. Different people use internet for different perspective again same
group of people choose different internet services. That is why we were interested to work in
this issue in the context of Bangladesh.

2. Literature Review
There is scant research available in the literature on user acceptance of mobile internet from
a customer's perspective (Huang, et al. 2007). By "Internet" usually we mean the electronic
network of networks that span homes and workplaces that people use to exchange email,
participate in interactive spaces of various kinds, and visit sites on the World Wide Web
(Kimble, 2008). The increase in the availability of mobile devices and the augmented
tendency to browse the Internet through them (Duggan & Rainie, 2012; Smith, 2012) were
evident to organizations that provide Web content. Mobile internet is defined as the wireless
access to internet content via mobile devices, which allow users to access vast amount of
information and products available in the internet, anywhere and at the right time (Roostika,
2011).

Mobile internet services are heralded to create a tremendous spectrum of business

opportunities. User acceptance of these services and there dispositions are of paramount
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 19

importance. User predisposition refers to the internal factors of an individual user of mobile
internet services (Manzano, et al. 2009), (Haghirian & Madlberger, 2005). Personal
differences strongly influence adoption on the basis of their knowledge for some reasons.
Firstly, Knowledge that consists of two components, namely, familiarity and expertise. For
instance, the former constitutes the number of mobile internet services-related experiences
accumulated by consumers over time, which include exposure to advertising, information
search, and interaction with salespersons (Kim, et al. 2011). Secondary Compatibility which
can be defined as the degree to which an innovation is perceived to be consistent with
existing values of potential adopters (Rao & Troshani, 2010). In general, high
incompatibility will adversely affect potential adopters of an innovation, which decreases the
likelihood of adoption. Image refers to the degree to which the adoption and the use of an
innovation are perceived by users to enhance their image or status in their social system
(Mohammad, & Razli, 2011). Thirdely Personal innovativeness which is the innate
willingness of an individual to try out and embrace new technologies and their related
services for accomplishing specific goals (Chitungo & Munongo, 2013). Fourthly Perceived
usefulness which is the degree to which a person believes that using a particular system
would enhance his or her job performance (Lee & Chang, 2011). That is why potential
adopters assess the consequences of their adoption behavior based the ongoing desirability
of usefulness derived from the innovation. Fifthly Perceived ease of use which is the degree
to which a person believes that using a particular system would be free of effort (McNally &
Griffin 2010). Sixthly Social influence which constitutes the degree to which individuals
perceive that important or significant others believe they should use an innovation
(Ozdogan, et al. 2012). Seventhly Facilitating conditions can make adoption behavior less
difficult by removing any obstacles to adoption and sustained usage (Chen, 2011; Hill &
Troshani, 2007). In the context of mobile internet services adoption, these conditions can be
provided by mobile operators, mobile content providers, the government and other
stakeholders. For example, mobile operators can encourage adoption by providing handset
with internet services subsidies, free content, mass advertising campaigns and active
promotion aimed at increasing awareness about mobile internet services. As a consequence,
promotional measures are likely to positively affect the attitudes, and in turn, on users'
behavioral intentions for adopting mobile internet services as shown in Table- 2(a) & 2(b).

Some papers highlighted problems and prospects, in rural areas of Bangladesh, of providing
information services through mobile phones (Islam, 2012). Studies also focusing on
"Customers' Attitude towards Wireless Internet Services in Bangladesh (Islam & Ahmed,
2011) are available. Various studies used "Internet access" to refer to whether a person has
the means to connect to the Internet. In this study the "Internet access" is referred to whether
a person has Internet connection (DiMaggio, Paul & Hargittai, 2002). Many studies and
literature shows a complete picture of relationship between gender and Internet usage and
some studies reports that there are no significant link between gender and Internet access
and usage pattern. In their studies (Akman & Mishra, 2010) found the difference in Internet
usage among male and female.
 Factor Affecting Mobile Internet Usages in Bangladesh 20

Table 1 : Summary of Literature Review.

Authors Objective Study Area Key Findings

Patil C.S., To investigate the development of mobile Mobile technologies are developed at
Karhe R. R., different methods of technologies and the very rapid growth.
Ather M. A., mobile technology journey from 1G to 4G 1G mobile system gives a start up to the
(2012) cellular concept. 2G systems provide
various features to the users. 3G mobile
systems provide various attractive
multimedia services. 4G system
increases the data rates to a great extent.
Roostika, R. (2011) To analyse the mobile internet users in Results reveal that there was an indirect
relationships the city of Yogyakarta, relationship between service quality and
between service quality, Indonesia loyalty through trust. Contextual quality
trust, and loyalty as was found to be the strongest
perceived by contributors of service quality while
customers in the mobile device quality was the least.
internet context
Rashid, A., & To evaluate the case of IDRC supported 20 Mobile phone adoption, use and any
Elder, L. (2009) mobile phones as a tool projects on mobile developmental implications are
in solving development phones that cut across moderated by many intervening factors
problems drawing from several themes like such as age, gender and education
the evidence of IDRC health, education,
supported projects. livelihoods, poverty
reduction
Narula, et al, To investigates mobile Mumbai , New Delhi Workers using Mobile Works average
(2011), web-based platform India 120 tasks per hour at an accuracy rate of
which used to conduct 99% using a multiple entry solution.
human OCR tasks
Gafni, R., & Geri, To examines adoption Google Analytics online The number of visits relatively low and
N., (2013) patterns of a juridical knowledge base constituted only 1% of the total juridical
mobile channel that services for over 15 years knowledge base visits
provided subscribers with
access to a well-
established juridical
knowledge base

Source : Review of literature

According to the (World Internet Project, 2010) age is one of the socio-demographics that
have an effect on the Internet usage. Teens and young adults are more likely to be online
than older generations. The International Telecommunications Union report states that high
income and better-educated group of people have more access to computer and Internet than
low income and less educated people. According to Eurostat report, the percentage of the
population in Europe with high formal education using the Internet was more than twice as
much as the share for the population with a low level of education (Eurostat Newsrelease,
2011).

Study information (Oracle, 2011) revealed that the mobile phone market is fiercely
competitive, with telecom operators all vying for consumer attention. This is particularly
important today, as consumers switch between operators just so they can adopt a particular
handset or internet connection. Costs are also high in the operator market (Hedman,
Ljótsson, &Lindefors, 2012). In an increasingly competitive marketplace, organizations are
trying to reduce churn by providing better service their customers-while simultaneously
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 21

reducing the cost of providing that service, (Islam, 2010). On the other hand another report
that there is very little evidence to support the many anecdotes of rural farmers using their
mobiles to check on the best prices for their products at the nearest market (Rashid & Elder,
2009). Some studys covered in this section, focusing exclusively on the impact of mobile
phones on livelihoods of farmers, fisherman, and small entrepreneurs, show a somewhat
mixed picture. The advent of wireless and mobile technology has created opportunities and
challenges for business communities in various sector in various ways in Bangladesh
(Waiyan et al, 2009).

Mobile phones are becoming increasingly important in everyday life and now in healthcare
(Blake, 2008). There has been a steady growth of information and communication
technologies in health communication and technology is used progressively in telemedicine,
wireless monitoring of health outcomes in disease and in the delivery of health interventions
(Ekeland, 2010). Mobile phones are becoming an important method of encouraging better
nurse-patient communication and will undoubtedly increase in application using internet
(Allen, et al. 2008). It is reported that Mobile devices are rapidly becoming the primary
medium to access the Internet across age groups, and across mature and emerging markets
(Accenture, 2012). In a world brimming with smarter smartphones, tablets, notebooks and
other affordable Web-enabled mobile devices, and powered by better network coverage,
faster broadband connections, Wi-Fi networks and the explosive growth of mobile apps
(Jones, 2011), the demand for ubiquitous availability of Internet is only getting stronger.
Little wonder then that there is so much excitement around every new version of a
smartphone or tablet for internet use (Smith, 2011).

3. Telecommunication industry In Bangladesh: Current Aituation Analysis

There are six mobile phone operators offering their services to customers in Bangladesh.
Grameen Phone Ltd. (GP) owned by Telenor (62%) and Grameen Telecom (38%) is the
largest and the fastest growing cellular service provider in Bangladesh. It has 48.683 million
subscribers which is 42.24% of the total. Banglalink Digital Communication Limited
(Banglalink), the second largest cellular service provider, has 29.366 million subscribers
which is 25.48% of the total. It is a wholly owned subsidiary of Orascom Telecom.

Table 2(a): Mobile Phone Subscribers in Bangladesh June 2014 Table 2(b): Internet Subscribers in Bangladesh June, 2014

OPERATOR SUBSCRIBER OPERATOR SUBSCRIBER

(in millions) (in thousands)
Grameen Phone Ltd. (GP) 49.233 Mobile Internet 36412.226
Banglalink Digital Communications Limited 29.751 WiMAX 280.715
RobiAxiata Limited (Robi) 24.018 ISP + PSTN 1230.31
Airtel Bangladesh Limited (Airtel) 8.540 Total 37923.251
Pacific Bangladesh Telecom Limited (Citycell) 1.416
(Source: Bangladesh Telecommunication Regulatory
Teletalk Bangladesh Ltd. (Teletalk) 3.595
Commission (BTRC), Statistics of mobile subscribers and
Total 116.553 internet subscribers for the month of June 2014)
(Source: Bangladesh Telecommunication Regulatory
Commission (BTRC), Statistics of mobile subscribers and
internet subscribers for the month of June 2014)
 Factor Affecting Mobile Internet Usages in Bangladesh 22

RobiAxiata Limited (Robi), the 3rd largest cellular service provider in Bangladesh, has
23.936 million subscribers which is 20.77% of total. The fourth largest cellular service
provider in Bangladesh is Airtel Bangladesh Limited (Airtel) which has 8.408 million
subscribers, a 7.30% of total. The other two mobile phone operators in Bangladesh are
Pacific Bangladesh Telecom Limited (Citycell), it has 1.414 million subscribers which is
1.28% of total and Teletalk Bangladesh Ltd. (Teletalk), it has 3.59 million subscribers which
is 2.98% of total market share (BTRC, 2014).

The history of Internet is not old in Bangladesh as in other developing countries or even in
developed countries. The Internet operation in Bangladesh started on June 4, 1996 through
subscribing the VSAT (Very Small Aperture Terminal) data circuit by the Government of
Bangladesh. Telecommunication infrastructure is the base of Internet service dissemination.
With the evolution of mobile telecommunication system, wireless Internet, a new horizon of
Internet service, was enlightened. Now the internet users want portable service as they can
use it from anywhere else even when they are moving. Now in Bangladesh six mobile
telephone operators are functioning and each of them is providing wireless Internet services:
Grameen Phone Limited (GP), Orascom Telecom Limited (Banglalink), Pacific Bangladesh
Telecom Limited (Citycell), Axiata Bangladesh Limited (Robi), Airtel Bangladesh Limited
and Teletalk Bangladesh Limited. These six operators provide EDGE (Enhanced Data rate
for GSM Evolution) or EVDO (Evolution Data Optimized) technology based wireless
internet service. Recently a new dimension of wireless Internet service WIMAX (Worldwide
Interoperability for Microwave Access) has been inaugurated in Bangladesh. Two
companies Banglalion and Augere (Qubee) have started to provide WIMAX based wireless
Internet services in the country which is gaining popularity very rapidly. Attributes and
facilities of WIMAX based and EDGE/EVDO based wireless Internet service are different.
Consumers' brand choice behavior is led by different factors: product's/service's attributes is
one of the most leading factors among them. The wireless Internet services in Bangladesh
are basically of two types one is WIMAX based which is provided by two companies,
Banglalion and Augere, another is EDGE/EVDO based which is provided by six mobile
phone operators of the country. A comparative study between these two types of service
may bring the key success factors of ISP (Internet Service Provider) business in light (Islam
& Ahmed, 2011)

After a brief hiatus, mobile internet subscription starts to jump up in Bangladesh. This
change came to light after BTRC published its quarterly report on the mobile subscription
situation and internet penetration in Bangladesh. The situation was a bit dire, especially after
the launch of 3G in Bangladesh, when the figures took a nose dive. No one really could add
up why the country's mobile internet subscription reduced after the much anticipated third
generation wireless internet service was introduced by all the major operators. According to
telecom experts, this might be the result of high subscription fee and over-expectation that
drove away a chunk of the mobile internet user. Now, after the reality check subscribers are
slowly moving back to the operator to avail of the comparatively higher speed for their
everyday internet usage.

It should be mentioned that since October 2013, there was a steady decline in the number of
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 23

cellphone internet users. At October 2013, there were 351 million internet users but at the
end of January 2014 it shrank down to 339 million (Rahman, 2014).

While the mobile Value Added Services (VAS) market has been growing, a number of
initiatives still need to be undertaken to fully develop this market. The VAS contribution to
revenue is upwards of 20% in emerging markets such as China, even without introduction of
3G, as compared to sub 10% in India. For Bangladesh it is key to encourage the
development of a robust VAS ecosystem in areas such as Agricultural VAS, Mobile
Banking, M-Health and M/E-Commerce. If service providers build service coverage
networks, then financial services, public services and entertainment applications will be able
to reach a far larger portion of the population. This is likely to have major implications for
BD telecoms companies and may lead them to invest to only in ISPs but also in IPTV,
Video and Media and also game development as well as in domestic web content. One of the
major new initiatives in 2010 has been infrastructure sharing agreements between GP &
Banglalink and Robi & Banglalink. We expect this trend to continue partly enforced by the
regulator but also as a matter of practical necessity. : Push to develop ITES and Outsourcing
presents new business opportunities/diversification by the Telecoms companies. We have
already seen such a strategy being adopted by market leader GP who have established GP IT
as a separate company and one that is already the largest IT company in Bangladesh with
around 300 employees. 3G networks are expected to significantly enhance user experience
of existing data services, with limited introduction of video and other high bandwidth
services by carriers; data ARPU of 3G subscribers is expected to be initially dominated by
data connectivity charges. 3G License uncertainty: The expected cost and terms on which
3G licenses will be issued remains unclear (Islam, 2010).

4. Objective of the study

In recent times students, service holder, businessman, unemployed, day labor, married,
unmarried, divorced, widow every person uses internet for different purposes due to
technological advancement and availability of internet access. This techno savvy young
generation is better known about internet facilities. This study intends to measure and
analyze the underlying behavior of mobile internet user. More specifically the study is
conducted to achieve the fording specific objectives:

● To know mobile internet users demographics.

● To identify the reason behind mobile internet usages
● To identify major factors relating to mobile internet usage.

5. Methodology
In order to achieve the objectives of this study we have used primary source of information.
Primary data have been taken from the respondents through a prepared questionnaire that
included close ended questions. Questionnaires offer a method of conducting a survey where
all respondents are asked exactly the same questions in the same circumstance. In this
research, questionnaire survey was conducted to identify the using behavior of mobile
internet user in Bangladesh. Structured questionnaire were formulated in order to identify
 Factor Affecting Mobile Internet Usages in Bangladesh 24

different ways of using mobile internet and the facilities of using the mobile internet.
Secondary data were collected from published journals both locally and internationally.
The statistical package used to conduct the various analyses, for example; descriptive
statistics, correlation, correlation analysis, Factor analysis to data reduction by the SPSS 20
and to find the path diagram SPSS AMOS 22 was used.

6. Sampling & Sample Size

According to the BTRC (Bangladesh Telecommunication Regulatory Commission) among
total of 6 (six) mobile operators there are 115.627 million people using mobile phone
(Mobile Phone Subscribers in Bangladesh, 2014). Among them there are 37,172.05
thousand are mobile internet subscribers (Up to April 2014) (BRTC, 2014). Among them all
are equally considered in this study and the process of selecting sample was random within
Dhaka city in Bangladesh. This survey was conducted in June 2014. The numbers of
respondents were 400 (four hundred). The sampling technique was random sampling done
within the Dhaka city among the all classes person who use mobile internet.

There is no assent regarding theideal sample size or subject-to-variable ratio. This is a

necessary deliberation to obtain as table factor structure (Norris & Lecavalier, 2010). One
frequently cited rule is to include 5 participants per variableand at least 200 participants'
total. 5:1 ratioechoed by (Mari & Streiner, 1994), (Streiner, 2013) but offered the caveat that
this was only sufficient if the total sample was larger than 100 participants, while the ratio
should be 10:1 if there were fewer than 100 participants in the sample. Interestingly, with
respect to CFA (Confirmatory Factor Analysis), computer simulation studies reveal that
minimal sample sizes of 200 are required for stable solutions (Marsh, et al. 2004). Other
methodologists have stressed the importance of considering multiple factors in order to
obtain stable solutions, including the magnitude of factor loadings, thenumber of items per
factor, and the total sample size (Velicer & Fava, 1998). Similar to (Wirth & Edwards,
2007) if at least 10 variables loaded onto each factor at .40 or above, then asample of 150
was sufficient to produce a stable solution. If factor loadings were around .40 and fewer than
10 variables loaded onto factors at this .40 magnitude, then the necessary sample size to
produce a stable solution ballooned to 300-400 participants.

7. Data Analysis & Findings

The general finding of this study indicates that most of the respondent usage Robi
connection according to the table: 3, results shows that 41% of the respondent use Robi
network and most of the respondent are businessman and also 31.2% businessman use Robi
connection for their internet package. Though Grameen phone is the first leading mobile
operator in Bangladesh but only 14.8% people use GP internet where only 2.5% are students
and comparatively as a second marketer there are no significant difference with Banglalink.
Again as a Govt. organization Teletalk does not gain the maket in internet service.
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 25

Table 3: Distribution of the operator by respondent's profession

Which mobile operator do you use ? Total
Citycell Grameen Robi Bangla Airtel Teletalk
Phone link
Profession Student 4 10 19 9 4 1 47
1.0% 2.5% 4.8% 2.2% 1.0% 0.2% 11.8%
Service Holder 6 11 27 8 7 6 65
1.5% 2.8% 6.8% 2.0% 1.8% 1.5% 16.2%
Businessman 13 17 51 23 16 5 125
3.2% 4.2% 12.8% 5.8% 4.0% 1.2% 31.2%
Unemployment 7 11 26 13 7 6 70
1.8% 2.8% 6.5% 3.2% 1.8% 1.5% 17.5%
Day Lobor 12 10 41 16 8 6 93
3.0% 2.5% 10.2% 4.0% 2.0% 1.5% 23.2%
Total 42 59 164 69 42 24 400
10.5% 14.8% 41.0% 17.2% 10.5% 6.0% 100.0%

On the other hand table: 4 indicates female user use mobile internet rapidly and about 36%
of the user use mobile internet 3-4 hours in a day where nearly 21% are female where as
total male and female user are 40.5% and 59.5% respectively. The result also shows that
7.5% female use mobile internet below 1 year where as male are only 4%. It is also show
that nearly 60% of the mobile internet users are female and rest of them are male.
Table 4: Time of using mobile internet by sex category
How long you are using internet Phone? Total
Below 1 1-2 3-4 4-5 5-6 Above 6
years years years years years years
Sex Male 16 38 62 25 12 9 162
4.0% 9.5% 15.5% 6.2% 3.0% 2.2% 40.5%
Female 30 27 83 52 31 15 238
7.5% 6.8% 20.8% 13.0% 7.8% 3.8% 59.5%
Total 46 65 145 77 43 24 400
11.5% 16.2% 36.2% 19.2% 10.8% 6.0% 100.0%

From the table: 5 it is clear that most of the respondent are businessman whose age limit is
36-45 years and this group of people use mobile internet more and more. Table: 5 shows that
11.8% of the people between the ages limit 36-45 years old are business man and 36.2%
people of this group use mobile internet which indicates the most users and they use the
connection since 3-4 years. It also indicates that person above 50 are not very much
interested about mobile internet, the results is decreasing after age limit 50 to above. It is
very much important that according to age limit the behavior of using mobile internet is
increasing up to 45 years but decline after age 45.
 Factor Affecting Mobile Internet Usages in Bangladesh 26

Table 5: Distribution of Profession by age limit

Age Total
18-25 26-35 36-45 46-50 50-60 Above 60
Profession Student 4 10 17 11 4 1 47
1.0% 2.5% 4.2% 2.8% 1.0% 0.2% 11.8%
Service Holder 7 13 23 8 8 6 65
1.8% 3.2% 5.8% 2.0% 2.0% 1.5% 16.2%
Businessman 15 18 47 24 16 5 125
3.8% 4.5% 11.8% 6.0% 4.0% 1.2% 31.2%
Unemployment 7 13 24 13 7 6 70
1.8% 3.2% 6.0% 3.2% 1.8% 1.5% 17.5%
Day Lobor 13 11 34 21 8 6 93
3.2% 2.8% 8.5% 5.2% 2.0% 1.5% 23.2%
Total 46 65 145 77 43 24 400
11.5% 16.2% 36.2% 19.2% 10.8% 6.0% 100.0%

Factor Analysis:
A maximum likelihood analysis with Promax rotation was performed to check on factor
validity. The results of the factor analysis showed that the KMO value was 0.617, which was
higher than the recommended minimum value of 0.6 (Kaiser H., 1974) and Bartlett's test of
sphericity (Bartlett, M.S., 1954) was significant, supporting the factorability of the Pattern
matrix. All items relatively load well on their factor.

Table 6: KMO Test Table

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .617
Bartlett's Test of Sphericity Approx. Chi-Square 1019.860
df 78
Sig. .000
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 27

Table 7: Total Variance Explained Table

Total Variance Explained

Factor Initial Eigenvalues Extraction Sums of Squared Loadings Rotation
Sums of
Squared
Loadingsa
Tota % of Cumulative Total % of Cumulative Total
Variance % Variance %
1 2.314 17.804 17.804 1.807 13.896 13.896 1.799
2 2.114 16.259 34.063 1.657 12.742 26.639 1.565
3 1.552 11.939 46.002 1.108 8.522 35.161 1.168
4 1.381 10.622 56.624 .934 7.185 42.346 1.242
5 1.247 9.591 66.215 .846 6.505 48.851 .987
6 .823 6.334 72.549
7 .706 5.430 77.979
8 .648 4.983 82.962
9 .548 4.215 87.176
10 .505 3.883 91.059
11 .485 3.728 94.787
12 .371 2.854 97.642
13 .307 2.358 100.000

Extraction Method: Maximum Likelihood.

a. When factors are correlated, sums of squared loadings cannot be added to obtain a total
variance.

From the above table, only 5(five) factors have been extracted, as cumulative percentage is
greater than 66% at this point and eigenvalue is greater than 1.0 (it is recommended that
factors with eigenvalues greater than 1.0 should be retained) that indicates the adequacy of
the analysis using derived factors. Where variables are indicating the following subjects:
Price_1:Price of the internet package is tolerable Access_1:Enough instruction are available in
various way
Price_2:It gives more opportunities when much Access_2:I may buy any internet package when
data buying need
Price_3:1 KB 0.02 paisa gives more facility Trust_1:it is better access to Internet by my
operator
Advan_1:Helps to easily get educational Use_4:I use mobile internet for observing business
information once needed news
Advan_2:Saving time in dealing with related Use_5:I use mobile internet for any time mailing
parties
Advan_3:Enhance strong social cohesion Use_7:I use mobile internet for watching TV &
Newspaper
Advan_4:Easy contact with customers/suppliers
 Factor Affecting Mobile Internet Usages in Bangladesh 28

Table 8: Pattern Matrix

Pattern Matrixa
Factor
1 2 3 4 5
Price_2 .939
Price_1 .695
Price_3 .590
Advan_4 .919
Advan_3 .643
Trust_1 .476
Access_1 .886
Access_2 .542
Use_4 .744
Use_5 .621
Use_7 .342
Advan_2 .811
Advan_1 .459

Extraction Method: Maximum Likelihood.

Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

Explanation:
The extracted 5 factors can be interpreted in terms of the variables that load high
coefficients. From the pattern matrix table, factor 1 has high coefficients for variable Price_2
[It gives more opportunities when much data buying] (.939), Price_1 [Price of the internet
package is tolerable](.695), Price_3 [1 KB 0.02 paisa gives more facility] (.590). Thus,
factor 1 can be entitled as "Internet in your Hand". Factor 2 has high coefficients for
Advan_3 [Enhance strong social cohesion] (.643), Advan_4 [Easy contact with
customers/suppliers] (.919), Trust_1 [it is better access to Internet by my operator] (.476).
Thus, this factor may be labeled as "Stay Connected". Factor 3 has factor that Access_2 [I
may buy any internet package when need] (.542) and Access_1 [Enough instruction are
available in various way] (.886). So, this factor can be named "Easy Access to Internet".
Factor 4 has high coefficients Use_4 [I use mobile internet for observing business news]
(.774), and Use_5 [I use mobile internet for any time mailing] (.621). And Use_7 [I use
mobile internet for watching TV & Newspaper] (.342), (Hence, this can be tagged as
"Business Anytime Anywhere". Factor 5 has high coefficient for Advan_2 [Saving time in
dealing with related parties] (.811), Advan_1[Helps to easily get educational information
once needed] (.459). So, this factor can be named "Internet, Your Helping Tools".

Structural equation modeling (SEM):

To understand the patterns of correlation/covariance among a set of variables and to explain
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 29

as much of their variance as possible with the model specified we will conduct Structural
equation modeling (SEM). For this reason at first fit the model - most of which are not
formal inferential statistics. For example, we are to examine indices such as the Goodness
of Fit Index (GFI), the Incremental fit Index (IFI), the Normed Fit Index (NFI), the
Comparative Fit Index (CFI), the Non-normed Fit Index (NNFI), also known as the Tucker-
Lewis Index or (TLI), the Root Mean Square of Approximation (RMSEA), the Root Mean
Square Residual (RMR), the Standardized Root Mean Square Residual (SRMR), and the
Akaike Information Criterion (AIC), to name but a few. The fit indices have differing scales
and norms for indicating model adequacy - for example, large values of the GFI (up to 1.0)
indicate good fit, but small values of the RMR (down to 0) indicate good fit.

Table 9: Model Fit Table

Fit Index Recommended Value Observed Value
CMIN/ degrees of freedom 3.00 1.516
GFI 0.90 .970
AGFI 0.80 .950
NNFI 0.90 .919
CFI 0.90 .970
RMSR 0.10 .061
RMSEA 0.06 OR 0.08 .036
GFI = goodness-of-fit index; AGFI = adjusted goodness-of-fit index;
NNFI = non-normed fit index; CFI = comparative fit index;
RMSR = root mean square residual;
RMSEA = root mean square error of approximation.

From the above table we observed that the model is fitted excellently. The regression
weighted table [Appendix1] also significant and all the p values are significant (p < 0.001)
without Company facility and easy access and all standardized regression estimators are
positive. And the correlations are not bad. In this session there is a contradiction that easy
access to the internet is negatively correlated but it has no strong evidence because the P
value does not give significant value. So although direction is negative for this argument but
the strength is weak. All the values of the squared multiple correlations give an excellent
output.
 Factor Affecting Mobile Internet Usages in Bangladesh 30

Figure 1: Path Diagram

8. Conclusion & Recommendation

There are many studies on determinants of mobile internet user behavior demand among
university students in the world. But, a few studies in Bangladesh case. Therefore the
researcher tried to fill this gap. The study examines the determinants of mobile internet user
behavior in Bangladesh. Results of the study prove that there is a positive and significant
relationship between mobile internet and customers behavior in various circumstances.

Among 31.2% of the business user 12.8% user uses Robi connection for their mobile
internet. And also 11.8% of the total student 4.8% user uses Robi connection. So it may
conclude that Robi internet or the authorization of Robi may introduce Robi connection for
specially student and business person. On the other hand as a fast grower operator Grameen
Phone mobile internet user only 14.8% where only 2.5% are student. Again state owned
operator Teletalk users are only 6% in total what is very much unexpected for any Govt.
Organization.

Again its also a great fact that in the matter of mobile internet female user is grater than the
male user. Report shows 59.5% of the user are female and rest of the user are male. 13% of
the female user uses mobile internet 3-4 hours daily where as 15.5% of the male user use
mobile internet. From here we may conclude it's a best opportunity for the authority to give
more opportunity about freelancing activity for women. It is not clear that for which reason
they use mobile internet but it makes a behavioral approach to use internet for a long time.
 Bangladesh Journal of MIS, Volume 6, No 2, June, 2014 31

So it may effective for the nation.

The 36-45 ages people in our country who are businessman uses mobile internet more and
more. From the path diagram it is clear that 14% variance between internet prize and
customer usages. If this variation may reduce so it will more effective for customer and also
to provider.Accessing to the mobile internet should be very easy. There is a positive and
strong relationship between internet prize and company's facility also to easy internet with
customer's usages.

Our findings also indicate that the accessibility and usage of a cell phone also has the
potential to mobile internet users. Accessibility of the mobile internet may cause national
progress in different perspective.

This study had examined factors that influenced the customer behavior and intuition to
various types of usages. Three factors namely internet price, advantageous of using mobile
internet and easy access to the mobile internet have significant relationship with the
behavioral usage intention of mobile internet. The regression coefficient also revealed that
types of factors.

9. Future Research
From the survey it appears that most of the respondents of Bangladesh are highly interested
in mobile internet for various purpose which facilitate their learning and growth process. A
major limitation of this study is the small sample size and all respondents were from within
Dhaka city. It would be useful and interesting conduct another study covering the major
cities in Bangladesh.

It would be important to expand the research to incorporate representatives from all sectors
of the telecom society who are likely to develop the society depending with the help of
mobile internet. This field of developing ICT world in Bangladesh is not long run topic, so
there are many areas within this field for further research. Once congruence is established,
more detailed research would have to be performed on this data set to determine how mobile
internet can be integrated in social and individual life more effectively.
 Factor Affecting Mobile Internet Usages in Bangladesh 32

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Regression Weights: (Group number 1 - Default model) Standardized Regression Weights:

(Group number 1 - Default model)
Appendix1 Estimate S.E. C.R. P Label Estimate

Q_21 <--- Internet_Price 1.000 Q_21 <--- Internet_Price .622

Q_19 <--- Internet_Price 1.231 .110 11.238 *** Q_19 <--- Internet_Price .716

Q_20 <--- Internet_Price 1.635 .152 10.773 *** Q_20 <--- Internet_Price .894
Q_34 <--- Easy_Internet .472
Q_34 <--- Easy_Internet 1.000
Q_33 <--- Easy_Internet .920
Q_33 <--- Easy_Internet 1.953 .282 6.926 ***
Q_32 <--- Easy_Internet .637
Q_32 <--- Easy_Internet 1.326 .161 8.258 ***
Q_29 <--- Customer_Usages .366
Q_29 <--- Customer_Usages 1.000
Q_27 <--- Customer_Usages .670
Q_27 <--- Customer_Usages 2.041 .390 5.230 ***
Q_26 <--- Customer_Usages .686
Q_26 <--- Customer_Usages 1.802 .347 5.188 ***
Q_30 <--- Company_Facility .438
Q_30 <--- Company_Facility 1.000 Q_31 <--- Company_Facility .855
Q_31 <--- Company_Facility 2.338 1.458 1.604 .109 Q_16 <--- Easy_Access .478
Q_16 <--- Easy_Access 1.000
Q_15 <--- Easy_Access .997
Q_15 <--- Easy_Access 2.093 1.075 1.947 .051

Correlations: (Group number 1 - Default model) Squared Multiple Correlations:

(Group number 1 - Default model)
Estimate Estimate
Internet_Price <--> Company_Facility .154 Q_15 .993
Q_16 .228
Internet_Price <--> Easy_Internet -.060
Q_31 .730
Company_Facility <--> Easy_Access -.017 Q_30 .192
Easy_Internet <--> Company_Facility .052 Q_26 .471
Q_27 .450
Customer_Usages <--> Company_Facility .124
Q_29 .134
Easy_Internet <--> Easy_Access -.070 Q_32 .406
Internet_Price <--> Easy_Access .103 Q_33 .846
Customer_Usages <--> Easy_Access -.169 Q_34 .223
Q_20 .800
Internet_Price <--> Customer_Usages .139
Q_19 .512
Easy_Internet <--> Customer_Usages .212 Q_21 .387

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