Customer Acceptance of Telecommunication Technologies During Pre-Launch Stage

Abstract

Telecommunication technologies in the recent times are evolving at a fast pace. Faster and better communication networks enable a variety of service offerings. Whether it is new services on existing network technologies or staple services on new technologies, the challenging question that Telecom Service Providers (TSPs) frequently face is -”How many users will subscribe to this service?” Similarly TEMs are challenged with the question -”How many users will buy the new device?” Answering these questions is fundamental to network investments, network planning and provisioning, marketing and R and D strategies. However, in most cases, no past data is available on adoption of the new service or technology. Acceptance of a telecommunication technology is based on individual adoption decisions. In the case of services on new technology, a large numbers of consumers are not aware of the technology. They learn about the services through media and other channels. They hold back their decision to adopt till they become fully aware of its benefits. The consumers also observe that any new product or service is invariably expensive during the initial phase. They adopt a wait and watch approach to avail the product or service at a discounted price after a certain period of time. Also when a new product or service is just launched, the early adopters positively or negatively influence the potential adopters over a period of time. Thus, consumer adoption of the new service changes with time over the life cycle of the product and is stochastic. Several models are in use for consumer acceptance of technology products and services. Notable among those are Fred Davis, Richard Bagozzi and Warshaw proposed the Technology Acceptance Model (TAM)1, primarily based on two factors perceived usefulness and perceived ease of use of a new technology. The model was later modified to TAM2 by Venkatesh et al2. Another model is UTAUT3 again by Venkatesh et al., later extended to include individual differences in adoption in UTAUT24. These models evaluate the acceptance level of a group of customers who are already aware of the new technology. However, a significant probability of acceptance also lies with the section of customers who may be unaware of the new technology, but can transition into potential adopters over a period of time.