What Changes After Switching to 4G-LTE? Findings From the Indonesian Market

Abstract

This paper identifies the market changes following the technological switch from 3G to 4G in the Indonesian market. The primary data were obtained by conducting a market survey in April-May 2017. A set of questionnaires was developed to compare subscribers’ activities between 3G and 4G service utilization in terms of two activity clusters. The first cluster consists of 14 conventional activities, representing typical activities that have been occurring since the previous implementation of mobile technology. The second cluster consists of 11 digital ecosystem activities, referring to services that also engage other technological systems through data communications. Subsequently, the strategic implications for mobile network operators were investigated from the theoretical perspective of technological evolution. The results indicate that mobile network operators should adaptively respond by making messenger applications the core of new service innovations. Significant traffic intensification is also observed with regard to conventional activities, and there is a need for market education along with digital ecosystem establishment. The findings also imply a changing paradigm in terms of how users value service experience when accessing 4G applications. The overall experience is determined by interdependent components shaping an ecosystem perspective. The user’s handheld mobile device acts as the central gateway for data communications, and its performance is assessed in relation to other connected devices and applications.