Determinants of demand for mobile telecom service in Cape Coast

Abstract

The study sought to investigate the determinants of demand for mobile telecom services by individuals in Cape Coast metropolis in the Central Region of Ghana. The logit model was used to identify determinants of mobile telecom services subscription. The mobile telecom subscription equation was estimated using the maximum likelihood estimation technique. Data for the study were collected via survey of individual subscribers and non-subscribers of mobile telecom services. The questionnaire instrument was employed to collect data from respondents. The questionnaire was designed and administered to respondents to gather information on factors that determine subscription of mobile telecom services and choice of mobile telecom operator. The outcome of the study shows that the probability that an individual will subscribe to mobile telecom service is dependent on income, price of mobile service, employment and education. The study also found that the probability of choosing a mobile operator depends on promotions, discount and special offers, service charges of the network and network effect (the effects of individual social network). It is recommended that mobile number portability be introduced in the mobile telecom industry. Also, reduction in mobile charges, more promotion and discount are necessary for mobile operators to acquire more subscribers. For mobile subscription to increase there should be effort to provide employment opportunities, increase education as well as growth of individuals’ incomes.