The continued decline of voice revenues is pushing mobile operators in Taiwan turn into data and content services for exploring new revenue opportunities and raising ARPU. This study aims to discuss the critical determinants of the internet user's adoption of 3.5G mobile broadband services in Taiwan. The theoretical framework employed in the study is Information System Success Model (DeLone & McLean, 2003; Chae et al.,2002), which is operationally defined with mobile web-services measurement scales. The study attempts to identify how the system quality of 3.5G mobile broadband services affects the customer satisfaction and their perceived net benefit. With the affordable mobile broadband connectivity, 3.5 G access or HSDPA in Taiwan has played a major role in the burgeoning mobile Internet market. HSDPA (High Speed Downlink Packet Access) could be viewed as an advanced version of WCDMA wireless network. HSDPA ideally provides mobile data services up to 14.4 Mbps for the downlinks and up to 5.8 Mbps for the uplinks. According to TWNIC, the number of cell phone subscribers in Taiwan has grown up to 23 million by March 2009 with a 100% penetration rate Yet, among cell phone subscribers there were only 1.6 million users adopting mobile broadband services. --Mobile Broadband Services,IS Success Model,Customer Satisfaction,Net Benefits

Chen, Chao-Yu

Hsiao-Hui Wang, Eunice

English

Research Papers in Economics

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Hsiao-Hui Wang, Eunice; Chen, Chao-Yu
Conference Paper
System quality, user satisfaction, and perceived net
benefits of mobile broadband services
8th International Telecommunications Society (ITS) Asia-Pacific Regional Conference,
Taiwan, 26 - 28 June, 2011: Convergence in the Digital Age
Provided in cooperation with:
International Telecommunications Society (ITS)
Suggested citation: Hsiao-Hui Wang, Eunice; Chen, Chao-Yu (2011) : System quality, user
satisfaction, and perceived net benefits of mobile broadband services, 8th International
Telecommunications Society (ITS) Asia-Pacific Regional Conference, Taiwan, 26 - 28 June,
2011: Convergence in the Digital Age, http://hdl.handle.net/10419/52334  1 
System Quality, User Satisfaction, and Perceived Net Benefits of Mobile Broadband 
Services 
Eunice Hsiao-Hui Wang 
Department of Information Communication, Yuan Ze University, 
eunicehh.wang@gmail.com 
 
Chao-Yu C hen 
Department of Information Communication, Yuan Ze University, 
muscletree1010@gmail.com 
 
 
ABSTRACT 
The continued decline of voice revenues is pushing mobile operators in Taiwan 
turn into data and content services for exploring new revenue opportunities and 
raising ARPU. This study aims to discuss the critical determinants of the internet 
user’s adoption of 3.5G mobile broadband services in Taiwan. The theoretical 
framework employed in the study is Information System Success Model (DeLone & 
McLean, 2003; Chae et al.,2002),  which is operationally defined with mobile 
web-services measurement scales. The study attempts to identify how the system 
quality of 3.5G mobile broadband services affects the customer satisfaction and their 
perceived net benefit. 
 
With the affordable mobile broadband connectivity, 3.5 G access or HSDPA in 
Taiwan has played a major role in the burgeoning mobile Internet market. HSDPA 
(High Speed Downlink Packet Access) could be viewed as an advanced version of 
WCDMA wireless network. HSDPA ideally provides mobile data services up to 14.4 
Mbps for the downlinks and up to 5.8 Mbps for the uplinks. According to TWNIC, the 
number of cell phone subscribers in Taiwan has grown up to 23 million by March 
2009 with a 100% penetration rate Yet, among cell phone subscribers there were only 
1.6 million users adopting mobile broadband services. 
 
Keywords: Mobile Broadband Services, IS Success Model, Customer Satisfaction, 
Net Benefits   2 
 
1.  Introduction 
In recent years, wireless high speed packet data has attracted enormous attention 
in wireless industry under the context of 3G standardization. This trend is believed to 
be driven by the wireless internet. Recent 3G standardization and related technology 
development reflect the need of the high-speed packet data of wireless Internet. 
 
 
With the affordable mobile broadband connectivity, 3.5 G access or HSDPA in 
Taiwan has played a major role in the burgeoning mobile Internet market. HSDPA 
(High Speed Downlink Packet Access) could be viewed as an advanced version of 
WCDMA wireless network. HSDPA ideally provides mobile data services up to 14.4 
Mbps for the downlinks and up to 5.8 Mbps for the uplinks, and it has been more 
market-ready than WiMAX. 
According to NCC(National Communications Commission), the number of cell 
phone subscribers in Taiwan has grown up to 27,839,852 by Dec 2010, and the 
number of 3G subscribers is 18,734,177. However, there were only 3,587,368 users 
adopting mobile broadband services, and there were 2,696,743 user by phone and 
890,625 users by data card. We can see, although the penetration rate of 3G is 67.29%, 
that only 19.15% of 3G users adopting mobile broadband services. This paper aims to 
investigate users’ behavioral intentions when they adopt 3.5G mobile data services.   
   3 
2.  Theoretical background 
2.1 The DeLone and McLean Model of Information Systems Success 
In 1992, DeLone and McLean presented an Information Systems (IS) Success 
Model(hereafter referred to as the "D&M IS Success Model") as a framework and 
model for measuring the complex-dependent variable in IS research.  (DeLone  & 
McLean, 1992) 
From 1992 to 2003, nearly 300 articles in refereed journals have referred to, and 
made use of the IS Success Model. DeLone & McLean reviewed these articles and 
then proposed "The Updated D&M IS Success Model" in 2003. 
 
Fig. 1. The Updated D&M IS Success Model (DeLone & McLean, 2003) 
 
The most important updates of the model are stated in the following: 
1.  In the original formulation of the D&M Model, the  term “impact” was used. 
However, the original term "impacts" may be positive or negative, thus leading to 
a possible confusion as to whether the results are good or bad. So, Seddon(1997) 
used “consequences” and “net benefits” in his characterization of the outcomes. 
DeLone & McLean agree with Seddon's viewpoint and think "net benefits" is 
probably the most accurate descriptor of the final success  variable.  Also, the 
inclusion of “net” in “net benefits” is important because no outcome is wholly 
positive, without any negative consequences. (DeLone & McLean, 2003) 
2.  Pitt et al.(1995)  maintained  that IS researchers will not  measure  correctly  IS   4 
effectiveness if they do not include in their assessment package a measure of IS 
service quality. DeLone & McLean adopted the suggestion and added "service 
quality" as the third dimension of quality. 
3.  Because of the difficulties in interpreting the multidimensional aspects of "use",  
DeLone & McLean suggest "intention to use" will be a worthwhile alternative 
measure in some contexts. "Intention to use" is an attitude, whereas "use" is a 
behavior. 
2.2 HSDPA in Taiwan 
 
3.5G is the advanced evolvement of 3G wireless network. To improve the system 
performance,  3.5G  makes a number of  changes to the radio interface that mainly 
affect the  physical and transport layers.  3.5G  provides extraordinary speed and 
mobility, such as IP-based network which is optimized for packet data; the upgrade of 
existing voice networks; enabling wireless web lifestyle  and  meeting the next 
generation performance. 
In Taiwan, the great era of fixed line telecom may be changed gradually in the 
future, 3.5G service that mobile operators introduced has already struck fixed line and 
Internet service continuously. Many mobile operators have already lunched  their 
HSDPA networks. 
Chunghwa Telecom  (CHT),  one of the top four  operators of 3G mobile 
communication services in Taiwan,  was the first to launch the 3.5G mobile data 
services with the aim of increasing non-voice revenue, the growth of voice revenue 
being slow. FarEasTone (FET) was the second mobile operator offering these services 
in Taiwan. TaiwanMobile and Vibo Telecom were put into 3.5G business later 
successively. Their business models are:   
  small business user market: 3.5G subscription bundling with smart phones (e.g. 
iPhone and Android Phone) 
  potential critical mass market: 3.5G subscription bundling with (free) NetPCs or 
iPad plus affordable flat monthly fee (27 USD) 
 
Now, more and more laptops, smartphones and tablet computers  are  sold 
bundling with the HSDPA module and 3.5G service. The number of 3.5G subscribers 
increase every month and it still has a large space for the development in Taiwan. 
   5 
3.  Research Method 
3.1 Research structure 
In this study, we want to discuss the critical determinants of the Internet user’s 
adoption of 3.5G mobile broadband services in Taiwan. According to the Updated 
D&M IS Success Model, the study picked up six dimension: "" 
 
 
 
 
 
 
 
 
 
 
 
 
Fig. 2. The Research Framework 
 
3.2 Research Hypothesis 
H1: The system quality of 3.5G mobile broadband services tends to be a positive 
predictor to customer satisfaction.   
H2: The system quality of 3.5G mobile broadband services tends to be a positive 
predictor to customer’s intention to use.   
H3: The information quality of 3.5G mobile broadband services tends to be a 
positive predictor to customers satisfaction.   
H4: The information quality of 3.5G mobile broadband services tends to be a 
positive predictor to customer’s intention to use.   
H5: The service quality of 3.5G mobile broadband services tends to be a 
positive predictor to customer satisfaction.   
H6: The service quality of 3.5G mobile broadband services tends to be a 
 
System Quality 
Information 
Quality 
 
User 
Satisfaction 
Intention to 
use 
 
 
Net Benefits 
 
Service 
Quality 
   6 
positive customer’s intention to use.   
H7: The customer satisfaction of 3.5G mobile broadband services contributes a 
significant influence to customer’s intention to use. 
H8: The customer satisfaction of 3.5G mobile broadband services seems to have 
significant impacts on customer’s net benefits. 
H9: The customer’s intention to use of 3.5G mobile broadband services seems to 
have significant impacts on customer’s net benefits.   
 
4.  Analysis and Result 
A web-based survey was conducted for the users who have subscribed 3.5G 
mobile broadband services. There were 426 valid questionnaires administered by a 
purposive sampling, and 58% of the respondents were male, and 42% were female.   
The age of the majority of the respondents was between 26 to 30  years old 
(49.1%). The education background of the respondents was mostly above university 
(67.6%). Most of the respondents (81.7%) have used the Internet service for more 
than five years. Moreover, 38.0% of the respondents use the 3.5G mobile broadband 
services for less than five hours per week. 
  As of questionnaire reliability analysis, the Cronbach's α was shown with .947 
as the whole questionnaire and ranged from .809 to .912 for individual domains.   
4.1  Pearson Correlation Analysis 
Table 1. The correlation matrix for the variables 
Pearson’s r  system 
quality 
information 
quality 
service 
quality  intention to use  Customer 
satisfaction 
Customer 
net benefits 
system quality  1.000           
information 
quality  .584**  1.000         
service quality  .598**  .360**  1.000       
customers' 
intention to use  .376**  .366**  .294**  1.000     
customers' 
satisfaction  .645**  .591**  .535**  .684**  1.000   
customers' net 
benefits  .604**  .490**  .424**  .520**  .739**  1.000 
*P≦0.05; **P≦0.01   7 
4.2  Multiple Regression Analysis on Quality to Customer Satisfaction 
 
Table 2. Summary of the Multiple Regression Analysis on quality to customer 
satisfaction 
Model  R  R
2 
Adjusted 
R
2 
R
2 
Change 
F 
Change 
Sig. F 
Change 
Standardized 
Coefficients β 
system 
quality 
.645
a  .416  .415  .416  302.320  .000***  .322 
information 
quality 
.697
b  .486  .484  .070  57.500  .000***  .320 
service 
quality 
.721
c  .519  .516  .033  29.127  .000***  .227 
Durbin-Watson Value: 1.868 
a. Predictor : system quality         *P≦0.01; **P≦0.05; ***P≦0.001 
b. Predictors : system quality, information quality 
c. Predictors : system quality, information quality, service quality 
d. Dependent Variable : customers' satisfaction 
 
 
4.3  Multiple Regression Analysis on Quality to Intention to use 
Table 3. The Multiple Regression Analysis on intention to use 
Model  R  R
2 
Adjusted 
R
2 
R
2 
Change 
Sig. F 
Change 
Standardized 
Coefficients β 
customers' 
satisfaction 
.684
a  .467  .466  .467  .000***  .587 
system 
quality 
.704
b  .496  .492  .029  .000***  .244 
information 
quality 
.716
c  .513  .511  .017  .000***  .156 
service 
quality 
.724
d  .524  .521  .011  .041**  .113 
Durbin-Watson Value: 2.109 
*P≦0.01; **P≦0.05; ***P≦0.001 
a. Predictors : customers' satisfaction, system quality     8 
b. Predictors : customers' satisfaction, system quality, information quality 
c. Predictors : customers' satisfaction, system quality, information quality, service 
quality 
d. Dependent Variable : customers' intention to use 
 
 
4.4    Multiple Regression Analysis on Customer’s Net Benefits 
Table 4. The Multiple Regression Analysis on customer’s net benefits 
Model  R  R
2 
Adjusted 
R
2 
R
2 
Change 
Sig. F 
Change 
Standardized 
Coefficients β 
customer 
satisfaction 
.739
a  .546  .542  .546  .000***  .645 
Customer’s 
intention to use 
.783
b  .613  .410  .067  .026**  .119 
Durbin-Watson Value: 2.109 
*P≦0.01; **P≦0.05; ***P≦0.001 
a. Predictors : customers' satisfaction 
b. Predictors : customers' satisfaction, customers' intention to use 
c. Dependent Variable : customers' net benefits 
 
4.5  Path Analysis of the research framework 
 
 
 
 
 
 
 
 
 
Fig. 3. The result of Path Analysis 
.156*** 
.322*** 
.113** 
.227*** 
.320*** 
.244*** 
.587*** 
System 
Quality 
 
Informatio
n Quality 
  User 
Satisfaction 
 
Intention to 
use 
 
 
Net Benefits 
Service 
Quality 
 
.645*** 
.119**   9 
5.  Discussion and Conclusion 
 
The results demonstrate that the system quality, information quality and service 
quality of 3.5G mobile broadband services are significantly influential to customer 
satisfaction and usage. The system quality was shown as the most critical factor 
among those determinants affecting customer satisfaction. The customer satisfaction 
demonstrates the most influential effect on net customer benefits. 
 
The study findings are summed up as follows:   
   
1) System quality was shown in the results as a decisive factor predicting satisfaction 
and intention of usage.   
 
3.5G mobile broadband services in Taiwan are still at an initial stage.    We suggest 
that how to enhance the mobile systems quality will be crucial and challenging for 
operators in increasing subscribers’ usages.   
 
2) Customer satisfaction, viewed as the most crucial indicator (β＝.645***) in the 
research framework, significantly leverages users’ perceived net benefits.   
 
We strongly suggest that mobile operators should make efforts on offering advanced 
systems quality and improving customer satisfaction. This definitely leads to leverage 
users’ perceived net benefits such as their increased productivity and an enhanced job 
performance, etc.    The more important finding is that those users who perceive 
positive net benefits likely tend to continue subscribing the mobile broadband services 
offered by the operators. 
   10 
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System quality, user satisfaction, and perceived net benefits of mobile broadband services

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