Business consultancy project

Influencing Factors

The strategy of the company is being shifted by the evolution of high-advanced technology and by customer requirements. The combination of these key determinants designates the strategy of further development via enlarging horizons.

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  Advanced Technologies
  

The mobile communication service technologies have experienced immense evolution through the acquisition of new dynamic peculiarities. The mobile communication has started with analog technology which had limited capacities and low speed of signaling transition. The exponential change in mobile communication occurred with the emergence of the Global System of Mobile communication (GSM). 2G technology constituted circuit-switched telephony and Universal Mobile Telecommunications System (UMTS) by providing the transmission of digital encrypted data and the resolution of text messaging and upload and download data speed by GPRS service. Nevertheless, the evolution of high data transmission became available with the progression of the third and fourth generation. The development of 4G enabled the transmission from circuit-switched service to IP telephony. Long Term Evolution (LTE) is a 4G wireless technology compose IP connectivity layer for all data, voice, messaging traffic transmission, the second layer Evolved Packet System (EPS) constitutes the communication procedures. (The Evolution of Mobile Internet, 2017)
Azercell has spent enormous resources and has covered 99.8% of the residential area of Azerbaijan. Besides, of the being first GSM operator in Azerbaijan, Azercell also put an immense effort for the development of high-speed technology deployment. Now Azercell is a leader in 3G and 4G coverage availability in the country and has the highest share of Mobile Broadband connection among mobile operators

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  Smartphone penetration
  

Together with the rapid technical evolution, the development of handset manufacturing also influenced the mobile network operators’ capabilities. Smartphones became a common attribute of mobile communications. According to the ITU statistical data, the rapid growth of mobile communication in the last ten years was occurred due to smartphone proliferation. The fastest processors and advantageous characteristics help the smartphone to change the market overview by overtaking desktop technology and becoming mainstream devices. (Penwarden, 2017)

The core difference of smartphone from features phones that it has specifications of personal digital assistant (PDA), and the functionality of personal computer within access to the internet, personal email, document viewing, task and contact management. Besides the basic features’ handset developers
continuously upgrading and adding new possibilities to the device. (The Emergence of the Smartphone, 2007) Modern smartphones are produced with cameras, music players, GPS navigation software, and replace a bunch of different devices. Also, some smartphones have NFC and MST configuration and are actively used in mobile payment services. The availability of digital services enforces the smartphone position, and the worldwide smartphone subscription reached 5 billion (GSMA, Intellegence, 2018)

Figure.29 Smartphone users from survey respondents

The smartphone penetration is gradually increasing in Azerbaijan as well. The annual average growth in the last three years is 39%, while the share of features phone is declining. Meanwhile, smartphone penetration among Azercell subscribers in the last three years reached 50% and continues a gradual increase. Eventually, half of Azercell subscribers are smartphone users. Besides, the assumption was confirmed with the

survey results, as 99% of the respondents were smartphone users.

• 
  Shift in customer behavior
  

In the age of technology, the hectic dynamic of technical evolution influenced customer communication habits. The proliferation of social communication applications and video and music streaming modify communication behavior and create embedded new lifestyle performance. According to the ITU Y 2017 report, 94% of the youth population in developed countries preferred online interaction in business and personal life. (ICT facts and figures, 2017)
The content consumption is increasing gradually. Customers are using multimedia entertainment and communication services online. Video streaming and music streaming usage are increasing. People prefer to have individual access through their mobile rather than watching TV broadcast. The mobile device is acquiring new features and for the contemporary customer is not satisfied with predominant factors but also consider the mobile device as the new paradigm for the implementation of different functions. Based on Huawei” The future of Mobile broadband “report in Y 2016 people on average spent 2 hours on mobile devices and in Y 2025 it is forecasted to reach 5.5 hours a day. The emergence of online services in a business environment acquired new characteristics to the mobile devices. At the same time, the rising demand for additional features facilitate mobile internet usage and directly influence the data consumption rise.
In addition to the entertainment functions, now the mobile device is used for mobile payment services as well. The availability of online and mobile payment functions simplifies the financial transactions, and customers prefer to proceed the payment without attending payment points. (The future of Mobile Broadband, 2017)

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