MOSHI UNIVERSITY COLLEGE OF COOPERATIVE AND BUSINESS STUDIES

(MUCCoBS)

A constituent college of Sokoine University of Agriculture (SUA)

P.O.Box 474, Sokoine Road, Moshi Tanzania

Challenges facing providers and users of mobile commerce in Tanzania,

A case of Vodacom M-Pesa in Tanga City

Noel Ernest Kimambo

Bachelor Arts in Procurement and Supplies Management (BA-PSM)

March, 2012

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Challenges facing providers and users of mobile commerce in Tanzania

A case of Vodacom M-Pesa in Tanga City

By;

A Research Proposal submitted in Partial fulfillment of the Requirements for the degree of Bachelor of Arts in Procurement and Supplies Management offered by Sokoine University.

Moshi University College of Cooperative and Business Studies

March, 2012

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DECLARATION AND COPYRIGHT

I declare that, “This proposal is my original work and has not been presented in any other

academic institution for the purpose of academic award’’

Name: Noel Ernest Kimambo

Registration Number: FBIS/BA-PSM/780/09

Program Bachelor of Arts in Procurement and Supplies Management (BA-PSM)

Signature ………………………………………………..

Date …………………………………………………….

© Copyright 2012

By Noel Ernest Kimambo

All rights reserved

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CERTIFICATION

I the undersigned, certify that, I have read and hereby recommend for acceptance by the Moshi

University College of Cooperative and Business Studies a research proposal entitled,

“CHALLENGES FACING PROVIDERS AND USERS OF MOBILE COMMERCE IN

TANZANIA. for the fulfillment of the requirement for the award of Bachelor of Arts in

Procurement and Supplies Management (BA-PSM) at Sokoine University of Agriculture (SUA)

Supervisor’s Name ……………………………………………………………

Supervisor’s Signature …………………………………

Date...........................................

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ACKNOWLEDGEMENT

I would like to make use of this opportunity to thanks the following individuals:

My friends and family, too many to mention for their continued support throughout this work.

A special word of thanks goes to My father Dr. Leonard E. Mboera, my mother Haikael E.

Mboera and my brother Jeremy E. Kimambo. Throughout my life you have been there to support

me.

I would not forget to show my appreciation to all my classmates and my friends who have been

hand in hand with me in research discussions, and on advice on how and what type of data to be

collected that will suits my report.

Lastly, I would like to thank Dr. E. Mwende for his continuous support throughout the

preparation of this proposal. His dedication to the students of MUCCoBS is greatly appreciated.

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ABSTRACT

The widespread use of mobile commerce is no longer a fiction. A future is for mobile technology

and mobile commerce. These emerging technology are getting wide acceptance throughout

Tanzania. Mobile commerce is getting fast popularity since is allow the freedom of movement

and ease of access. The future of mobile commerce depends upon how easy and how friendly is

this service to use.

In the study a Researcher strive to highlight potential challenges which are facing providers and

users of Mobile commerce in Tanzania. A Researcher takes a look on the current state of mobile

commerce in Tanzania. Through reviewing various literature a Researcher identify various

factors that impacts mobile commerce services and suggest direction for future research in this

still emerging field.

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LIST OF ABBREVIATIONS, ACRONYMS AND SYMBOLS

CDMA: Code Division Multiple Access

E-COMMERCE: Electronic commerce

GPRS: General Packet Radio Service

GSM: Global System for Mobile Communication

M-COMMERCE: Mobile commerce

M M T: Mobile Money Transfer

M-PESA: Mobile Pesa

NBC: National Bank of Commerce

SMS: Subscriber Message Servicers

TCP: Transmitted Control Protocol

TCRA: Tanzania Communication Regulatory Authority

WTO: World Trading Organisation

3G: 3rd Generation for Mobile Communication

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TABLE OF CONTENTS

COVER PAGE…………………………………………………………………..

TITLE PAGE…………………………………………………………………….. i

DECLARATION AND COPYRIGHT………………………………………….ii

CERTIFICATION………………………………………………………………..iii

ACKNOWLEDGEMENTS……………………………………………………….iv

ABSTRACT……………………………………………………………………....v

ABBREVIATION AND ACRONYMS…………………………………………vi

TABLE OF CONTENTS…………………………………………………………vii

1.0 INTRODUCTION……………………………………………………………1

1.1 Background to the Problem……………………………………………………1

1.2 Statement of the Problem………………………………………………………3

1.3 Objectives ……………………………………………………………………...5

1.3.1 General Objective…………………………………………………………….5

1.3.2 Specific Objectives……………………………………………………………5

1.4 Research Questions…………………………………………………………..5

1.5 Scope of Study…………………………………………………………………5

1.6 Location, Population and Economy……………………………………………6

1.7 Significance of the study……………………………………………………….6

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1.8 Organisation of the Research Proposal Report…………………………………6

1.9 Definition of key Terms………………………………………………………..7

2.0 LITERATUR REVIEW……….…………………………………………….8

2.1 International Studies……………………………………………………………8

2.2 Regional Studies……………………………………………………………….11

2.3 Theory of the Study……………………………………………………………13

2.4 Variable Relationship………………………………………………………… 14

3.0 RESEARCH METHODOLOGY……………………………………………16

3.1 Description of Study Area……………………………………………………….16

3.2 Research Design………………………………………………………………… 16

3.3 Sampling…………………………………………………………………………16

3.3.1 Sampling Frame……………………………………………………………….16

3.3.2 Sampling Unit…………………………………………………………………16

3.3.3 Sampling Size…………………………………………………………………17

3.3.4 Sampling Techniques………………………………………………………….17

3.4. Types of Data……………………………………………………………………18

3.5 Sources of Data………………………………………………………………… 17

3.6 Procedure for Data Collection………………………………………………….. 18

3.7 Data Collection Techniques………………………………………………………18

3.8 Data Analysis and Interpretation Techniques……………………………………18

3.9 Limitations to the Study……………………………………………………..…..19

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4.0 REFERENCE………………………………………………………………… 20

APPENDICES………………………………………………………………….……22

Appendix 1: Work Plan…………………………………………………………… 22

Appendix 2: Budget………………………………………………………………... 22

Appendix 3: Questionnaires……………………………………………………….. 23

Appendix 4: Sample size Determination………………………………………….. 32

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