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This report focuses on the opportunity to improve agricultural productivity using mobile services, highlighting the opportunity to bring new investment to a key group: smallholder farmers. Mobile telephony could have significant potential to help the poorest farmers towards greater food and income security.

Only in recent years that mobile communications technology has been widely accepted as an enabler of sustainable growth. In developing markets, where the deployment of mobile telecommunications networks has surpassed traditional fixed-line technology, the mobile telecoms industry is well-placed as an enabler of higher performance in the value chain. There is a distinct need for market-led opportunities, and the opportunity for mobile operators to deliver these is significant.

The mobile services studied here enable companies to access and interact directly with different participants in the value chain, helping to build visibility of issues, capacity and quality. They will support company sustainability objectives, and in particular, progress towards the UN Millennium Development Goals by helping to reduce poverty, improve health and increase funding for education.

This report aims to stimulate the necessary engagement between mobile operators, governments, NGOs and businesses to realize these opportunities and explore others.

Deficits in physical infrastructure, problems with availability of agricultural inputs and poor access to agriculture-related information are the major constraints on the growth of agricultural productivity in India. The more rapid growth of mobile telephony as compared to fixed line telephony and the recent introduction of mobile-enabled information services provide a means to overcome existing information asymmetry. It also helps, at least partially, to bridge the gap between the availability and delivery of agricultural inputs and agriculture infrastructure.

This paper investigates a series of questions that explore this topic:

• What kind of information do farmers value the most to improve agricultural productivity?
• Do mobile phones and mobile-enabled agricultural services have an impact on agriculture?
• What are the factors that impede the realisation of the full productivity enhancing potential of mobile phones?

The answers to these questions have important implications for mobile operators, for information service providers, and for policymakers. The quality of information, its timeliness and trustworthiness are the three important features that have to be ensured to enable farmers to use it effectively to improve productivity.

The study found evidence that mobiles are being used in ways which contribute to productivity enhancement. However, to leverage the full potential of information dissemination enabled by mobile telephony will require significant improvements in supporting infrastructure and capacity building amongst farmers to enable them to use the information they access effectively.

As mobile penetration continues to increase among farming communities and information services continue to adapt and proliferate, the scope exists for a much greater rural productivity impact in the future.

We examine the growth of mobile phone technology over the past decade and consider its potential impacts upon quality of life in low-income countries, with a particular focus on sub-Saharan Africa. We first provide an overview of the patterns and determinants of mobile phone coverage in sub-Saharan Africa before describing the characteristics of primary and secondary mobile phone adopters on the continent.

We then discuss the channels through which mobile phone technology can impact development outcomes, both as a positive externality of the communication sector and as part of mobile phone-based development projects, and analyze existing evidence.

While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, empirical evidence is still somewhat limited. In addition, mobile phone technology cannot serve as the “silver bullet” for development in sub-Saharan Africa. Careful impact evaluations of mobile phone development projects are required to better understand their impacts upon economic and social outcomes, and mobile phone technology must work in partnership with other public good provision and investment.