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This study analyzes the nature of regulatory independence and its influence on wireless market development in Tanzania and Botswana. The study finds that the level of regulatory independence is associated with improved market conditions. The research has implications for theories of regulation and market development in low income countries.

In particular the Tanzania case suggests that the independence of regulation can have secondary effects such as diversity of technologies and faster transitions to advanced technologies, while the reversal of independence in Botswana highlights the need for greater insights into the under-theorized dynamic nature of regulatory independence.

This report examines changes that must be made to the Internet and to the mobile network to make the Mobile Internet a pervasive and universal reality in the United States and the rest of the world. Some of these changes are purely technical, but their scope affects Internet engineering as well as mobile network, device, and application engineering. The rest of the changes will take place in the policy sphere, affecting notions of network neutrality and spectrum policy. The examination of technology is quite extensive, and is illustrated with specific examples of emerging devices and applications.

Across developing countries, millions of people rely on informal economic activity and local level networks to earn their living. Most of these populations are from bottom of pyramid and they don’t have access to basic financial services/banks as access to them is costly and very limited. However, the outstanding growth of mobile sector worldwide has created a unique opportunity to provide social and financial services over the mobile network. With over 4 billion mobile cellular subscriptions worldwide, mobile network has the ability to immediately offer mobile banking to 61% of the world population. A study states the biggest share of mobile payment users will be in the Asia/Pacific region by 2012 (Gartner, 2008). In the context of being the most promising ICT market and the largest inbound remittance receiver, this region is expected to be the hub of m-banking transactions. 

The paper starts with an overview of existing models of m-banking and then examines the m-banking regulations in some South Asian countries and of the countries where (e.g. the Philippines, Kenya, South Africa) m-baking/payment systems are already in practice or a success. The concerns of financial regulators and policy measures taken so far are discussed.

The key questions this paper aims to answer:

⇒ What are the practiced models of m-banking/payment systems? 

⇒ What concerns are generally raised by financial regulators?  

⇒ Which m-banking/payment models have drafted or enacted in South Asia?  

⇒ Which m-banking/payment models have are enacted in the countries where it is a success?

⇒ What constitutes a proportionate regulatory approach?  

The answers to the above questions helps to identify a way forward which can expedite adoption of m-banking/ payments service in South Asia successfully and quickly.