MobileActive.org

If communications and high-tech companies are to achieve their growth targets over the next few years, they must look to the emerging economies. These markets, with large populations, hold great promise. Although many consumers in these areas live in rural areas and rely on more limited means, their disposable income has risen in recent years. Many such consumers have become more confident about the future, and are now willing to buy aspirational products such as mobile phones and services, even on credit.

To achieve high performance in this environment, companies must understand the key mobile trends as they evolve in developing economies. They must develop a deeper understanding of the mobile value proposition to emergingmarket consumers as well as their distinctive service needs. New distribution networks must be created. Content, products and services need to be tailored to local populations. These challenges will require new models of collaboration to succeed in a more complex ecosystem.

This paper examines how to evaluate mobile services’ intervention impact on socio-economic development of rural India. The existing literature shows multiple ways of studying mobile services impact through different frameworks. The results are non-comparable due to applied methods are different and the problem domain is quite complex. A uniform framework is felt need to undertake research on socio-economic impact studies. Various user-centric mobile services are launched across rural markets. India becomes a field testing ground for most of the multinational firms who want to test their innovative business models. The proposed mixed-method framework, based on the existing literature, may well suit to the present research work. A survey adopting socio economic criteria (SEC) used by Indian marketers for its randomized stratified sample collection is adopted. The sample well represents the entire rural population, as it looked upon head of the family’ education and type of house (s)he possessed.

This paper examines the proposed framework for evaluating the impact of the intervention of mobile-based services on socio-economic development of Indian rural areas. Framework suitability has been studied using case study method with pilot test data. Existing literature shows multiple ways of studying mobile impact through different frameworks. The need for uniform framework is the felt need as various user-centric mobile services launched across rural markets. India becomes a field testing ground for most of the multinational firms who want to test their innovative business models. This framework provides a testing method for socioeconomic development impact on rural areas. This study adopted socio economic criteria (SEC) used by Indian marketers as basis for sample selection. The pilot study clearly shown that field is ready to test the proposed framework.

Poor farmers often lack credit to purchase agricultural inputs, and rely on their buyers to provide it. This paper considers the effects of mobile phones on traders of perishable foodstuffs operating between Tanzania’s Southern Highlands and Dar es Salaam’s wholesale market, with a particular focus on the importance of credit in the relationship between potato and tomato farmers and their wholesale buyers.

It argues that the ability to communicate using these new information and communication technologies (ICTs) does not significantly alter the trust relationship between the two groups. It also suggests that farmers, in effect, often have to accept the price they are told their crops are sold for – irrespective of the method of communication used to convey this message – because their buyers are also their creditors. In this situation, many farmers are unable to exploit new mobile phone-based services to seek information on market prices, and potential buyers in other markets. Doing so runs the risk of breaking a long-term relationship with a buyer who is willing to supply credit because of their established business interaction.

It is suggested that, under a more open system than currently exists in Tanzania, mobile-payment (‘m-payment’) applications should target these creditor-buyers as key agents in connecting farmers to the credit they so often require.

This study focuses on the affordability of the OECD’s low-usage basket of mobile telephony services, which includes 360 calls and 396 text messages (SMS) a year, segmented by duration, time of day and destination. In other words, the study compares the monthly cost of prepaid service for a user who makes approximately one call and sends one text message per day. Because our main interest lies in estimating the affordability of this basket of services for users at the bottom of the income pyramid, two indicators are used: (1) The proportion of income that the cost of this basket represents for users in the third income decile, which acts as a proxy for income at the bottom of the pyramid; (2) The affordability gap, which corresponds to the difference between the cost of the basket and 5 percent of the income of the potential users in each income decile.

The main findings are summarized. (1) There is significant dispersion of mobile telephony tariffs in the region, with costs of the low-usage basket ranging from US$45 in Brazil to US$2.20 in Jamaica (in current dollars). The average for the region is US$15. (2) For users who consume a minimum basket of mobile services, prepaid service is less expensive than post-paid service in 13 of the 20 markets in the sample. (3) Overall, mobile telephony tariffs in Latin America are significantly higher than those of OECD countries (2 times more) and other emerging markets (3 times more). (4) The only country in the region in which mobile telephone
services can be considered affordable for low-income users is Costa Rica. (5) Despite advances in the adoption of the service, the results of this report highlight a significant affordability gap that limits consumption of mobile telephony services for most people in the region, and point to a need for continued efforts and initiatives to reinforce competition in the market and review the heavy tax burden that affects mobile telephony service in the region.

In 2009, Accenture conducted a research study into the future of mobile industry expansion in rural India. We explored the views of rural consumers—both current customers and non-users—and also interviewed senior-level executives from companies that occupy strategic positions across the mobile telephony ecosystem. The key objective of this research was to understand the value proposition of mobile services to rural customers, and also to see how the
potential to serve rural markets is making mobile network operators re-think key elements of their existing business models.

This first phase of this research consisted of 15 in-depth, hour-long telephone or in-person interviews completed in June and July 2009 with executives in India representing mobile operators, handset manufacturers, passive and active telecom infrastructure providers, technology enablers/application providers, and content developers and aggregators. Additionally, in association with an independent research company, Accenture conducted an exploratory qualitative study using a focus group discussion methodology. The focus group invitees included primary wage earners, homemakers and students from rural areas.

For the second phase of the Accenture research, more than 2,400 rural citizens in India were surveyed—802 current mobile customers and 1,634 non-users— to gain a broader understanding of what customers value most in mobile devices and services. The insights drawn from this research can help mobile network operators evolve their business models, and can support more effective design of profitable packages for rural consumers

This paper presents a development paradigm for Ethiopia, based on appropriate services and innovative use of mobile communications technologies via applications tailored for sectors like business, finance, healthcare, governance, education and infotainment.

The experience of other developing countries like India and Kenya is cited so as to adapt those to the Ethiopian context. Notable application areas in the aforementioned sectors have been outlined. The ETC ‘next generation network’ is taken into consideration, with an emphasis on mobile service offering by the Telco itself and/or third party service providers. In addition, enabling technologies like mobile internet, location-based systems, open interfaces to large telecom networks, specifically service-oriented architecture (SOA), Parlay/JAIN and the like are discussed.

The paper points out possible endeavors by such stakeholders like: telecom agencies and network operators; businesses, government and NGOs; entrepreneurs and innovators; technology companies and professionals; as well as researchers and academic institutions. ICT4D through mobile services and their role in bridging the digital divide by building a virtual ‘network economy’ is discussed.

The positive implications of landline telecoms infrastructure and, more recently, of mobile communications on
economic growth in the developed world have long been acknowledged, with numerous studies analysing the
issue. Now that most of the developed world has reached high penetration levels of mobile phones, both current
growth patterns and future projections suggest that virtually all of the mobile industry’s new customers in the
coming years will come from developing countries. In fact, as of 2007, there were more mobile customers in
developing countries than in the entire developed world (ITU).
What impact are mobile phones having on developing countries and are user experiences and overall impacts
unique or similar to those of developed countries? While it might seem intuitive to just extrapolate from the results
of earlier studies in developed countries, the developing world is in fact leap-frogging the developed world when
it comes to mobile communication and its many uses. The implications of this technology on daily life in
developing countries appear to be more far-reaching than they were in the earlier developed country rollouts. For
example, studies have demonstrated that mobile technology is driving improvements in social links, the creation
of social capital, improved market information flows and productivity, as well as increases in GDP and Foreign
Direct Investment.
This report surveys recent research and highlights the top studies in this area based on content, relevance,
originality and credibility. While it is not an exhaustive and scientifically developed list, it illustrates the work that
we feel is most important at the moment and highlights key conclusions on the impact of mobile technology in
developing countries.
Further, while the existing research is valuable in understanding the impacts, the literature is still limited in its
coverage and scope. We therefore recommend additional research to expand evidence and knowledge, particularly
with respect to basic economic studies, prospective applications and the needs of users around financial services.
We also call on stakeholders such as mobile operators, governments, industry groups, foundations and
development organisations to play their part in improving information sharing, increasing research and driving
developments in these countries.
Finally, we provide information on additional research on impacts and policy issues, as well.