low cost

Tariffs and the affordability gap in mobile telephone services in Latin America and the Caribbean

Posted by MohiniBhavsar on Jul 10, 2010
Tariffs and the affordability gap in mobile telephone services in Latin America and the Caribbean data sheet 1508 Views
Hernán Galperin
Publication Date: 
Mar 2010
Publication Type: 
Journal article

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.

Wanted: New Business Models for Profitable Rural Expansion

Posted by MohiniBhavsar on Jul 09, 2010
Wanted: New Business Models for Profitable Rural Expansion data sheet 1791 Views
Accenture, Ranjan, K., Falk, S., Narsalay, R., O'Brien, D., and Sennik, R.
Publication Date: 
Jan 2009
Publication Type: 
Report/White paper

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

Low-Cost and Low-Barrier: Five (Grassroots) Ways to Get Started with Mobile

Posted by KatrinVerclas on Sep 19, 2008

What does it take for smaller organizations to adde a mobile strategy to advance the work?  What are some ways in which small organizations can get started in mobile, and get what they need for free or at very low cost to try the mobile medium for their work?

We were recently at the Institute for Nonprofits organized by the Bay Area Video Coalition to help a select group of organizations develop their social media strategy.

Lots of the groups at BAVC were interested in exploring how mobile phones fit into their work. Many work with constituents of color and lower-income communities in America that are more likely to be on a mobile than on the web. And of course, this is true around the world already. 

In that same vain, a reader asked recently: "How can I get started in mobile?" He wrote: