expanding horizons q1 2010
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Archive Copy of Nokia's newsletter. Not available anymore on their website.TRANSCRIPT
1/2010
Mobile messaging, delivering more ways to connect
Internet browsing – search, share, belong
Using ICT to boost economic recovery
2 Expanding Horizons 1/2010
Brought to you by Nokia and Nokia Siemens Networks
4 Emerging markets: You’ve got mailEmail, instant messaging, social networking – mobile messaging, connecting a wider digital community.
8 Eco-friendly networks get green light within VodafoneBeing green makes good business sense. Trials with Vodafone in India are proving the technologies needed to cut network energy use.
10 Surf’s up. The rising wave of mobile browsingConsumers in emerging markets are finding their way onto the web in increasing numbers, and doing it from their mobiles.
13 The Internet goes internationalGlobal collaboration is helping to bring the Internet to new users in their own language and with greater security.
14 Small mobiles, micro-businesses, macro benefitsHow small businesses are using the mobile as their main ICT tool to help them cut costs and boost profits.
16 Is the world divided by broadband?While the gap between mature and emerging markets in mobile telephony has narrowed, the divide in broadband access has widened.
18 How ICT can help beat the crunchICT is one of the most effective ways to help economies climb out of the financial hole caused by the ‘credit crunch’.
22 From inspiration to prosperityNew support initiatives are helping entrepreneurs in emerging markets to overcome the many obstacles they face.
23 Move over computer, the mobile is hereThe PC remains a rarity in remote rural areas. Instead, it’s the mobile that is giving people access to new services.
1/2010 Expanding Horizons 3
A new decade, a new beginning…
Welcome to 2010. Well over 2 billion people sent and
received messages on their mobile phones last year.
Most mobiles are used to send SMSs, while other mobile
messaging formats, such as instant messaging and email, remain in
the early stages of adoption. Even so, usnews.com says that 27 of
every 100 messages in China are sent using mobile instant messaging.
All in all, about three quarters of global electronic messages are sent
via mobiles.
Mobile browsing is also growing fast. India is second only to the
United States for Internet browsing on mobile phones, based on the
number of web page views on handsets. Mobile browsing will have a
significant impact in emerging markets over the next five years and
help bring more people online.
These services are good examples of hidden treasures – true game
changers. Sometimes in the midst of our busy lives we overlook the
most obvious signposts – the ones right in front of us.
The same is true for Expanding Horizons. Through the printed pages
of more than 20 issues, we have shared insight, information and
inspiration with you. With more than 4 billion people connected
(around 1.7 billion when we started) and all of us online, the time has
come for us to start living the way we preach. So, welcome to the final
print version of Expanding Horizons – join us in a new beginning at
www.nokia.com/expandinghorizons.
Going digital with our magazine also contributes to environmental
protection. Sustainable growth is a key issue as mobile communications
spreads even widely. Ecologically-friendly solutions also bring financial
benefits for all the parties involved; vendors, operators, governments
and consumers.
The way we communicate is evolving constantly. People in all parts
of the world are connecting in innovative ways. The end of an era is only
the beginning of the next one...
Let’s email! ([email protected])
Alex LambeekVP, Marketing Mobile Phones,Nokia Corporation
editorial
Frederic AstierHead of Marketing & Communications – Customer, Markets & Operations,Nokia Siemens Networks
Expanding Horizons is a publication aimed at ICT decision-makers in the private and public sectors. It explores the socio-economic benefits that mobile technologies offer as well as best practices from around the world in order to encourage affordable mobile communications and bring Internet to the next billion consumers. It also shows how to create a favorable environment for market growth.
Editor-in-chief Sanna Eskelinen, [email protected] Managing Editor Sirpa Lehmus Production Content produced by Armitage Communications: Tim Haines, producer, [email protected], Graphic design Indivisual. Contributors to this issue: Michelle Knott, Jere Hietala, Jussi Hyttinen. Printed by Libris in Finland.
Views expressed in this magazine are those of the authors and interviewees and they may deviate from the official view of Nokia Corporation, Nokia Siemens Networks or the companies referred to. Our objective has been to produce as accurate content as possible, but we cannot assume liability for any eventual errors or inaccuracies.
Copyright © 2010 Nokia Corporation and Nokia Siemens Networks. All rights reserved. Nokia and Nokia Connecting People are trademarks or registered trademarks of Nokia Corporation. Nokia Siemens Networks and the wave logo are registered trademarks of Nokia Siemens Networks. Other company and product names mentioned herein may be trademarks or trade names of their respective owners. Products and solutions herein are subject to change without notice.
ISSN: 1797-2086, code: D501-00535-EH-201001-1-EN
4 Expanding Horizons 1/2010
Only a quarter of the world’s population has an email account. But rising mobile phone adoption is set to take the use of mobile messaging to new levels, helping to bridge the digital divide and giving many emerging market consumers their first digital identity.
Email was the first ‘killer application’ of
the Internet. Coming at a time when
faxing was the leading-edge way to
send written messages and documents to
people, email was a revelation for many.
Now it’s the dominant business messaging
medium, with a strong following among
consumers too.
In 2009, more than 2 billion people used
mobile phones to send messages, whether
SMS, MMS, mobile email or mobile instant
messaging (IM). At the same time more
than 5 billion people did not have an email
account and in many cases have no access to
a computer. However, with technology
adoption in emerging markets continuing to
race ahead, the prognosis for mobile
messaging looks rosy.
According to Strategy Analytics, ongoing
mobile subscriber growth in regions such
as Central and Latin America, Asia Pacific,
and Middle East and Africa will drive mobile
messaging penetration to almost 3.2 billion
by 2013. Simple text messaging, or SMS,
remains the foremost mobile messaging
channel, being used by almost three-
quarters (69 percent) of those with mobile
phones. Other forms of mobile messaging are
in the early stages of adoption with mobile
email having a penetration of 11 percent
and mobile IM just six percent.
Emerging markets:
You’ve got mail
1/2010 Expanding Horizons 5
These overall figures belie large
variations in behavior across different
countries. Some markets have achieved
high rates of use of mobile email already.
In Japan, email is the most dominant
mobile messaging service with 87 percent
penetration.
“There is undoubtedly tremendous
demand for mobile messaging in emerging
markets because people want to connect
with each other. But how you realize it in
individual markets is vastly different.
In China, mobile IM is more popular than
mobile email, whereas in India, email
and SMS-based messaging dominate.”
explains Dieter May, Vice President Emerging
Markets, Nokia.
“National programs exist in several
countries to drive up the adoption of mobile
data packages and are having real success.
Indonesia is a good example, thanks to the
government’s initiatives to connect people
with the Internet,” says May.
Mobile email a boost for business
For consumers lacking access to a computer,
mobile email is an opportunity to connect
to a wider digital community and access
services and information that would
otherwise be out of reach. “Unlike SMS,
email and other mobile messaging services
provide an easy link to desktop users and
is another example of how mobile
communications can enhance people’s lives
and productivity,” says Mark Thomas,
Director of Product Marketing, Consumer
Messaging, Nokia.
“For most people, their first experiences
of the Internet will come via the mobile
device and not the PC. When this happens,
the number of Internet users who will be
chatting and sending and receiving emails
from a mobile phone will dwarf those who
are messaging via their desktop computers,
PCs or Internet tablets.”
“Business users with no PC access are
using mobile email to take part in
commerce, to contact customers and
suppliers who are already email enabled.
Email seems to be a more acceptable form
of messaging for business than SMS.”
concludes Thomas.
In developing countries, where most people do not have Internet access, but more and more own mobile phones, ‘@Ovi.com’ could become as widespread an email address as say, ’@yahoo.com’ in the rich world.”The Economist
➜
6 Expanding Horizons 1/2010
Mobilizing social connectionsWhat of the other messaging formats that
have come to prevalence since email made
its entry? In recent years, social networking
has created what is perhaps the biggest
change in people’s messaging behavior in
mature markets, particularly among the
younger generation.
“Anecdotally, it is clear that using social
networks to send messages has grown
tremendously, so much so that personal
email use is declining,” believes Thomas.
“Interacting with social networks from a
mobile miniaturizes the desktop experience
but also offers richer messaging than is
possible from a PC. For example, you can
add location information, perhaps enabling
recipients to see a map of where you
currently are.”
This view is supported by a September
2009 study by the US-based Online
Briefly stated:
• Mobile messaging is set to surge to
more than 3bn people worldwide with
most growth in emerging markets
• For billions of users with no email
address, mobile email opens up new
ways to interact in the digital world
• Mobile email, mobile instant
messaging and social messaging will
supplement ever-popular SMS to meet
huge demand
• Supported by affordable mobile data
plans and a simpler user experience,
messaging will meet people’s
aspirations
Publishers Association which found that
since 2008, communication sites offering
email and IM have decreased in their share
of consumers’ online time, due to the ability
to conduct messaging over community sites.
“Social networking in emerging markets
is in its very early stages, but it will grow
rapidly as mobile data becomes more
common,” adds Thomas.
May agrees: “The boundaries between
email and other messaging formats are
blurring. What matters is that people can
address their messaging needs in the most
suitable way. People decide on the fly how
to send a message. With a mobile device
contacts book it is easy to select the name
of the recipient and then decide the right
message type to send depending on the
situation.”
May also points out that the fastest
growing mobile network in India is SMS
1/2010 Expanding Horizons 7
Gupshup, a Twitter-like messaging service
that is SMS-based. With more than 25 million
users, the service uses SMS as a technology
bearer to provide a social networking
experience that works on every mobile
phone. “SMS will be available for many
years to come because mobile broadband
will take time to spread and become widely
accessible to most people. Through SMS you
can have a similar experience as any other
social networking site and all the people
you know with a phone can be part of your
network,” he says.
As for mobile IM, the service has achieved
pockets of success in markets such as China
and South Africa, says Strategy Analytics.
In China, mobile IM has been available since
2000 through
Internet provider
QQ and has
achieved almost
18 percent
penetration of
mobile users.
In South Africa,
mobile IM has
reached 15 percent
penetration.
What’s holding back messaging?The demand in emerging markets for mobile
messaging is evident in the response to the
availability of the Nokia Ovi Mail service.
The service is aimed primarily at consumers
in emerging markets without a PC and has
attracted more than 5 million users in about
180 countries. “Ovi Mail is issuing email and
IM identities for lower cost devices. Anyone
with a Nokia device can create an Ovi
account so a critical mass of users already
exists to enable mobile messaging to fly,”
says Thomas.
That said, barriers to wider adoption of
mobile messaging remain. The most
important is affordability and transparency
of cost, with users fearing huge bills. A 2009
survey by Nokia and Nokia Siemens Networks
of nearly 80 emerging
market countries found a
huge variation in the cost
of accessing data services
from mobile devices.
Countries like Bangladesh,
India and China all enjoy
relatively good data
services affordability
thanks to favorable
regulatory environments
and innovative operator
strategies and business
models.
“Many operators
recognize the huge potential of mobile
messaging and have already taken steps to
help overcome the
affordability barrier.
Devices that are sold
with affordable data
plans are also vital.
Users want a full
messaging experience
on low end phones and
we are delivering that.
Discoverability is
another issue that is being addressed by
building social networking clients into the
phone,” explains May.
Messaging makes new demands on
Mobile email experiences – supporting small business
The impact of mobile email on small
businesses in emerging markets is
illustrated by the case of Liastri, the
owner of a fabric shop established about
30 years ago in Jakarta. The business has
never had a computer and Liastri used to
stay in touch with her family, friends and
customers by calling or sending letters.
“Now, when I have family news or a
special order I can just send an email
from wherever I am. It makes my life so
much easier. I feel closer to the people I
care about and I can more easily run my
business. That’s pretty amazing for a
small phone.”
What matters is that people can address their messaging needs in the most suitable way.
devices too. “The advent
of touch screens and
QWERTY keyboards has
helped to drive the
greater adoption of
mobile messaging in
mature markets. The
lower end devices that
dominate in emerging
markets currently lack
these capabilities. But
there are solutions under
development such as
speech-based input which
exists already on high end
devices,” says Thomas.
Larger screen sizes to display richer
messaging content and finding new ways to
limit the amount of data that messaging
uses over the network are further areas that
can improve the affordability and usability
of messaging in emerging markets.
Let’s leave the final word to May:
“The growth potential for mobile messaging
is phenomenal. We need to educate people
about the possibilities and make it easier
and more affordable to access the services.
It will take time, but we see time and time
again how people’s aspirations in emerging
markets drive up growth. The same will be
true in mobile messaging.” ■
8 Expanding Horizons 1/2010
Environmental leadership can be a differentiator for operators. Being green makes good business sense, not just in reducing costs but also because it’s an increasingly visible issue for consumers. Vodafone recognizes the issue and has pledged to reduce its CO2 emissions by 50 percent by 2020 and its trials in India are showing the way forward
1.5 billion people currently live
without access to electricity *1.
That’s more people without
electric lighting than when Thomas Edison
commercialized the incandescent light bulb
in the 1880s.
It’s a remarkable number, not least for its
impact on the spread of communications
across emerging markets, where almost a
quarter of new mobile base station sites
will be built off the power grid. The GSM
Association estimates that 75,000 off-grid
sites will be built in emerging markets each
year through 2012.
Making this kind of growth sustainable
will take innovative, cost-effective and
energy-efficient networks. Ecologically-
friendly systems will not only support
operators’ environmental responsibilities,
but also be financially beneficial, helping to
make communications more affordable for
consumers.
Energy efficiency benefits
As communications networks spread into
more remote rural areas, the challenge of
powering them is increasingly urgent for
operators. Furthermore, with the network
accounting for almost 90 percent of an
operator’s energy consumption, it makes
financial sense to adopt more energy efficient
technologies to reduce operating costs.
It’s an issue that several operators
worldwide are pledging to address with
published commitments to cut carbon
emissions. Vodafone has said that by 2020
it will reduce absolute CO2 emissions by
50 percent against a 2006/07 baseline.
Eco-friendly networksget green light within Vodafone
*1 International Energy Agency (IEA)
1/2010 Expanding Horizons 9
“There are two clear reasons for grappling
with this issue,” says Andy MacLeod, Director
Group Networks, Vodafone. “The first is cost.
Energy is our fourth biggest operating cost
and we have seen energy prices rise
dramatically over the last three years. We
have year-on-year targets to reduce these
costs, particularly the energy costs of base
stations. Secondly, we are committed to our
corporate social responsibilities with regard
to CO2 emissions and to complying with
tougher legislation on the issue.
“We are very focused on reducing the
energy consumption of network equipment
and finding sustainable ways of powering
base station sites. This is particularly
important for off-grid sites and where the
electricity supply is unreliable. In many
areas the electricity supply is off as much as
it is on.”
India trials show the possibilities
A wide range of technologies and techniques
is being evaluated by Vodafone for reducing
network energy consumption. Examples
include higher ambient temperatures for
equipment and batteries to reduce the need
for power-hungry air-conditioning;
mounting radio equipment directly onto
antennas to reduce cable losses, and
deploying so-called single RAN sites in which
all radio technologies (2G, 3G and LTE) run
on a single base station element.
Meanwhile, ongoing trials at two
Vodafone sites in India are proving the value
of green technologies in helping the
operator to meet its site power supply aims.
Using Nokia Siemens Networks off-grid site
solution, the trials have reduced diesel oil
consumption by up to 80 percent and
achieved further operational cost savings
through reduced site maintenance visits and
overcoming diesel theft. Network availability
has also increased with fewer outages due
to missing diesel.
“The trials are helping us to understand
how we can engineer these solutions into
our network and to better understand the
As energy prices go up, these solutions become more compelling.”Andy MacLeod, Director Group Networks, Vodafone
costs. As energy prices go up, these solutions
become more compelling. And we also have
to consider the CO2 reduction aspect which
can bias the decision towards an earlier
deployment in some markets. There is not a
single solution that is right for all markets.
If fresh government or regulatory incentives
were created in a market, for example, then
I am sure we would see a speedier adoption
of these technologies,” MacLeod says.
Smart control of energy
The technology deployed in the India trials
uses a combination of solar power, wind
power and diesel generators, coupled with
advanced energy control and remote
monitoring. Typically such a recipe can
achieve a payback of two to three years.
“For the next few years this blend of
technologies is likely to be the most effective
solution. Remote monitoring and intelligent
control of the system to smartly manage the
interaction of the different power sources
on site, including battery charging and
discharging, are vital to optimize the costs.
We think there is a lot of opportunity here
and the Nokia Siemens Networks system is
one of the more advanced solutions we
have seen.” explains MacLeod.
Deploying ecologically-friendly networks
involves some complex cost calculations to
make a business case that will win funding
from an operator’s top management who
must also consider many other areas of
business investment. Often, says MacLeod,
the need to upgrade a site, to build more
capacity for example, will mean that an
energy efficient solution is installed more
quickly.
“We are fortunate in that the need to
reduce CO2 emissions and be more
environmentally responsible, aligns with our
business needs to reduce costs. It’s a perfect
fit,” concludes MacLeod. ■
Andy MacLeod,
Director Group Networks,
Vodafone
10 Expanding Horizons 1/2010
Surf’s up.The rising wave of mobile browsing
People in emerging markets are rapidly embracing mobile Internet browsing, paralleling the growth seen in mature markets. It’s a phenomenon that is opening up business opportunities for operators, beyond simply providing high quality access.
1/2010 Expanding Horizons 11
day browsing.
The findings back up Nokia’s own
research which shows that mobile browsing
currently generates about 60 percent of
smartphone data traffic worldwide. The
advent of mobile broadband and flat-fee,
‘all-you-can-eat’ tariffs is further driving the
mobile browsing boom.
“We are seeing a dramatic increase in
the popularity of mobile browsing in just
about all emerging markets, especially those
in which an operator has been highly
aggressive in its pricing strategy. What’s
more, the trend is not restricted to high-end
devices. People are using phones across the
range to browse,” comments Andy Kelm,
Briefly stated:
• Mobile Internet browsing is rising
fast in emerging markets
• People show similar online behavior
as mature market users
• Operators can generate significant
revenue through added value services
• Operators need the right
infrastructure to provide a superior
browsing experience
It’s probably the simplest of all data
services to use. It’s one of the most
powerful too. It can take you around the
world, but still offers local insight. It’s fun,
yet it’s also a practical tool to help people in
their daily lives.
Internet surfing is a fast growing trend in
emerging markets. A November 2009 report
from Informate Mobile Intelligence reveals
that India is now second only to the United
States for Internet browsing on mobile
phones, registering the second highest
number of web page views using handsets.
The telecommunications research agency
says that mid-range and high-end handset
users in India spend nearly 40 minutes per
Director, Proxy Browsing Services, Nokia.
A key technology that enables the use of
handsets for Internet access is proxy
browsing. Proxy servers, typically run by an
operator or third party, convert standard
web pages into content that is viewed
easily on most handsets. Kelm explains:
“Today’s web pages have become so large
that even high-end handsets struggle to
process the amount of data coming at them.
With less powerful devices, browsing
becomes impractical. The proxy server
reduces the data payload by as much as
90 percent. This means that a user with
even a modest device is able to open a web
page in seconds.”
The demand for services from the
Internet is clearly high and growing. With
search engines, global social networking
and content sharing portals topping the list
of the most accessed websites, what is the
role of the operator?
Revenue from added services
Operators are well placed to capture the
opportunities opening up, both in delivering
high quality access to the Internet and by
offering associated services to subscribers.
“Data in emerging markets currently
accounts for a small proportion of overall
revenue, but there is enormous growth
potential. By tailoring services and pricing to
meet local needs and promoting mobile
Internet uses that impact real lives, there is
no reason why data revenue cannot grow to
be a significant source of operator revenues
within a few years. The opportunity is the
same as we have seen in mature markets,”
says Kelm. ➜
12 Expanding Horizons 1/2010
What do people browse?
A Nokia Siemens Networks analysis of
the browsing habits of people in ten
emerging markets reveals remarkable
similarities to mature markets in the
services being used. The countries
studied were India, Jordan, Kenya,
Madagascar, Mauritius, Morocco, Pakistan,
Thailand, Ukraine and Vietnam.
Search comes first
In most countries the major search
engines feature the most often in the top
ten most popular services, showing that
people value being able to explore the
Internet on their own terms. Google is
dominant, with Yahoo and Windows live
making it into the top ten in most
countries.
Yearning to belong
Social networking sites (primarily
Facebook) were also highly popular in
all studied countries, topping the list in
two. The Internet is clearly about
connecting people with their peers in
these countries as much as anywhere
else in the world. At least two social
networking sites were on the list of
each country, except for Vietnam, which
had only one.
The rise of sharingThe importance of social interaction is
underlined by the presence of content
sharing sites, demonstrating how much
being connected is about sharing things
– particularly content like online video.
YouTube was featured on the lists of nine
countries while Wikipedia made it to
those of six.
Going global, staying local
Despite the popularity of the global sites,
eight out of the ten countries had a local
Internet portal or content site (typically
with news content) in the top ten. The
demand for local content is also reflected
in the search terms entered into Google
in each country (source: www.google.
com/insights/search/#). In a majority of
the countries surveyed, the name of the
country itself or its main city was one of
the most-entered search terms in Google.
Also, it is worth noting that the big
international sites that dominated the
Internet usage in these countries, like
Google, YouTube, Yahoo or Facebook, are
typically interaction platforms that lend
themselves readily to the consumption
and distribution of local content or
communication with family and friends.
The prospects for operators go much
further than simple access. There is plenty of
additional revenue to be gained from
providing add-on services such as advertising,
data storage, and parental control.
Take profiled advertising. By using its
insights into its subscribers’ online
behavior, their location or demographic
standing, operators can offer companies
the opportunity to reach mobile customers
with personalized adverts. For example,
an operator portal or online newspaper
could display different advertisements based
on end-users’ gender and age. Or a company
could sponsor branded browsing sessions,
which would provide free access for users.
Similarly, a parental control service could
be implemented to help families protect
younger users from undesirable content.
Without such controls, many parents may be
unwilling to let their children browse the
Internet at all, thus depriving them of access
to useful and educational content.
A gateway to success
The most cost-effective way to provide such
value added services cost-effectively, and to
provide subscribers with a faster browsing
experience, is to install a browsing gateway.
The Nokia Siemens Networks Browsing
Gateway, for example, can provide up to four
times faster browsing, a halving of data
traffic across the network, and easy
activation of personalized services.
A good illustration of the capabilities of
a browsing gateway is an installation by
Hutchison Indonesia in 2009. As a challenger
operator, Hutchison set itself the goal of
providing its customers with the best mobile
browsing experience in the market. The
browsing gateway was a key component of
its plans and helped the operator to achieve
a ten-fold increase in browsing traffic within
just six months. Furthermore, the customer
experience improved through a 70 percent
reduction in failed connection attempts.
In another instance, China Unicom
replaced an existing WAP gateway with a
Nokia Siemens Networks Browsing Gateway
and was able to make 50 percent savings on
its radio and backhaul bandwidth with
minimal impact on its operating costs by
being able to use its existing WAP charging
and business management systems.
“Mobile browsing is set to have a
significant impact in emerging markets over
the next five years. Another billion people
will come online as devices find their way
into the hands of people in lower and lower
income brackets and services become more
affordable. We are still in the early stages
and the world isn’t yet fully prepared for the
services and business models that need to
be developed for these people. The next few
years will see a transformation in the way
that people think about the Internet in
emerging markets,” believes Kelm. ■
Mobile Internet browsing services have significant growth potential as another billion people come online.”
1/2010 Expanding Horizons 13
The Internet
goes international
Global cooperation to create the rules governing the Internet is helping to make this powerful tool available and relevant to more and more people worldwide
It’s easy to think of the Internet as a
global phenomenon. Yet almost
three-quarters of the world’s population
do not use the Internet. Although it
connects all continents, obstacles hinder
the Internet’s use by most people. While
improving
affordability
and access are
priorities, other
hurdles are
being tackled
by Internet
governance
bodies.
One barrier
is language. With many people in emerging
markets having a poor command of written
English, it’s vital that content is locally
relevant and in the user’s own language.
While browsers now support many different
scripts, the issue of domain names in Roman
characters has remained, until now.
In late 2009, the Internet Corporation for
Assigned Names and Numbers (ICANN)
launched a fast track process for assigning
Internationalized Domain Names (IDN). Now,
nations can apply for Internet extensions
that use non-Latin characters.
World languages online
“The introduction of non-Latin characters
represents the biggest technical change to
the Internet since it was created four
decades ago,” said ICANN chairman Peter
Dengate Thrush. “Right now, Internet
address endings are limited to Latin
characters – A to Z. But the Fast Track Process
is the first step in bringing the 100,000
characters of the languages of the world
online for domain names.”
Six requests from countries representing
three different languages were immediately
made. The first was from Egypt, which wants
.masr as a new domain name written in the
Arabic alphabet. It translates as Egypt.
Other issues are being addressed by the
international community, such as the
adoption of IPv6 to overcome the shortage
of IP addresses, new generic Top Level
Domains (gTLD) to expand the choice of
digital identities, and DNS security to protect
against online
attacks and other
threats.
Another step
came with the
September 2009
signing of the
Affirmation of
Commitments
(AoC), which
commits ICANN to remaining a private,
not for profit organization. The AoC also
declares that ICANN is independent and not
controlled by any one entity.
“The affirmation underlines ICANN’s
independence for the first time since it was
created with the assistance of the United
States Government,” says Jonne Soininen,
Technical Liaison Group representative at the
ICANN Board of Directors.
Joined-up governance
The success of these initiatives depends
on the global cooperation of governments,
industry and organizations. The United
Nations body, the Internet Governance
Forum (IGF), provides a platform for such
collaboration.
“The IGF is a conduit for discussion
between countries. Successful Internet
governance also needs to take into account
all stakeholders’ interests. India, for
example, is making fast progress with a clear
understanding of the policies needed to
support economic development,” says
Soininen. “Along with mobile access and
broadband capabilities, an Internet that is
open to all is a key pillar in using ICT to
support sustainable development in
emerging markets.” ■
The introduction of non-Latin characters represents the biggest technical change to the Internet since it was created four decades ago.”
By region, Asia Pacific has the highest number of Internet users. Africa has the lowest.
Source: IGF http://www.intgovforum.org/cms/2009/sharm_el_Sheikh/media/FS-Worldwide.doc
Americas 28%
Asia and the Pacific 41%
Europe 22%
Africa 2%
CIS 4% Arab States 3%
14 Expanding Horizons 1/2010
Small mobiles, micro-businesses,
macro benefits
Tiny enterprises are the powerhouse of many emerging market economies. Entrepreneurs are using mobiles as a daily business tool to boost profits and cut costs
It should be no surprise that information
and communications technology (ICT) can
boost an enterprise’s productivity and
profits. In Thailand’s manufacturing sector
for example, companies using computers
had, on average, ten times higher sales per
employee than those without computers.
Yet in emerging markets the share of firms
that use at least one computer for business
remains relatively low, especially among
smaller companies and in rural areas. *1
Instead, it is mobile communication that
has become the foremost ICT tool for the
small businesses and microenterprises that
dominate the emerging market business
landscape. Mobiles are used every day by
tiny enterprises for conducting business.
According to a United Nations Conference
on Trade and Development (UNCTAD)
report, one in four mobile subscribers in
the United Republic of Tanzania use their
devices for business, while a majority of
microentrepreneurs in Egypt and South
Africa say that mobiles had helped boost
profits. Mobile phones are brought into play
to conduct sales and purchases, negotiate
prices, manage customer relationships and
reduce the need to travel.
The convenience of mobile
“In Africa, people use voice as a convincing
and trusted tool. They want to hear
customers talking to be able to gauge their
sincerity. But when numbers are involved,
such as dates, costs or quantities, then they
use SMS for accuracy and proof of an
agreement,” explains Jussi Impiö, Head of
Nokia Research Africa (NoRA). “As always,
the adoption of services is very cost sensitive
in Africa. People even calculate how many
words they can say in a voice call for the
same price as sending an SMS.”
Cost is one reason behind a growing
interest among some African entrepreneurs
in the use of mobile email for business
communications. According to Impiö, email
is seen as ‘free communications’, as well as
allowing documents, such as receipts and
delivery notes, to be sent. “Email is
considered to be more reliable and more
professional than SMS,” he says.
1/2010 Expanding Horizons 15
“However, the use of SMS is being
explored for wider purposes such as
marketing. While the technique is already
established in India, it is just coming to
Africa. SMS marketing is unproven, sales can
be generated, but it needs to be used
sensitively to avoid becoming intrusive.”
More advanced services needed
There has also been a rapid growth in
mobile banking services, enabling small
businesses without a bank account to
transfer money. Moving towards a cashless
economy through the use of mobile
payment is convenient and has the potential
to reduce crime and corruption.
Clearly there are huge benefits to
microenterprises using mobile
communications. Impiö says that African
entrepreneurs themselves estimate a growth
in income of between 20 and 75 percent,
with the first adopters gaining a strong
competitive advantage.
However, life for African entrepreneurs
is getting tougher. The initial benefit of
being first with mobile communications
erodes in time as rivals join the party and
the local market becomes saturated.
Furthermore, Africa’s population has just
passed the 1 billion milestone. The continent’s
population is growing by about 24 million
per year, and will double by 2050. *2
“This is creating a massive growth in
entrepreneurship and much tougher
markets, particularly in urban areas. The use
of more advanced services to reach larger
markets can help to offset the increased
competition. Plus, strong African social
networking provides a lot of peer support
to help people to make the most of the
possibilities,” comments Impiö.
Communications and affordable access
to information also has the power to help
change the business environment. Impiö
reports that even sensitive issues regarding
licensing and other business governance
aspects are beginning to find a wider
audience. “People are using their mobiles to
listen to radio chat shows and then calling in
anonymously with their opinion. Traditional
media outlets like newspapers are reporting
the discussions, enabling them to cover
issues they would not normally be able to
address because of censorship.”
Clearly there is demand for richer
features in mobiles to help small businesses
grow, says Impiö. “But not all problems
can be solved by the mobile alone.
Education, governance, infrastructure and
basic functions within societies need to be
improved. When looking at the micro-
economics of tiny enterprises, we need to
also recognize the macro-economics in order
to understand how sustainable growth can
be achieved.” ■
*1 UNCTAD Information Economy Report 2009*2 2009 World Population Data Sheet, Population Reference Bureau
16 Expanding Horizons 1/2010
Is the world
divided by broadband?
surged from 54 million to almost 350 million.
At the end of 2009, according to the
International Telecommunication Union
(ITU) there were about 4.6 billion mobile
subscriptions worldwide, with many
countries enjoying penetration well above
100 per 100 inhabitants. Mobile growth
remains strong despite the global economic
The digital divide has been talked about for years. But how well is the world doing in closing the gap? Despite the huge success of mobile communications, when it comes to broadband Internet access, the picture is not so rosy
Africa – where the divide becomes a chasm
Africa lags other regions in Internet
use and even more in broadband
connectivity. Most other emerging
markets boast a broadband penetration
ten times higher than Africa’s. Africa’s
broadband use is also very concentrated,
with five countries (Algeria, Egypt,
Morocco, South Africa, and Tunisia)
accounting for 90 percent of all
broadband subscriptions.
Furthermore, 14 of the world’s 20 most
expensive countries for broadband fees
are in sub-Saharan Africa. Even within
Africa, the price divide is huge. According to
ITU data, monthly access to broadband
services costs on average more than 1,300
US dollars in Burkina Faso, the Central
African Republic and Swaziland. Subscribers
Australia, a country with 21 million inhabitants, has more broadband subscribers than the whole of Africa”
When it comes to broadband
access to the Internet, it seems
that the gap between the
‘haves’ and ‘have-nots’ is as wide as ever.
The stunning rise in mobile communications
across emerging markets has yet to be
matched by the growth in Internet use.
A recent report by the United Nations
Conference on Trade and Development
(UNCTAD) claims that more than half of the
population in developed markets is now
online, compared to just 15 percent in
emerging markets.
The report also says that the gulf
between mature and emerging markets is
widening when it comes to broadband
Internet access. A person in a developed
country is eight times more likely to be a
broadband user than someone in an
emerging market.
Why does the digital divide in broadband
Internet use remain so wide?
Mobile growth continues apace
To find some answers, let’s wind
back a few years. In 2003, the least
developed markets typically had a
mobile penetration of two per
100 inhabitants. In 2008, that
figure had shot up to 20 per
100 inhabitants. In those same five
years, Africa’s mobile subscriptions
pay less than 13 US dollars in Egypt and
Tunisia.
UNCTAD says that measures targeting
the roll out of broadband to areas with
low connectivity are required. Making
significant progress in Africa will require
cooperation between the national
governments, the donor community,
and the private sector.
1/2010 Expanding Horizons 17
The 20 most dynamic economies in terms of increased levels of mobile penetration, 2003–2008
Mon
tene
gro
Qat
ar
Bahr
ain
235
203 190 138 132 120 142 178 143 117 121 124 146 136 123 105 116 169 150
Mal
dive
s
Russ
ian
Fede
rati
on
Ukr
aine
Bulg
aria
Uni
ted
Arab
Em
irat
es
Sain
t Ki
tts
and
Nev
is*
Arge
ntin
a
Om
an
Dom
inic
a*
Latv
ia
Serb
ia
Rom
ania
Uru
guay
Trin
idad
and
To
bago
*
Mac
ao, C
hina
Lith
uani
a
Anti
gua
and
Barb
uda*
180
Source: UNCTAD, based on ITU and national dataNote: * 2003–2007 change. Mobile penetration: Number of mobile subscriptions per 100 inhabitants. The bars indicate the change in penetration level 2003–2008. For example, in the case of Qatar, the penetration rose by 144, from 59 to 203 subscriptions per 100 inhabitants.
0
40
80
120
160
20
60
100
140
Developing Developed Transition Penetration 2008
135
downturn. India registered almost 100 million
new mobile subscriptions during the first
seven months of 2009.
In contrast, the digital divide for
broadband, dubbed the broadband divide,
is stark. For example, Australia, a country
with 21 million inhabitants, has more
broadband subscribers than the whole of
Africa. A person in a developed country is on
average at least 200 times more likely to
enjoy high-speed access to the Internet than
someone in a least developed country.
Mobile broadband offers a way forward
“When we look at the different information
and communications technologies (ICT) we
see a narrowing of the gap between mature
and emerging markets in fixed telephony,
mobile telephony and narrowband Internet
access. But in broadband, the gap is
widening,” says Torbjörn Fredriksson, ICT
Analysis Section at UNCTAD.
But could the tide be turning? The fastest
broadband growth is found in large
emerging markets. China has already
become the world’s largest broadband
market. Yet many countries’ lack of fixed line
infrastructure remains a huge barrier.
“Today there are more mobile broadband
subscribers than fixed broadband
subscribers, a trend that is likely to grow in
countries with poor fixed infrastructure.
Mobile telephony spread rapidly as the total
cost of ownership (TCO) fell. I expect the
costs for mobile broadband to reduce too,
encouraging greater use of mobile data,”
comments Fredriksson.
Learning from others’ success
UNCTAD highlights the success of several
countries in achieving greater mobile and
broadband penetration.
“Common to these countries is market
liberalization and open competition among
operators. It’s a critical ingredient for
ensuring sufficient broadband supply at
reasonable prices. Countries with higher
levels of education also tend to perform
better as using the Internet requires more
skills than basic telephony,” believes
Fredriksson.
“We also recommend that regulatory
environments should encourage operators
to share state-of-the-art backbone
infrastructure, but this must be achieved
while maintaining open competition.”
Fredriksson concludes by saying that
governments have a responsibility to
explore all broadband connectivity options.
“Improved broadband connectivity can help
to achieve many economic and social
development objectives, and governments
play a critical role by setting the terms for
broadband roll out.” ■
The 20 most dynamic economies in terms of increased Internet penetration, 2003–2008
Ando
rra*
Arge
ntin
a
Latv
ia
50 47 35 42 45 52 34 32 57 63 60 78 31 29 48 48 27 45 33
Colo
mbi
a
Anti
gua
and
Barb
uda
Hun
gary
Slov
akia
Repu
blic
of
Mol
dova
The
Form
erYu
gosl
av R
epub
lic,
Mac
edon
ia
Barb
ados
*
Sain
t Ki
tts
and
Nev
is*
Mac
ao, C
hina
Berm
uda*
Saud
i Ara
bia
Iran
, Isl
amic
Re
publ
ic o
f
Jam
aica
Baha
mas
*
Bosn
ia a
nd
Her
zego
vina
*
Czec
h Re
publ
ic
Kuw
ait
60
Source: UNCTAD, based on ITU and national dataNote: * 2003–2007 change. Internet penetration: Number of users per 100 inhabitants. The bars indicate the change in penetration level 2003–2008. For example, in the case of Argentina, the penetration rose by 35, from 15 to 50 users per 100 inhabitants.
0
20
30
40
10
50
Developing Developed Transition Penetration 2008
71
UNCTAD’s ‘Information Economy Report
2009: Trends and Outlook in Turbulent
Times’ can be downloaded from:
http://www.unctad.org/en/docs/
ier2009embargo_en.pdf
18 Expanding Horizons 1/2010
1/2010 Expanding Horizons 19
How ICT can help
beat the crunch
The ‘credit crunch’ has been called the
worst financial crisis for 80 years, the
most severe since the Great Depression
in the 1930s. In its Global Monitoring Report
2009, the World Bank says that as many as
90 percent of developing countries are
exposed to the impact of the crisis, as they
face slowing growth, high levels of poverty,
or both.
In a May 2009 speech, UNCTAD Secretary-
General Supachai Panitchpaki noted that
the global crisis did not hit the developing
world rapidly, as it had the United States
and Europe, but that the difficulties facing
less-advanced economies have been
“gradually emerging and penetrating the
developing economies through various
means.”
Although the Information and
Communication Technology (ICT) sector has
fared better
than most
industries
through the
crisis, it is
clear that
operators are
facing greater
challenges in accessing capital and financing
their network investments, slowing plans to
roll out next generation networks and offer
enhanced services to consumers. On the
The global financial downturn has forced industrialized countries into recession and slowed economic growth in emerging markets. During recovery, it is vital that the right ICT policy and investment decisions are made now to deliver social, economic and environmental benefits for decades to come.
Briefly stated:
• Despite the economic downturn,
mobile communication has much
potential to help lift emerging market
consumers out of poverty
• Global cooperation is essential to
make the most of the opportunity to use
ICT to achieve sustainable growth
• When ICT services are used
effectively, business productivity rises,
public services are more efficient and
consumers gain more value
• Mobile technologies are greener.
Handsets and network infrastructure
make significant contributions to
emissions reduction
other hand, the downturn has created an
opportunity to highlight the benefits of
investing in ICTs as one of the most effective
means of helping to achieve a sustainable
recovery and long term economic growth.
Now is the time to take action
“This is a time of heightened risk and
industry transition, but also a time of great
opportunity for the ICT industry. This is a
time when the ICT industry can really prove
what a large and significant contribution
it makes to fuelling economic growth
and driving economic recovery,” claimed
Dr Hamadoun I. Touré, ITU Secretary-General
in a speech in May 2009.
There is little doubt that ICTs, especially
mobile communications, contribute to
economic growth. For example, a recent
Vodafone Policy Paper showed that Indian
states with high
mobile penetration
rates grew faster
than those states
with lower
penetration rates,
enjoying an average
of 1.2 percentage
points more growth per year for every 10
percent increase in penetration.
There have been many such projects that
aim to promote development through ICT.
Today’s big issues, such as the economic slump or climate change, are no respecters of borders.”
➜
20 Expanding Horizons 1/2010
About 86 percent of an operator’s energy is used by the network
Source: ABI Research
Switch sites 21%
Corporate sites 12%
Mast sites 65%
Maintenance vehicles 1% Retail 1%
A decade of ICT growth driven by mobile technologies
80Per 100 inhabitants
Source: ITU World Telecommunication / ICT Indicators Database.* Estimates
01998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
7.1
9.517.8
25.9
67.0
10
30
50
70
20
40
60
Mobile cellular telephone subscriptions An estimated 4.6 bn subscriptions globally by the end of 2009Internet users
Fixed telephone lines
Mobile broadband subscriptions
Fixed broadband subscribers
For example, Nokia Siemens Networks
recently announced a partnership with the
International Telecommunication Union
(ITU) to extend mobile coverage to some of
the Pacific islands for the first time using the
Village Connection solution.
Such initiatives need to be
complemented by a global perspective,
believes Anne Larilahti, Head of
Environmentally Sustainable Business (ESB)
at Nokia Siemens Networks. “Today’s big
issues, such as the economic slump or
climate change, are no respecters of borders.
Governments need to think beyond national
boundaries. To build a global ecosystem
that will deliver a sustainable growth path,
we need to look at the wider implications
of our actions and how all nations can
contribute and support wider societal goals.
Planning for growth over a longer timescale
is also important, with timeframes of 20, 30
or even 50 years taken into consideration.”
What can governments do now to use
ICT to stimulate economic recovery and
create a suitable environment for growth?
The ITU suggests measures such as changing
legislative policies to be friendly toward
ICTs, making it easier for business and
consumers to invest in ICTs, providing
universal access to the Internet by investing
in broadband, and encouraging technology
innovation. “Countries that spend
strategically today will find themselves more
competitive tomorrow,” the ITU says.
Making connectivity more useful
Reaping the benefits of ICT is about more
than just providing the basic infrastructure.
The full benefits of ICT are realized only
when consumers, businesses and
governments use the services being offered,
and do so on a significant scale. Using ICT
effectively not only boosts business
productivity, but also improves the efficiency
of public services and delivers value for
consumers.
In other words, ICT business and
technology innovation can help bridge the
social and digital divide and deliver
sustainable development in terms of
society, the economy and the environment.
In emerging markets, innovative mobile
communications is helping to break down
the inefficiencies that make it so expensive
to be poor. A lack of choice, competition and
the physical distances involved often mean
that poor people end up paying more than
rich people for the same products and
services, for example, by being unable to
buy goods in bulk to get cheaper prices.
Access to ICT can help to change things.
“New ways of doing business will be
important in closing the gap, but it will take
more than that. Businesses, NGOs and
governments all need to work together to
build a sustainable 21st Century ICT
infrastructure. Multi-party co-operation will
promote the transfer of knowledge to
emerging markets. This promises to provide
major opportunities for innovative
businesses, as well as benefiting society as
a whole,” says Larilahti.
Mobile plays the efficiency card
Investments in ICTs must also take full
account of another behemoth of the
headlines – climate change. Once again,
ICT is well placed in helping the world to
achieve environmental sustainability.
The ICT sector is in a unique position to
cut global emissions by up to 15 percent
by 2020 by enabling consumers and other
businesses to save energy. While the
industry’s own carbon footprint will almost
double, it will enable wider cuts that
outstrip its own footprint five times over,
according to a McKinsey and Climate Group
study for the Global e-Sustainability
Initiative.
The widespread availability of mobile
communications in emerging markets will
make a huge contribution here. The practical
benefits of being able to communicate
1/2010 Expanding Horizons 21
A question of priorities
In its October 2009 report ‘Confronting
the Crisis: ICT Stimulus Plans for Economic
Growth’ the ITU warns that emerging
markets need to set ICT as a higher
priority for investment than has been the
case in the past. The report says:
“To date, stimulus plans in developing
countries have tended to focus on other,
more urgent needs in housing, sanitation
and transport infrastructure and may
have failed to prioritize ICT infrastructure
to a large degree, missing out on the
stronger marginal impacts of ICT
investments on supply and productivity.
“In this respect, developing countries
may be neglecting a great development
opportunity of the economic benefits
broadband infrastructure can bring.
If industrialized countries forge ahead
with state-subsidized investments in
high-bandwidth networks, developing
countries may again find themselves
on the wrong side of a growing digital
divide.”
where it has not been possible before will
help individuals and businesses to reduce
emissions, for example by making travel
unnecessary in many instances.
With mobile communications in
emerging markets continuing to grow at
staggering rates, energy efficiency is critical.
Not only are more efficient handsets
becoming widely available, but new network
technologies are being developed.
Some 86 percent of a mobile operator’s
energy consumption occurs in the radio
network, and vendors have been developing
base stations with this in mind. For example,
the Flexi Multiradio Base Station from
Nokia Siemens Networks already offers the
lowest energy consumption on the market,
but still the company is committed to
reducing the power consumption of its base
stations by a further 40 percent by 2012.
Using less energy also makes it more
practical to rely on renewable power, such
as wind or solar, making it easier for
operators to provide coverage beyond the
reach of the conventional power grid. An
estimated 75,000 off-grid sites will be built
each year in emerging markets through
2012 (GSMA Development Fund), with the
GSMA predicting that up to half will be
powered by renewable energy.
Act now, benefit forever
Clearly, the ICT industry has a central role to
play in helping to overturn the protracted
downturn that the global economy finds
itself in, but also in creating long-term
growth for the benefit of countries across
the world. Emerging market populations in
particular have much to gain from ICT
investment and innovation. Mobility is
becoming a catalyst for a more innovative
and more sustainable society. Media,
advertising, services for agriculture, banking,
health-care and education are reaching
more people, allowing for a new and
sustainable growth and prosperity. ■
22 Expanding Horizons 1/2010
The entrepreneurial spirit is alive and kicking across emerging markets. But aspiring innovators need the right support to take their ideas to commercial success.
Innovation is the lifeblood of the
entrepreneur. It’s essential to the
competitiveness of enterprises and the
wellbeing of nations. Yet, while budding
entrepreneurs in developed markets enjoy
widespread support, their emerging market
counterparts are not so fortunate.
“Emerging markets are full of extremely
enthusiastic and capable people with new
ideas and the drive to become entrepreneurs.
But they face many barriers and little
support to help them get on their feet,”
says Jussi Hinkkanen, Head of Government
Relations for Middle East and Africa at
Nokia. “Tertiary education is often not
aligned with industry’s needs; little financial
or business support exists for young
entrepreneurs; access to wider markets is
difficult; and experienced peer advice is
minimal. There are few role models to look
up to, particularly in the ICT Sector.”
Focus on mobile apps
To help address the shortfall in support for
entrepreneurs, Nokia has joined the World
Bank’s infoDev and the Finnish Ministry for
Foreign Affairs in an initiative to build the
competitiveness of small businesses in
Africa, Asia and the transition economies of
Eastern Europe, Caucasus and Central Asia
(EECCA). The program, which kicked off in
December 2009, aims to help entrepreneurs
in the agribusiness and ICT sectors to start
and grow their business, and enable them to
access foreign markets.
The program will also seek to help local
developers create mobile applications that
deliver consumer and business services.
Three mobile application labs, one in each
region, will be established to provide the
advice, business services and technical
equipment that developers need.
“Emerging market users see their
mobile phones as a tool to help them work,
live and communicate more effectively.
This program will enable the development
of demand-driven applications by
entrepreneurs for emerging markets by
helping them launch and scale their business
ideas,” says Hinkkanen.
The Program will also support the
creation of business incubators in Belarus,
Cambodia, Georgia, Mozambique, Nepal,
Tanzania, Ukraine and Vietnam. In Cambodia
and Vietnam, the emphasis will be on
enabling women entrepreneurs.
The role of networking
The importance of peer contact is as
important as more formal support, says
Hinkkanen. “Giving local developers the
chance to meet up regularly helps them to
learn from one another and form shared
communities of practice. The value of this
kind of social networking has been proven
by the Mobile Monday community which has
become a global phenomenon in recent
years. We want to replicate this formula in
our target markets, enabling local
entrepreneurs to meet and gain access to
the latest mobile application information.”
Encouraging entrepreneurship goes
beyond the demands of corporate social
responsibility. “We are seeing a growing
trend in emerging markets of private
enterprises wanting to support local
innovation and socioeconomic development
because in the long run it helps to open up
markets for all stakeholders,” says
Hinkkanen. ■
From inspiration
to prosperity
Emerging markets are full of extremely enthusiastic and capable people with new ideas”
1/2010 Expanding Horizons 23
Move over computer,
the mobile is here The idea that the personal computer is the best way to deliver data
services is being challenged like never before. Mobile devices have far more potential to bring lower income people online in rural areas
In 1943, IBM founder Thomas Watson
allegedly stated: “I think there is a world
market for maybe five computers.”
Whether or not Watson actually said this,
it was probably true at the time.
How times change. Today, the
International Telecommunication Union (ITU)
estimates that more than a quarter of the
world’s population, or 1.9 billion people,
can access a computer at home. The personal
computer has traditionally been the dominant
means for using online data services. This
has led to Internet kiosks being set up
widely to bring services to people without
their own computer, especially in emerging
markets.
The 21st century is changing the game
plan again. With 4.6 billion mobile
subscriptions at the end of 2009, the mobile
is the most rapidly adopted technology in
history. It has even overtaken radio in
poorer households (those with an income
of less than two US dollars per day) in
Bangladesh, India and Pakistan, and is
about to catch up with TV. In contrast, the
computer has an insignificant presence in
households across Asia.
Mobiles connect the poorest
According to ICT policy think tank LIRNEasia,
the evidence shows that mobiles, not
computers, have the best potential to deliver
services to rural areas in the Indo-Gangetic
Plain, the world’s largest concentration of
poor people.
“This is the hardest case. What works
here will work everywhere,” says Rohan
Samarajiva, Chair and CEO, LIRNEasia.
“Mobile networks will provide the key
connectivity, especially as we see handsets
becoming more advanced.”
More capable mobiles and innovative
applications enable the use of new services
over the Internet, including financial
transactions, advanced communications and
remote computing. And more sophisticated
devices are finding their way into the hands
of the most financially challenged consumers.
Services where needed
“There is a thriving market in used mobiles.
We know of people trading up handsets six
or seven times in two years. The mobile
phone is the most sold item on CellBazaar,”
says Samarajiva.
CellBazaar is an online marketplace
available to Bangladesh operator
Grameenphone’s customers to buy and sell
goods via mobiles. It’s a perfect example of
a service being delivered effectively to an
audience beyond the reach of computers.
“Another service better delivered by
mobile is agricultural information, via Nokia
Life Tools for example. The information is
available when and where people need it,
rather than in distant kiosks with restricted
hours. People are becoming more aware of
the possibilities of data services, especially
among the younger age groups,” Samarajiva
explains.
He concludes: “We see a tremendous
need. Services must be relevant and suitable
for the small screen and must become widely
available. The mobile will be the primary
mode of accessing services. The change will
occur first in South Asia and Africa and then
spread to the developed world.” ■
Household access to ICTs (% of lower income households)
Source: LIRNEasia Teleuse@BOP3, 2009
Bangladesh
5241
13
0
68
39
24
3
50
3828
1
80
64
77
4
63
50 52
1
7570
64
12
Pakistan India Sri Lanka Philippines Thailand
TV Phone Radio Computer
Mobile networks will provide the key connectivity, especially as we see handsets becoming more advanced.”
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