Telecommunications and IT

Submitted by Francisco Noguera on May 9, 2008 - 12:59.
May 07, 2008 - 00:00, BBC News
Text Messages Empower Poor Farmers

The BBC's Damian Grammaticas sees how poor Indian farmers are using business text messages to get better prices for their goods.

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At the Khandova temple in Jhejuri it's festival time. The harvest is just in and it's time to celebrate.


Thousands of farmers, dressed in white, come from across Maharashtra state to climb the steep hill up to the temple. With them are their wives wrapped in brightly coloured saris and children too.


Inside the temple handfuls of turmeric powder are showered over everything. People sing, dance, and pray for good fortune.

Two hundred and fifty million Indians rely on the land for their survival.But many live in real poverty. And in Maharashtra the suicide rate among farmers is high.

So the pressing question for India is how to improve farmers' livelihoods.

Submitted by Derek Newberry on May 9, 2008 - 10:30.
May 08, 2008 - 10:00, AllAfrica.com
Africa: Toll-Free Mobile Service to Give Rural Africa Access to Medics

A toll-free mobile service being launched in selected remote areas in Africa promises to save lives by connecting people with emergency medical cases to health personnel.

Under the initiative launched in Nairobi on Wednesday, health workers will also be trained through mobile phone sessions on day to day skills like collecting and sharing basic household health information.

Telecommunication equipment provider Ericsson and mobile phone service provider Zain have adopted the new approach in a bid to stimulate the demand of mobile solutions in areas they consider commercially challenging.
The two companies have entered into a partnership that will ensure they provide network access, mobile phone handsets, sim cards and toll-free emergency numbers in remote areas in order to stimulate demand for cellular phone solutions in those areas.

The initiative is being rolled out in Tanzania, Uganda and Kenya.

In Kenya, Ericsson and Zain subsidiary, Celtel, are rolling out a pilot programme in North Garissa in Dertu village targeting some 5,200 inhabitants.

According to the President of Ericsson, Mr Carl-Henri Svanberge, the partnership also includes the Earth Institute and will benefit 400,000 people in Africa.

In the partnership, Ericsson will provide network connectivity in the identified areas, while the mobile service providers will provide the SIM cards and airtime, while the handset manufacturer Sony Ericsson will provide the handsets.
Submitted by Manuel Bueno on May 8, 2008 - 13:13.
May 07, 2008 - 13:00, Financial Times
Indonesian operators' call to lure customers has only just begun

A blizzard of advertisements for Indonesia's 11 mobile operators has covered the country, competing for the lowest prices, best call quality and cheapest deals.

So begins what is expected to be a major boom in mobile subscriptions and telecom revenue.

The national regulator slashed internet work connection charges by up to 40 per cent last month and these savings have largely been passed on to users.

The authorities are pushing operators to share towers, which will reduce costs and enable greater network expansion.


Submitted by Derek Newberry on May 7, 2008 - 10:29.
May 02, 2008 - 10:00, Financial Times
Rebooting the Indian green revolution

Ajit Singh, a farmer in the poor northern state of Uttar Pradesh, had never seen a computer until four years ago when ITC, the Indian agribusiness-to-hotels conglomerate, installed a PC in his village, Kurthia.

Now the thin 47-year-old farmer visits the ITC station, known as an "e-choupal" after the Hindi term for "gathering place", every day for online access to news-papers, crop prices, weather forecasts and farming techniques. As ITC's village manager, he passes on what he gleans to fellow farmers.

Knowing the fair market value of crops allows farmers to fetch better prices and circumvent local traders who used to dictate terms. Farmers can also sell wheat and other crops to ITC.

The result has been a big jump in crop productivity. Annual incomes in Kurthia have risen from Rs40,000- Rs50,000 ($1,000-$1,230) before e-choupal to Rs100,000- Rs120,000 now, says Mr Singh.
ITC has rolled out 6,400 e-choupals across India since 2000. The initiative has gained new relevance as New Delhi urgently tries to tackle threats to food security, the growing gap between rich and poor and stagnant agricultural growth that has added to soaring food prices,

India "needs another green revolution", the UN Economic and Social Commission for Asia and the Pacific (Unescap) recently urged. "Growth and productivity in agriculture are slowing, and the green revolution has bypassed millions."
Submitted by Al Hammond on May 7, 2008 - 08:31.
This post is the second in a five part series on a radical new approach to scaling BoP business models, what we call a transformative sector strategy. In this segment, I tell the story of a rural connectivity pilot project; an example of this new model for development in action.

A Last Mile Model for Rural Connectivity

Son Tay commune, Quang Ngai Province. I was sitting across a table in a remote rural outpost of Vietnam, negotiating (via a translator) with the manager of a local radio station about access to his tower. He asked a series of technical questions and seemed satisfied with the answers, but then he wondered aloud: "Can we get Internet access here?" He didn't just want it for the radio station, it emerged, but for the surrounding small community - even though nobody there yet owned a computer. The manager understood that internet access could help transform their opportunities. And when we agreed to mount a small antenna to serve the community, the tower was ours.

The negotiation was part of a two year long process to pilot a novel approach to rural connectivity. It involved building an advanced, broadband network in three communes (groups of villages) in a very poor province in central Vietnam to provide Internet-based phone service and Internet access. Quang Ngai Province has no Internet access for its million-plus population outside of the provincial capital, and phone ownership is about 3 percent.

But the province does have an AUSAID-funded rural development project (RUDEP) that had built trust by doubling farmer's incomes in many communes, and optical fiber to every district capital (owned by the national electric utility, EVN, which also owns a mobile phone company, EVN Telecom). Ultimately all of these became partners in the effort, as did USAID's Last Mile Initiative, Intel and other equipment providers.

(This post continues past the break; click "Read More" to continue)

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Submitted by Derek Newberry on May 7, 2008 - 08:23.
Date of talk or publication:
May, 2008
Speaker Name / Title:
Allen Hammond
Organization:
World Resources Institute
Description:
A PowerPoint presentation by WRI Vice President Allen Hammond summarizes lessons learned from a pilot project to provide WiFi access to three areas of rural Vietnam.
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Submitted by Al Hammond on May 4, 2008 - 19:12.

It was sunny, and tempting to sit outside at the University of San Diego to enjoy the weather. Inside, however, a group of global practitioners and scholars - organized by Patricia Marquez of USD and Carlos Rufin of Sussex University and Babson College - were discussing the role of utilities at the Base of the Pyramid. (See 'attachments' at the end of this post, where I have uploaded the meeting's full agenda as a PDF.)

Utilities provide basic services - telecommunications, water, power - that are essential to people's lives and increase their productivity. But a decade ago, many utilities in emerging markets were failing—service to low-income communities was poor, and many of their customers simply didn't pay or acquired the service informally.

The picture that emerged in San Diego, however, was more optimistic. A number of utility companies have engaged BoP communities and increased their willingness to pay, in return for investment that improved service quality. Codensa, a power utility in Columbia with 400,000 non-paying customers (out of a total of 2 million), reduced non-paying customers dramatically. Manuel Bueno has an excellent analysis of the Codensa case in his post, "The Codensa Case: Electricity and Related Services for the BOP in Colombia," from December, 2007. And mobile phone companies improved service and access to service dramatically compared to legacy fixed-line telecom companies (sometimes another branch of the same company).

(This post continues past the break; click "Read More" to continue)

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Submitted by Francisco Noguera on April 29, 2008 - 13:38.
April 29, 2008 - 13:00, Harvard Business Review
Even the Poorest Can Be a Thriving Market

By Jean-Louis Warnholz

The idea that global companies can do good and do well at the “bottom of the pyramid”—that is, among the poor populations of developing countries—has generated excitement among corporations, governments, and NGOs in recent years. But most of the resulting initiatives by multinationals have missed the very poor, the 2 billion people in places like Haiti and Bangladesh who live on less than two dollars a day and have been virtually ignored by the corporate world and cut off from the global marketplace. The multinationals seem not to have noticed the examples of Telenor and Digicel, innovative mobile phone companies that have found opportunities to earn profits and simultaneously improve local economic landscapes by serving the very poor.

Telenor was drawn to Bangladesh and Pakistan, and Digicel to Haiti, by low-wage workforces and the potential for creating local consumer markets, despite endemic poverty. Both companies refused to accept the low-purchasing-power status quo and have been systematically building up local consumer markets. They are now boosting economic growth by generating jobs, tax revenue, and investment.

Submitted by Francisco Noguera on April 25, 2008 - 09:35.
April 25, 2008 - 09:00, Technology Review
Una Laptop por Niño

The success of OLPC can no longer be judged against ­Negroponte's early predictions and plans, nor by the technical merits of the laptop itself. Peru is what matters now. When I was in Lima, OLPC's former chief technology officer, Mary Lou ­Jepsen (she has formed Pixel Qi, a startup dedicated to making even lower-cost displays for OLPC's computers and others), visited the education ministry to offer help and show staffers how to repair the machines. But she acknowledged that OLPC's future doesn't revolve around the hardware she helped bring about. "Laptops are easy; education is hard to transform," she said. "I don't even speak Spanish. How can I even start to transform primary education in Peru?"

In truth, she can't. But Peru now has a chance to help Rosario, Cecilia, Nilton, and 486,497 other kids--and, maybe, someday, the little girl on the traffic island in Lima.

Submitted by Francisco Noguera on April 17, 2008 - 11:12.
April 17, 2008 - 11:00, CGAP Technology Program Blog
Airtime as Remittance: Good Deal for the Poor?

By Mark Pickens

The New York Times recently highlighted the work of Jan Chipchase, a Nokia researcher trying to understand how the poor use mobile phones. The article includes a report that Ugandans are using prepaid airtime as an informal money transfer mechanism, particularly to get value back to family in rural areas.

"Ugandans are using prepaid airtime as a way of transferring money from place to place, something that's especially important to those who do not use banks. Someone working in Kampala, for instance, who wishes to send the equivalent of $5 back to his mother in a village will buy a $5 prepaid airtime card, but rather than entering the code into his own phone, he will call the village phone operator ("phone ladies" often run their businesses from small kiosks) and read the code to her. She then uses the airtime for her phone and completes the transaction by giving the man's mother the money, minus a small commission."
Submitted by Derek Newberry on April 14, 2008 - 12:41.

All of us at NextBillion.net were both humbled and thrilled to see the New York Times Sunday Magazine draw on our work - and the work of many colleagues - to write an extended piece on the impact of cell phone usage in emerging economies.

Sara Corbett's article follows Nokia researcher Jan Chipchase as he navigates the human terrain of countries like Ghana, Brazil and Uzbekistan, trying to figure out why a farmer in Kenya or a prostitute in Brazil is finding unique value in their cell phone. The article uses Jan's experience as a device for sparking a broader discussion on the potential for the booming cell phone market to increase incomes and quality of life among the BoP.

What was most interesting about the piece is that the author poses her central theme as a question, not an assertion: "Can the Cellphone Help End Global Poverty?" In her narrative, while laying out the case that cell phones increase productivity, she does not present this technology as a silver bullet development solution.

Rather, we get a very rich, on-the-ground account of how technology is changing people's lives in BoP markets everywhere.

(This post continues past the break; click "Read More" to continue.)

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Submitted by Derek Newberry on April 11, 2008 - 15:55.
April 11, 2008 - 15:00, New York Times
Can the Cellphone Help End Global Poverty?

Last year, the World Resources Institute, a Washington-based environmental research group, published a report with the International Finance Corporation entitled "The Next Four Billion," an economic study that looked at, among other things, how poor people living in developing countries spent their money. One of the most remarkable findings was that even very poor families invested a significant amount of money in the I.C.T. category - information-communication technology, which, according to Al Hammond, the study's principal author, can include money spent on computers or land-line phones, but in this segment of the population that's almost never the case. What they're buying, he says, are cellphones and airtime, usually in the form of prepaid cards. Even more telling is the finding that as a family's income grows - from $1 per day to $4, for example - their spending on I.C.T. increases faster than spending in any other category, including health, education and housing. "It's really quite striking," Hammond says. "What people are voting for with their pocketbooks, as soon as they have more money and even before their basic needs are met, is telecommunications."

There are clear reasons for this, but understanding them requires forgetting for a moment about your own love-hate relationship with your cellphone, or iPhone, or BlackBerry. Something that's mostly a convenience booster for those of us with a full complement of technology at our disposal - land-lines, Internet connections, TVs, cars - can be a life-saver to someone with fewer ways to access information. A "just in time" moment afforded by a cellphone looks a lot different to a mother in Uganda who needs to carry a child with malaria three hours to visit the nearest doctor but who would like to know first whether that doctor is even in town. It looks different, too, to the rural Ugandan doctor who, faced with an emergency, is able to request information via text message from a hospital in Kampala.

Jan Chipchase and his user-research colleagues at Nokia can rattle off example upon example of the cellphone's ability to increase people's productivity and well-being, mostly because of the simple fact that they can be reached. There's the live-in housekeeper in China who was more or less an indentured servant until she got a cellphone so that new customers could call and book her services. Or the porter who spent his days hanging around outside of department stores and construction sites hoping to be hired to carry other people's loads but now, with a cellphone, can go only where the jobs are. Having a call-back number, Chipchase likes to say, is having a fixed identity point, which, inside of populations that are constantly on the move - displaced by war, floods, drought or faltering economies - can be immensely valuable both as a means of keeping in touch with home communities and as a business tool. Over several years, his research team has spoken to rickshaw drivers, prostitutes, shopkeepers, day laborers and farmers, and all of them say more or less the same thing: their income gets a big boost when they have access to a cellphone.
Submitted by Francisco Noguera on April 7, 2008 - 12:23.

A new wave of Internet connectivity for the BoP is under way by means of making the Web audible.

Internetspeech has developed a technology that makes the Internet accessible over the phone. That's right. Just a phone line and your voice; no keyboards, no screens and no literacy required.

Click here to listen to a demo while you read the rest of the post.


The model is similar in concept to Question Box, and would allow a potentially large segment of the BoP to benefit from the access to information and a global marketplace that the Web offers.

(This post continues past the break; click "Read More" to continue.)


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Submitted by Manuel Bueno on April 7, 2008 - 08:01.

Mark Pickens is a Microfinance Analyst with the Consultative Group to Assist the Poor (CGAP), a global resource center for microfinance housed at the World Bank. We published the first part of the interview here on April 4th. CGAP are arguably the most authoritative source of information about branchless banking services and are currently in the forefront of research efforts to understand and develop this market.

Mark has co-authored a global review of regulation for mobile- and other forms of branchless banking, forming an evidence base from more than 500 interviews with central bankers and executives in mobile, banking and technology industries. His work has been quoted in The Economist, The Banker and CNN.com. Prior to joining CGAP, Mark consulted with the UN, US government, commercial banks and specialized microfinance lenders.

In the first part of the interview, Mark elaborated on the most important issues as the branchless banking market evolves in complexity and size, as well as explaining why mobile phone banking is currently one of the hottest issues in the financial services sector.

In this second and final part of the interview, Mark and I explore the possible evolution of the mobile phone banking industry as it grows out of payments and remittances and into other financial services.

(This post continues past the break; click "Read More" to continue.)
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Submitted by Francisco Noguera on April 4, 2008 - 12:52.
April 02, 2008 - 05:35, Financial Times
Nokia Reaps Benefits of Emerging Markets

By Andrew Parker

Nokia
said on Wednesday it had seen no evidence that the global economic downturn was affecting demand for mobile phones in emerging markets, as it outlined plans for new handsets for developing countries.

Alex Lambeek, a Nokia vice-president responsible for the Finnish company's strategy in emerging markets, said 2008 should be the first year in which the number of handsets sold in developing countries to customers replacing their existing mobiles would surpass those to first-time buyers.

Sony Ericsson, the world’s fourth largest handset maker, last month issued a profit warning after finding that European consumers were buying fewer new mobiles to replace their existing models than previously anticipated.

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