Mobile telecommunications in developing countries part 2
Download as PPT, PDF0 likes319 views
Mobile phone ownership has exploded in developing countries like Cameroon, Nigeria, and Uganda. 92% of small business owners in coverage areas own and use mobile phones daily. Mobiles have provided both incremental benefits like increased productivity and transformational benefits like new ways to access banking and money transfers. 73% of micro-entrepreneurs save 3 hours of business time daily using mobiles, and 72% reported increased profits. However, more research is still needed to precisely quantify the economic impact of mobile phones on small businesses and growth.
Mobile telecommunications in developing countries part 2
- 1. Mobile Telephony in Africa: Impact on the development of Small Businesses in Cameroon, Uganda & Nigeria Windfred MFUH Centre for Management Under Regulation Warwick Business School
- 2. Growth in Mobile Telephony Services Explosive : There are twice as many mobile owners in developing countries as in industrialised countries. www.id21.org 92% of small business owners surveyed in coverage areas of Cameroon, Uganda and Nigeria Owned mobile phones and use them daily. 57% of Sub-Saharan Africans live within a mobile signal, simply improving efficiency of existing markets can provide access to a further 40% of the population. Only just about 3% of population will require government subsidies of around US$ 2.1 billion to have access ( ITU, 2007 ).
- 3. Why explosive growth? Failure of Landlines Favourable investment climate Lack of basic communication infrastructures, such as roads Exponential drop in handset costs Pre-paid (98%)
- 4. Business Impact Incremental benefits: Productivity gains Makes markets work better Orders can be taken anytime anywhere.
- 5. Business Impact - Transformational Benefits: Offers new ways to access services: Banking, Money transfer, Knowledge Transfer Grameen phone Bangladesh
- 6. Social Impact Mobiles have improved social communication, household logistics, provided families with a sense of security, provided friends and loved ones with a continual sense of being in contact. Many conservative tribal leaders fear mobile phones have led to rise in extra marital affairs. This has increased tensions within families. Owning and using a mobile phone elevates your social class especially in rural areas (increased mobile penetration is diluting this effect) The item most targeted by thieves, after cash, is the mobile phone
- 7. Innovative consumer behaviour Beeping - Cameroon or flashing -Nigeria or bleeping -Uganda is a popular way of saving on call cost. Sophisticated codes are being developed Unfulfilled demand for mobile services is significant
- 8. Results 73% of micro-entrepreneurs save as many as 3 hrs of business time in a single day thanks to mobiles. 72% of the 108 micro-entrepreneurs we surveyed in Cameroon, Uganda & Nigeria reported that the mobile had increased the profitability of the business (s till quantifying the precise impact ) 86% think it will be very difficult to continue doing business without mobile phones. Main reasons for 8% of surveyed small traders not to own phones: poor or no coverage, Can’t afford, not necessary, unable to use (illiteracy) Many small businesses (99% rural, 85 % urban) rely solely on mobile telephony to achieve their information needs.
- 9. The future Increase access & QoS Taxation Increased competition Spectrum Mobile phones as principal access platform to Internet in developing countries? Convergence with radio-based broadband services? Source: GSMA
- 10. Conclusion The real impact of access to mobile communications is far more complex especially in developing economies where financial data are rare, patchy and in many cases non-existent. Also, mobile services contribute to multiple social, economic, and livelihood dimensions that are interrelated in complicated ways ( Hillier, 2000 ). Mobile telephony is an important enabler of small businesses and a catalyst to economic growth. More research is needed to establish the concrete impact of mobiles Government must partner with industry to increase access in order to reap the benefits of mobile network externalities Mobiles have done the most to reduce costs , increase income and reduce uncertainty and risk
- 11. The End Thank you