Mobile telecommunications in developing countries part 2


Published on

Part 2 of 3: a panel discussion on "Mobile telecommunications in developing countries" at Warwick Business School 08/10/2007

Windfred Mfuh; Doctoral Researcher, WBS

Published in: Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Mobile telecommunications in developing countries part 2

  1. 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. 2. Growth in Mobile Telephony Services <ul><li>Explosive : </li></ul><ul><ul><li>There are twice as many mobile owners in developing countries as in industrialised countries. </li></ul></ul><ul><li>92% of small business owners surveyed in coverage areas of Cameroon, Uganda and Nigeria Owned mobile phones and use them daily. </li></ul><ul><li>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. </li></ul><ul><li>Only just about 3% of population will require government subsidies of around US$ 2.1 billion to have access ( ITU, 2007 ). </li></ul>
  3. 3. Why explosive growth? <ul><li>Failure of Landlines </li></ul><ul><li>Favourable investment climate </li></ul><ul><li>Lack of basic communication infrastructures, such as roads </li></ul><ul><li>Exponential drop in handset costs </li></ul><ul><li>Pre-paid (98%) </li></ul>
  4. 4. Business Impact <ul><li>Incremental benefits: </li></ul><ul><ul><li>Productivity gains </li></ul></ul><ul><ul><li>Makes markets work better </li></ul></ul><ul><ul><li>Orders can be taken anytime anywhere. </li></ul></ul>
  5. 5. Business Impact - <ul><li>Transformational Benefits: </li></ul><ul><li>Offers new ways to access services: Banking, Money transfer, Knowledge Transfer </li></ul><ul><li>Grameen phone Bangladesh </li></ul>
  6. 6. Social Impact <ul><li>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. </li></ul><ul><li>Many conservative tribal leaders fear mobile phones have led to rise in extra marital affairs. This has increased tensions within families. </li></ul><ul><li>Owning and using a mobile phone elevates your social class especially in rural areas (increased mobile penetration is diluting this effect) </li></ul><ul><li>The item most targeted by thieves, after cash, is the mobile phone </li></ul>
  7. 7. Innovative consumer behaviour <ul><li>Beeping - Cameroon or flashing -Nigeria or bleeping -Uganda is a popular way of saving on call cost. Sophisticated codes are being developed </li></ul><ul><li>Unfulfilled demand for mobile services is significant </li></ul>
  8. 8. Results <ul><li>73% of micro-entrepreneurs save as many as 3 hrs of business time in a single day thanks to mobiles. </li></ul><ul><li>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 ) </li></ul><ul><li>86% think it will be very difficult to continue doing business without mobile phones. </li></ul><ul><li>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) </li></ul><ul><li>Many small businesses (99% rural, 85 % urban) rely solely on mobile telephony to achieve their information needs. </li></ul>
  9. 9. The future <ul><li>Increase access & QoS </li></ul><ul><ul><li>Taxation </li></ul></ul><ul><ul><li>Increased competition </li></ul></ul><ul><ul><li>Spectrum </li></ul></ul><ul><li>Mobile phones as principal access platform to Internet in developing countries? </li></ul><ul><li>Convergence with radio-based broadband services? </li></ul>Source: GSMA
  10. 10. Conclusion <ul><li>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 ). </li></ul><ul><li>Mobile telephony is an important enabler of small businesses and a catalyst to economic growth. </li></ul><ul><li>More research is needed to establish the concrete impact of mobiles </li></ul><ul><li>Government must partner with industry to increase access in order to reap the benefits of mobile network externalities </li></ul><ul><li>Mobiles have done the most to reduce costs , increase income and reduce uncertainty and risk </li></ul>
  11. 11. The End <ul><li>Thank you </li></ul>