Harnessing the Power of Mobile Towards Social Good (and Change the World) Ludovic BODIN – Founder of Kalibrio / Social Venture Forum Cover picture: http://weblogs.annenberg.edu/diy/boatphonebooth.jpg
Historical change! This is the first time in history that a telecom technology has more users in developing countries than in the developed world So there is a clear advantage in learning from other developing markets (even if they do not have 3G…)
Question Nelson Mandela 1993 Nobel Peace Prize Can any of this whiz-bang technology be used for alleviating poverty ?
Case 1: the fish (India) (1) Fish (2) Go to the nearest market (3) Sell the fish Business process : Problem : No clue about the market (demand & offer) What to fish? Where to fish? Where to sell?
Problems Result 2 : Unpredictable income Result 1 : Waste of fish (5 to 8%)
Solution Solution : Fishermen network Call each other to determine market demand, offer and best price
Results Result 1 : Fisherman profit growth: 8% Result 2 : Consumer price decline: 4% Source: Harvard Kennedy School - 1997 Result 3 : Waste decline: from 8% to 0+%
Some words of wisdom Give a man a fish and you will feed him for a day. Teach him how to fish and you will feed him for a lifetime. Our job is not to give people fish, it's not to teach them how to fish, it's to build new and better fishing industries . Bill Drayton Ashoka founder
Effect of mobile phones Mobile phones can support more efficient markets and encourage economic activity +10% mobile penetration rate = +0.5% GDP growth Source: Leonard Waverman, London Business School - 2005
Case 2: the jackfruit (Bangladesh) Problem : Less developed areas have less information on market prices of goods Consequence : They often are (and feel) abused
Solution: CellBazaar Mobile classified ads Puts buyers & sellers in contact (‘mobile Craigslist’ for all kinds of goods: commodities, bicycles, etc and jobs) Source: www.cellbazaar.com
Revenues from calls are shared with operator Grameen Telecom
Some words of wisdom The service is not just mobile classified ads but a social development service . Kamal Quadir CellBazaar creator It cuts out the middlemen for buyers and sellers, which means more profits and savings for them.
Case 3: the small business (Bangladesh) We saw : Mobile can be a source of productivity Problem : Still some people can’t afford a handset Opportunity : Is there a way to turn mobile phones into a business for its owner?
Some words of wisdom For a rural entrepreneur, a cell phone could be a cow Iqbal Quadir Co-founder of Grameen Phone
Grameen Phone’s ‘Phone Ladies’ “ Phone Ladies” let non-owners use their phone for a small fee
Creating new revenue sources Over 200,000 phone ladies in Bangladesh Average income of a Phone Lady = $1000/year Average income in Bangladesh = US$300/year Source: Canadian International Development Agency
About Grameen Phone Today: leading mobile operator in Bangladesh >10 million subscribers 95% of population coverage Top 10 mobile market growth in Asia-Pacific +130% users growth in 2005 +80% users growth in 2006 Source: Grameen Phone - 2006
Case 4: Banking without bank (Philippines) Problem : Accessibility of capital Micro-entrepreneurs have skills but lack access to capital to start their business No rural banking infrastructure
Case 4: Banking without bank (Philippines) Retailers partners G-cash (Telco: Globe) Shop, Bank, micro-credit, Retailers, etc $$$ Airtime $ P
Results Result 1 : 1.3 million G-cash registered users US$100M transaction per day Result 2 : 700,000 ‘airtime loading’ retailers (Larger than Coca-Cola’s network) Other initiatives in: Mexico, South Africa, Kenya, Etc. Source: G-cash – March 2006
Openings: many other opportunities Poverty Reduction Health Environment Cultural Diversity Education
Source: African Medical and Research Foundation (AMREF), Tomi Ahonen, 2006
Alert pollution via sms
Green mobile marketing
Plant a tree via sms
Help communication between culture
SMS services for expats
What about China? Mobile rural bank system Project by Bank of China If bank infrastructure: >$2 billion (for 130 terminals & ATMs per 1M people) Cost of mobile rural bank system: $40 million to $60 million Source: South China Morning Post - March 2007
Next : what are you waiting for? Contact us: ludovic [at] kalibrio.com “ Interested by starting up a new Social Venture? A new idea to develop in China ? ”
Wish list for 2008: - Participatory platform - Collective intelligence - Re-engineering of games technology for social applications - Poverty reduction platform - Participatory community of informed buyers - Participatory community of doctors - Participatory community of real estate agents