Teleuse on a Shoestring 2: Poverty reduction through telecom access at the Bottom of the Pyramid Harsha de Silva and Ayesha Zainudeen, LIRNE asia Colombo, 6 December 2006 7th Annual Symposium on Poverty Reduction
*excluding FANA/FATA – Tribal Areas; **excluding N&E Provinces 15 41 4** 260 77* Target population of study (million) 64 89 20 1,095 165 Population (million) Thailand Philippines Sri Lanka India Pakistan
untruth, truth, what? While ownership is low… Thailand Philippines Sri Lanka India Pakistan Source: National regulatory agencies; * 2005, **2004 57.80** 45.30* 29.10 12.80 29.38 Total number of phones per 100 population
untruth, truth, what? …access is very high* Most (66%) can get to a phone in 5 minutes ; much less than 1 hour… 95% 93% 92% 94% 98% Accessibility (used a phone in the preceding 3 months) Thailand Phils. Sri Lanka India Pakistan South East Asia South Asia
untruth, truth, what? High reliance on commercial phones * Does it mean no access; or have access?
Inequality increased because access is a more middle class thing…
Based on what access?
Direct household access is normally used
Whereas indirect but actual access of 90 percent +
How relevant is direct access? Is it the same as other infrastructure; electricity, piped water, sanitation?
user issues Affordability; tight purse… * Owners only: mobile is almost all pre-paid; to control expenditure 4% 1% 8% 4% 1% Post Paid 96% 99% 92% 95% 99% Pre Paid Thailand Philippines Sri Lanka India Pakistan
user issues Affordability; only a few calls… * Source: Diary All users (owners or otherwise) on average one call a day
user issues Affordability; short calls… * Source: Diary However, average MOUs for owners are higher e.g: Sri Lanka: Prepaid: 120 MOU per month Source: Operators >15 min.
user issues Affordability; abnormal pattern … * Source: Diary Sri Lanka Poverty premium
user issues Expenditure higher than ARPU * Poverty premium; those who use other peoples’ or public phones are being charged higher rates… Ave. Monthly expenditure for users (USD) 9 9 9 7 12 Home Fixed Phone 19 10 18 7 21 Post Paid 8 2 7 5 8 Pre-Paid Thailand Phils. Sri Lanka India Pakistan