Mobile Social Ventures Kalibrio

Slide 1: 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

Slide 2: About the speaker • Ludovic Bodin ( 邓德伟 ) – First venture: 20 y.o. • 4 years in Latin America – Modernization of operators – UN Telecom projects • 4 years in China / Asia – Starting Internet startups – Beijing, Macau, Seoul – www.kalibrio.com 2 | 32

Slide 3: Social Venture Forum Seed Social Ventures in China www.socialventureforum.com 3 | 32

Slide 4: Social Ventures Today is not to Raise funds Enroll for NGOs Sell anything But share an idea: Social Venture Business driven by profit and social good 4 | 32

Slide 5: Social Venture? Social Venture Venture Philanthropy Social NGO CSR Good ‘Old’ Capitalist Business Source: SocialVentureForum.com Business 5 | 32

Slide 6: A few figures 2.5 billion mobile users worldwide The majority (59%) lives in developing countries Grew by 500 million in the past 12 months 25% coming from China and India 6 | 32

Slide 7: 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…) 7 | 32

Slide 8: Question Can any of this whiz-bang technology be used for alleviating poverty? Nelson Mandela 1993 Nobel Peace Prize 8 | 32

Slide 9: Case 1: the fish (India) Business process: (1) Fish (2) Go to the nearest market (3) Sell the fish Problem: What to fish? No clue about the market Where to fish? (demand & offer) Where to sell? 9 | 32

Slide 10: Problems Result 1: Waste of fish (5 to 8%) Result 2: Unpredictable income 10 | 32

Slide 11: Solution Solution: Fishermen network Call each other to determine market demand, offer and best price 11 | 32

Slide 12: Results Result 1: Fisherman profit growth: 8% Result 2: Consumer price decline: 4% Result 3: Waste decline: from 8% to 0+% Source: Harvard Kennedy School - 1997 12 | 32

Slide 13: 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 13 | 32

Slide 14: 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 14 | 32

Slide 15: Case 2: the jackfruit (Bangladesh) Problem: Consequence: Less developed areas They often are have less information (and feel) on market prices of goods abused 15 | 32

Slide 16: 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 16 | 32

Slide 17: Business Model • Service is free (regular call charges) • Revenues from calls are shared with operator Grameen Telecom 17 | 32

Slide 18: Some words of wisdom The service is not just mobile classified ads but a social development service. It cuts out the middlemen for buyers and sellers, which means more profits and savings for them. Kamal Quadir CellBazaar creator 18 | 32

Slide 19: Case 3: the small business (Bangladesh) We saw: Problem: Mobile can be a source Still some people can’t of productivity afford a handset Opportunity: Is there a way to turn mobile phones into a business for its owner? 19 | 32

Slide 20: Some words of wisdom For a rural entrepreneur, a cell phone could be a cow Iqbal Quadir Co-founder of Grameen Phone 20 | 32

Slide 21: Grameen Phone’s ‘Phone Ladies’ “Phone Ladies” let non-owners use their phone for a small fee 21 | 32

Slide 22: Creating new revenue sources Average income in Bangladesh = US$300/year Average income of a Phone Lady = $1000/year Over 200,000 phone ladies in Bangladesh Source: Canadian International Development Agency 22 | 32

Slide 23: 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 23 | 32

Slide 24: 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 24 | 32

Slide 25: Case 4: Banking without bank (Philippines) G-cash (Telco: Globe) $ P $$$ Retailers Airtime partners Shop, Bank, micro-credit, Retailers, etc 25 | 32

Slide 26: 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 26 | 32

Slide 27: Openings: many other opportunities Poverty Cultural Health Environment Education Reduction Diversity 27 | 32

Slide 28: A few quick ideas • Mobile consultation • Allergy management – Health Line Service – Alert pollution via sms • Mobile reminders • Green mobile marketing – Aids treatment – Plant a tree via sms • Targeted service notification • Help communication between culture – Flu vaccination season – SMS services for expats Source: African Medical and Research Foundation (AMREF), Tomi Ahonen, 2006 28 | 32

Slide 29: 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 29 | 32

Slide 30: Next : what are you waiting for? “Interested by starting up a new Social Venture? A new idea to develop in China?” Contact us: ludovic [at] kalibrio.com 30 | 32

Slide 31: 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 31 | 32

Slide 32: Greetings and Contact • My heartfelt thanks to all the individuals who contributed to this document, and in particular: – Benjamin Joffe, CEO, +8* Ltd & Mobile Monday Beijing Organizer – Mike Kaiser, CEO, Agelos – Kate Druschel, Regional Coordinator – Grameen Foundation – Gabrielle Harris, Executive Director, PlanetFinance China – Florent Obesse, Sales Director, Cellicium • And to all of you who attended the presentation at Mobile Monday Beijing or will take interest in Social Ventures! • Feel free to update | share this presentation, other cases, comment, ideas, entrepreneurs are welcome to ludovic [at] kalibrio.com! 32 | 32