The document discusses USAID's digital development initiatives focused on expanding access to connectivity and mobile applications. It aims to extend rural access through low-cost mobile and broadband technologies. Key areas of focus include facilitating regulatory environments, universal access programs, and leveraging new technologies. USAID also supports the development and sharing of scalable, replicable mobile applications. This includes establishing cloud services and an applications marketplace. Mobile money programs are highlighted as a priority to increase financial inclusion through partnerships with governments, donors, and private sector actors. The goal is to replicate successes like M-Pesa in new countries through risk capital, enabling policies, and multi-sector collaboration.

1. USAID DIGITAL DEVELOPMENT
Access and Applications
Connectivity and Content
Enabling and Development
Facilitating Related
Environment Cloud
Services
Newer Shared,
Low-Cost Scalable and
Low-Power Replicable
Technologies Applications
Carrier Applications
Build Out and Content
in Rural Store
Areas

2. Access
Primary Focus for Access
Extending the Rural Reach
Low-Cost Mobile
Mobile Broadband
Urban-Rural Digital Divide
Ensuring Affordability

3. Enabling-Facilitating Environment Access
 National ICT Priority
 Competitive Environment
 Effective Regulatory Function
 Effective Universal Service Program

4. Low-Cost Low-Power Technologies Access
 New-Emerging Solutions
 Convergent Networks
 Reduction in Monthly TOC or ARPU
 Capable of Off-Grid Deployment

5. Rural Carrier Build Out Access
 Focus on Rural Build Out
 Leverage USFs & New Technologies
 New Business & Financial Models

6. Applications
Primary Focus for Applications
Enhanced Use of ICT
Shared Use
Scalable Solutions
Replicable Solutions
Lower Cost and Quicker Delivery

7. Development Cloud Services
Applications
 Foundation: Establishing Cloud Services
 NetHope-led Humanitarian & Development
Assistance Cloud
Scale and replication start with making available

8. Shared, Scalable & Replicable Apps
Applications
 Priority Focus on Solutions Reuse
 Research & Inventorying of Apps from other -
Suitable for Sharing
 Support for In-Country App Development
Identify, inventory and catalog solutions that already exist

9. Development Apps Marketplace
Applications
 Initial Marketplace w/i GBI Portal
 Part of Study w/ NetHope
 Potential Future Commercialization
Solutions
Center
Quick start to deliver solutions
of possible value to USAID and
larger development community

10. Digital Development at USAID
Mobile Money
May 2011

11. Why do we care?
• Reduce opportunities for corruption
1
• Track illicit financial behavior
2
• Close the gap on financial services access
3
97%
100%
Finland
% mobile phone penetration
50%
Mexico
South Africa
10%
The
Kenya Philippines Colombia
11
% Banked people % Mobile Penetration

12. Replicating mPesa
• M-PESA launched in 2007 when only 23% of Kenyans had a bank
account but 80% access to a mobile phone.
• The service has grown into one of the most successful in the world, with
more than 19 million customers and over 23,000 agents.
• Success has yet to be replicated elsewhere but we remain optimistic
about reaching scale in
– Ghana
– Indonesia
– Philippines
– Afghanistan
– Malawi
– Haiti and others

13. What needs to happen?
Going BIG in select countries Multi-sector collaboration
1. Offering risk capital for product 1. Garnering commitments to
design & development reduce reliance on cash-based
means of disbursement
2. Strengthening, enabling • Governments & donors
regulatory environments for
competitive business and 2. Identifying critical implementation
consumer protection • i.e. fast moving consumer
goods cos
3. Maximizing usage of emerging
payments capabilities 3. Promoting impact and
1. Our own operations opportunities
2. Our programs (serving • Media & researchers
farmers, schools, etc)
3. Host-country payments of 4. Anticipating frontier issues (re
salaries, pensions, etc inter-operability, new technology
disruptions, etc)
4. Expanding broadband
connectivity
13

14. Bank
Agent opens
Client opens
bank account
1 1 bank account
(accessible by
(accessible by
mobile phone)
mobile phone)
4
- Agent account debited
+ Client account credited
2 Cash-in
Agent
Client
Electronic
3
value sent