Regional Workshop on IMT for the Next Decade-Future Trends in Mobile Market and Data Services Bangkok, March 21, 2011

Enabling Mobile Broadband for Development

Outline

• Trends in Mobile Broadband

• Mobile “Development” Applications

• Enabling Factors

• World Bank Group Involvement

2

3

20112001

Phone

Email/SMS

Smart Grids/M2M

Green Technology

Video on Internet

Social Networking

Mobile Banking

3

Trends: Voice to Content

Trends: Industry Perspective

4

0

500

1000

1500

2000

2500

3000

3500

4000

ac

tiv

e s

ub

sc

rip

tio

ns

(m

illio

n)

2003 2004 2005 2006 2007 2008 2009 2010 2011

Global Cellular Active Subscriptions by System Standard (03-11)

WCDMA/GSM

GSM

PDC

TDMA

CDMA

Analogue & Other

Graphs: Ericsson

Faster data rates and rapidly

increasing number of mobile

broadband users worldwide

Business drivers: consumer

content delivery, value added

services

Access: East Asia & Pacific

5Source: ITU 2010

Broadband Demand: Pacific

6

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Inte

rnat

ion

al b

and

wid

th (M

bp

s /

Mo

nth

)

International leased lines

Mobile Internet

BB

Dial up

Mobile

Fixed lines

International Bandwidth Demand: Vanuatu (Mbps/month)

Source: World Bank 2010

Mobile Broadband Drivers

• Software applications on a mobile device that allow it to perform specific tasks, e.g. access specific information via a website, make payments and other transactions, play games, send messages

• Can be pre‐installed or downloaded via the mobile network

• Proprietary or open systems

• From SMS-based to IP-based, depending on device

Proliferation of mApps or mServices

• Financial Services: mobile payment and banking, wage and social benefit payments, financial literacy, savings and insurance

• Health services: basic medical records management, diagnostics, disease surveillance, supply chain, training

• Learning and education: mobile educational games, classroom support

• Farmer information services and help-lines

Technology & mApps

2G

2.5, 3G, LTE

• SMS

• MMS

• Helplines

• IVR

• Voice messages

• Applications

• Web & data enabled

• Applications

Source: GSMAH

ea

lth

Ed

uca

tio

n / L

ea

rnin

g

Financial

Go

ve

rna

nce

Ag

ricu

ltu

re

Information

Supply Chain Management

Health Financing

10

Treatment Adherence / Appointment

Reminders

Data Collection / Disease Surveillance

Health Information Systems & Support Tools

for Health Workers

Disease Prevention and Health Promotion

Emergency Medical Response Systems

Health services1

2

3

4

5

6

7

Emergency response tools , including creation of EMR via

mobile phones, and ambulance services whose reach is

extended with mobile usage in remote areas

Collection and analysis of patient data, particularly at clinics

or related to call centers that are used to triage services and

treatment; information to help health worker prioritization;

information on inventory (Note: overlaps with supply chain

management)

Use of smart-cards, vouchers, insurance and lending for health

services linked to mobile platforms (e.g., m-Pesa) or otherwise

enabled using mobile

Usage of mobile handheld devices to collect data remotely (e.g., by

community health workers); additionally, use of remote diagnostic

tools for disease surveillance and treatment; includes civic

participation in reporting outbreaks and disease information

Management of inventory and supply chain steps by mobile

tracking and communication; includes advocacy informed by

supply chain information

Use of mobile and SMS-based health information and

education to inform individual patients of preventive care

and treatment

Utilization of messages and voice to communicate treatment

and procedural reminders to patients (e.g., automated SMS

reminders to patients on chronic medication)

mApps: Health

Human

Payment for Health Services(consultation,

medicines, point-of-care tests,

appointment setting,

health information)

Payment(installment/credit) for:- Phone- Training Certification- Medical equipment

Revenue Sharing

Payment for Health-Data Collection

Payment for Health Data

Services

Livestock

Crops

Reputed Pharmaceuticals

Diagnostics

Community Health Worker (NGO worker

or entrepreneur)

Revenue share from referred

patients

Payment for referral visits

Revenue share from Medicines sold

HOSPITALS / SPECIALISTS

Govt./Donors/ Health Orgs

“Click” mHealth Business model

mApps: Education

12

REUTERS MARKET LITE

Current Information Scenario

Farm ersHelpline

PROVIDING FARMERS

INFORMATION

THROUGH SMS.

NOKIA LIFE TOOLS

mApps: Rural

Weather Forecast

Mandi Prices

Govt Policy

Health/ Edu Info

Dept of Agriculture

Deptt of Irrigation

Ministry of Power

CM’s Office

Farm ersHelpline

www.skymet.net

mApps: traffic monitoring (“crowdsourcing”)

10/14/2010 ICT Unit Overview 15

16

Market Participation & Linkages

OBJECTIVES

Agricultural Extension

Distance Education

Governance

Rural Finance, Infrastructure & ICT

Access and provision of agricultural information

Support and promotion of better farming methods

Improved education results Greater access & participation in

education

Access to government information Amalgamation of grassroots information

online for purpose of effective response

Finance and insurance on fair and equal terms which overcome rural challenges

Ease of payment & receipt Protection from impact of climatic

disaster Access to insurance for small farmers

Improved economic participation & income Information, insurance & finance Buy-sell trade without exploitation Hands-on linkage assistance

Resource Management

Clean water at affordable price & for irrigation purposes

Project

M.I.N.D

mApps: Development Objectives

mApps: Early Development Impacts

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Increased income through better

access to market informationHigher-yield production Improved efficiency in supply chain

Tradenet 23% premium on produceLower information asymmetry between

farmers and brokers

KACE75% of farmers & 60% of commodity

traders report increased income

Virtual CityTypically 9% increase in income for

each small scale farmerProduce volumes increased

Transaction time reduced from 3

minutes to 22 seconds

Cost of delivery reduced by 75%

DrumnetFarmer's income increased by 32%.

Easier access to agricultural inputs

Agricultural input suppliers gain

economies of scale

Bank credit worthiness increasedReduced transaction costs for financial

institutions

Kulimo Salama$150 increase in income per

smallholder /farmer

50%+ improvement in production due

to insurance on high yield inputs

Farmers in 1st year insured 10-20% of

their inputs, increased insurance to

50% of inputs in the next year

More efficient value chain leads to

lower retail costs

B2BPricenow.

com

Direct access to buyers improves

sales More efficient payment to members

via secure payment layerTotal volume of trade since inception

(year 2000) = $30 mil.

Farmers

texting centre

(FTC)

Planting varieties with higher yields 20% reported increases in production

eDairy

Additional income of $262 per

additional calf due to more timely

access to veterinary services

Milk production can increase by 30%

Accurate prices at delivery point

compared to prices confirmed days

after delivery in the past

mApps for Development: Experience

• Currently, most applications tend to be simple (e.g. data entry, SMS reminder) with single purpose

• Early indications of positive impact, on small scale

• Mobile money is a foundation for other m-applications in various sectors, enabling more sophisticated applications (e.g. crop insurance)

• Limited commercial viability of most ventures so far

• Telecom operators’ incentives need to be aligned to contribute

• Awareness raising and training needs to be built into business model as well as rigorous financing planning

• Significant investment in back-end databases/information systems would be needed to support scaling up

• Mobile broadband platform offers significant opportunities with the right business model

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Government Roles in Broadband Development

• Governments can stimulate more competitive service provision and increased investments in mobile broadband, through:

• Spectrum reforms: additional spectrum for 3G operators, spectrum re-farming to allow use of 850 and 900 MHz for 3G to realise cost savings and increase coverage; in-band migration 2G-3G-4G; making available 700 MHz band (e.g. from digital switchover) and/or the 2.5 GHz band.

• Unified licensing: transition away from vertical, service and technology-specific licensing to technology and service-neutral regime (several models).

• Open access to infrastructure: at active layers (separation of access & service provider roles of operators )and passive layers (buildings, ducts, pylons, dark fibre). Allowing non-telecom service providers to build passive infrastructure.

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Approach Leading country examples

1 Competitive tender &/or Government initiative to build new backbone &/or access infrastructure, including use of universal services funds or similar

Canada, Chile, India, Pakistan, Sri Lanka, Singapore, Malaysia, other USF countries

2 Create / Underwrite Demand Malaysia, Singapore, OECD countries

3 Stimulate Private Demand in the ICT Sector –e.g., PC initiatives, industry & educational initiatives, local services

Korea, China, Egypt, Thailand, OECD countries

4 Regulatory Reform, liberalisation, competitive fixed & unified licensing, creative spectrum policies

Pakistan, India, S. Africa, Chile, Brazil, Peru, New Zealand, Germany, UK, USA

5 Integral part of an Economic Stimulus package (1.38% GDP growth/10% Internet penetration)

USA, UK, Canada, Japan, Finland, Singapore, Korea, Australia

Policies and Regulations

• Spectrum reforms: additional spectrum for 3G operators, spectrum re-farming to allow use of 850 and 900 MHz for 3G to realise cost savings and increase coverage; in-band migration 2G-3G-4G; making available 700 MHz band (e.g. from digital switchover) and/or the 2.5 GHz band.

• Unified licensing: transition away from vertical, service and technology-specific licensing to technology and service-neutral regime (several models).

• Open access to infrastructure: at active layers (separation of access & service provider roles of operators )and passive layers (buildings, ducts, pylons, dark fibre). Allowing non-telecom services providers to build passive infrastructure.

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Infrastructure Investments

• Governments can provide funding or partial funding for extension of backbone networks to commercially more marginal areas, particularly in developing countries—to stimulate mobile broadband access

• Direct investments: through national budgets, donor-funded programs, special funds

– Subject to national budget priorities; and on role of public sector in telecoms service provision

• Catalytic investments/partnerships:

– Universal service funds: competitive tenders, capital subsidies, reverse auctions

– Consortium participation21

Demand Aggregation

• Governments can stimulate investment in broadband particularly outside major commercial centres by pooling national and/or local government demand and offering mServices

• Leveraging ICT in Education programs in developing countries (school broadband access). Many Government programs to provide connectivity to schools.

• Business support services (national, local level): e.g. online permits, licenses, land administration

• E-procurement: informational and/or transactional

• Trade facilitation services e.g. customs clearances, quarantine, other certifications

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World Bank Group in ICT Sector: 2000 - 2010

Sect

or

Ref

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Acc

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to IC

TIC

T A

pp

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sH

um

an C

apac

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and

Inn

ova

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• Sector reform: Bank active in 105 countries in last 10 years, infoDev’s regulatory toolkit and Open Access research

• PPPs for backbone infrastructure: IFC-led EASSy Project (22 countries, 30 operators, 4 other DFIs) in Africa – Bank-led Regional Communications Infrastructure Program (RCIP); other Regional Communications Infrastructure projects

• Wireless: IFC financing have so far contributed to 225 million mobile subs

• Infrastructure: IFC financing for Shared towers (Turkey and Brazil); Bank support for rural infrastructure (India, Sri Lanka);

• New broadband solutions: WiMax (Ukraine, Uruguay), Cameroon / Central Africa (Pipeline), West Africa (Electricity Transmission), Broadband wireless (Afghanistan)

• Banking the unbanked: IFC support to m-banking - WIZZIT (South Africa), Digicel in Caribbean & Pacific Islands, Millicom; infoDev’s m-banking knowledge map and research

• e-Government: Bank support in Vietnam, Ghana, Mongolia, Kenya; IFC support to Sonda (Chile), IBS (Russia), Meteksan (Turkey), Chinasoft; infoDev’s egovernment toolkit

• e-Health: Investing in cellular-based health systems, Voxiva (Africa – Latin America, health data management• Education: IFC support to Socket Works (Nigeria), new Bank-led ICT Skills development Initiative, infoDev’s ICT in education toolkit in

partnership with UNESCO, ICT in Education Strategy in Indonesia (Papua)• Partnerships and Knowledge: M-Banking Conference (GSM Assoc., DfID, CGAP), Industry Partnerships, Government Transformation

Initiative

• Supporting the growth of IT/IT enabled service industry: Bank’s support in Ghana, Mexico, Kenya, Sri Lanka; infoDev’s research on ITES industry and IT parks

• Cellular Distribution Facility: IFC- financed working capital facility program offering local banks creditline to cellular distributors to buy bulk airtime aimed for retail market

• Supporting the development of an ICT-Enabled innovation network: Leveraging infoDev’s business incubator initiative, which provides financing and TA to over 300 incubators for 20,000 MSME businesses in over 80 countries

• Supporting the development of holistic ICT policy frameworks: Increasingly developing countries are recognizing the linkage between innovation and economic development and the Bank is working with several countries

• Creating systems of innovations: DFID Low Carbon Innovation Centers, clean energy innovation centers

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Remaining ICT challenges

COVERAGE AND ACCESS GAPS

2002 2008

India: Rural versus urban teledensity

Rural

Urban

Access to the Internet remains a challenge

INEQUITABLE ACCESS

HIGH PRICES FOR BROADBAND

% of global revenues 2007

(total market - US$89 billion)

US & Canada61%

Middle

East

1%

Latin America2%

Asia8%

Europe28%

Africa

0%

Market for business information

GAPS IN CONTENT

$0

$200

$400

$600

Low

IncomeLow-Mid

Income

Up-Mid

IncomeHigh

Income

Average Monthly Lease Cost for a High Speed Internet

Connection (2Mbps)

10x

More

0

2

4

6

2000 2008

Total Telephone Subscribers

To be Connected: 1.8 bn

Developing Countries: 2.9 bn

Developed Countries: 1.3 bn

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Transform Innovate

Connect

New WBG ICT StrategySe

cto

r R

efo

rm

Acc

ess

to IC

T

Hu

man

Cap

acit

y

ICT

Ap

plic

atio

ns

2001 Strategy Emerging Directions

CONNECT – Maintain a focus on the connectivity agenda

with an emphasis on high-speed Internet including mobile

broadband

INNOVATE - Increase support for the use of ICT to unleash

innovation across the economy and for the growth of local

ICT industries

TRANSFORM – Scale up support to client countries to use

ICT to transform all areas of the economy. Focus on Apps25

“Transformational” Role of Mobile Broadband

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Largest Ever Delivery Platform:> 3 Billion Mobile Phones In Developing Countries

Back-end Applications (MIS, FMS, Procurement, etc.)

Enabling Environment:• Regulatory framework (sector-specific)

• Policies and standards• Shared infrastructure

• Interoperability framework• Cyber security

Foundations

www.worldbank.org/ict/strategyICTStrategy@worldbank.org

Thank You & Contacts

East Asia and Pacific RegionNatasha Beschorner (Jakarta): nbeschorner@worldbank.org