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1/2010 Mobile messaging, delivering more ways to connect Internet browsing – search, share, belong Using ICT to boost economic recovery

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Page 1: Expanding Horizons Q1 2010

1/2010

Mobile messaging, delivering more ways to connect

Internet browsing – search, share, belong

Using ICT to boost economic recovery

Page 2: Expanding Horizons Q1 2010

2 Expanding Horizons 1/2010

Brought to you by Nokia and Nokia Siemens Networks

4 Emerging markets: You’ve got mailEmail, instant messaging, social networking – mobile messaging, connecting a wider digital community.

8 Eco-friendly networks get green light within VodafoneBeing green makes good business sense. Trials with Vodafone in India are proving the technologies needed to cut network energy use.

10 Surf’s up. The rising wave of mobile browsingConsumers in emerging markets are finding their way onto the web in increasing numbers, and doing it from their mobiles.

13 The Internet goes internationalGlobal collaboration is helping to bring the Internet to new users in their own language and with greater security.

14 Small mobiles, micro-businesses, macro benefitsHow small businesses are using the mobile as their main ICT tool to help them cut costs and boost profits.

16 Is the world divided by broadband?While the gap between mature and emerging markets in mobile telephony has narrowed, the divide in broadband access has widened.

18 How ICT can help beat the crunchICT is one of the most effective ways to help economies climb out of the financial hole caused by the ‘credit crunch’.

22 From inspiration to prosperityNew support initiatives are helping entrepreneurs in emerging markets to overcome the many obstacles they face.

23 Move over computer, the mobile is hereThe PC remains a rarity in remote rural areas. Instead, it’s the mobile that is giving people access to new services.

Page 3: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 3

A new decade, a new beginning…

Welcome to 2010. Well over 2 billion people sent and

received messages on their mobile phones last year.

Most mobiles are used to send SMSs, while other mobile

messaging formats, such as instant messaging and email, remain in

the early stages of adoption. Even so, usnews.com says that 27 of

every 100 messages in China are sent using mobile instant messaging.

All in all, about three quarters of global electronic messages are sent

via mobiles.

Mobile browsing is also growing fast. India is second only to the

United States for Internet browsing on mobile phones, based on the

number of web page views on handsets. Mobile browsing will have a

significant impact in emerging markets over the next five years and

help bring more people online.

These services are good examples of hidden treasures – true game

changers. Sometimes in the midst of our busy lives we overlook the

most obvious signposts – the ones right in front of us.

The same is true for Expanding Horizons. Through the printed pages

of more than 20 issues, we have shared insight, information and

inspiration with you. With more than 4 billion people connected

(around 1.7 billion when we started) and all of us online, the time has

come for us to start living the way we preach. So, welcome to the final

print version of Expanding Horizons – join us in a new beginning at

www.nokia.com/expandinghorizons.

Going digital with our magazine also contributes to environmental

protection. Sustainable growth is a key issue as mobile communications

spreads even widely. Ecologically-friendly solutions also bring financial

benefits for all the parties involved; vendors, operators, governments

and consumers.

The way we communicate is evolving constantly. People in all parts

of the world are connecting in innovative ways. The end of an era is only

the beginning of the next one...

Let’s email! ([email protected])

Alex LambeekVP, Marketing Mobile Phones,Nokia Corporation

editorial

Frederic AstierHead of Marketing & Communications – Customer, Markets & Operations,Nokia Siemens Networks

Expanding Horizons is a publication aimed at ICT decision-makers in the private and public sectors. It explores the socio-economic benefits that mobile technologies offer as well as best practices from around the world in order to encourage affordable mobile communications and bring Internet to the next billion consumers. It also shows how to create a favorable environment for market growth.

Editor-in-chief Sanna Eskelinen, [email protected] Managing Editor Sirpa Lehmus Production Content produced by Armitage Communications: Tim Haines, producer, [email protected], Graphic design Indivisual. Contributors to this issue: Michelle Knott, Jere Hietala, Jussi Hyttinen. Printed by Libris in Finland.

Views expressed in this magazine are those of the authors and interviewees and they may deviate from the official view of Nokia Corporation, Nokia Siemens Networks or the companies referred to. Our objective has been to produce as accurate content as possible, but we cannot assume liability for any eventual errors or inaccuracies.

Copyright © 2010 Nokia Corporation and Nokia Siemens Networks. All rights reserved. Nokia and Nokia Connecting People are trademarks or registered trademarks of Nokia Corporation. Nokia Siemens Networks and the wave logo are registered trademarks of Nokia Siemens Networks. Other company and product names mentioned herein may be trademarks or trade names of their respective owners. Products and solutions herein are subject to change without notice.

ISSN: 1797-2086, code: D501-00535-EH-201001-1-EN

Page 4: Expanding Horizons Q1 2010

4 Expanding Horizons 1/2010

Only a quarter of the world’s population has an email account. But rising mobile phone adoption is set to take the use of mobile messaging to new levels, helping to bridge the digital divide and giving many emerging market consumers their first digital identity.

Email was the first ‘killer application’ of

the Internet. Coming at a time when

faxing was the leading-edge way to

send written messages and documents to

people, email was a revelation for many.

Now it’s the dominant business messaging

medium, with a strong following among

consumers too.

In 2009, more than 2 billion people used

mobile phones to send messages, whether

SMS, MMS, mobile email or mobile instant

messaging (IM). At the same time more

than 5 billion people did not have an email

account and in many cases have no access to

a computer. However, with technology

adoption in emerging markets continuing to

race ahead, the prognosis for mobile

messaging looks rosy.

According to Strategy Analytics, ongoing

mobile subscriber growth in regions such

as Central and Latin America, Asia Pacific,

and Middle East and Africa will drive mobile

messaging penetration to almost 3.2 billion

by 2013. Simple text messaging, or SMS,

remains the foremost mobile messaging

channel, being used by almost three-

quarters (69 percent) of those with mobile

phones. Other forms of mobile messaging are

in the early stages of adoption with mobile

email having a penetration of 11 percent

and mobile IM just six percent.

Emerging markets:

You’ve got mail

Page 5: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 5

These overall figures belie large

variations in behavior across different

countries. Some markets have achieved

high rates of use of mobile email already.

In Japan, email is the most dominant

mobile messaging service with 87 percent

penetration.

“There is undoubtedly tremendous

demand for mobile messaging in emerging

markets because people want to connect

with each other. But how you realize it in

individual markets is vastly different.

In China, mobile IM is more popular than

mobile email, whereas in India, email

and SMS-based messaging dominate.”

explains Dieter May, Vice President Emerging

Markets, Nokia.

“National programs exist in several

countries to drive up the adoption of mobile

data packages and are having real success.

Indonesia is a good example, thanks to the

government’s initiatives to connect people

with the Internet,” says May.

Mobile email a boost for business

For consumers lacking access to a computer,

mobile email is an opportunity to connect

to a wider digital community and access

services and information that would

otherwise be out of reach. “Unlike SMS,

email and other mobile messaging services

provide an easy link to desktop users and

is another example of how mobile

communications can enhance people’s lives

and productivity,” says Mark Thomas,

Director of Product Marketing, Consumer

Messaging, Nokia.

“For most people, their first experiences

of the Internet will come via the mobile

device and not the PC. When this happens,

the number of Internet users who will be

chatting and sending and receiving emails

from a mobile phone will dwarf those who

are messaging via their desktop computers,

PCs or Internet tablets.”

“Business users with no PC access are

using mobile email to take part in

commerce, to contact customers and

suppliers who are already email enabled.

Email seems to be a more acceptable form

of messaging for business than SMS.”

concludes Thomas.

In developing countries, where most people do not have Internet access, but more and more own mobile phones, ‘@Ovi.com’ could become as widespread an email address as say, ’@yahoo.com’ in the rich world.”The Economist

Page 6: Expanding Horizons Q1 2010

6 Expanding Horizons 1/2010

Mobilizing social connectionsWhat of the other messaging formats that

have come to prevalence since email made

its entry? In recent years, social networking

has created what is perhaps the biggest

change in people’s messaging behavior in

mature markets, particularly among the

younger generation.

“Anecdotally, it is clear that using social

networks to send messages has grown

tremendously, so much so that personal

email use is declining,” believes Thomas.

“Interacting with social networks from a

mobile miniaturizes the desktop experience

but also offers richer messaging than is

possible from a PC. For example, you can

add location information, perhaps enabling

recipients to see a map of where you

currently are.”

This view is supported by a September

2009 study by the US-based Online

Briefly stated:

• Mobile messaging is set to surge to

more than 3bn people worldwide with

most growth in emerging markets

• For billions of users with no email

address, mobile email opens up new

ways to interact in the digital world

• Mobile email, mobile instant

messaging and social messaging will

supplement ever-popular SMS to meet

huge demand

• Supported by affordable mobile data

plans and a simpler user experience,

messaging will meet people’s

aspirations

Publishers Association which found that

since 2008, communication sites offering

email and IM have decreased in their share

of consumers’ online time, due to the ability

to conduct messaging over community sites.

“Social networking in emerging markets

is in its very early stages, but it will grow

rapidly as mobile data becomes more

common,” adds Thomas.

May agrees: “The boundaries between

email and other messaging formats are

blurring. What matters is that people can

address their messaging needs in the most

suitable way. People decide on the fly how

to send a message. With a mobile device

contacts book it is easy to select the name

of the recipient and then decide the right

message type to send depending on the

situation.”

May also points out that the fastest

growing mobile network in India is SMS

Page 7: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 7

Gupshup, a Twitter-like messaging service

that is SMS-based. With more than 25 million

users, the service uses SMS as a technology

bearer to provide a social networking

experience that works on every mobile

phone. “SMS will be available for many

years to come because mobile broadband

will take time to spread and become widely

accessible to most people. Through SMS you

can have a similar experience as any other

social networking site and all the people

you know with a phone can be part of your

network,” he says.

As for mobile IM, the service has achieved

pockets of success in markets such as China

and South Africa, says Strategy Analytics.

In China, mobile IM has been available since

2000 through

Internet provider

QQ and has

achieved almost

18 percent

penetration of

mobile users.

In South Africa,

mobile IM has

reached 15 percent

penetration.

What’s holding back messaging?The demand in emerging markets for mobile

messaging is evident in the response to the

availability of the Nokia Ovi Mail service.

The service is aimed primarily at consumers

in emerging markets without a PC and has

attracted more than 5 million users in about

180 countries. “Ovi Mail is issuing email and

IM identities for lower cost devices. Anyone

with a Nokia device can create an Ovi

account so a critical mass of users already

exists to enable mobile messaging to fly,”

says Thomas.

That said, barriers to wider adoption of

mobile messaging remain. The most

important is affordability and transparency

of cost, with users fearing huge bills. A 2009

survey by Nokia and Nokia Siemens Networks

of nearly 80 emerging

market countries found a

huge variation in the cost

of accessing data services

from mobile devices.

Countries like Bangladesh,

India and China all enjoy

relatively good data

services affordability

thanks to favorable

regulatory environments

and innovative operator

strategies and business

models.

“Many operators

recognize the huge potential of mobile

messaging and have already taken steps to

help overcome the

affordability barrier.

Devices that are sold

with affordable data

plans are also vital.

Users want a full

messaging experience

on low end phones and

we are delivering that.

Discoverability is

another issue that is being addressed by

building social networking clients into the

phone,” explains May.

Messaging makes new demands on

Mobile email experiences – supporting small business

The impact of mobile email on small

businesses in emerging markets is

illustrated by the case of Liastri, the

owner of a fabric shop established about

30 years ago in Jakarta. The business has

never had a computer and Liastri used to

stay in touch with her family, friends and

customers by calling or sending letters.

“Now, when I have family news or a

special order I can just send an email

from wherever I am. It makes my life so

much easier. I feel closer to the people I

care about and I can more easily run my

business. That’s pretty amazing for a

small phone.”

What matters is that people can address their messaging needs in the most suitable way.

devices too. “The advent

of touch screens and

QWERTY keyboards has

helped to drive the

greater adoption of

mobile messaging in

mature markets. The

lower end devices that

dominate in emerging

markets currently lack

these capabilities. But

there are solutions under

development such as

speech-based input which

exists already on high end

devices,” says Thomas.

Larger screen sizes to display richer

messaging content and finding new ways to

limit the amount of data that messaging

uses over the network are further areas that

can improve the affordability and usability

of messaging in emerging markets.

Let’s leave the final word to May:

“The growth potential for mobile messaging

is phenomenal. We need to educate people

about the possibilities and make it easier

and more affordable to access the services.

It will take time, but we see time and time

again how people’s aspirations in emerging

markets drive up growth. The same will be

true in mobile messaging.” ■

Page 8: Expanding Horizons Q1 2010

8 Expanding Horizons 1/2010

Environmental leadership can be a differentiator for operators. Being green makes good business sense, not just in reducing costs but also because it’s an increasingly visible issue for consumers. Vodafone recognizes the issue and has pledged to reduce its CO2 emissions by 50 percent by 2020 and its trials in India are showing the way forward

1.5 billion people currently live

without access to electricity *1.

That’s more people without

electric lighting than when Thomas Edison

commercialized the incandescent light bulb

in the 1880s.

It’s a remarkable number, not least for its

impact on the spread of communications

across emerging markets, where almost a

quarter of new mobile base station sites

will be built off the power grid. The GSM

Association estimates that 75,000 off-grid

sites will be built in emerging markets each

year through 2012.

Making this kind of growth sustainable

will take innovative, cost-effective and

energy-efficient networks. Ecologically-

friendly systems will not only support

operators’ environmental responsibilities,

but also be financially beneficial, helping to

make communications more affordable for

consumers.

Energy efficiency benefits

As communications networks spread into

more remote rural areas, the challenge of

powering them is increasingly urgent for

operators. Furthermore, with the network

accounting for almost 90 percent of an

operator’s energy consumption, it makes

financial sense to adopt more energy efficient

technologies to reduce operating costs.

It’s an issue that several operators

worldwide are pledging to address with

published commitments to cut carbon

emissions. Vodafone has said that by 2020

it will reduce absolute CO2 emissions by

50 percent against a 2006/07 baseline.

Eco-friendly networksget green light within Vodafone

*1 International Energy Agency (IEA)

Page 9: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 9

“There are two clear reasons for grappling

with this issue,” says Andy MacLeod, Director

Group Networks, Vodafone. “The first is cost.

Energy is our fourth biggest operating cost

and we have seen energy prices rise

dramatically over the last three years. We

have year-on-year targets to reduce these

costs, particularly the energy costs of base

stations. Secondly, we are committed to our

corporate social responsibilities with regard

to CO2 emissions and to complying with

tougher legislation on the issue.

“We are very focused on reducing the

energy consumption of network equipment

and finding sustainable ways of powering

base station sites. This is particularly

important for off-grid sites and where the

electricity supply is unreliable. In many

areas the electricity supply is off as much as

it is on.”

India trials show the possibilities

A wide range of technologies and techniques

is being evaluated by Vodafone for reducing

network energy consumption. Examples

include higher ambient temperatures for

equipment and batteries to reduce the need

for power-hungry air-conditioning;

mounting radio equipment directly onto

antennas to reduce cable losses, and

deploying so-called single RAN sites in which

all radio technologies (2G, 3G and LTE) run

on a single base station element.

Meanwhile, ongoing trials at two

Vodafone sites in India are proving the value

of green technologies in helping the

operator to meet its site power supply aims.

Using Nokia Siemens Networks off-grid site

solution, the trials have reduced diesel oil

consumption by up to 80 percent and

achieved further operational cost savings

through reduced site maintenance visits and

overcoming diesel theft. Network availability

has also increased with fewer outages due

to missing diesel.

“The trials are helping us to understand

how we can engineer these solutions into

our network and to better understand the

As energy prices go up, these solutions become more compelling.”Andy MacLeod, Director Group Networks, Vodafone

costs. As energy prices go up, these solutions

become more compelling. And we also have

to consider the CO2 reduction aspect which

can bias the decision towards an earlier

deployment in some markets. There is not a

single solution that is right for all markets.

If fresh government or regulatory incentives

were created in a market, for example, then

I am sure we would see a speedier adoption

of these technologies,” MacLeod says.

Smart control of energy

The technology deployed in the India trials

uses a combination of solar power, wind

power and diesel generators, coupled with

advanced energy control and remote

monitoring. Typically such a recipe can

achieve a payback of two to three years.

“For the next few years this blend of

technologies is likely to be the most effective

solution. Remote monitoring and intelligent

control of the system to smartly manage the

interaction of the different power sources

on site, including battery charging and

discharging, are vital to optimize the costs.

We think there is a lot of opportunity here

and the Nokia Siemens Networks system is

one of the more advanced solutions we

have seen.” explains MacLeod.

Deploying ecologically-friendly networks

involves some complex cost calculations to

make a business case that will win funding

from an operator’s top management who

must also consider many other areas of

business investment. Often, says MacLeod,

the need to upgrade a site, to build more

capacity for example, will mean that an

energy efficient solution is installed more

quickly.

“We are fortunate in that the need to

reduce CO2 emissions and be more

environmentally responsible, aligns with our

business needs to reduce costs. It’s a perfect

fit,” concludes MacLeod. ■

Andy MacLeod,

Director Group Networks,

Vodafone

Page 10: Expanding Horizons Q1 2010

10 Expanding Horizons 1/2010

Surf’s up.The rising wave of mobile browsing

People in emerging markets are rapidly embracing mobile Internet browsing, paralleling the growth seen in mature markets. It’s a phenomenon that is opening up business opportunities for operators, beyond simply providing high quality access.

Page 11: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 11

day browsing.

The findings back up Nokia’s own

research which shows that mobile browsing

currently generates about 60 percent of

smartphone data traffic worldwide. The

advent of mobile broadband and flat-fee,

‘all-you-can-eat’ tariffs is further driving the

mobile browsing boom.

“We are seeing a dramatic increase in

the popularity of mobile browsing in just

about all emerging markets, especially those

in which an operator has been highly

aggressive in its pricing strategy. What’s

more, the trend is not restricted to high-end

devices. People are using phones across the

range to browse,” comments Andy Kelm,

Briefly stated:

• Mobile Internet browsing is rising

fast in emerging markets

• People show similar online behavior

as mature market users

• Operators can generate significant

revenue through added value services

• Operators need the right

infrastructure to provide a superior

browsing experience

It’s probably the simplest of all data

services to use. It’s one of the most

powerful too. It can take you around the

world, but still offers local insight. It’s fun,

yet it’s also a practical tool to help people in

their daily lives.

Internet surfing is a fast growing trend in

emerging markets. A November 2009 report

from Informate Mobile Intelligence reveals

that India is now second only to the United

States for Internet browsing on mobile

phones, registering the second highest

number of web page views using handsets.

The telecommunications research agency

says that mid-range and high-end handset

users in India spend nearly 40 minutes per

Director, Proxy Browsing Services, Nokia.

A key technology that enables the use of

handsets for Internet access is proxy

browsing. Proxy servers, typically run by an

operator or third party, convert standard

web pages into content that is viewed

easily on most handsets. Kelm explains:

“Today’s web pages have become so large

that even high-end handsets struggle to

process the amount of data coming at them.

With less powerful devices, browsing

becomes impractical. The proxy server

reduces the data payload by as much as

90 percent. This means that a user with

even a modest device is able to open a web

page in seconds.”

The demand for services from the

Internet is clearly high and growing. With

search engines, global social networking

and content sharing portals topping the list

of the most accessed websites, what is the

role of the operator?

Revenue from added services

Operators are well placed to capture the

opportunities opening up, both in delivering

high quality access to the Internet and by

offering associated services to subscribers.

“Data in emerging markets currently

accounts for a small proportion of overall

revenue, but there is enormous growth

potential. By tailoring services and pricing to

meet local needs and promoting mobile

Internet uses that impact real lives, there is

no reason why data revenue cannot grow to

be a significant source of operator revenues

within a few years. The opportunity is the

same as we have seen in mature markets,”

says Kelm. ➜

Page 12: Expanding Horizons Q1 2010

12 Expanding Horizons 1/2010

What do people browse?

A Nokia Siemens Networks analysis of

the browsing habits of people in ten

emerging markets reveals remarkable

similarities to mature markets in the

services being used. The countries

studied were India, Jordan, Kenya,

Madagascar, Mauritius, Morocco, Pakistan,

Thailand, Ukraine and Vietnam.

Search comes first

In most countries the major search

engines feature the most often in the top

ten most popular services, showing that

people value being able to explore the

Internet on their own terms. Google is

dominant, with Yahoo and Windows live

making it into the top ten in most

countries.

Yearning to belong

Social networking sites (primarily

Facebook) were also highly popular in

all studied countries, topping the list in

two. The Internet is clearly about

connecting people with their peers in

these countries as much as anywhere

else in the world. At least two social

networking sites were on the list of

each country, except for Vietnam, which

had only one.

The rise of sharingThe importance of social interaction is

underlined by the presence of content

sharing sites, demonstrating how much

being connected is about sharing things

– particularly content like online video.

YouTube was featured on the lists of nine

countries while Wikipedia made it to

those of six.

Going global, staying local

Despite the popularity of the global sites,

eight out of the ten countries had a local

Internet portal or content site (typically

with news content) in the top ten. The

demand for local content is also reflected

in the search terms entered into Google

in each country (source: www.google.

com/insights/search/#). In a majority of

the countries surveyed, the name of the

country itself or its main city was one of

the most-entered search terms in Google.

Also, it is worth noting that the big

international sites that dominated the

Internet usage in these countries, like

Google, YouTube, Yahoo or Facebook, are

typically interaction platforms that lend

themselves readily to the consumption

and distribution of local content or

communication with family and friends.

The prospects for operators go much

further than simple access. There is plenty of

additional revenue to be gained from

providing add-on services such as advertising,

data storage, and parental control.

Take profiled advertising. By using its

insights into its subscribers’ online

behavior, their location or demographic

standing, operators can offer companies

the opportunity to reach mobile customers

with personalized adverts. For example,

an operator portal or online newspaper

could display different advertisements based

on end-users’ gender and age. Or a company

could sponsor branded browsing sessions,

which would provide free access for users.

Similarly, a parental control service could

be implemented to help families protect

younger users from undesirable content.

Without such controls, many parents may be

unwilling to let their children browse the

Internet at all, thus depriving them of access

to useful and educational content.

A gateway to success

The most cost-effective way to provide such

value added services cost-effectively, and to

provide subscribers with a faster browsing

experience, is to install a browsing gateway.

The Nokia Siemens Networks Browsing

Gateway, for example, can provide up to four

times faster browsing, a halving of data

traffic across the network, and easy

activation of personalized services.

A good illustration of the capabilities of

a browsing gateway is an installation by

Hutchison Indonesia in 2009. As a challenger

operator, Hutchison set itself the goal of

providing its customers with the best mobile

browsing experience in the market. The

browsing gateway was a key component of

its plans and helped the operator to achieve

a ten-fold increase in browsing traffic within

just six months. Furthermore, the customer

experience improved through a 70 percent

reduction in failed connection attempts.

In another instance, China Unicom

replaced an existing WAP gateway with a

Nokia Siemens Networks Browsing Gateway

and was able to make 50 percent savings on

its radio and backhaul bandwidth with

minimal impact on its operating costs by

being able to use its existing WAP charging

and business management systems.

“Mobile browsing is set to have a

significant impact in emerging markets over

the next five years. Another billion people

will come online as devices find their way

into the hands of people in lower and lower

income brackets and services become more

affordable. We are still in the early stages

and the world isn’t yet fully prepared for the

services and business models that need to

be developed for these people. The next few

years will see a transformation in the way

that people think about the Internet in

emerging markets,” believes Kelm. ■

Mobile Internet browsing services have significant growth potential as another billion people come online.”

Page 13: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 13

The Internet

goes international

Global cooperation to create the rules governing the Internet is helping to make this powerful tool available and relevant to more and more people worldwide

It’s easy to think of the Internet as a

global phenomenon. Yet almost

three-quarters of the world’s population

do not use the Internet. Although it

connects all continents, obstacles hinder

the Internet’s use by most people. While

improving

affordability

and access are

priorities, other

hurdles are

being tackled

by Internet

governance

bodies.

One barrier

is language. With many people in emerging

markets having a poor command of written

English, it’s vital that content is locally

relevant and in the user’s own language.

While browsers now support many different

scripts, the issue of domain names in Roman

characters has remained, until now.

In late 2009, the Internet Corporation for

Assigned Names and Numbers (ICANN)

launched a fast track process for assigning

Internationalized Domain Names (IDN). Now,

nations can apply for Internet extensions

that use non-Latin characters.

World languages online

“The introduction of non-Latin characters

represents the biggest technical change to

the Internet since it was created four

decades ago,” said ICANN chairman Peter

Dengate Thrush. “Right now, Internet

address endings are limited to Latin

characters – A to Z. But the Fast Track Process

is the first step in bringing the 100,000

characters of the languages of the world

online for domain names.”

Six requests from countries representing

three different languages were immediately

made. The first was from Egypt, which wants

.masr as a new domain name written in the

Arabic alphabet. It translates as Egypt.

Other issues are being addressed by the

international community, such as the

adoption of IPv6 to overcome the shortage

of IP addresses, new generic Top Level

Domains (gTLD) to expand the choice of

digital identities, and DNS security to protect

against online

attacks and other

threats.

Another step

came with the

September 2009

signing of the

Affirmation of

Commitments

(AoC), which

commits ICANN to remaining a private,

not for profit organization. The AoC also

declares that ICANN is independent and not

controlled by any one entity.

“The affirmation underlines ICANN’s

independence for the first time since it was

created with the assistance of the United

States Government,” says Jonne Soininen,

Technical Liaison Group representative at the

ICANN Board of Directors.

Joined-up governance

The success of these initiatives depends

on the global cooperation of governments,

industry and organizations. The United

Nations body, the Internet Governance

Forum (IGF), provides a platform for such

collaboration.

“The IGF is a conduit for discussion

between countries. Successful Internet

governance also needs to take into account

all stakeholders’ interests. India, for

example, is making fast progress with a clear

understanding of the policies needed to

support economic development,” says

Soininen. “Along with mobile access and

broadband capabilities, an Internet that is

open to all is a key pillar in using ICT to

support sustainable development in

emerging markets.” ■

The introduction of non-Latin characters represents the biggest technical change to the Internet since it was created four decades ago.”

By region, Asia Pacific has the highest number of Internet users. Africa has the lowest.

Source: IGF http://www.intgovforum.org/cms/2009/sharm_el_Sheikh/media/FS-Worldwide.doc

Americas 28%

Asia and the Pacific 41%

Europe 22%

Africa 2%

CIS 4% Arab States 3%

Page 14: Expanding Horizons Q1 2010

14 Expanding Horizons 1/2010

Small mobiles, micro-businesses,

macro benefits

Tiny enterprises are the powerhouse of many emerging market economies. Entrepreneurs are using mobiles as a daily business tool to boost profits and cut costs

It should be no surprise that information

and communications technology (ICT) can

boost an enterprise’s productivity and

profits. In Thailand’s manufacturing sector

for example, companies using computers

had, on average, ten times higher sales per

employee than those without computers.

Yet in emerging markets the share of firms

that use at least one computer for business

remains relatively low, especially among

smaller companies and in rural areas. *1

Instead, it is mobile communication that

has become the foremost ICT tool for the

small businesses and microenterprises that

dominate the emerging market business

landscape. Mobiles are used every day by

tiny enterprises for conducting business.

According to a United Nations Conference

on Trade and Development (UNCTAD)

report, one in four mobile subscribers in

the United Republic of Tanzania use their

devices for business, while a majority of

microentrepreneurs in Egypt and South

Africa say that mobiles had helped boost

profits. Mobile phones are brought into play

to conduct sales and purchases, negotiate

prices, manage customer relationships and

reduce the need to travel.

The convenience of mobile

“In Africa, people use voice as a convincing

and trusted tool. They want to hear

customers talking to be able to gauge their

sincerity. But when numbers are involved,

such as dates, costs or quantities, then they

use SMS for accuracy and proof of an

agreement,” explains Jussi Impiö, Head of

Nokia Research Africa (NoRA). “As always,

the adoption of services is very cost sensitive

in Africa. People even calculate how many

words they can say in a voice call for the

same price as sending an SMS.”

Cost is one reason behind a growing

interest among some African entrepreneurs

in the use of mobile email for business

communications. According to Impiö, email

is seen as ‘free communications’, as well as

allowing documents, such as receipts and

delivery notes, to be sent. “Email is

considered to be more reliable and more

professional than SMS,” he says.

Page 15: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 15

“However, the use of SMS is being

explored for wider purposes such as

marketing. While the technique is already

established in India, it is just coming to

Africa. SMS marketing is unproven, sales can

be generated, but it needs to be used

sensitively to avoid becoming intrusive.”

More advanced services needed

There has also been a rapid growth in

mobile banking services, enabling small

businesses without a bank account to

transfer money. Moving towards a cashless

economy through the use of mobile

payment is convenient and has the potential

to reduce crime and corruption.

Clearly there are huge benefits to

microenterprises using mobile

communications. Impiö says that African

entrepreneurs themselves estimate a growth

in income of between 20 and 75 percent,

with the first adopters gaining a strong

competitive advantage.

However, life for African entrepreneurs

is getting tougher. The initial benefit of

being first with mobile communications

erodes in time as rivals join the party and

the local market becomes saturated.

Furthermore, Africa’s population has just

passed the 1 billion milestone. The continent’s

population is growing by about 24 million

per year, and will double by 2050. *2

“This is creating a massive growth in

entrepreneurship and much tougher

markets, particularly in urban areas. The use

of more advanced services to reach larger

markets can help to offset the increased

competition. Plus, strong African social

networking provides a lot of peer support

to help people to make the most of the

possibilities,” comments Impiö.

Communications and affordable access

to information also has the power to help

change the business environment. Impiö

reports that even sensitive issues regarding

licensing and other business governance

aspects are beginning to find a wider

audience. “People are using their mobiles to

listen to radio chat shows and then calling in

anonymously with their opinion. Traditional

media outlets like newspapers are reporting

the discussions, enabling them to cover

issues they would not normally be able to

address because of censorship.”

Clearly there is demand for richer

features in mobiles to help small businesses

grow, says Impiö. “But not all problems

can be solved by the mobile alone.

Education, governance, infrastructure and

basic functions within societies need to be

improved. When looking at the micro-

economics of tiny enterprises, we need to

also recognize the macro-economics in order

to understand how sustainable growth can

be achieved.” ■

*1 UNCTAD Information Economy Report 2009*2 2009 World Population Data Sheet, Population Reference Bureau

Page 16: Expanding Horizons Q1 2010

16 Expanding Horizons 1/2010

Is the world

divided by broadband?

surged from 54 million to almost 350 million.

At the end of 2009, according to the

International Telecommunication Union

(ITU) there were about 4.6 billion mobile

subscriptions worldwide, with many

countries enjoying penetration well above

100 per 100 inhabitants. Mobile growth

remains strong despite the global economic

The digital divide has been talked about for years. But how well is the world doing in closing the gap? Despite the huge success of mobile communications, when it comes to broadband Internet access, the picture is not so rosy

Africa – where the divide becomes a chasm

Africa lags other regions in Internet

use and even more in broadband

connectivity. Most other emerging

markets boast a broadband penetration

ten times higher than Africa’s. Africa’s

broadband use is also very concentrated,

with five countries (Algeria, Egypt,

Morocco, South Africa, and Tunisia)

accounting for 90 percent of all

broadband subscriptions.

Furthermore, 14 of the world’s 20 most

expensive countries for broadband fees

are in sub-Saharan Africa. Even within

Africa, the price divide is huge. According to

ITU data, monthly access to broadband

services costs on average more than 1,300

US dollars in Burkina Faso, the Central

African Republic and Swaziland. Subscribers

Australia, a country with 21 million inhabitants, has more broadband subscribers than the whole of Africa”

When it comes to broadband

access to the Internet, it seems

that the gap between the

‘haves’ and ‘have-nots’ is as wide as ever.

The stunning rise in mobile communications

across emerging markets has yet to be

matched by the growth in Internet use.

A recent report by the United Nations

Conference on Trade and Development

(UNCTAD) claims that more than half of the

population in developed markets is now

online, compared to just 15 percent in

emerging markets.

The report also says that the gulf

between mature and emerging markets is

widening when it comes to broadband

Internet access. A person in a developed

country is eight times more likely to be a

broadband user than someone in an

emerging market.

Why does the digital divide in broadband

Internet use remain so wide?

Mobile growth continues apace

To find some answers, let’s wind

back a few years. In 2003, the least

developed markets typically had a

mobile penetration of two per

100 inhabitants. In 2008, that

figure had shot up to 20 per

100 inhabitants. In those same five

years, Africa’s mobile subscriptions

pay less than 13 US dollars in Egypt and

Tunisia.

UNCTAD says that measures targeting

the roll out of broadband to areas with

low connectivity are required. Making

significant progress in Africa will require

cooperation between the national

governments, the donor community,

and the private sector.

Page 17: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 17

The 20 most dynamic economies in terms of increased levels of mobile penetration, 2003–2008

Mon

tene

gro

Qat

ar

Bahr

ain

235

203 190 138 132 120 142 178 143 117 121 124 146 136 123 105 116 169 150

Mal

dive

s

Russ

ian

Fede

rati

on

Ukr

aine

Bulg

aria

Uni

ted

Arab

Em

irat

es

Sain

t Ki

tts

and

Nev

is*

Arge

ntin

a

Om

an

Dom

inic

a*

Latv

ia

Serb

ia

Rom

ania

Uru

guay

Trin

idad

and

To

bago

*

Mac

ao, C

hina

Lith

uani

a

Anti

gua

and

Barb

uda*

180

Source: UNCTAD, based on ITU and national dataNote: * 2003–2007 change. Mobile penetration: Number of mobile subscriptions per 100 inhabitants. The bars indicate the change in penetration level 2003–2008. For example, in the case of Qatar, the penetration rose by 144, from 59 to 203 subscriptions per 100 inhabitants.

0

40

80

120

160

20

60

100

140

Developing Developed Transition Penetration 2008

135

downturn. India registered almost 100 million

new mobile subscriptions during the first

seven months of 2009.

In contrast, the digital divide for

broadband, dubbed the broadband divide,

is stark. For example, Australia, a country

with 21 million inhabitants, has more

broadband subscribers than the whole of

Africa. A person in a developed country is on

average at least 200 times more likely to

enjoy high-speed access to the Internet than

someone in a least developed country.

Mobile broadband offers a way forward

“When we look at the different information

and communications technologies (ICT) we

see a narrowing of the gap between mature

and emerging markets in fixed telephony,

mobile telephony and narrowband Internet

access. But in broadband, the gap is

widening,” says Torbjörn Fredriksson, ICT

Analysis Section at UNCTAD.

But could the tide be turning? The fastest

broadband growth is found in large

emerging markets. China has already

become the world’s largest broadband

market. Yet many countries’ lack of fixed line

infrastructure remains a huge barrier.

“Today there are more mobile broadband

subscribers than fixed broadband

subscribers, a trend that is likely to grow in

countries with poor fixed infrastructure.

Mobile telephony spread rapidly as the total

cost of ownership (TCO) fell. I expect the

costs for mobile broadband to reduce too,

encouraging greater use of mobile data,”

comments Fredriksson.

Learning from others’ success

UNCTAD highlights the success of several

countries in achieving greater mobile and

broadband penetration.

“Common to these countries is market

liberalization and open competition among

operators. It’s a critical ingredient for

ensuring sufficient broadband supply at

reasonable prices. Countries with higher

levels of education also tend to perform

better as using the Internet requires more

skills than basic telephony,” believes

Fredriksson.

“We also recommend that regulatory

environments should encourage operators

to share state-of-the-art backbone

infrastructure, but this must be achieved

while maintaining open competition.”

Fredriksson concludes by saying that

governments have a responsibility to

explore all broadband connectivity options.

“Improved broadband connectivity can help

to achieve many economic and social

development objectives, and governments

play a critical role by setting the terms for

broadband roll out.” ■

The 20 most dynamic economies in terms of increased Internet penetration, 2003–2008

Ando

rra*

Arge

ntin

a

Latv

ia

50 47 35 42 45 52 34 32 57 63 60 78 31 29 48 48 27 45 33

Colo

mbi

a

Anti

gua

and

Barb

uda

Hun

gary

Slov

akia

Repu

blic

of

Mol

dova

The

Form

erYu

gosl

av R

epub

lic,

Mac

edon

ia

Barb

ados

*

Sain

t Ki

tts

and

Nev

is*

Mac

ao, C

hina

Berm

uda*

Saud

i Ara

bia

Iran

, Isl

amic

Re

publ

ic o

f

Jam

aica

Baha

mas

*

Bosn

ia a

nd

Her

zego

vina

*

Czec

h Re

publ

ic

Kuw

ait

60

Source: UNCTAD, based on ITU and national dataNote: * 2003–2007 change. Internet penetration: Number of users per 100 inhabitants. The bars indicate the change in penetration level 2003–2008. For example, in the case of Argentina, the penetration rose by 35, from 15 to 50 users per 100 inhabitants.

0

20

30

40

10

50

Developing Developed Transition Penetration 2008

71

UNCTAD’s ‘Information Economy Report

2009: Trends and Outlook in Turbulent

Times’ can be downloaded from:

http://www.unctad.org/en/docs/

ier2009embargo_en.pdf

Page 18: Expanding Horizons Q1 2010

18 Expanding Horizons 1/2010

Page 19: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 19

How ICT can help

beat the crunch

The ‘credit crunch’ has been called the

worst financial crisis for 80 years, the

most severe since the Great Depression

in the 1930s. In its Global Monitoring Report

2009, the World Bank says that as many as

90 percent of developing countries are

exposed to the impact of the crisis, as they

face slowing growth, high levels of poverty,

or both.

In a May 2009 speech, UNCTAD Secretary-

General Supachai Panitchpaki noted that

the global crisis did not hit the developing

world rapidly, as it had the United States

and Europe, but that the difficulties facing

less-advanced economies have been

“gradually emerging and penetrating the

developing economies through various

means.”

Although the Information and

Communication Technology (ICT) sector has

fared better

than most

industries

through the

crisis, it is

clear that

operators are

facing greater

challenges in accessing capital and financing

their network investments, slowing plans to

roll out next generation networks and offer

enhanced services to consumers. On the

The global financial downturn has forced industrialized countries into recession and slowed economic growth in emerging markets. During recovery, it is vital that the right ICT policy and investment decisions are made now to deliver social, economic and environmental benefits for decades to come.

Briefly stated:

• Despite the economic downturn,

mobile communication has much

potential to help lift emerging market

consumers out of poverty

• Global cooperation is essential to

make the most of the opportunity to use

ICT to achieve sustainable growth

• When ICT services are used

effectively, business productivity rises,

public services are more efficient and

consumers gain more value

• Mobile technologies are greener.

Handsets and network infrastructure

make significant contributions to

emissions reduction

other hand, the downturn has created an

opportunity to highlight the benefits of

investing in ICTs as one of the most effective

means of helping to achieve a sustainable

recovery and long term economic growth.

Now is the time to take action

“This is a time of heightened risk and

industry transition, but also a time of great

opportunity for the ICT industry. This is a

time when the ICT industry can really prove

what a large and significant contribution

it makes to fuelling economic growth

and driving economic recovery,” claimed

Dr Hamadoun I. Touré, ITU Secretary-General

in a speech in May 2009.

There is little doubt that ICTs, especially

mobile communications, contribute to

economic growth. For example, a recent

Vodafone Policy Paper showed that Indian

states with high

mobile penetration

rates grew faster

than those states

with lower

penetration rates,

enjoying an average

of 1.2 percentage

points more growth per year for every 10

percent increase in penetration.

There have been many such projects that

aim to promote development through ICT.

Today’s big issues, such as the economic slump or climate change, are no respecters of borders.”

Page 20: Expanding Horizons Q1 2010

20 Expanding Horizons 1/2010

About 86 percent of an operator’s energy is used by the network

Source: ABI Research

Switch sites 21%

Corporate sites 12%

Mast sites 65%

Maintenance vehicles 1% Retail 1%

A decade of ICT growth driven by mobile technologies

80Per 100 inhabitants

Source: ITU World Telecommunication / ICT Indicators Database.* Estimates

01998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

7.1

9.517.8

25.9

67.0

10

30

50

70

20

40

60

Mobile cellular telephone subscriptions An estimated 4.6 bn subscriptions globally by the end of 2009Internet users

Fixed telephone lines

Mobile broadband subscriptions

Fixed broadband subscribers

For example, Nokia Siemens Networks

recently announced a partnership with the

International Telecommunication Union

(ITU) to extend mobile coverage to some of

the Pacific islands for the first time using the

Village Connection solution.

Such initiatives need to be

complemented by a global perspective,

believes Anne Larilahti, Head of

Environmentally Sustainable Business (ESB)

at Nokia Siemens Networks. “Today’s big

issues, such as the economic slump or

climate change, are no respecters of borders.

Governments need to think beyond national

boundaries. To build a global ecosystem

that will deliver a sustainable growth path,

we need to look at the wider implications

of our actions and how all nations can

contribute and support wider societal goals.

Planning for growth over a longer timescale

is also important, with timeframes of 20, 30

or even 50 years taken into consideration.”

What can governments do now to use

ICT to stimulate economic recovery and

create a suitable environment for growth?

The ITU suggests measures such as changing

legislative policies to be friendly toward

ICTs, making it easier for business and

consumers to invest in ICTs, providing

universal access to the Internet by investing

in broadband, and encouraging technology

innovation. “Countries that spend

strategically today will find themselves more

competitive tomorrow,” the ITU says.

Making connectivity more useful

Reaping the benefits of ICT is about more

than just providing the basic infrastructure.

The full benefits of ICT are realized only

when consumers, businesses and

governments use the services being offered,

and do so on a significant scale. Using ICT

effectively not only boosts business

productivity, but also improves the efficiency

of public services and delivers value for

consumers.

In other words, ICT business and

technology innovation can help bridge the

social and digital divide and deliver

sustainable development in terms of

society, the economy and the environment.

In emerging markets, innovative mobile

communications is helping to break down

the inefficiencies that make it so expensive

to be poor. A lack of choice, competition and

the physical distances involved often mean

that poor people end up paying more than

rich people for the same products and

services, for example, by being unable to

buy goods in bulk to get cheaper prices.

Access to ICT can help to change things.

“New ways of doing business will be

important in closing the gap, but it will take

more than that. Businesses, NGOs and

governments all need to work together to

build a sustainable 21st Century ICT

infrastructure. Multi-party co-operation will

promote the transfer of knowledge to

emerging markets. This promises to provide

major opportunities for innovative

businesses, as well as benefiting society as

a whole,” says Larilahti.

Mobile plays the efficiency card

Investments in ICTs must also take full

account of another behemoth of the

headlines – climate change. Once again,

ICT is well placed in helping the world to

achieve environmental sustainability.

The ICT sector is in a unique position to

cut global emissions by up to 15 percent

by 2020 by enabling consumers and other

businesses to save energy. While the

industry’s own carbon footprint will almost

double, it will enable wider cuts that

outstrip its own footprint five times over,

according to a McKinsey and Climate Group

study for the Global e-Sustainability

Initiative.

The widespread availability of mobile

communications in emerging markets will

make a huge contribution here. The practical

benefits of being able to communicate

Page 21: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 21

A question of priorities

In its October 2009 report ‘Confronting

the Crisis: ICT Stimulus Plans for Economic

Growth’ the ITU warns that emerging

markets need to set ICT as a higher

priority for investment than has been the

case in the past. The report says:

“To date, stimulus plans in developing

countries have tended to focus on other,

more urgent needs in housing, sanitation

and transport infrastructure and may

have failed to prioritize ICT infrastructure

to a large degree, missing out on the

stronger marginal impacts of ICT

investments on supply and productivity.

“In this respect, developing countries

may be neglecting a great development

opportunity of the economic benefits

broadband infrastructure can bring.

If industrialized countries forge ahead

with state-subsidized investments in

high-bandwidth networks, developing

countries may again find themselves

on the wrong side of a growing digital

divide.”

where it has not been possible before will

help individuals and businesses to reduce

emissions, for example by making travel

unnecessary in many instances.

With mobile communications in

emerging markets continuing to grow at

staggering rates, energy efficiency is critical.

Not only are more efficient handsets

becoming widely available, but new network

technologies are being developed.

Some 86 percent of a mobile operator’s

energy consumption occurs in the radio

network, and vendors have been developing

base stations with this in mind. For example,

the Flexi Multiradio Base Station from

Nokia Siemens Networks already offers the

lowest energy consumption on the market,

but still the company is committed to

reducing the power consumption of its base

stations by a further 40 percent by 2012.

Using less energy also makes it more

practical to rely on renewable power, such

as wind or solar, making it easier for

operators to provide coverage beyond the

reach of the conventional power grid. An

estimated 75,000 off-grid sites will be built

each year in emerging markets through

2012 (GSMA Development Fund), with the

GSMA predicting that up to half will be

powered by renewable energy.

Act now, benefit forever

Clearly, the ICT industry has a central role to

play in helping to overturn the protracted

downturn that the global economy finds

itself in, but also in creating long-term

growth for the benefit of countries across

the world. Emerging market populations in

particular have much to gain from ICT

investment and innovation. Mobility is

becoming a catalyst for a more innovative

and more sustainable society. Media,

advertising, services for agriculture, banking,

health-care and education are reaching

more people, allowing for a new and

sustainable growth and prosperity. ■

Page 22: Expanding Horizons Q1 2010

22 Expanding Horizons 1/2010

The entrepreneurial spirit is alive and kicking across emerging markets. But aspiring innovators need the right support to take their ideas to commercial success.

Innovation is the lifeblood of the

entrepreneur. It’s essential to the

competitiveness of enterprises and the

wellbeing of nations. Yet, while budding

entrepreneurs in developed markets enjoy

widespread support, their emerging market

counterparts are not so fortunate.

“Emerging markets are full of extremely

enthusiastic and capable people with new

ideas and the drive to become entrepreneurs.

But they face many barriers and little

support to help them get on their feet,”

says Jussi Hinkkanen, Head of Government

Relations for Middle East and Africa at

Nokia. “Tertiary education is often not

aligned with industry’s needs; little financial

or business support exists for young

entrepreneurs; access to wider markets is

difficult; and experienced peer advice is

minimal. There are few role models to look

up to, particularly in the ICT Sector.”

Focus on mobile apps

To help address the shortfall in support for

entrepreneurs, Nokia has joined the World

Bank’s infoDev and the Finnish Ministry for

Foreign Affairs in an initiative to build the

competitiveness of small businesses in

Africa, Asia and the transition economies of

Eastern Europe, Caucasus and Central Asia

(EECCA). The program, which kicked off in

December 2009, aims to help entrepreneurs

in the agribusiness and ICT sectors to start

and grow their business, and enable them to

access foreign markets.

The program will also seek to help local

developers create mobile applications that

deliver consumer and business services.

Three mobile application labs, one in each

region, will be established to provide the

advice, business services and technical

equipment that developers need.

“Emerging market users see their

mobile phones as a tool to help them work,

live and communicate more effectively.

This program will enable the development

of demand-driven applications by

entrepreneurs for emerging markets by

helping them launch and scale their business

ideas,” says Hinkkanen.

The Program will also support the

creation of business incubators in Belarus,

Cambodia, Georgia, Mozambique, Nepal,

Tanzania, Ukraine and Vietnam. In Cambodia

and Vietnam, the emphasis will be on

enabling women entrepreneurs.

The role of networking

The importance of peer contact is as

important as more formal support, says

Hinkkanen. “Giving local developers the

chance to meet up regularly helps them to

learn from one another and form shared

communities of practice. The value of this

kind of social networking has been proven

by the Mobile Monday community which has

become a global phenomenon in recent

years. We want to replicate this formula in

our target markets, enabling local

entrepreneurs to meet and gain access to

the latest mobile application information.”

Encouraging entrepreneurship goes

beyond the demands of corporate social

responsibility. “We are seeing a growing

trend in emerging markets of private

enterprises wanting to support local

innovation and socioeconomic development

because in the long run it helps to open up

markets for all stakeholders,” says

Hinkkanen. ■

From inspiration

to prosperity

Emerging markets are full of extremely enthusiastic and capable people with new ideas”

Page 23: Expanding Horizons Q1 2010

1/2010 Expanding Horizons 23

Move over computer,

the mobile is here The idea that the personal computer is the best way to deliver data

services is being challenged like never before. Mobile devices have far more potential to bring lower income people online in rural areas

In 1943, IBM founder Thomas Watson

allegedly stated: “I think there is a world

market for maybe five computers.”

Whether or not Watson actually said this,

it was probably true at the time.

How times change. Today, the

International Telecommunication Union (ITU)

estimates that more than a quarter of the

world’s population, or 1.9 billion people,

can access a computer at home. The personal

computer has traditionally been the dominant

means for using online data services. This

has led to Internet kiosks being set up

widely to bring services to people without

their own computer, especially in emerging

markets.

The 21st century is changing the game

plan again. With 4.6 billion mobile

subscriptions at the end of 2009, the mobile

is the most rapidly adopted technology in

history. It has even overtaken radio in

poorer households (those with an income

of less than two US dollars per day) in

Bangladesh, India and Pakistan, and is

about to catch up with TV. In contrast, the

computer has an insignificant presence in

households across Asia.

Mobiles connect the poorest

According to ICT policy think tank LIRNEasia,

the evidence shows that mobiles, not

computers, have the best potential to deliver

services to rural areas in the Indo-Gangetic

Plain, the world’s largest concentration of

poor people.

“This is the hardest case. What works

here will work everywhere,” says Rohan

Samarajiva, Chair and CEO, LIRNEasia.

“Mobile networks will provide the key

connectivity, especially as we see handsets

becoming more advanced.”

More capable mobiles and innovative

applications enable the use of new services

over the Internet, including financial

transactions, advanced communications and

remote computing. And more sophisticated

devices are finding their way into the hands

of the most financially challenged consumers.

Services where needed

“There is a thriving market in used mobiles.

We know of people trading up handsets six

or seven times in two years. The mobile

phone is the most sold item on CellBazaar,”

says Samarajiva.

CellBazaar is an online marketplace

available to Bangladesh operator

Grameenphone’s customers to buy and sell

goods via mobiles. It’s a perfect example of

a service being delivered effectively to an

audience beyond the reach of computers.

“Another service better delivered by

mobile is agricultural information, via Nokia

Life Tools for example. The information is

available when and where people need it,

rather than in distant kiosks with restricted

hours. People are becoming more aware of

the possibilities of data services, especially

among the younger age groups,” Samarajiva

explains.

He concludes: “We see a tremendous

need. Services must be relevant and suitable

for the small screen and must become widely

available. The mobile will be the primary

mode of accessing services. The change will

occur first in South Asia and Africa and then

spread to the developed world.” ■

Household access to ICTs (% of lower income households)

Source: LIRNEasia Teleuse@BOP3, 2009

Bangladesh

5241

13

0

68

39

24

3

50

3828

1

80

64

77

4

63

50 52

1

7570

64

12

Pakistan India Sri Lanka Philippines Thailand

TV Phone Radio Computer

Mobile networks will provide the key connectivity, especially as we see handsets becoming more advanced.”

Page 24: Expanding Horizons Q1 2010

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