44 THEME SECTION 6 publications/world/world.html Technology (ICT)penetration,accessibilityanduse.See:www.itu.int/ITU-D/ict/ the mostcomprehensive rangeofstatisticsonInformationandCommunication 1 to bridgethedigitaldivide? Mobile phones:thesilverbullet by ROXANNA SAMII wide. that there are 3.3billionmobilephonesubscribersworld- TelecommunicationThe International Union(ITU)estimates Introduction in avillagehasmobilephone otherscanuseit–amobile why prepaid servicesare sopopularinAfrica.Ifoneperson cost betweenUS$40-50.Airtimeisalsoaffordable –thisis because offlexibleanddifferent pricing models. Handsets reasonably lowcost.They are becomingmore affordable, their families.Theyprovide awiderangeofservicesat achieve socioeconomicgoalsandprovide foodsecurityto Mobile phonesare paving the wayformenandwomento is affordable, scalable,self-sustainingandempowering. involving theminviableeconomicactivities.Mobiletelephony lives ofmillionsurbanandruralpoorbyconnecting and sistersindevelopingcountries.Ithasrevolutionised the photos, musicandevenallowustoaccesstheInternet. contain ourdailyappointments,address book,emails, uitous mobilephone.Theselittlehand-helddevicescan ITU isaUnitedNationsspecialisedagency fortelecommunications.ITUcollects The mobilephoneisequallyimportantforourbrothers 1 The vastmajorityofusersneverpartfrom theirubiq- initiatives liketelecentres (see Box1).Andtheyare the only phones are amore appealingandviabletoolthanprevious computers didnotmanageto achieve.Formany, mobile information communication technologies(ICTs) suchas tively toreducing thedigital divide–somethingother nication indevelopingcountries. Ithascontributedsubstan- phone isnotnecessarilyconfinedjusttooneperson. Box 1: Mobilephonesandthedemiseoftelecentres connect totheInternet. simultaneously bypassedthelandline, thelaptopandneedto walk toremotetelecentresaccessICTs. Instead, theyhave handsets, orrechargingbatteryservices. opportunities, suchassellingpre-paidairtimecards, rentingout telecentres didnotpromoteentrepreneurshipgrowthandemployment shacks withbroken and/orobsoleteequipment. Unlike mobilephones, Usually, whenfundingended, telecentresgraduallyturned intoshabby broken equipmentbecauseoftheremotelocations. andconnectivitywas costlyanditwas hardtoservice Villagers usuallyhadalongwalk toreachthem. ProvidingbasicICT in isolatedandremoteareastoserveanentirevillageorcommunity. the visionofbridgingdigitaldivide. services. A numberofdonorsfundedtelecentreprojectswith access forpeopleindevelopingcountriestoICTs, computingand The telecentremovementinthelate20thCenturyaimedtoprovide Mobile telephonyisthepredominant modeofcommu- With mobilehandsets, poorruralwomenandmendonotneedto However, financialsustainabilityposedthebiggestchallenge. Telecentres facedanumber ofchallenges. They weremostlylocated 45

6 THEME SECTION 2008). et al., on inclusion, but relies people who are excluded and may even be worse people who are Mobile phones: the silver bullet to bridge the digital divide? the digital to bridge silver bullet the phones: Mobile are I had not seen any signal transmitter towers on the I had not seen any mobile phone signal transmitter In Africa, many countries have completely skipped the In Africa, many countries have completely how those previ- The anecdotal example in Box 2 shows A recent World Bank study states that ‘there is a myth Bank study states that ‘there World A recent In November 2008 I visited a remote and isolated irrigation site in the In November 2008 I visited Agricultural Fund for part of the International Gash Barka region, Agricultural Gash Barka Livestock and Development (IFAD)-funded During the field visit I stood in awe when Development programme. and a herder started the mobile phones of the extension worker ringing. reception and both the herder and there was However, there. way extension worker The were able to communicate. extension worker and the herder imparted some technical information to his colleague Asmara livestock inquired about the possibility of taking cattle to the on Monday. market Box 2: Out of the blue in Eritrea… Out of the blue 2: Box population) are mobile subscribers against 1.3 billion Inter- mobile subscribers population) are of total global telephone 72% net users. Approximately Recent estimates show mobile subscribers. subscribers are Internet users, while that in Africa, only 6.5% of people are mobile subscribers. nearly 281 million people (30%) are to mobile teleph- telephone and have moved directly could argue that this makes mobile technology the One ony. in this conti- first modern infrastructure nent (see Box 2). can now take ously excluded because of lack of infrastructure their livelihoods thanks to the an active part in improving services. pricing schemes of mobile and different affordable There off because market access now because off in inclusion. The herder more mobile has brought my personal example does not have access to a fixed tele- he was excluded. Today, previously phone line, therefore still thanks to he is not. Although we are observing indicates lacking empirical evidence, what we are does not (and will not) that mobile telephony most probably and easy to use. exclusion because it is affordable create Rural connectivity: a revolution within a revolution within a revolution a revolution connectivity: Rural The mobile phone can catalyse development and help erad- Seventy-five per cent of the world’s icate rural poverty. and men – live people – 1.05 billion women, children poorest activities and related and depend on agriculture in rural areas that for them a mobile may think for their livelihoods. We wrong! are But guess what? We phone is a luxury. not able or not willing to pay for that the rural poor are mobile services’ (Bhavnan Observations in the field are that mobile phone accessibility Observations in the field are Mobile phones are now integrated platforms Mobile phones are 2 Mobile telephony is providing timely, localised and rele- timely, Mobile telephony is providing Some argue that new ICTs such as mobile telephony Some argue that new ICTs offering both content and telecommunication services. offering Some models also incorporate cameras and can record videos etc. or sub-region. and social benefits. marginalised and less advantaged. sible to those who are even exist. Every generation needs a new revolution. Thomas Jefferson A mash-up is a derivative work consisting of two pieces of media joined to reducing the digital divide.” to reducing “Mobile telephony is the predominant “Mobile telephony in developing mode of communication countries. It has contributed substantively together. Source: Wikipedia. See also glossary, p.122 (this issue). Wikipedia. Source: See also glossary, together. 2 Mobile phone revolution: the numbers speak for the numbers Mobile phone revolution: themselves vant access to information, which has helped reduce produc- reduce vant access to information, which has helped poor rural people tion and transaction costs. For example, commodity price informa- use mobile telephony to receive or Short Message tion via mobile phone text messages, so that they can Service (SMS), to gather market intelligence and transportation make targeted trips and save on travel medical being used to provide also costs. Mobile phones are of medical patients services such as using SMS to remind informa- appointments and vaccinations or to disseminate and to monitor tion about sexually transmitted diseases patients. ICT sector where developing countries are catching up with countries are developing ICT sector where countries. – and in some cases – overtaking developed increase the gap between the ‘haves’ and ‘have nots’. Yet increase ITU statistics show that 3.3 billion people (50% of the world The mobile phone revolution is our generation’s revolution. is our generation’s The mobile phone revolution and social and political economy, It has changed our culture, to become the first universally accessible ICT. lives. It promises And it is a unique revolution. region • It is truly global and not limited to a specific country, global economic It has been a catalyst for unprecedented • • acces- more Because it is global, it is becoming increasingly • mash-up when this term did not It is an early example of a 6 46 THEME SECTION Roxanna Samii Photo: Alex Price 5 4 3 a percentage) within aspecificpopulation. increasing. highlights howexpenditure onICTs andmobiletelephony are consistently having apointofcontact,whichpreviously wasaluxury. accessible information–suchasweather reports orcommodityprices–simply market tocompetition.Thishasencouragedprivatesector supported bysoundregulatory mechanismshasopenedthe telephony (Hammond households nowspend4–8%oftheirincomeonmobile the popularityofmobilephone. tion costs.Allthesefactorshavecontributedtotheriseof private/public sectorinvestorsandfarmerslowinstalla- There are shorterpaybackperiodsoninvestmentbothforthe service providers toinvestin newareas toincrease business. email. Previously lowpenetration rateshaveencouraged andapplicationslike media literacyskills,unliketheInternet to use rural areas ofdevelopingcountries. expansion andpopularityofmobiletelephony, especiallyin cations sectorandprepaid serviceshavecontributedtothe tions suchaseaseofuse,liberalisationthetelecommuni- A numberofenablingsocio-economicandpoliticalcondi- Mobile phonegrowth drivers: auniquebusinessmodel illiterates withnoaccesstobasicservices. herders, fishers,small-scalefarmers,indigenouspeoplesand communities andbeyond,suchaswomen,landlessworkers, a more activepartintheeconomicandsocialspheres oftheir is helpingtofacilitatepreviously marginalisedgroups to take Penetration ratesrefer tothenumberofactivemobilephonenumbers(usuallyas The Next4Billion For example,keepingintouchwithfamily andfriends,accessingpreviously less The Compared tocomputers,mobilephonesare much . Theyrequire little ornospecialisedcomputerand liberalisation ofthetelecommunicationssector shows that‘low-income’doesnotmean ‘no income’.It et al. , 2007). 4 3 latest maizeprices. SMS tofindoutthe Chikusu sendan and Elizabeth Farmers DinaLungu Many poorrural easier 5 prepaid servicereaches outtothe‘unbankable’. importantly there isnoneedtopresent acredit history, asthe costs, especiallywhensavingsandincomesare low. Most to submitfinancialandphysicaldatas/hecancontrol no formalregistration orwaitinglists.Theuserdoesnotneed offers numerous advantagestopoorruralpeople.There is mobile subscriptions.The‘payasyouuse’businessmodel benefiting from betterservicesatrates. tion amongdifferent operators.Asaresult, consumersare investment indevelopingcountries,andincreased competi- and elsewhere, occasionallabourers putupadvertsinvillage services suchasreading andsendingSMSmessages.InAfrica prepaid cards, renting outphonesand/or airtimeandother These includerecharging mobile phonebatteries,selling vative income-generatingactivitiesforsmallbusinesses. Mobile phoneshavespearheadedahostofnewandinno- Mobile phonesandsmallbusinesses nomic impactofthemobilerevolution. but theyare equallystruggling tocalculatethemacroeco- understanding thefullimpactofcurrent financialcrisis, infrastructure.modernise World economistsmaybebusy opportunities forpublicandprivatesectorstoinvest gence, providing employment opportunitiesandcreating small entrepreneurs tohavedirect accesstomarketintelli- represents aviablewayforimproving theirlives.Itisenabling people livingonUS$1.25adayorless,themobilephone perity topoorruralpeople.Forthe1.05billion many inruralpopulations. 6 their produce. the bestpossiblepricesfor phone tohelpfarmers get Mchome useshismobile Market investigatorStanley i.e. thosewhowithouttheprerequisites toopenabankaccount,which means In Africa Innovative use prepaid subscriptions of mobiletelephonybringseconomicpros- accounts for95%oftotal 6

Photo: M. Millinga 47

6 THEME SECTION Mobile phones: the silver bullet to bridge the digital divide? the digital to bridge silver bullet the phones: Mobile Tradenet.biz uses markets as a venue to raise awareness about its as a venue to raise awareness uses markets Tradenet.biz which allows technology, also uses new peer-to-peer Tradnet.biz The relatively affordable airtime of mobile phones has affordable The relatively Increasingly, private sector companies are providing market private Increasingly, Although enterprise. is one such Tradenet.biz information to farmers. It is 500 markets. it already covers 15 countries and still in its infancy, It offers a range of key to users anywhere in the world. available processors and others working along the information to producers, trading offers, transport, harvests, price updates, from supply chain: weather and more. disease outbreaks, information agents set up kiosks and offer market Tradenet services. people for the service and configure alerts on people’s register advice, mobile phones. – via mobile users to share their resources – in this case information and growing database It also links the vast phones to create a service. www.tradenet.biz See: information to cellular networks. of market On the island of Mauritius, the fishers of the Tamarin community under Tamarin the fishers of the On the island of Mauritius, Rural Diversification Programme do not have direct the IFAD-funded they However, they are excluded. As a result, access to the fish market. daily catch and to use their mobile phones to inform buyers of their over fish and are sure that they will they do not way This orders. take economic efficiencies and also has increased This sell their daily catch. impact on the helps to protect fish stock – which in turn has a positive lagoon ecosystem. Box 3: How new technology can strengthen rural markets rural can strengthen How new technology 3: Box Box 4: Mobile phones open up markets for fishermen Mobile phones open up markets for 4: Box Cellular banking: the bank of the ‘unbankables’ the bank of the Cellular banking: ‘cellular banking’ to now providing Mobile phones are ‘unbankable’ clients. For example, millions of poor rural people now use their mobile phones to send money home no banking are there loans where and to deliver microcredit facilities. market information, poor transportation infrastructure and market information, poor transportation infrastructure vulnerable to unscrupulous are competition. Small producers traders and middle-men giving them prices at below-market to diversify into different may be reluctant rates. Producers market for their finding a profitable for fear of not products output. Informa- made transfer and exchange of information easier. serv- structured tion dissemination happens either through and Zambia SMS ices and subscriptions such as Tradenet.biz and unstructured Market Information Service or through informal use of mobile phones – and by blending formal and informal services. People can use their mobile phone both to communicate with buyers and also to access directly commodity prices via SMS (see Box 4). Twaha-Abdallah communicating commodity prices. , 2005). According to the study: , 2005). According et al. A 2005 London Business School study found that ‘for A 2005 London Business School study people showed that more than 85% rely solely on mobile than 85% rely people showed that more phones for telecommunications. Of these, 15% previously Over the last decade the had no access to telephony. number of businesses using mobile phones in South Africa by nearly 125%. has increased exclusively on manufacturing and service activities) relies mobile telephony. in profits. said mobile use was linked to an increase a mobile phone, while just 28% could access a landline phone.

For producers, access to reliable market information increases access to reliable For producers, on governments income (see Box 3). In the past they relied market information. In addition, transaction chains to provide often small and of varied long, volumes of goods are are highly unstable. For example, small and prices are quality, in Africa face enormous chal- trading in rural areas producers and up-to-date lenges such as lack of access to reliable Mobile phones and access to market information Mobile phones and access to market every additional 10 mobile phones per 100 people, a every additional 10 mobile phones 0.5 percent’ (GDP) rises domestic product gross country’s (Waverman centres with a mobile phone number to offer services, or with a mobile phone number to offer centres unemployment job alerts via SMS from subscribe to receive costs allow- Mobile phones can also minimise travel centres. economic is a concrete ing people to move when there opportunity. • In South Africa, a survey of small businesses run by black • • In Egypt, 90% of the informal sector (including small retail, In South Africa, 62% of businesses (and in Egypt, 59%) • 97% of people surveyed said they could access • In Tanzania, Photo: M. Millinga M. Photo: 6 48 THEME SECTION Roxanna Samii Photo: Roxanna Samii creating ‘branchlessbankingchannelsusingmobilephones’. evidence tounleashthepotentialofcellularbankingandstart Microcredit andmicrofinance institutionshaveenough cash machinesorpoint-of-sale,cuttingcostsbyupto50%. provide tobankingviatheInternet, alow-costalternative ices. CGAParguesthatthemobilephonecouldpotentially fewer optionstotransfermoneyandaccessbankingserv- and inventivenessofpoorruralpeople. struggling tomakemoneybyworkingaround theingenuity alert someoneelsetocallthem.Mobileproviders are equally nisms suchas‘beeping’,‘bipage’or‘flashing’codesto mobile usersindevelopingcountrieshaveinventedmecha- pologists likeDrMirjamdeBruijnare intriguedbytheway allowed familiesandthediasporatokeepintouch.Anthro- also hadapositivepsychologicalimpact.Connectivityhas reading andwritingtextmessage services. handset andrent ittoothercommunitymembers alongwith for onepersonoragroup ofpeopletoownamobilephone In ruralcommunitiesindevelopingcountries,itiscommon Social cohesivenessandsenseofcommunity be appropriate, sensibleandmeettherequirements ofpoor The focusmustbeonpeople andtheirneeds.ICTs needto How canICTshelppoorrural people? ices. countries havelittleorlimitedaccesstoformalfinancialserv- (CGAP), approximately 1.5billionmobileusersindeveloping 7 See: www.cgap.org From asocialnetworkingperspective mobilephoneshave According totheConsultativeGroup toAssistthePoor 7 With limitedformalbankinginfrastructure thereWith are with satellitedish. electricity, equipped water andstable region lackingrunning Eritrean Gasha-Barka Remote villagein • there isablendingofoldandnewtechnologytocreate a • there isacommitmenttobuildthecapacityofcommuni- national povertyreduction strategiessystematicallyinclude • • we useparticipatoryapproaches, asoutlinedintheexam- to contributefurtherdevelopmentif: needs ofbeneficiaries. only besuccessfulifitisdemand-drivenandresponds tothe ing andpurchasing power. Theuptake oftechnologycan rural peoplesothat,asatool,ICTs canincrease theirbargain- engagements for farmers,traders,processors, buyersand a codeofconductoutlining the expectationsandrulesof equitable, fairandtransparent services,the ZNFU developed Information Service.To ensure andprovide goodgovernance tive waytoaccesscommodity prices,usinganSMSMarket programme introduced aninnovative,simpleandcost-effec- provide marketintelligence tofarmers.InAugust2006,the National FarmersUnion(ZNFU),itidentifiedtheneedto Programme (SHEMP)in IFAD supportstheSmallholderEnterpriseandMarketing SMS Market InformationService, Zambia projects andactivities. but alsototakeresponsibility inimplementingthevarious allowed farmerstoactivelytakepartnotonlyinthedesign the powerofmobilephones.Thisparticipatoryapproach and otherstakeholderstodevelopmechanismsharness in identifyinganddefiningtheirneeds,workingwithdonors The followingexamplesshowhowfarmershaveparticipated Examples ofmobiletelephonyinaction infrastructure inthiscontinent.” modern telecommunications this makes mobiletechnologythefirst mobile telephony. Onecouldargue that landline andhavemoveddirectly to completely skippedthetelephone “In Africa, manycountrieshave three-tier systemofpublic,privateandcommunity. appropriation; and ties andlocalorganisationstoleadowntheprocess of adoption ofappropriate ICTs; lenges ofpoorruralpeople; ples below, tofindoutandunderstand theneedsandchal- ICTs andmore specificallymobiletelephonycancontinue Zambia . Working withtheZambia 49

6 THEME SECTION – shu shu shus under the First Mile Project under the First Mile Tanzania in Tanzania Market ‘spies’ – known locally as 9 Mobile phones: the silver bullet to bridge the digital divide? the digital to bridge silver bullet the phones: Mobile By now, policy makers and development agencies should policy By now, truly make mobile telephony the first universal access To ment, civil society, private sector actors and consumers; ment, civil society, and disadvantaged areas; ers’ organisations to better exploit the potential of mobile phones; information systems; peer-to-peer mobile services to thrive and expand. A journey of a thousand miles begins with a single step. A journey of a thousand miles begins with long as you do It does not matter how slowly you go, so not stop. Confucius The First Mile Project is supported by the Government of Switzerland and The First Mile Project 9 implemented in collaboration with the Government of Tanzania’s and the IFAD- implemented in collaboration with the Government of Tanzania’s (AMSDP). funded Agricultural Marketing Systems Development Programme have enough evidence that of all ICTs, mobile phones have have enough evidence that of all ICTs, in developing coun- the best potential to stimulate growth can contribute to tries – and that investing in mobile services both economic and social development. Phone manufactur- that the poorest should recognise ers and service providers people have turned out to be one of their biggest markets. Mobile telephony has not only helped bridge the digital divide but has been a catalyst to eradicate rural poverty and the livelihoods of the marginalised and poor. improve is a need to: ICT there • with govern-put in place sound ICT policy in collaboration and services in rural • in mobile invest more and farm- the capacity of rural entrepreneurs • strengthen and timely content and further develop deliver relevant • both airtime and handset prices; and • reduce to allow put in place better and enabling regulations • investigate prices and what is selling at local markets, and investigate prices and what is selling at villages. The back to their use their mobile phones to report transcribed on village notice then commodity prices are on radio. In partnership with and also broadcast boards be using mobile phones to they will soon Tradenet.biz of old and market information. This blend access even more better and more new technology is helping farmers build to consumer. producer collaborative market chains from Making mobile phones universally accessible Making mobile phones universally Shu shu shus has spearheaded another phenom- Farmers’ inventiveness in enon. Poor farmers in mobile phones to access market information using are time. real 8 Over 100 traders and processors are now providing are Over 100 traders and processors This market intelligence system is continuously gaining The farmers then send a second SMS message with the The farmers then send a second SMS message The SMS system is simple to use. To obtain the best prices The SMS system is simple to use. To See: www.farmprices.co.zm weekly price updates. Website visits and the number of SMS weekly price updates. Website For example, in 2007 continuously increasing. messages are between February and June, 520 weekly SMS were exchanged. Between July and August over 1220 weekly SMS Smallholders today have the exchanged. message were to sell where necessary information to know what to grow, and at what price. their products popularity. It is empowering farmers to negotiate deals by popularity. time-sensitive information and fostering trans- offering in pricing. SHEMP and ZNFU continuously update parency sustainability ensure prices on a daily and weekly basis. To the system is managed by local institutions. They also conduct public advocacy activities to attract corporate spon- sorships. selected buyer’s code to 4455. A text message is sent back code to 4455. A text message selected buyer’s the number, contact name and phone with the buyer’s for reach- and simple directions company name and address ing both. Farmers can then call the contact and start trading. The farmers pay US$0.15 for each text message. for a commodity, farmers simply send an SMS message to farmers for a commodity, commodity name. 4455 containing the first four letters of the Within a text message with the best they receive seconds, get best buyers’ codes. To prices by buyer using abbreviated he or she simply prices in a specific district or province, code. code after the commodity includes the province/district 8 countries.” “By now, policy makers and policy makers “By now, agencies should have development mobile that of all ICTs, enough evidence to phones have the best potential in developing stimulate growth ZNFU agents. It also provides detailed contact information to detailed contact ZNFU agents. It also provides weather informa- The service provides irregularities. report prices, and lists tion, business news, up-to-date market accessi- buyers for 14 major commodities in a cost-effective, addi- Extension workers also provide manner. ble and reliable those with Internettional training and capacity building. For a website. access, the system is also supported by 6 50 THEME SECTION Roxanna Samii communities andbeyond.” economic andsocialspheres oftheir to take amore activepartinthe facilitate previously marginalised groups mobile phoneaccessibilityishelpingto “Observations inthefieldare that Tel: +390654592375 Website: www.ifad.org Email: [email protected] Rome, Italy PaolodiDono,44 Via Development (IFAD) FundforAgricultural International Services Manager, Web, KnowledgeandDistribution Roxanna Samii CONTACT DETAILS this revolution, themobilesectoralsoneedstocapture Finally, toreally appreciate thepowerandpotentialof (IFC). FinanceCorporation (WRI) andInternational of thePyramid Market SizeandBusinessStrategyattheBase and Walker, C.(2007). Hammond, A.,Kramer, WJ.,Tran, J.,Katz,R., Bank. in sustainableruralpovertyreduction Silarszky, P. (2008). Bhavnan, A.,Won-Wai Chiu,R.,Janakiram,S., Business School:London Growth inDevelopingCountries (2005). Waverman, L.,Meschi,M.andFuss, REFERENCES The ImpactofTelecoms onEconomic . World Resources Institute The roleofmobilephones The Next4Billion: for thosecommunities. build systemsthatare bothprofitable andworkeffectively needs andtounderstandtheirrealities andconstraintsto community partnerships,workingtoidentify And yes–thiscanbedonethrough jointprivate-publicand ing theUS$1handsetandfurtherreducing airtimecosts. producing theUS$10handset–withvisionofproduc- before theprivate andpublicsectorsjoinforces andstart community. mobile phones–thosesharingasubscriptionwithin what official statisticsare unableto:the‘informaluse’of Given theconduciveenvironment, itshouldnotbelong . London . World Africa Connect:www.connectafrica.net www.farmprices.co.zm Zambia MarketInformationSystem: Tradenet: www.tradenet.biz www.ruralpovertyportal.org Rural PovertyPortal: IFAD: www.ifad.org USEFUL LINKS