By Lyndi Lawson on 2010/06/30
The 2008 milestone that saw mobile Web access exceed desktop computer based access for the first time was hugely significant internationally. Now, mobile subscribers exceed 4 billion. This is particularly notable in a large number of emerging market economies where the adoption of hand held devices for communication has vastly surpassed the adoption of other technologies. The reasons for this are self-evident; mobile handsets are relatively cheap. They are portable and personal with a broad range of functionalities. More than that though, it’s safe to assume that in many emerging markets fixed-line infrastructure is less consolidated than in developed nations where people still consider landlines a primary communication device.
This trend toward a high proportion of mobile access in emerging economies is not necessarily universal though and varies hugely between nations. While some countries, like South Africa boast 100% penetration, it was noted in a 2008 report that other developing nations like Papua New Guinea show only a 1% penetration. This article aims to examine in brief the potential impact of mobile phones on a few aspects of emerging market economies while separating the hype from reality.
Low Cost Communication
A large number of people living in the developing world are largely shut off from the media landscape. Mobile phones provide a channel for them to connect to the outside world through Web access, voice communication and text messaging. They can both send and receive messages. This accessibility is facilitated by an industry that relies on large numbers of micro-payments and subscriptions for revenue. Unlike other technologies, these are affordable to lower income households. This level of communication, previously unheard of, is of potentially huge benefit to communities previously shut off from the rest of their country and the rest of the world. Isolation is reduced, news can travel freely in and out, small business owners have an accessible channel through which to communicate with customers, stakeholders and suppliers. This is true of cities too – communication facilitates economic growth and development at every level and narrows the divide between the very wealthy and the very poor.
Education
Dave Levy of State of the Fourth Estate argues that “Given the permeation of mobile in developing countries and minimal presence of other communication infrastructure, the channel isn’t only the main way individuals get information, it may also be the only way.” More than 40% of children in Africa are without access to even a primary school education but more than a third of the continent owns a mobile phone. Whether through the development of applications for basic learnings, the connection of peers or merely the communication of critical educational messages about public health issues, safety, security or opportunities, mobile phones have the potential to connect educators with those needing to be educated.
Mobile Banking
According to the World Bank, mobile banking (or m-banking as it’s become known) could help to serve 3 billion people who currently have no access to financial services. Already having an impact in countries like Kenya with M-Pesa, access to mobile banking not only facilitates the growth and development of business, but also a distribution of wealth from workers in the cities to their families living in the rural areas. A looser view of ‘financial services’ reveals that in some emerging markets, mobile phones are used as a transaction tool through the swapping of airtime for goods and services.
Coordination of Relief Efforts
There’s no doubt that many emerging market economies, in addition to the range of challenges they experience, are also more prone to the impacts of natural disasters, outbreaks of disease, extreme weather and political unrest. Mobile communication is undoubtedly a tool through which relief efforts can be coordinated. Providing a channel through which affected citizens can contact one another, emergency services or relief operations, it will be more obvious where the greatest needs exist and how best to meet them. In addition, mobile applications are a great way to drum up support for relief operations. One only needs to look at the Haiti relief efforts (over $30 million was collected through mobile donations) to realise the potential to amass funding for prominent causes.
More than that though, mobile communication provides marginalised communities with a voice through which they can communicate with the outside world. Applications like Facebook and Twitter mean that there is a flow of information which could increase awareness of international affairs and where there is injustice, incite action. Wars, human rights violations and even genocides in developing countries that have gone largely unnoticed until it was too late, might never have happened, had the rest of the world known in advance what was brewing.
Challenges to Mobile Growth
Regardless of the opportunities for growth and development presented by mobile phones and their applications, the path is not necessarily a smooth one. There are a number of challenges facing both users wanting to take advantage of mobile communication and organisations wanting to leverage off the opportunity provided by the high level of penetration.
Despite the advantages of Web and communications access, users battle with literacy issues, small screen sizes, inconsistency across devices in terms of functionality and navigation, inability to use cookies or javascript, access speed, incompatible pages, restrictions on the size of messages and the cost levied on both voice calls, text messages and bandwidth charges.
For organisations wanting to take advantage of this opportunity, there are an equal number of challenges. Unreliable power sources in many countries necessitate the use of independent generators, while governmental regulations introduce complicated red tape. In addition to this, mobile operators and subscribers often face high rates of taxation, making the opportunity to expand a less financially viable one. Producing low cost, but highly functional handsets also presents a significant challenge.
In conclusion
There’s no doubt that mobile phones and their ability to facilitate communication and provide access to global networks and the Web could change the face of emerging economies, facilitating development in a number of direct and indirect ways. We have looked at only a few of these – there are many more ways in which mobile could impact of development of these nations. However, there are critical challenges that need to be addressed before the full potential of this medium can be realised and the hype around the adoption and penetration of mobile often obscures these challenges, allowing them to be ignored. This needs to addressed urgently, to smooth the way for future development.
