This edited volume, based on LIRNEasia‘s 2004-2006 research program brings together scholars, practitioners, former regulators and policy makers to address the problem of expanding information and communication technology (ICT) connectivity in emerging Asia. It centrally engages the widespread claim that technology by itself—independent of policy and regulatory reform—can improve access to ICTs. In doing so, it shows that while complex workarounds are possible, they are significantly less effective than the appropriate policy and regulatory reforms.

More information on the book here.

The book can be purchased from SAGE Publications here (Asia) or here (Europe).

Evidence from LIRNEasia’s Teleuse@BOP3 survey of mobile use at the bottom of the pyramid (BOP) suggests that by late 2008, 78 percent of BOP mobile owners in the study countries were using the functions of the Internet through their mobiles; nearly one third of them have never even heard of the Internet.

For the last three years, LIRNEasia has been arguing the case that many people in developing markets will have (if they already haven’t had) their first “Internet experience” through a mobile. Most of our 2008-2010 research program was based on this premise. It seems that the general discourse in the mobile research field is converging on this point, as evidence of growing mobile Internet use in these markets emerges.

In addition to this, LIRNEasia’s argument (which in fact CEO & Chair Rohan Samarajiva has been making from as early as 1999: written up in Samarajiva, R. & V. Shetty (2009), Net access for village peoples, Communications International, November: 68-70.) goes one step further.  We don’t mean that people in these markets will be opening up their mobile Web browser, typing in urls and surfing the mobile Internet. We argue that that the “Internet” should be considered as a meta-medium, which allows users to perform various functions that we usually consider to make up the “conventional” Internet experience. In the most simplistic form, these functions include:

• Communication in multiple forms, synchronous/asynchronous, one-to-one/one-to-many, etc.
• Information retrieval including search
• Publication
• Transactions (including payments)
• Remote computing, and
• Gaming (interactive) and participation in media competitions and programs

(See also for example, http://www.oecd.org/dataoecd/43/30/43603296.pdf, http://lirneasia.net/wp-content/uploads/2009/04/capetown_april09-20.ppt, http://lirneasia.net/2009/09/how-the-developing-world-may-participate-in-the-global-internet-economy-innovation-driven-by-competitio/).

After a recent conversation with Jonathan Donner  in Sohna, who seems to be thinking along similar lines,  I decided to look at our Teleuse@BOP3 survey respondents, and compare numbers – who says they’re on the Internet versus who really is (in light of the meta-medium conception of the Internet, using broad definitions of the individual functions). The results are shown in the graph above.

Nine percent of BOP mobile owners surveyed said that they had used the Internet when asked directly. But, when the (broad) meta-medium approach is considered, 78 percent of BOP mobile owners surveyed (almost nine times as many!) are actually using the Internet. That is, 78 percent of BOP mobile owners surveyed had used their mobile for at least one of the six functions listed above (excluding communication via voice calls and SMS).

Most of these meta-medium-Internet users already know what the Internet is (72%), but a considerable number (28%) have never heard of the Internet (graph above).

The functions that BOP mobile owners used the most were transactions (driven up by the inclusion of electronic re-loading of prepaid balances), with remote computing (driven up by prepaid balance checking) coming in second (graph above).

The survey data was collected in late 2008, so we expect the picture to look very different in the next round of surveys (just about to commence).

Tahani presented data from the Teleuse@BOP studies, which indicates that the “divide” in access at the bottom of the pyramid (BOP) in most countries studied is clearly narrowing, with men and women talking as much as each other on the phone. Though there are pockets where the access divide is severe  (e.g., rural Pakistan, seen in the Teleuse@BOP findings; also see Karin Siegmann’s work for example), overall in the other countries that the Teleuse@BOP2 and 3 surveys were conducted (India, Sri Lanka, Philippines and Thailand) the gender divide  at the BOP has either fallen (India and Sri Lanka) between 2006 and 2008, or doesn’t even exist (Philippines and Thailand).

The “gender divide” is an issue which receives much media attention, and is the focus of much advocacy and many ICT4D projects.   Little attention is given to some of the large and rigorous quantitative studies (see for example work by Gillwald, Milek and Stork;  Bimber; Rice and Katz; Wasserman and Richmond-Abbott) that have in fact shown in different countries, for different ICTs, that the “gender divide” is really a factor  other social divides, which can affect men equally.  This suggests that there are larger issues to be resolved than getting mobile phones into their hands, though that will certainly put them in a better position.

The larger issue is that most women at the (rural) BOP don’t often make the decision about getting connected, especially in Pakistan, India and Bangladesh.  Often when there is only one mobile in the house, it is used and carried by the male of the household; once households are able to afford a second connection, women tend to get connected. So as far as “female friendly” packages, and female-headed telecenters go, its questionnable how successful these could be on a larger scale.

Perhaps more importantly than designing products which target women, telcos need to design ones that will make it more affordable for a poor family to get two phones at the same time – because the first one will almost certainly always go to the male (husband). Only once they can afford the second phone is there a chance of it going  to the female (wife). Similarly, the bulk and priority of the household communication budget will be toward the husband’s connection. The remnants left over will be available for the wife;  and as seen in the Pakistani case, it will be the husband who determines how often and for how much her mobile is topped up (as he will do it on her behalf.). So perhaps what would be relevant for telcos to think about  is (1) helping them to get connected together (so making the second connection more affordable); and (2) helping them (men AND women) make more money using the mobile – so that they have more money to allocate between both of them to spend on services (and also, the fact that his wife can make X amount of money using a mobile will only encourage him to get her connected faster).

Previous work by LIRNEasia on gendered access and use of phones at the BOP can be seen here and here.

The private sector in developing countries is increasingly interested in extending mobile telephony services to low income and rural markets that were previously considered unprofitable. Determining the right price is a central challenge in this context. Despite known limitations, the Contingent Valuation (CV) method, which elicits information on the Willingness to Pay (WTP), is a useful guide to pricing decisions. The present study draws on data generated using the CV method to examine whether mobile use is sensitive to small declines in the current per-minute price of use for low income households in six countries of Asia: Bangladesh, India, Pakistan, Philippines, Sri Lanka, and Thailand. A Heckman model is used to correct for the sample selection problem arising from the study of mobile phone owners alone. We find that demographic criteria, including income, are not significant in explaining whether usage is responsive to price fall, although they appear important in determining mobile phone ownership. Instead, subscription to multiple service providers has an important association with the price sensitivity of use: Those with multiple SIM cards are likely to increase usage when price falls whereas those who report that they would not switch service providers are unlikely to do so. The study further finds that consumption would increase among those with a more diversified use of mobile services (to participate in competitions and to access government services) and among more ‘limited’ users (those who attach a greater importance to the emergency uses of the phone). Overall the findings suggest that there exists a latent demand for mobile minutes among low income households that can be tapped through a small reduction in price. However, given the relatively low profit margins in these markets and the ability of users to switch between service providers quickly and at low cost, competing on price could threaten the long term survival of firms. Non-price strategies would therefore be important for firm survival and sustainable service delivery.

In our most recent demand-side ICT study, Teleuse@BOP3, we asked bottom of the pyramid (BOP) phone owners if and how often they used their phone (mobile or fixed) for business purposes or any other financial or work-related purposes. The responses we got were quite encouraging:

Teleuse@BOP4 is almost underway. This time, we have decided to seek out the wisdom of the crowds in designing and fine-tuning some of the questions that we ask in Teleuse@BOP4.

Responses to the question of business use of phones are important in this research cycle, where we are trying to understand , inter alia, what services (including telecom) would better equip SMEs (many of which are owned by or employ people at the BOP) to participate in the knowledge based economy.

Similarly as important are the reasons that prevent greater use of phones for these purposes (trust, alternatives, cost, culture, etc). Here is a draft question to seek out this information; we invite comments, suggestions and feedback on how this question can be improved.

“Q: What prevents you from using the phone for these purposes (business, financial or work related) at all/more than you do currently?

a. It is more convenient communicating on these issues face-to-face than over the phone

b. I am not sure if I can trust the other party when talking about these things over the phone

c. Other people prefer to talk face-to-face

d. I don’t engage in such  activities

e. other”

Many studies conclude that a significant gender divide in access to the telephone exists, particularly in developing countries. Furthermore, women are also said to use telephones in a different manner from men — making and receiving more calls, spending more time on calls and using telephones primarily for ‘relationship maintenance’ purposes. Much of this research is based on small-sample studies in affluent developed countries. This article shows that a significant gender divide in access to telephones exists in Pakistan and India, to a lesser extent in Sri Lanka, but is absent in the Philippines and Thailand. It also challenges the findings which claim that women’s and men’s use is fundamentally different, at least at the ‘bottom of the pyramid’ in developing countries.

Key Words: Asia • bottom of the pyramid • digital divide • gender divide • internet • mobile phones • Pakistan • telecommunication • women
New Media & Society, Vol. 12, No. 4, 549-566 (2010)
DOI: 10.1177/1461444809346721

The article can be accessed here; a pre-publication version of the article can be downloaded here.

On the one hand, this interview with the head of financial services for Grameenphone on the experience with BillPay, a utility payment service offered by Grameenphone, as well as LIRNEasia‘s Teleuse@BOP findings from the Philippines seem to suggest that even once the system is in place, there is still a lot of work to be done in earning people’s trust to use the service and change their behavior. Through BillPay has been around since 2006, it has only pushed the over-the-counter service, rather than the e-wallet version of the service (currently used by a small number), due to this very issue. Once the service reaches a critical mass of users, they plan to push out the e-wallet service more aggressively.

On the other hand, could already-popular services like CellBazaar (used by 3.5+ million GP subscribers) help drive up volumes for electronic/mobile payments and help them to reach critical mass?

See full interview here.

Download LIRNEasia study on expansion of CellBazaar to include payments and delivery  here.

Download LIRNEasia Teleuse@BOP findings from the Philippines here.

In his presentation, Dr Samarajiva described the new “Budget Telecom Network Model” developed in South Asia that is enabling mobile operators to serve low-income customers who yield very low ARPUs [Average Revenues per User] and discuss its extension to enable broadband use.  Bangladesh, India, Pakistan and Sri Lanka have offered the lowest total costs of mobile ownership since 2005-06 while still yielding adequate, though somewhat volatile, returns to ensure continued investment in network extension and new services.  LIRNEasia research shows that this has been made possible by business process innovations to reduce operating expenses, and the minimizing of transaction costs made possible by widespread prepaid use.  The analysis extensively draws from LIRNEasia’s six-country, 10,000 sample Teleuse @ BOP3 survey which shows how poor people are actually using information and communication technologies in emerging Asia.

The presentation slides can be downloaded here, and the full paper can be downloaded here.

The invitation signifies recognition of the high profile LIRNEasia has achieved as a thought leader on innovations in telecom policy and regulation that benefit those at the Bottom of the Pyramid in emerging Asian economies. Other speakers include Professor Richard Heeks of the University of Manchester and representatives of NokiaSiemens Networks and Vodafone.  The workshop is being held on 10-11 September 2009 at the Paris Headquarters of the OECD.

Full participation in the global Internet Economy requires electronic connectivity of considerable complexity. Today, due to a worldwide wave of liberalization and technological and business innovations in the mobile space, much of the world is electronically connected, albeit not at the levels that would fully support participation in the global Internet Economy. Yet, many millions of poor people are engaging in tasks normally associated with the Internet such as information retrieval, payments and remote computing using relatively simple mobiles. Understanding the business model that enabled impressive gains in voice connectivity as well as the beginnings of more-than-voice applications over mobiles is important not only because widespread broadband access among the poor is likely to be achieved by extending this model but because it would be the basis of coherent and efficacious policy and regulatory responses…

This is an excerpt from a background report by Rohan Samarajiva, to be presented at “Policy coherence in the application of information and communication technologies for development,” a joint workshop organized by the Organisation for Economic Co-operation and Development (OECD) and the Information for Development Program (infoDev) / World Bank from 10-11 September 2009 in Paris. The report has been published in the OECD’s Development Dimension series:  “ICTs for Development: Improving policy coherence.”

The Bastiat Prize (for journalism) was first awarded in 2002 and judges have included Lady Thatcher and Nobel-Prize-winners James Buchanan and Milton Friedman. The prize was developed to encourage and reward writers whose published works promote the institutions of a free society: limited government, rule of law brokered by an independent judiciary, protection of private property, free markets, free speech, and sound science. This is the first time that a seperate category for online journalism is being awarded.

Other finalists for the 2009 Prize for Online Journalism are Shikha Dalmia (Forbes.com, Reason Foundation) and Daniel Hannan (Telegraph.co.uk blog).

Winners will be announced at the annual Bastiat Prize Dinner in New York City on 26 October, featuring journalist/author P.J. O’Rourke as the keynote speaker. “P.J. O’Rourke, one of Bastiat’s true spiritual successors, sets a high bar,” said IPN Executive Director, Julian Morris, “But the finalists all show a deep understanding of the institutions that underpin freedom and an acute ability to communicate their importance to a general audience. The final decision lies with our eminent judges –including former winners, Brian Carney and Amity Shlaes, and internet entrepreneurs Jimmy Wales, Esther Dyson and Scott Banister.”

The study of over 1,500 domestic and overseas migrant workers in six Asian countries (Bangladesh, India, Pakistan, the Philippines, Thailand and Sri Lanka) has yielded some interesting insights in Bangladesh, with important policy implications.

Demand for communication among Bangaldeshi migrants surveyed was particularly high compared to the other countries surveyed; a significant number of overseas migrants even used the Internet to call home. Bangladeshi migrants were sending home around half of their salaries on average, mostly through banks, and hand-carried in cash. Mobiles play a key role in coordinating remittances; a small number of overseas migrants were even sending money home through their mobiles.

These findings as well as the important policy implications (e.g. on IPLC policy, as well as mobile payments policy) were elaborated on by Dr. Rohan Samarajiva, LIRNEasia Chair and CEO at the event. The presentation sides can be downloaded here.

The migrant study is a part of a large multi-country survey of telecom use at the bottom of the pyramid, Teleuse@BOP3. Teleuse@BOP is conducted by LIRNEasia every two years. The study looks at how the lowest socioeconomic groups or the bottom of the pyramid (BOP) make use of telecom and other ICTs in their lives. Teleuse@BOP3, the third of these studies was conducted between October 2008 and March 2009 and included Bangladesh for the first time. Teleuse@BOP3 also included a survey of BOP overseas and domestic migrant workers from the same six countries (Bangladesh, India, Pakistan, the Philippines, Thailand and Sri Lanka). Over 1,500 migrant workers were surveyed in late 2008. In Bangladesh, 180 recently returned overseas migrants and 170 domestic migrants were surveyed. In-depth qualitative research with similar migrant workers as well as their families was conducted in the six countries in early 2009.

The Bangladeshi findings from the main Teleuse@BOP3 study can be downloaded here: Teleuse@BOP3 Bangladesh findings 26Jun09

The project is funded by the International Development Research Center (IDRC) of Canada; an inception meeting was recently held in Kampala, Uganda, which Harsha de Silva attended. The project will be conducted in six African countries: Kenya, Malawi, Uganda, Ghana, Benin, and Madagascar.

The  Scientific Advisory Committee constitutes:

• Prof. Chris Ackello-Ogutu, Department of Agricultural Economics, University of Nairobi, Kenya
• Prof. Julian May, School of Development Studies, Kwa Zulu Natal, South Africa
• Dr. Colin Poulton, School of Oriental and African Studies, University of London
• Dr. Adrian Mukhebi, CEO Kenya Agricultural Commodity Exchange and Market Economist, Nairobi
• Dr Harsha M. De Silva, Lead Economist, LIRNEasia

Harsha leads the agriculture-focused research at LIRNEasia, including a study on the impact of ICTs on transaction costs in agricultural markets in 2007.

The award honors one person each year whose work has had a demonstrable impact on practice outside the academy, with clear benefits to the community.

The award was presented to him by Patrice M. Buzzanell, President of the International Communication Association.

At the ceremony a brief statement about his accomplishments and the ways his work has had sustainable social benefits was presented by the ICA:

“Dr. Rohan Samarajiva has co-edited a volume, ICT Infrastructure in Emerging Asia: Policy and Regulatory Roadblocks, that exemplifies the intention of this award, i.e., to show ways in which a significant engagement with research can influence communication change. This work highlights a very important but often under-researched region focusing on five Aisan countries: Bangladesh, India, Indonesia, Nepal and Sri Lanka… A central thread underpinning all the viewpoints provided in the book is that technology itself cannot improve access to ICTs; policy and regulatory reform is critical. In providing data that challenges the vested and frequently dysfunctional interests which have underpinned past and present governance structures, this important research becomes in itself a significant marker of ways to work towards policy and regulatory reform.”

The 2009 conference of the ICA, themed “Keywords in Communication” took place from 21-25 May 2009 in Chicago, USA. The ICA is an academic association for scholars interested in the study, teaching, and application of all aspects of human and mediated communication. The ICA is over 50 years old, beginning as a small association of U.S. researchers and is now an international association with more than 4,300 members in 70 countries. The ICA includes 24 divisions and interest groups, each representing a special subfield of communication processes and phenomena