NEWS RELEASE: Low-income telephone users uncounted, but spending more than expected


Posted by Sriganesh Lokanathan on January 10, 2006  /  0 Comments

Colombo, Sri Lanka, 19 December 2005: A recent study has shown that fifty-eight per cent of low-income telephone users are absent from conventional telecom indicators. The study also shows that they are spending more of their monthly incomes than expected on telecom services. The study supports C.K. Prahalad’s claim that there is a fortune to be made at the ‘bottom of the pyramid,’ not only at the top.
Decisions in the telecom sector are frequently made based on the number of telephone subscribers per 100 population, an indicator called teledensity. A path-breaking study of telecommunication use by people in Sri Lanka and India with incomes of below approximately USD 100 per month reveals that 58 per cent of these low-income users do not own the phone that they use. They are not counted in the teledensity measures……..

English Press release: Low-income telephone users uncounted, but spending more than expected

More information about the project: Telecom use on a shoestring [2005]
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