Liberalisation and User Driven Innovation in AfricaLiberalisation helped create an enabling...
Transcript of Liberalisation and User Driven Innovation in AfricaLiberalisation helped create an enabling...
Liberalisation and User Driven Innovation in AfricaInnovation in Africa
Sam Paltridge, OECDSam Paltridge, OECD
Liberalisation enabled access growthLiberalisation enabled access growth
30Fixed and Mobile Subscriptions per 100 inhabitants in Low income countries
25
30
Global telephone subs (fixed + mobile)1st Billion (1997) = 120 years.
20
( ) y2nd Billion = 4 years3rd Billion = 3 years
15
y4th Billion = 2 years
5
10
0
Source: OECD based on ITU
Net subscriber additions in 2007Internet (Top 20) Mobile (Top 20)
1 Chi 11 M i1. China
2. USA
1. China
2. India
11. Mexico
12. Thailand 11. Vietnam
12. Canada
3. Brazil
4. Pakistan
3. Pakistan
4. Brazil
13. Turkey
14. Argentina13. Egypt
14. Indonesia
5. Columbia
6. India
5. Russia
6. Indonesia
15. Saudi Arabia
16. Vietnam15. UK
16. Mexico
7. Iran
8. Russia
7. United States
8. Iran
17. Nigeria
18. Philippines 17. Thailand
18. Nigeria
9. Germany
10. France
9. Egypt
10. Germany
19. Peru
20. Algeria19. Poland
20. Venezuela
= 7 out of 20 = 4 out of 20
Liberalisation helped create an enabling environment
• “You don't look at GDP. You ignore that.”– Dennis O'Brien, CEO Digicel (quoted in The Economist S t b 2007)en
sity
September 2007)
Tele
-de
T
WealthWealthJipp, A. (1963). “ Wealth of Nations and Telephone Density.”
Creating innovation aimed at local requirements
Safari Bima is a Personal Accident coverSafari Bima is a Personal Accident cover, providing a benefit of US$ 1300 in the event of DEATH or Permanent Total Disability resulting from an accident. 24 hour coverageresulting from an accident. 24 hour coverage can be activated by SMS at a premium of US$ 0.39 deducted from a customer’s mobile phone credit.
Mobile phone SIM card collar, virtual "geofence" using gps, when elephant approaches the virtual fence collar texts
pwww.korient.co.ke
approaches the virtual fence collar texts rangers. www.savetheelephants.org
J
B A
C
I
Creating innovation aimed at overcoming local barriersD
E
F HG
Location of innovation and take‐up rate no longer predictable
Acceleration/deceleration measures the rate at which technology adoption exceeds (or falls below) expectations for the country’s level of GDP. Rates have been
Source: Intel Technology Metabolism Indexaveraged across three technologies: mobile phones, PC’s, and internet users.
Time to change perceptions of what is possibleAf iOECD
• North America
Africa
• Gabon
f b h– Mobile penetration mid‐2008: United
– 1st African sub‐Saharan with 100%+ mobile penetration?States 84%, Canada
62%, Mexico 68%
E
penetration?
• sub‐Saharan Africa
Borderless roaming for• Europe
– High roaming charges
K
– Borderless roaming for post‐paid and prepaid users across Africa for on‐
• Korea
• 15.4% of mobile users use mobiles for
net calls (and Middle East)
• Kenya use mobiles for payments of products and services (Dec 2007)
– 30% of Kenya’s 12 million mobile users were and services (Dec 2007)registered for M‐Pesa by mid 2008
Some emerging market segment rankingsOpera Mini Browser
(Top 10) Sept 2008
AdMob Mobile Advertising
(Top 20) Sept 2008
1. Russia
2. Indonesia1. United States
2. Indonesia
11. Brunei
12. Saudi Arabia 3. India
4. Ukraine3. India
4. United Kingdom
13. Israel
14. Australia5. China
6. South Africa
4. United Kingdom
5. Philippines
6. South Africa
14. Australia
15. Canada
16. Kenya7. United States
8. United Kingdom
6. South Africa
7. Nigeria
8 Romania
16. Kenya
17. Italy
18 Pakistang
9. Poland
10. Egypt
8. Romania
9. China
10 Malaysia
18. Pakistan
19. Bangladesh
20 Francegyp 10. Malaysia 20. France
= 3 out of 10 = 6 out of 20
Send in the ICT anthropologists!
• ICT companies are increasingly seeking better ways to
Jan Chipchase Nokia
understand emerging markets
Dawn Nafus, Intel
Jan Chipchase, Nokia• For example observations of sharedobservations of shared use lead to design innovation in areas such
Younghee Jung, Nokia
innovation in areas such as multiple address books and cost trackers
Genevieve Bell, IntelNokiabooks and cost trackers
How does this work in practicepUser Innovation: Sente (Uganda) Market internalises financial
transfers• an informal way of sending
and receiving money, cheaper
transfers
• Operator sees value (an externality) being captured by
than other options
• User buys prepaid airtime and ll l l ki k i
externality) being captured by users and wants to internalise.
• Internalises by creatingcalls local kiosk operator in location of recipient
• Negotiation on commission
Internalises by creating network of trusted agents across a country, information
• Negotiation on commission
• Kiosk operator tops up their own phone with the credit
goes direct to recipient, transparent pricing, promotion etcown phone with the credit,
and after taking commission, pays cash to recipient
promotion, etc
• Provides banking and payment services to the unbankedp y p services to the unbanked
From little things…g• Safaricom: 3.8 million customers in 18 months for M‐Pesa
– Kenya’s banking industry took over 100 years to achieve this benchmark
• Competitive response in 2007 : – Traditional banking sector tripled number of account holders 3.3 million to 10.1 million.
– Branches expand from 575 to 740 and mobile banking services launched
• World Bank estimates remittance flows to developing countries were $251 billion in 2007, up 11 percent on 2006– regulatory barriers to low cost cross‐border remittance services deserve examination.
• Each mobile user becomes an ATM with potentially profound development effects
For further informationFor further information• www.oecd.org/futureinternetg/
• The Seoul Declaration for the Future of the Internet Economyy
• Shaping Policies for the Future of the Internet EconomyEconomy
• Global Opportunities for Internet Access Developments