Regional and Rural Development PlanningRegional and Rural Development PlanningSchool of Environment, Resources and DevelopmentSchool of Environment, Resources and Development

Asian Institute of TechnologyAsian Institute of TechnologyMay 06, 2009May 06, 2009

IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON RURAL LIVELIHOODS: A CASE STUDY

OF MOBILE PHONES IN KAMPONG THOM, CAMBODIA

IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON RURAL LIVELIHOODS: A CASE STUDY

OF MOBILE PHONES IN KAMPONG THOM, CAMBODIA

Va SothyVa SothyRegional and Rural Development PlanningRegional and Rural Development Planning

Background of the ResearchBackground of the Research

Information and Communication Technologies (ICT): Radio, television, mobile and fixed phone, computers and internet, e-mail;

ICT is an enabler to address developmental issues;

ICT diffusion to human activities has impacts on livelihood assets;

There is a digital divide within the country (rural and urban area);

In Cambodia, ICT has been concerned by the Government by listing it as one of the 16 highest priority areas in National Strategic Development Plan; and national ICT policy was formulated;

Mobile phone service is penetrating rapidly throughout the country (service covered 88% in 2006; about 3.5 million subscribers, end of 2008);

Other ICT such as computer/internet/e-mail use is almost nonexistent outside some major cities and towns (roughly 40,000 internet users, 0.28 per 100 in 2005, 340 internet café).

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Objectives of the ResearchObjectives of the ResearchOverall Objective

The overall objective of the study is to assess the impact of mobile phone services on rural livelihoods in Cambodia.

Specific Objectives: The specific objectives of the study are as follows:

To examine rural people’s access, use and ownership of ICT;

To assess the impact of mobile phone services on rural people’s livelihoods with focus on aspects of social communication, economic activities and knowledge acquisition;

To obtain perception on telecommunication services, identify factors associated with the use of mobile phones; and

To provide recommendations to improve access to ICT in rural Cambodia and provide development planning/policy implications.

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Conceptual

Framework

Conceptual

Framework

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Access, Use and Ownership of ICT of Rural People

ICT Infrastructures and Services in Rural Areas

Impact of Mobile Services on Rural Livelihoods

Economic Activities-Agricultural produces prices and markets-Agricultural input prices and availability-Raw material price and availability-Communication with brokers-Communication with goods suppliers and buyers-Contact with financial services

Social Communication

-Communication with family members-Social relation/networking inside community-Social relation/networking outside community

Knowledge and Information Acquisition

-Agriculture and vocational training and job employment information-Health care information and knowledge-School and education information-Contact with public institutions and others

Agriculture:Farmers

- Rice production- Cash crop production- Husbandry

Non-agriculture:Traders/

Businessmen- Handicrafts- Small-scale enterprises- Small-scale trading

Data Sources and Data Collection Methods

Sampling Design

Selection of the Study Area

Research Design

Data Analysis

Type of Research Design:Survey & Case Study Approach

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Criteria of Selection

Availability of mobile phone service in the area. Local people’ occupations (Agriculture: farmers and non-agriculture: traders/businessmen)

Sample Size

90 households in two communes -45 farmers -45 businessmen

Primary Data

Reconnaissance surveyStandardized questionnaireField observationFocus group discussionsSemi-structure interview

Secondary Data

Previous research papersGovernment statisticsLocal government documentsJournal articles

Quantitative Analysis

Descriptive statistics -Frequency -Percentage -Chart-Bar and Pie -Average -Cross tabulation -Weighted Average Index -T-testAnalytical statistics -Bivariate (Pearson Correlation)

Qualitative Analysis

Qualitative StatementCase Study

The Study Areas

Kampong Thom Province

Kampong Thom Province

CambodiaCambodiaThe Study AreasThe Study Areas

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Access and Ownership of ICT

7

66.7

20

103.3

0

20

40

60

80

Public mobilephone service in

village

Public mobilephone service in

other village

Public mobilephone service at far

away market

Other

Access pointsPe

rcen

tage

Access Points to Retail Public Phone Services

Yes36%

No64% Yes

82%

No18%

Ownership of mobile phonesOwnership of mobile phones

TradersFarmers

•There is no internet service available in the areas.

•Awareness about the use and benefits of computer and internet is limited to few respondents.

•Ownership of computers was found few in traders family and used for business activities

•People can access the mobile phone service by their own sets or retail public services.

Key Findings

Access and Ownership of ICT (Con.)

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Reasons for not owning mobile phone

72%

93%

31%

69%

50%

63%

25%

25%

76%

84%

30%

59%

0% 20% 40% 60% 80% 100%

Not necessary forfamily/work

Cannot afford withservice cost

Do not know howto operate

Can communicateby face to face

TotalTradersFarmers

3%

90%

41%

86%

0%

88%

38%

13%

3%

89%

41%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Use public mobile phone service nearby

Borrow relatives or friends' phone to make call

Direct visit or face to facecommunication

Total

Traders

Farmers

Ways of communications

Frequency of Mobile Phone UseFrequency of Mobile Phone Use

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Indicators

FarmersTraders-

businessmenTotal

WAI AL WAI AL WAI AL

Average of Social Communications 0.58 St 0.80 O 0.69 O

To communicate with family members 0.76 O 0.76 O 0.76 O

For social relation/networking in community 0.43 S 0.76 St 0.60 St

For social relation/networking outside the community 0.57 S 0.88 A 0.73 O

Note: WAI: Weighted Average Index. The index values range from 0 to 1. The higher the index value, the more frequent is the use of mobile phone services. (N=Never, S=Seldom, St=Sometimes, O=Often, A=Always); AL: Assessment Level

Note: WAI: Weighted Average Index. The index values range from 0 to 1. The higher the index value, the more frequent is the use of mobile phone services. (N=Never, S=Seldom, St=Sometimes, O=Often, A=Always); AL: Assessment Level

Frequency of Mobile Phone Use (Con.)

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IndicatorsFarmers

Traders/bu-sinessmen

WAI AL WAI AL

Average of Economic Activities 0.37 S 0.54 St

To ask about produces prices 0.42 St N.A -

To find the market for the produces 0.35 S N.A -

To ask about the agricultural input prices and availability 0.37 S N.A -

To communicate with buyers or middlemen 0.37 S N.A -

To ask for financial service with MFI 0.34 S 0.42 St

To order and ask about the market prices and availability of the goods and products

N.A - 0.65 O

To find the market for the products N.A - 0.55 St

To communicate with goods suppliers, ask raw material prices and availability

N.A - 0.52 St

To communicate with customers N.A - 0.43 St

Note: N.A: Not Applicable

Frequency of Mobile Phone Use (Con.)

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Perceived Usefulness of Mobile Phone Service on

Rural Livelihoods

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IndicatorsFarmers

Traders/Bu- sinessmen

Total

WAI AL WAI AL WAI AL

Emergency 0.86 VH 0.87 VH 0.86 VH

Average of Social Communications 0.61 H 0.62 H 0.61 H

Communication with family members 0.82 VH 0.71 H 0.77 H

Social relation and networking in the communities

0.51 M 0.63 H 0.57 M

Social relation and networking outside the communities

0.50 M 0.52 M 0.51 M

Note: The index values range from 0 to 1. (VL: Very Low, L: Low, M: Moderate, H: High, VH: Very High)

“When my son got fever or any member of my family felt seriously sick at the night, I always called the nurse in another village. I think that it is very helpful in such a situation. Without phone, it might be difficult to reach the one we want to contact”

“My daughter works in garment factory in the city since last two years. She bought a mobile phone for me four months ago. I always worry about her living status there. Luckily, we often keep contact by the mobile phone, so I feel she is near me all the time. I found it is very useful for communication with my daughter.”

IndicatorsFarmers

Traders/businessmen

WAI AL WAI AL

Average of Economic Activities 0.57 M 0.83 VH

Getting to know about the produce prices and getting a better price for produce

0.76 H N.A -

Getting to find out a market for the produces 0.60 H N.A -

Getting to know about the agricultural input prices and availability

0.39 M N.A -

Better connections/communication with buyers and middlemen

0.59 M N.A -

Better access to financial service with MFI 0.45 M 0.62 H

Perceived Usefulness of Mobile Phone Service on Rural Livelihoods (Con.)

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“After I harvested the bean of about half ton, I have to find the market for my harvests. I made a phone call the broker who is quite far from here through my phone so

that I get to know the price of my produces.”

IndicatorsFarmers

Traders/businessmen

WAI AL WAI AL

Getting to know about the market prices of the goods and products

N.A - 0.84 VH

Finding out the new market and increasing the sales of the products, new clients

N.A - 0.80 VH

Better connection with goods and raw material suppliers and know prices

N.A - 0.85 VH

Better connection and communication with customers and ability to get new clients

N.A - 0.82 VH

Ability to save cost and time 0.82 VH 0.85 VH

Perceived Usefulness of Mobile Phone Service on Rural Livelihoods (Con.)

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“I had this small-scale wooden bed and table workshop a decade ago. Previously, it was very difficult for me to contact with the wood suppliers living far from here to know about the prices and availability of raw materials. Now, I bought a mobile

phone and I usually make phone call to the raw material suppliers. I often use my phone to communicate with the buyers in Phnom Penh city. With this, it would help

me get orders very quickly and also reliable, and it could increase sales of the products and the incomes.”

Perceived Usefulness of Mobile Phone Service

on Rural Livelihoods (Con.)

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IndicatorsFarmers

Traders/businessmen

WAI AL WAI AL

Average of Knowledge and Information Acquisition

0.39 L 0.38 L

Getting to know about the agricultural and vocational training and information

0.36 L 0.34 L

Better knowledge and information on health care 0.50 M 0.44 M

Information of schools and education 0.43 M 0.46 M

Getting more government and political information 0.29 L 0.28 L

“I used to call the hotline number to ask about the information and knowledge related to HIVs, I know a lot

about HIVs by calling this line. It is helpful to use the phone for getting such information”

Summary of Perceived Usefulness of Mobile Phone Services

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Note: VL: Very Low, L: Low, M: Moderate, H: High, VH: Very High

Perceived Changes after Accessing and Using Mobile Phone Services

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IndicatorsFarmers

Traders/businessmen

AL AL

Ability to act in emergencies LI LI

Use of letters and post office SR SR

Making social relation, friends and relative communications SI SI

Relative visits SR SR

Social status and recognition SI SI

Ability to earn income for livelihoods SR LI

Ability to save cost and time of traveling LI LI

Access to institution such as MFI, government offices SI SI

Health care information SI SI

School and education information SI SI

Professional knowledge on farming, trading and business SI SI

Note: LR=Large Reduction, SR=Small Reduction, N=Neutral, SI=Somewhat Increased, LI=Largely IncreasedNote: LR=Large Reduction, SR=Small Reduction, N=Neutral, SI=Somewhat Increased, LI=Largely Increased

Perception on Mobile Phone Services

Perception on Mobile Phone Services

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Note: SD=Strongly Dissatisfied, D=Dissatisfied, N=Neutral, S=Satisfied, SS=Strongly Satisfied

Note: VC=Very Cheap, C=Cheap, M=Moderate, E=Expensive, VE=Very Expensive

Factors associated with Frequency of Mobile Phone Use(Using Bi-variate, Pearson Correlation Analysis)

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Factors associated with expense on phonesFarmers Traders Total

Low Moderate High Low Moderate High Low Moderate High

Demographic and Socio-economic Status

Gender √ √ √

Age √ √ √

Marital status √ √ √

Education level √ √ √

Number of household members √ √ √

Annual income √ √ √

Perceived Usefulness for Livelihoods

Perceived usefulness for social communication √ √ √

Perceived usefulness for economic activities √ √ √

Perceived usefulness for knowledge and information acquisition

√ √ √

Perception on Calling Cost and Service Quality

Perceived level of calling costs compared to income √ √ √

Satisfaction on Service quality (sound, signal and transmission)

√ √ √

Perceived Changes after Accessing and Using Mobile Service

Ability to act in emergency √ √ √

Use of letters and posts √ √ √

Making social, relative and friend communications √ √ √

Relative visits √ √ √

Social status and recognition √ √ √

Enabling to earn income for livelihoods √ √ √

Ability to save cost and time of traveling √ √ √

ProblemsProblems

Low level of use and ownership among rural people, especially farmers;

Unavailability of local public access points or centers; and

In responses to the high cost of the telecom services, there are several factors contributing to high costs of telecom services;

High cost of oil and electricity

Lack of the technical human resources in telecom sector

High import tax on telecom and electronic equipments

Others20

ConclusionsConclusionsUsing and owning computers were limited to only few

traders/businessmen, and there was no any internet connection found.

The mobile phone services became more accessible through own mobile sets or retail public services in local communities. Ownership rate of mobile phones in rural families was still low, especially farmers (2.5 times lower than traders).

The use of mobile phone services has not been intensive among rural people, particularly farmers.

Mobile phones were highly valued and had considerable impact on rural lives by providing social and economic benefits, but not knowledge and information acquisition.

For social aspect, Mobile phones provided high social benefit, but lower economic benefit for farmers.

The great impact on farmers was keeping contacts with family members who are working out of the communities or migrating to other places, and in emergency cases. 21

Conclusions (Con.)Conclusions (Con.)For economic aspect,

Mobile phones highly benefited occupational activities of rural small-scale traders/businessmen , but lower for agricultural activities of farmers. It helped the whole process of rural small-scale trading and production with an effective and fast way of communication and information flows. It ranges from getting information on prices and availability of inputs and raw materials to getting orders from the buyers.

Great impact on ability to save costs and times of traveling significantly contributed to savings and incomes from crops among farmers, and increase in profits from sales and productions among rural small-scale trading and enterprises.

Factors associated with use of the mobile services included: gender, age, income, perceived usefulness for emergency, social, and economic activities, tariff costs, change in enabling to earn incomes, and change in ability to save costs and times.

Thus, mobile phone services were highly valued as an enabler to the improvement of quality of rural lives.

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Recommendations

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Public information access points, or community information centers like Telecenters, equipped with various kinds of services including internet and phone services on a regular and reliable basis should be initiated in the local communities;

The government should play an important role as key information and knowledge provider;

The national level policy which could address the problems causing high calling rates of telecom services should be reviewed. Those include:

Rural electricity infrastructure should be further developed

Government should review the policy on the import tax on telecom and electronic equipments.

Government should pay additional attention to the human resource development in the telecom sector in Cambodia.

Thank You for Your

Attention!

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