Information and Communication Technologies For Development - ICT4D and Mobile Technologies - Mobile Telephony and Development Opportunities

Mobile Telephony and Development Opportunities

The use of mobile phones as part of ICT4D initiatives has proven to be a success as the rapid distribution of mobile telephony has made it possible for poor people to have easy access to useful and interactive information. For instance, in India, the total number of mobile phone subscriptions reached 851.70 million in June 2011, among which 289.57 million came from rural areas, with a higher percentage of increase than that in urban areas. The unexpected growth of affordability and coverage of mobile telephony services has increased its importance not just as a means of two way communication but that of ease-of-access to information as well.

Mobile phones are capable of much more than the exchange of information between two people through calling or text messaging. Advanced models of mobile phones can take photos, record video, receive local AM/FM stations radio frequencies, share and receive multimedia and even connect to the Internet: almost all the features that come with being connected to the World Wide Web. These features make an even better device to aid in ICT4D projects.

According to a study conducted in Tanzania, the use of mobile phones has impacted rural living in ways which include:

• Entrepreneurship and Job Search: Mobile phones reduce the cost of running a business and, in some cases, the technology could even enable a user to start one. A good example of this would be the case of the many women in Pakistan who have been able to start small businesses offering beauty and hairdressing services, without having to shell out money for setting up beauty salons. Clients can easily contact them via their mobile numbers to set up an appointment and enjoy their services.
• Easy Access to Information: Mobile phones enables users to access valuable information such as prices, arbitrage and market or trade opportunities which could better prepare them for business transactions. Mobile telephony has empowered farmers and fishers to realize their potential as businesspeople as they directly engage in bargaining processes with their customers. Buyers can use their mobile phones to find out where the best quality and well-priced products are in the market.
• Market Inefficiencies: The use of mobile phones can correct market inefficiencies, therefore regaining the balance in the supply market. The information and services that could be available through mobile phones would prevent exploitation by middlemen or traders, provide employment opportunities (particularly for rural women), reduce information gaps, save cost and time, and strengthen access of service providers to rural people. Community-relevant information regarding education, emergency, situations, markets, weather, etc. could be shared to empower women economically.
• Transport Substitution: The improvement in the information flows between the buyers and sellers make for a more effective bartering of information without traveling. This is particularly significant in rural areas where traders need to travel to urban areas simply to check for demand and negotiate prices. Mobile phones eliminate the need for middlemen and journeys as traders could ensure that demand for their products exists before leaving their rural homes.
• Disaster Relief: In cases of severe drought, floods, wars or weak economies, mobile phones can be used to keep in touch with one's home community. Mobile operators have proven to be incredibly helpful in disaster relief efforts by providing emergency-related communications infrastructure.
• Education and Health: Mobile services are being used to spread locally generated and locally relevant educational and health information.
• Social Capital and Social Cohesion: Mobile services enable participants to act together more efficiently to pursue shared objectives by promoting cooperation among social networks.