Vital Wave Consulting Field Teams Latin America Rio de Janeiro, Brazil San Jose, Costa Rica Cabrera,...

Vital Wave ConsultingField Teams

Latin America Rio de Janeiro, Brazil

San Jose, Costa Rica

Cabrera, Dominican Republic

Mexico City, Mexico

Asia Bhopal, India

Beijing, China

Phnom Penh, Cambodia

Eastern Europe Tallinn, Estonia

Africa Cairo, Egypt

Johannesburg, South Africa

Lagos, Nigeria

United States Palo Alto, California (Headquarters)

The Opportunity for Mobile Services

in the Developing World

Brooke PartridgeCEO

World Bank Group

Mobile Innovations for Social and Economic Transformation

September 16, 2009

© 2009 Vital Wave ConsultingTM Proprietary and Confidential: Do not copy or distribute.

Current Mobile Environment1

Trends Leading to mServices2

Agenda

2

mServices Application Areas3

Scale and Ecosystem4

Q & A5


Mobile Penetration Rates

3

Mobile Penetration Rates 70% and aboveMobile Penetration Rates Under 70%


4

Trends Spurring Development of mServicesShrinking pools of potential new subscribers and falling margins

• Diminishing ARPU in developing economies• Margin pressure across value chain• Below-subsistence subscribers seeking basic-need

services

Other Motivating Conditions


Population Needs

• Lack of physical infrastructure

• Lack of communication options

• Desire to fulfill basic needs

5

Human Needs

Advanced Human Needs

• Style/status• Individuality• Security• Belonging/communications• Time with family• Fun/entertainment

Basic Human Needs

• Access to credit

• Employment/income generation

• Further education/skills training

• Basic education

• Basic health

• Food security, potable water and sanitation, shelter

Technology that ties into social services and basic human needs are the ones that can meet the health, educational and financial needs of populations in developing countries

Technology that ties into social services and basic human needs are the ones that can meet the health, educational and financial needs of populations in developing countries


Types of mServices

•mHealth

•mFinance

•mCommerce

•mGovernance

•mActivism

•mEducation

6


Growing mService Initiatives

7

Venezuela:

8 million questions to locate polling

stations.

Thailand:25M

messages sent to remind

people to vote.

Azerbaijan:

1 million messages

sent in support of

human rights effort.

Uganda: SMS-based

service for rural water, sanitation

information.

Philippines:

More than 3.5 million customers

to mBanking services

Nigeria:National election monitors

use SMS to collect data

More than 2 trillion text messages were sent in 2008…48 billion on New Years Eve alone.

Kenya:Vodaphone’

s M-Pesa banking

service has more than 6 million

customers


mServices in BRIC Countries

8

BrazilNokia Data gathering: 400 test results gathered by 20 field professionals in two days, all with GPS information (paper-based system would have taken 2-3 months for lesser information).

ChinaBeijing Municipal government uses mobile technology to manage city’s assets and monitor repair work (year 2005).

IndiaOver 300 health workers in remote areas are able to report disease incidence data to health officials in real time to track diseases and outbreaks.

RussiaAbout 1000 mobile services are used daily by residents of Zelenograd, Russia, which offers 10 public services that can be assessed through SMS.


Benefits of Scale

9

Photos: DataDyne

•Allows mobile operators to achieve profitability, increasing incentives to develop services

•Scale allows programs to reach larger populations, especially those in remote areas

•Large deployments reduce unit costs

•Justifies investments in improved technology and tools, increasing efficiencies


10

Example: mFinanceApplication Categories

• P2B Payments • mBanking• P2P Money Transfers

• costs• access to financial services

• costs• access to financial services

Implementations•Mobile remittance transfers•Commerce-related payments•Access to personal bank account information•Deposit and withdrawal abilities•Investments (stock market alerts)

Kenya


Application Category: mFinancemPESA Case Study

mMoney

Impact•>6M customers, most from the unbanked sector

• 10,000 new clients per day

• Visibility of and interest in mMoney services – winner of Best Mobile Money Service award at a GSMA Global Mobile Awards

ObjectiveEnable safe and secure money transfer

services for the unbanked

CountryKenya, Tanzania and Afghanistan

Techniques UsedSMS messages to sign up, deposit, send

and receive money. Network of mPESA agents.

ChallengesSustainability, regulatory constraints and banking industry resistance (squeezed out of value chain)

PartnersVodaphone, Safaricom, DFID

Photo: mPESA

11


12

Example: mCommerceApplication Categories

• Supply ChainManagement

• mMarketing• Marketplaces

• costs • access to information and opportunities• speed and efficiency

• costs • access to information and opportunities• speed and efficiency

Implementations•Matching farmers with customers•Connecting job seekers with employers•Optimizing distribution of pharmaceutical supplies •Advertising products and services to remote customers


Application Category: mCommerceSoukTel JobMatch Case Study

Marketplace

Impact• 8,000 users in Palestine

• 170 jobs secured in June

• Sustainable – employers pay a fee to use the system

• Recently scaled up and entered Iraq and Somaliland

ObjectiveConnect job seekers with employers in a

cost-effective manner

CountryPalestine, Iraq and Somaliland

Techniques UsedSMS messages to create a brief resume

and to be matched with employers with open positions.

PartnersEast Jerusalem YMCA, DAI Palestine,

EDC, Bisan Financial Systems, Sky Media, UPPM, Birzeit Univ., Aman – Transparency Palestine, Ramallah Quaker Friends’ School, Trendline Investment, Care West Bank/Gaza

Photo: SoukTel

13


Project Owner/

Developer

Banks

NGOs

Funders andInvestors

Government Ministries

and International Bodies

Regulators PDAs,Handsets

Laptops

Hardware Vendors

Content Aggregat

ors

Content Providers

Content Developer

s

App Develope

r

Platform Developer

Financial or Health Informati

on Systems

Vertical IT Systems

Subscriber Voice, Data,

Texting

Mobile Services Provider Vertical

Intermediary

Health Workers,

Microfinance Agents

Subscriber

Subscriber

Subscriber

Subscriber

Subscriber

14

Value Chain Models for mServicesTwo-way Data Applications


Potential Solutions and Opportunities

15

Stay within borders but go deep

Transfer pilot programs to more formal organizations

Conduct rigorous ROI analysis

Keep it simple

Support development of government regulations


Challenges to Scale

16

•Legal concerns

•Regulatory & Interoperability

•Priorities

•Risk

•Infrastructure

•Leadership

•Ecosystem


Developing Country ServicesMaturity Model

17

Time

Level of

Involv

em

en

t

Development Community

Private Sector

Commercial Pilots

TechnicalPilots

Ecosystem Development & Business

Scale

Commoditization

& Ubiquitous Availability

CompetitiveOfferings

Grass Roots Experimentati

on

Local Pilots & Tools

DevelopmentInvestments

for ScaleThought Leadership & Cross-Sector Influence

Research & Philanthropic Investments

Issue Identification

mServices Today


Opportunities for World Bank Impact

18

Funding and Oversight of mServices Business Case

• Rigorous mServices Impact Analyses

• Evaluation of National Policies and Regulation to Stimulate Scale of mServices

• Market Sizing

• User Research

• mServices Solution Development Toolkit

•Research needed for individual mServices and for general mServices platform

•Audiences include private sector, government, and development community

Thank you

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