Mobiles beyond voice: identifying the conditions for use Ayesha Zainudeen, Senior Research Manager, LIRNEasia Dimuthu Ratnadiwakara, former Researcher, LIRNEasia CPRsouth5, Xi’an, China This work was carried out with the aid of a grant from the International Development Research Centre, Canada and UKaid from the Department for International Development, UK, with contributions from Telenor Research & Development Centre Sdn. Bhd., Malaysia.
Transcript
Mobiles beyond voice: identifying the conditions for use
Ayesha Zainudeen, Senior Research Manager, LIRNEasia
Dimuthu Ratnadiwakara, former Researcher, LIRNEasia
CPRsouth5, Xi’an, China
This work was carried out with the aid of a grant from the International Development Research Centre, Canada and UKaid from the Department for International Development, UK, with contributions from Telenor Research & Development Centre Sdn. Bhd., Malaysia.
Key takeaways
• “Beyond-voice” services offer new revenue sources for operators
• Social influence a key factor in beyond-voice service adoption– Leveraging on this can help bring less educated and
recently connected segments of BOP into market
• Innovations in pricing of services for affordability needed
• Other conditions (e.g., payment services, delivery services, etc) need to be satisfied also
Study data: Teleuse@BOP3
• Representative survey of ICT use among 15-60 year old BOP teleusers in Bangladesh, Pakistan, India, Sri Lanka, Philippines & Thailand– BOP defined as SEC groups D + E*
• 10,000+ individuals surveyed in 2008; 200+ studied in depth via FGDs, mini-ethnographies and home visits in 2009
• What this means in emerging Asia… 579 million**
* SEC E only in Philippines** 15-60 age groups only
“Beyond voice” awareness and use are low, esp in BD, PK and IN
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Use of Mobile2.0 services (% of BOP aware of the services)
Mobile internet 0 1 0 2 12 6
Use of mobile Internet services (% of BOP teleusers aware of the Internet)
Understanding of factors influencing probability of “beyond-voice” mobile use can inform business
strategies to better target BOP
• Factors influencing probability of “beyond-voice” use modeled using logistical regression
• Factors investigated:– Demographics, education, income, distance from nearest town,
mobile ownership, duration of mobile ownership, social influence perceived usefulness, Internet use via computer
Coefficient Odds Ratio Significance
Age squared -0.001 0.999 0.09
Gender -0.153 0.858 0.04
Secondary education 0.242 1.274 0.00
Tertiary education 0.391 1.478 0.00
Duration of mobile ownership 0.013 1.013 0.02
Walk time to nearest town -0.012 0.988 0.19
% of phone-owning contacts 0.820 2.270 0.00
Sum of perceived benefits (uselfulness)
0.078 1.081 0.00
Use Internet through computer 1.958 7.085 0.00
Philippines -1.789 0.167 0.00
Thailand -1.160 0.313 0.00
Constant -6.340 0.000 0.00
n = 2524; Nagelkerke R Square: 0.354
Social influence a key predictor of probability of beyond-voice services
• Other significant factors:– Internet use via computer
– Education
– perceived benefits (usefulness)
– duration of mobile ownership
Key barriers to uptake include lack of knowledge and relative cost…
• Don’t know how
• “Not applicable to me”
0%
10%
20%
30%
40%
50%
60%
70%
Don't know how Not applicable to me
Don't own a phone/computer
Too expensive Not trustworthy My service provider/handset
doesn't allow it
Language I need a bank account for this
Happy with current methods
Reason for not using payments (% of those that are aware but don't use)
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Dinn | Automobile mechanic15 years | Jae Hom, Thailand •Previously subscribed to sports news on his mobile, until he felt that the service was not worth spending on, since the same information is available for free on the TV and Internet. • Tried using the Internet on his mobile, but he lost all his credit (THB50) in less than 5 minutes. He no longer uses it on his mobile. Instead, he goes to a cyber café and downloads ringtones, wallpapers and themes for his mobile and uploads his mobile photos to his Hi5 page. A two hour visit only costs him THB20.
Too expensive, when they're available free or cheaper via other modes…
CellBazaar Amazon Marketplace
stages included (basic functionality) stages not includedstages included (full functionality)
Other conditions need to be satisfied also
Dispute resolution
Feedback mechanism
Delivery
Payment
Order
Search
Dispute resolution
Feedback mechanism
Delivery
Payment
Order
Search
Why is this important?
• Even at the BOP non-owners have access
* Excludes CDMA fixed wireless phones in Sri Lanka
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Total BOP phone ownership: 2006 vs 2008 (% of BOP teleusers)
131% increase
Among BOP teleusers
95 90
59 5276 74
41 37 34 3250
69
1 2 1 316 18
0 3 1 4 112
Bangladesh Pakistan India Sri Lanka Philippines Thailand
ICT use and ownership (% of BOP)
Use a mobile Own a mobile Use the Internet Own a computer95 90
59 5276 74
41 37 34 3250
69
1 2 1 316 18
0 3 1 4 112
Bangladesh Pakistan India Sri Lanka Philippines Thailand
ICT use and ownership (% of BOP)
Use a mobile Own a mobile Use the Internet Own a computer
**
Cost of ownership is declining (below USD5 in several emerging economies)
•Four S Asian countries in less-than-USD 5 TCO club among 77 emerging economies (average TCO = USD10.88)•Includes services, taxes and cheapest handset
Operators finding it harder and harder to make money from basic services
Source: TRAI, 2010; USD= INR (June 2010)
185164
144131 122
92 89 82 76 74
0
50
100
150
200
Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
ARP
U(I
NR/
SIM
/mon
th)
GSM CDMA
Concluding thoughts
• Developing world is connecting to the Internet via mobiles– Mobile access/ownership growing; affordability increasing– “Mobile2.0” and mobile Internet (data) services seen as a way
to boost revenues and reduce churn AND provide access to an array of important services to BOP at lower transaction costs
– Operators need to target “older” mobile owners, more educated, and current Internet users at the BOP
• Leveraging on social networks can push services out
• Innovations in pricing of services for affordability needed• Other conditions (e.g., payment services, delivery
