SOURCE: LIRNEasia
TITLE: Measuring Progress: Towards Information Societies in Emerging Asia
__________
INTERNATIONAL TELECOMMUNICATION UNION
Document 012-Erev1 05 March 2009
TELECOMMUNICATION DEVELOPMENT BUREAU
Original: English
7TH WORLD TELECOMMUNICATION/ICT INDICATORS MEETING, CAIRO, EGYPT, 3-5 MARCH 2009
Measuring Progress: Towards Information Societies in Emerging Asia
Findings from a six‐country study of Teleuse at the Bottom of the Pyramid
Helani Galpaya – [email protected]
ITU 7th World Telecom Indicators Meeting
Cairo, 5 March 2009
Teleuse@BOP: background
• Objective: To understand how BOP interacts with ICTs (mostly phones) to better inform policy• Large surveys of ‘BOP’ conducted in 2005, 2006, 2008
• It’s not exactly a pyramid, but combining D&E as BOP makes it so.
• Almost 20,000 face to face interviews in 6 countries since 2005• Bangladesh (2008)• Pakistan• India• Sri Lanka• Philippines• Thailand
• Funded by the International Development Research Center (IDRC) of Canada with contributions from Telenor Research and Innovation
2
SEC D & E
SEC A, B & C
Why worry the BOP?
• Because if the access and usage problems for BOP can be solved, it can be solved for the TOP
• Because TOP is less of a challenge– closer to gaining Universal Access already
– through market forces
– less likely to need public sector subsidies/funding
• BOP is where policy challenges are
3
Samples
Bangladesh Pakistan[1]
India Sri Lanka[2]Philippines[3
] Thailand[4]
Total
BOP teleusers
2,050 1,814 3,152 924 800 800 9,540
Margin of error @ 95% CL (%) + 3% + 2% + 2% + 3% + 4% + 4%
Diary Sample
1,025 900 1,600 450 400 400 4,775
Migrant workers
350 300 400 200 200 100 1,550
4
[1] Pakistan: Excludes tribal regions[2] Sri Lanka: Excludes North and East[3] Philippines: Survey was undertaken only among SEC E[4] Thailand: Excludes Bangkok as the SEC DE population in Bangkok is very small
Methods
• Multi‐stage stratified sampling, random selection of households and individuals
• Migrant worker teleusers at “bottom of the pyramid”– SEC groups C** + D + E*– “internal” and “external” migrants that send money home– Findings available in March 2009
5
Representing around 518 million BOP citizens aged 15‐60 in the 6 countries surveyed.
• Teleusers at “bottom of the pyramid”– SEC groups D + E
– Aged 15‐60
(Rural India: R2, R3, R4)
6
43 52 60 62
0
72
57 48 40 38
100
28
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Socioeconomic group classification (% of sample)
SEC D SEC E
Among BOP teleusers
Individuals earning USD38 per month, on average
7
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Personal 36 37 38 54 45 79
Household 117 127 99 151 127 172
Mean monthly income (USD)
Among BOP teleusers
Link between SEC D+E and "$2 per day" definition
Bangladesh Pakistan India Sri Lanka Philippines Thailand
SEC D+E (% of population) 73 59 69 44 38
[SEC E]33
Less than $2 per day (% of population) 78 85 86 45 40 28
Actual population proportions
8
PROFILING THE BOP
Motorized
transpo
rt
Motorized
transpo
rt
Motorized
transpo
rt
Motorized
transpo
rt
Motorized
transpo
rt
Motorized
transpo
rt
Bicycle
Bicycle
Bicycle
Bicycle
Bicycle
Bicycle
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
% of B
OP ho
useh
olds
Access to transport within the household (% of BOP teleusers)
Access to transport: mostly bicycles
10Among BOP teleusers
Note: “motorized transport” includes: motorbike, three-wheeler (trishaw), scooter, tractor, “jeepney” (Philippines), “Qingqi” (Pakistan) + other kinds of auto-rickshaws
Access to other forms of communications: phones bypassing radio in South Asia. Access to computers still low everywhere
11
TV
TV
TV
TV
TV
TV
Radio
Radio Radio
Radio
Radio
Radio
Phon
e
Phon
e
Phon
e
Phon
e
Phon
e
Phon
e
Compu
ter
Compu
ter
Compu
ter
Compu
ter
Compu
ter
Compu
ter
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
% of B
OP ho
useh
olds
Access to communication technologies within the household (% of BOP teleusers)
41% of Indian BOP teleusers' households have access to a "bank account" (broadly defined)
12
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Bank account 31% 11% 41% 93% 13% 84%
Credit card 3% 2% 3% 10% 1% 11%
Access (either own or within household) to a bank account or credit card (% of BOP teleusers)
Among BOP teleusers
Educational attainment does not exceed primary or secondary education
13
23 22
1 0 0
4035
38
17
39
3639
60
62
52
1 1 015 5
0 3 0 0 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bangladesh India Sri Lanka Philippines Thailand
Educational attainment (% of BOP teleusers)
Degree or above
Diploma Level
Secondary
Primary
No formal education
Among BOP teleusers
BOP = HIGH ACCESS & USE . MODERATE OWNERSHIP
Most have used a phone in the last 3 months to make and receive calls. Many had used in last week
Bangladesh Pakistan India Sri Lanka Philippines Thailand
% of BOP (outer sample)
95% 96% 86% 88% 79% 77 %
15
Bangladesh Pakistan India Sri Lanka Philippines Thailand
% of BOP (outer
sample)82% 66% 65% 77% 38% 72%
Used a phone in the last 3 months
Used a phone in the last week
Among BOP (OUTER SAMPLE)
Rural useage also high: e.g. More than two thirds of rural BOP teleusers in India used a phone in the last week
16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urban Rural
India
Last time respondent made/received a call (% of BOP teleusers)
2‐3 months ago
1‐2 months ago
About a month ago
2‐3 weeks ago
1‐2 weeks ago
In the last one week
Yesterday / Today
Among BOP teleusers
Mobiles are used most as the primary phone; public phones in second place
17
4337 36 31
61
8003 7
39
4
9
2032
13
109
6
4
11
8
812
0
2
9
3
4 111
32
8
33
7 4 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Most frequently used phone (% of BOP teleusers)
Public acces phone
Friend/relative/workplace phone
Neighbor's phone
Other household member's phone
Household fixed phone
My own mobile
Access within the household
Among BOP teleusers
Fewer women in South Asia use public phones. No gender difference in S E Asia
• Women less likely to use their own mobile or public phones; more likely to use other peoples’ phones
18
0%10%20%30%40%50%60%70%80%90%100%
Male Female Male Female Male Female Male Female Male Female Male Female
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Public acces phone
Friend/relative/workplace phone
Neighbor's phone
Other household member's phone
Household fixed phone
My own mobile
Among BOP teleusers
Most frequently used phone (% of BOP teleusers)
1.6 : 1 3.5 : 1 2.0 : 1 1.8 : 1 1 : 11 : 1
Ratio of male to female use of ‘my own mobile’
Public access has fallen since 2006
19
0%
20%
40%
60%
80%
100%
2008 2006 2008 2006 2008 2006 2008 2006 2008 2006 2008
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Modes of telecom used (% of BOP teleusers)
I used my own phone I used the phone in my house Public access phones A friend’s or relative’s phone A neighbour’s phone
Among BOP teleusers
BOP = MODERATELY HIGH PHONE OWNERHIP
Ownership (fixed + mobile) is high, but has room for growth
21
43% 41% 45%
73%63%
91%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Total phone ownership (% of BOP teleusers)
owners
Among BOP teleusers
43%36% 41%
19%
45% 41%
73%
54%63%
77%
91%
2008 2006 2008 2006 2008 2006 2008 2006 2008 2006 2008
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Total BOP phone ownership: 2006 vs 2008 (% of BOP teleusers)
Largest % growth in phone ownership in India
22
131% increase
Among BOP teleusers
Urban‐rural divide in total BOP phone ownership declining
23
1.4 urban owners for every rural owner1.4 urban owners for every rural owner
Ratio between urban and rural BOP teleusers
1.0
2.0 1.7
1.4
1.1 1.3
1.0 0.9
1.2 1.1 1.1
2006 2008 2006 2008 2006 2008 2006 2008 2006 2008 2006 2008
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Urban‐rural divide in phone ownership (urban:rural)
1:1 ratio
Mostly mobile: 90% BOP phone owners own a mobile
2424
43% 41%45%
73%63%
91%
0%
20%
40%
60%
80%
100%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Phone ownership (% of BOP teleusers)
Fixed only
Mobile + fixed
Mobile only
Among BOP teleusers
Mobile adoption determined by: demographics, household amenities and network effects
LOGIT model for mobile adoption:
25
QPONMLKJIHGFEDCBAe 81.062.076.238.013.131.087.079.020.070.101.001.030.179.036.060.050.098.311
+−+++−−−−+−−+++−+−+Where
A = ln (personal income)B = female (1 if true)C = primary education (1 if true)D = secondary education (1 if true)E = tertiary education (1 if true)
F = walking time to nearest townG = age * ageH = percentage of top five contacts with mobiles
I = BangladeshJ = PakistanK = Sri LankaL = PhilippinesM = Thailand N = Electricity in the house ( 1 if true)
O = percentage of household members with mobiles
P = Fixed phone in the house (1 if true)
Q = TV in the house (1 if true)
R2 = 0.23
Mobile adoption determined by demographics, household amenities and network effects
• Significant variables :– Demographics: Personal income, gender, education, age, proximity to nearest town
– Household amenities: electricity, fixed phone ,TV
– Network effects: % of contacts who already have mobiles, no. of household members who already have mobiles
• Insignificant variables:– Urban/Rural, perceptions of benefits from phone access occupation
26
Own more than one (active) SIM
Bangladesh Pakistan India Sri Lanka Philippines Thailand
2008 2006 2008 2006 2008 2006 2008 2006 2008 2006 2008
More than 1 SIM 10% 12% 23% 5% 9% 9% 16% 9% 19% 1% 13%
27
Among BOP mobile owners
But non‐owners are still a signficant proportion of users
• 76% of these non‐owners can reach a phone in under 5 minutes
Among all BOP teleusers
57% 59% 55%
27%37%
9%
Bangladesh Pakistan India Sri Lanka Philippines* Thailand
Non‐ownership (% of BOP teleusers)
non‐owners
Main reasons for not owning are affordability and the lack of a need
• Just 2% say that service is not available where they live network rollout no longer an issue
Among BOP non‐owner teleusers
Of those planning to buy, 92% plan to buy a mobile phone/connection
• Same picture in rural India
Among BOP non‐owner teleusers planning to get connected
98% 93% 92%
58%
89% 100%
0%
20%
40%
60%
80%
100%
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Type of phone planning to buy (% of potential BOP owners)
Not decided
Mobile
Fixed (undecided)
Fixed (wireless)
Fixed (wireline)
BUT WHAT ABOUT THE INTERNET?
Most of the BOP either haven't heard of, or haven't accessed the internet
32
All BOP
The few who DO use the internet depend on telecenters/internet cafes
33
Among BOP who USE the internet. Note: LOW BASES
Access device (computer vs. mobile phone) linked to GDP?
34
BOP that have used the internet at least once. NOTE: LOW BASES
USAGE OF TELEPHONES STILL BASIC – VOICE, SMS
Mostly calls, SMS, missed calls, balance checking
36
B’desh Pakistan India S’ Lanka Ph’pines T’land
% of BOP mobile owners
Taking phone calls 100% 100% 99% 100% 89% 100%
Receiving phone calls 100% 100% 98% 100% 99% 100%
Sending/receiving 'missed calls' 94% 84% 84% 73% 86% 39%
Sending/receiving SMS (text messages) 32% 47% 33% 52% 100% 53%
Sending/receiving MMS (picture messages) 1% 4% 4% 6% 13% 4%
Sending/receiving emails 0% 0% 1% 0% 0% 1%
Browsing the Internet 0% 1% 1% 2% 0% 2%
Taking photos /video clips 4% 2% 1% 8% 4% 18%
To play games (individual) 13% 18% 7% 21% 14% 17%
To play games (interactive) 1% 1% 1% 1% 3% 1%
To listen to the radio 0% 7% 3% 12% 5% 22%
To listen to music (files which you have downloaded or been sentby others, not radio)
4% 5% 3% 7% 3% 22%
To share content that you have created (E.g. ringtones, wallpapers, pictures, games and video clips)
1% 2% 2% 6% 5% 3%
To send or receive or download or upload other content (E.g., ringtones, wallpapers, pictures, games and video clips)
0% 2% 3% 8% 10% 9%
As an organizer (keep appointments, reminders, alarm and clock) 1% 7% 8% 4% 9% 14%
To check my bill / credit balance 11% 40% 25% 50% 3% 39%
Among BOP mobile owners
POTENTIAL FOR MORE‐THAN‐VOICE?
Poor awareness of More than Voice services in South Asia. Higher in SE Asia
• E.g. 10% are aware of voting applications in India (competitions, real time polling, live participation in TV/radioprograms, etc)
38
(n=56)
Among BOP teleusers
0%10%20%30%40%50%60%70%
Banking and financial services
Payment services
Government services
Health services Voting General information services
Agricultural or fisheries
information
Awareness of services at the BOP (% of BOP teleusers)
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Usage is even poorer
39
Among BOP teleusers who are aware of services
Payments: Most who are aware don't know how or don't feel the need to use it
40
Among BOP teleusers who are aware of services but don’t use them
Few of those who aren't aware would be willing to use money transfer services and govt services via a mobile
41
439 11
37 38
22
20 18
6 15
14
31 3018
4521
41 41 392
Bangladesh Pakistan India Sri Lanka Philippines
Willingness to try sending or receiving money (% of BOP teleusers who are currently unaware of such services)
I dont need to use this service
No
Not Sure
Yes
316 9
29 37
20
16 164
15
22
30 33 20
4427
48 41 47
3
Bangladesh Pakistan India Sri Lanka Philippines
Willingness to try accessing government services (% of BOP teleusers who are currently unaware of such services)
I dont need to use this service
No
Not Sure
Yes
Among BOP teleusers who are not aware
High e‐load use potential for phone‐based payments?
42
Among BOP prepaid mobile owners who use each respective method
• 68% of Indian top‐up card users “completely trust”their method
• 53% of Indian electronic reload users “completely trust” their method
Around 50% would not switch for cheaper package phone has become a “personal” device
43
Among BOP mobile owners
• 40% of those unwilling to switch state that it is important to keep the number at present need for mobile number portability + ability to tie in “personalized” services to phone
WHAT BENEFITS DO THEY GET AT PRESENT? Thank you
44
Survey asked about perceived benefits of telecom access: how has telecom access improved …
• Your ability to:– make more money (generally, and via sale of talk time)– find out about employment/work opportunities – access price or market information – save money – save on travel cost – act in an emergency – contact others in an emergency
• The efficiency of your day to day work • Your relationships with family and friends • Your social status/ recognition in the community
45 Five‐point scale: 1=worsened 5=improved
Economic benefits
Emergency communication
Emotional / soft benefits
Efficiency
Largest benefit in emergency communication and relationship maintainance.
• Smallest benefit (though still positive) on economic factors
46
1=worsened 2 = slightly worsened 3=no change 4=slightly improved 5=improved
4.5 4.8 4.8 4.6 4.74.34.0
4.6 4.7 4.4 4.64.3
3.84.4 4.4 4.1 4.4 4.14.0
4.6 4.74.0
4.5
2.6
3.94.6 4.6
4.2 4.43.93.7
4.7 4.84.3 4.6
4.2
Ability to increase earnings and/or savings
Ability to act in emergency Ability to contact others in emergency
Efficiency of daily activities Family and social relations Social status/recognition
Perceived benefits (all)Bangladesh Pakistan India Sri Lanka Philippines Thailand
Among BOP teleusers
Among economic benefits, abilityto save on travel costs most prominent
• Indian males see more benefit than females in:– finding out about
employment opportunities
• Indian females see more benefit in:– saving money (in general,
and in travel cost)
– maintaining relationships
47
4.4 4.4 4.7 4.5 4.5 4.74.0 4.0 4.0 4.0 4.1 4.3
3.7 3.7 4.0 4.0 4.1 4.3
2.21.4
2.5 2.4
3.44.3
3.7 3.64.1 3.8 4.0 4.3
3.6 3.44.0
3.6 3.64.5
Ability to make more money Ability to make more money by selling calls
Ability to find out about jobs/work
Ability to access price/market information
Ability to save money Ability to save on travel cost
Perceived benefits (livelihood‐related)Bangladesh Pakistan India Sri Lanka Philippines Thailand
Among BOP teleusers
Phone for business? 77% of Indian teleusers at BOP use their mobile for business, financial or work‐related purposes
48
72
3142
21
49
32
8
14
21
14
17
15
3
7
7
5
10
9
2
4
4
4
2
14
0
3
2
3
6
5
1
1
2
3
19
14
3923
50
15 17
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Use of the phone for financial, business or work‐related purposes (% of BOP mobile owners)
Never
Less than once a month
Once a month
Two‐three times a month
Once a week
Twice a week
DailyDai
ly u
se
Among BOP mobile owners
Males in Pakistan and Sri Lanka using the phone more for business/financial purposes.
49
7566
Male Female Male Female Male Female Male Female Male Female Male Female
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Use of the phone for business, financial or work puposes (% of BOP mobile phone owners)
Never
Less than once a month
Once a month
Two‐three times a month
Once a week
Twice a week
Daily
Among BOP mobile owners
7970
34 29
5141
21 21
46 52 55
26
87
13 16
1622
16 14
1618 17
14
23
4 10
5 7
2 6
811 8
9
02
5 3
5 4
5 4
41 5
16
20
2 3
2 2
2 4
93 1
6
02
1 1
1 2
2 3
1 1 110
9 16
41 3821 23
54 50
16 15 13 18
Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural
Bangladesh Pakistan India Sri Lanka Philippines Thailand
Use of the phone for business, financial or work puposes (% of BOP mobile phone owners)
Never
Less than once a month
Once a month
Two‐three times a month
Once a week
Twice a week
Daily
Most pronounced urban/rural gap in Thailand's BOP in using the phone for business/fincial purposes
Among BOP mobile owners
WWW.LIRNEASIA.NET
OUR MISSION:
To improve the lives of the people of the emerging Asia‐Pacific by facilitating their use of ICTs and related infrastructures; by catalyzing the reform of laws, policies and regulations to enable those uses through the conduct of policy‐relevant research, training and advocacy with emphasis on building in‐situ expertise
51