MobileActive.org

The rise of the mobile phone has challenged the predictions that many information and communication technology for development (ICT4D) specialists offered about information in the developing world. Instead of embracing community solutions that offered shared access to information, many poor people have been willing to pay large sums and others have documented, sometimes more than 50% of their disposable income) for personal access to communication tools.

Presented with a model that extends connectivity into many poor communities without government subsidy, often turning a profit (and thus being sustainable), the development community is rightly looking for ways to build tools that leverage these platforms to promote economic and community development.

This study analyses the cost of a low-volume basket of mobile services across a sample of Latin American countries, and contrasts these results with standard income and poverty indicators. The main goal is to establish how affordable mobile services are for the poor.

Three general findings emerge. First, the poor generally pay a cost premium for using prepaid subscriptions that allow better expenditure control, though in many cases this premium is much lower than expected.

Second, affordability is an important predictor of mobile penetration. Overall, while affordable handsets and the callingparty-pays system allow a significant number of low-income Latin Americans to become mobile subscribers, the results reveal that the current tariff structure has an inhibiting effect on service consumption by the poor.

Third, since affordability is the most significant barrier to extending the reach of mobile services, as well as the range of services used by the poor, priority should be placed on policies aimed at reducing tariffs and stimulating the introduction of commercial innovations for low-income groups.

Access to telephony for low-income groups is largely based on different strategies of mobile telephony usage. The main goal of this research project is to explore the strategies employed by the poor in Latin America and the Caribbean to access and use mobile telephony services, as well as to identify the major market and regulatory barriers for increased penetration and usage. More generally, it seeks to contribute to the discussion on how access to mobile telephony contributes to improving the livelihoods of the poor –what we call mobile opportunities.

Our results show that mobile telephony is highly valued by the poor as a tool for strengthening social ties and for increased personal security, and that it is beginning to prove useful for enhancing business and employment opportunities. Overall, the survey results suggest that the acquisition of mobile phones by the poor has an economic impact reflected mainly in improved social capital variables such as the strengthening of trust networks and better coordination of informal job markets. These findings reveal the continued need to develop innovative business models that extend the market frontier for mobile telephony. They also highlight the urgent need to rethink public policies that are premised on the mobile phone as a luxury good. Clearly, for the poor, mobile telephony has long been the most cost-effective and accessible alternative.

Mobile phones have grown at an extraordinary rate throughout the developing world in recent years. They are potentially an invaluable economic asset to the poor and an important tool for strengthening social ties. Mobile phones may also help women overcome physical boundaries, especially in places where they are separated from their support networks and bound within their husband’s social sphere.

This paper examines the impact of mobile phones on the status of women in India. Using nation-wide cross-sectional data at the individual level, the author builds on Jensen and Oster’s model for measuring women’s status. The author uses domestic violence, decision-making autonomy, child preferences and economic independence as proxies for bargaining power and status of women in their household and society.

Mobile phones significantly decrease both men and women’s tolerance for domestic violence, increase women’s autonomy in mobility and economic independence, but do not have significant effects on child preferences and other measures of autonomy. Where the effects are significant, they are also large and in some cases equivalent to more than five years of education. These results suggest that the Government of India and those of other countries should consider mobile phones as a policy instrument for empowering women.

Uganda has experienced a rapid increase of area covered by mobile phone service. As the information flow increases due to the mobile phone coverage expansion, the cost in crop marketing is expected to decrease, particularly more so for perishable crops, such as bananas, in remote areas. The article uses panel data of 856 households in 94 communities, where the number of the communities covered by the mobile phone network increased from 41 to 87 communities over a two-year period between the first and second surveys in 2003 and 2005, respectively.

The authors find that the proportion of the banana farmers who sold banana increased from 50 to 69 percent in the communities more than 20 miles away from district centers after the expansion of the mobile phone coverage. For maize, which is another staple but less perishable crop, the authors find that mobile phone coverage did not affect market participation. These results suggest that mobile phone coverage expansion induces market participation of farmers who are located in remote areas and produce perishable crop.

When information is limited or costly, agents are unable to engage in optimal arbitrage. Excess price dispersion across markets can arise, and goods may not be allocated efficiently. In this setting, information technologies may improve market performance and increase welfare.

Between 1997 and 2001, mobile phone service was introduced throughout Kerala, a state in India with a large fishing industry. Using microlevel survey data, we show that the adoption of mobile phones by fishermen and wholesalers was associated with a dramatic reduction in price dispersion, the complete elimination of waste, and near-perfect adherence to the Law of One Price. Both consumer and producer welfare increased.