MobileActive.org

In the context of the rapid growth of mobile phone penetration in developing countries, mobile telephony is currently considered to be particularly important for development. Yet, until recently, very little systematic evidence was available that shed light on the developmental impacts of mobile telecommunication. The Information and Communication Technology for Development (ICT4D) program of the International Development Research Centre (IDRC), Canada, has played a critical role in filling some of the research gaps through its partnerships with several key actors in this area.

The objective of this paper is to evaluate the case of mobile phones as a tool in solving development problems drawing from the evidence of IDRC supported projects. IDRC has supported around 20 projects that cut across several themes such as livelihoods, poverty reduction, health, education, the environment and disasters. The projects will be analyzed by theme in order to provide a thematic overview as well as a comparative analysis of the development role of mobile phones. In exploring the evidence from completed projects as well as the foci of new projects, the paper summarizes and critically assesses the key findings and suggests possible avenues for future research.

This paper presents the results from a quantitative impact study of the Grameen/MTN Village Phone in Rwanda, which was conducted between June 2006 and August 2007. We find that the introduction of a Village Phone had a substantial impact on reported access to telecommunications for local entrepreneurs.

While the introduction of phones did not follow the intended randomized design, we compare the changes observed in 94 study communities that received the phones to the 284 that did not. We find that the placement of a Village Phone in a community was associated with both an increased use of phones to transmit news and a greater propensity for farmers to arrange their own transit.

Despite this improvement in access to telephony, the actual prices received by farmers were not affected. Impacts at the household level were muted by the relatively small size of Village Phone businesses and airtime usage rates, implying that profits must be transferred from other sources to pay off the phone in six months. Reported labor time in household enterprise increased dramatically for Village Phone operators, but positive impacts on consumption or overall business profits were not found.