Some Observers - Emerging Futures + Technologies + Consumers
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SO Links: Week 19

As a resource, starting this week, we are posting selected links gathered during our research each week. 

Filed under  //   banking   Brazil   complexity   consumers   India   mobile   money   netbooks   resilience  
Posted by Scott Smith 

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The Bottleneck of Value Flow at the Border: a No Man's Land or an Opportunity Space?

Scott talks about the DevNet and the BOPNet - the existing developed Internet and the emerging social networking services on the mobile platform meant for the BoP. Ultimately, the whole Internet is nothing more than a huge social network on the global scale, allowing us to connect with, share with, communite with and, perhaps, do business with, anyone else out there in the world.

And while the DevNet is accessible by anyone with a browser and a data connection, regardless of device, the same is not yet true for the bopnet. Its still under construction, with bits and bobs and pilot programs, spread around the developing pockets of the world. It works on mobile phones and its simplest components use only voice and/or sms as a means of communications. Basic social networks provide the semblance of the "read write" aspect as chat forums, games and news proliferate. Underlying the chatter is the increasing advance of the financial transactions layer.

Creator of the blog Mobile Banking, CEO of Fundamo, Hannes van Rensburg, has been posting of late on the eventual need for all these mobile payment systems to start becoming interoperable (a word under debate on his blog). This is inevitable if a true transaction layer is to emerge underlying the mobile net particularly for the BoP.

Lets take these thoughts a step further, and contemplate the Border Zone between the BOPNet and the DevNet, the bridge that we're slowly building across the global digital divide.

Will it continue to be the no-mans land that currently exists between the formal economy and the informal, unorganized sector? Or will it be able to provide a way for the cash based economy of scarcity from the base of the social and economic pyramid, the teeming billions of unbanked, to interact with and permit the two way flow of resources, connecting with the far wealthier formal economy?

At this point, it would be interesting to begin observing those spaces where these two economies already begin to merge or connect. In the real world, how and where does is exchange take place, which touchpoints provide value for both sides and how does value get created, infusing new wealth into the hyperlocal BoP economies, inside urban slums and between the rural and urban markets?

How does this translate into lessons for the future development of the technological roadmap? What opportunity spaces for innovation emerge?

Filed under  //   BOPNet   DevNet   Internet   money   social networks  
Posted by Niti Bhan 

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Broadband on the Bosphorus

http://www.flickr.com/photos/maryjoyce/ / CC BY-NC-SA 2.0

This week I'm headed off to Istanbul, at the heart of the 11th largest Internet market in the world. Often overlooked, Turkey is a mini-BRIC in Internet and mobile usage, with almost 26 million of its citizens having access to the Web, over 5 million of which are connected via broadband. With over 66 million mobile subscriptions, the country is on par with some of Europe's largest mobile markets. According to CGAP, Turkey is one of the most progressive mobile money markets at the moment. 

This should be a particular enlightening trip as I'm due to meet and speak with people involved with the Web and mobile media from all across Central Asia, where rapid growth is taking place across many communication channels, often against constraints ranging from expensive access to majority control of networks by governments in some countries. 

I hope to report interesting observations and indicators of change throughout the week as the trip progresses. Stay tuned.

Filed under  //   Central Asia   CGAP   Internet   mobile   money   Turkey  
Posted by Scott Smith 

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Is the African Mobile Market Poised for Takeoff?

Scanning the news today on mobile + africa over Google is throwing up some interesting dots that I thought might be fun to connect. I'm seeking signs of whether the sub Saharan African mobile phone market is about to take off the way the Indian (or even South Asian?) market did about four years ago when Reliance Comm just dropped their basic sms and phone call pricing. Of course, in the Indian market, that happened almost at the same time that our friend Nokia launched their then lowest priced phone ever, the immortal 1100. To be honest, that phone has been both the saviour and the bane of the Finnish company in global emerging markets. However, I digress.

I've just come across bits on Nokia's emerging market moves (something I'm sad to confess I stopped getting excited about about a year or so ago when I decided we needed to move on to making larger scale things happen in the wireless world, not just what one, albeit fearlessly pioneering, company would do), and I've come across these other bits just now. Snippets first:

Essar, an Indian conglomerate's moves in Uganda and Congo's telcom sector. South African pressure continues on cellular operator pricing structure. The indisputable fact that Africans pay higher rates for basic services (with Steve Song's hard  work on comparitive pricing across SSA here). And now, some interesting bits, from The East African:

Kenyan telecom companies are bracing for an increase in customer migration and the possibility of price wars when the proposed mobile number portability becomes a reality in a few months.

Speaking separately to The EastAfrican, the four operators — Safaricom, Zain, Orange and Yu — have indicated that they will start positioning themselves for the technology in such a way that it makes a positive difference for their subscribers.

“The move by the industry regulator is welcome and we are ready to embrace it,” said Michael Joseph, Safaricom CEO.

Yu, in case you weren't aware is the brand under which Essar operates in Kenya. Taking all of this together, especially this last one, I'm getting a stronger and stronger sense that a major upheaval is imminent over the next few months in the overall mobile pricing landscape in Africa. And if its anything like India's growth rates then the whole market is going to change, dramatically. And not just for actual tangible artifacts either, but also services and programmes and plans. What happens when the combined influence and effect of Nokia Money and FrontlineSMS: Credit start making inroads into the demographic population?

Filed under  //   Africa   credit   Essar   FrontlineSMS   Kenya   mobile   money   Nokia   Orange   Safaricom   SMS   Yu   Zain  
Posted by Niti Bhan 

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Double-edged Swords

http://www.flickr.com/photos/feinsteincenter/ / CC BY-NC 2.0

Durable mobile phones that can keep users in remote areas connected, allow for money and airtime transfers among handsets are a current hot topic in the ICT4D community. While we talk about putting them in the hands of the poor and disconnected, however, the same technology is being used literally just up the road for the opposite ends. 

John Robb points to a post today from Alex de Waal at Making Sense of Darfur about the Thuraya phone, the communications weapon of choice of Chadian and Darfuri troops who, along with roving teams of Toyota Landcruisers, move fast and coordinate on the fly using these satellite handsets in superempowered nodes that plan and attack on the fly in the contested region. While a villager many miles away may be checking weather or arranging taking goods to market, military commanders using Thurayas are negotiating deals with local warlords, says de Waal. We've had mobile revolutions in other parts of the world—de Waal asks if Darfur is "the first Thuraya war". 

Filed under  //   Africa   airtime   Darfur   mobile   money   satellite   Thuraya  
Posted by Scott Smith 

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Mobile Money Practices

Designing Services for Financial Inclusion

Jan Chipchase posted a great paper and slide deck today summarizing top-level themes in mobile money practices from Nokia's research around the world, and elaborated on some design implications of his teams' findings. 

The compelling Venn diagram from the outset is this: in 2009, there are 3.5 billion people unbanked worldwide, and 4+ billion mobile phones in people's hands on the planet (not Jan's figure, but the ITU). The crossover point is some 1.7 billion unbanked people with mobile phones by 2012. That's a huge opportunity, moreso because of what tapping a percentage of that group might unleash in terms of economic benefit than the profit to be had from enabling it.

Read on and find out more.

Filed under  //   banking   BOP   design   innovation   mobile   money   Nokia   practices   research  
Posted by Scott Smith 

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