Connecting the Un-connected
-Taking benefits of mobile connectivity
to bottom of pyramid-
Let there be work, bread,
water and salt for all
- Nelson Mandela-
Ajay Ranjan Mishra
Global Head of Industry Environment
- India & Emerging Markets1
© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Nokia Siemens Networks
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Bridging the digital divide
Connectivity Scorecard
E-Governance
Role of Key Stakeholders
Summary
© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Our common vision: The world connected in 2015
Universal access to information and communication
technologies boosts the economic and social
development of nations
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ITU / Dec 2011/ Cape Town
Socio-economic benefits of mobility
Shared access to mobile phones
bringing mobility to millions
Microfinance & mobile
entrepreneurs creating new
business opportunities
Instant SMS alerts directing
users to best market prices
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ITU / Dec 2011/ Cape Town
The challenge of Universal Access
Global Income Pyramid
IP connectivity
affordability barrier
at 1.2bn(2007)
Voice affordability
barrier at 3bn
(2007)
No voice &
No Internet/IP
0,8b
>40$/day
1.5b 4-40$/day
1.3b 4$/day
1.4b 2$/day
1.3b 1$/day
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Voice &
Internet/IP
ITU / Dec 2011/ Cape Town
Voice &
No Internet/IP
New growth will come primarily from lower
income segments
Example income distribution
Population without mobile
Penetration now
Share of population
Expected penetration in 2009
High
Upper mid
Income classes
Mid
Low
Very low
1.5 million new subscribers every day
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
The Connectivity Scorecard
Benefiting from the Full Economic and Social Benefits of ICT
Groundbreaking study that ranks countries on
approximately 30 indicators of connectivity
contributing to social and economic prosperity
Created by Leonard Waverman, professor of
economics at London Business School
Conducted under his direction by global economic
consulting firm LECG and commissioned by Nokia
Siemens Networks
First study to rank countries not only on deployment of telecom and IT
infrastructure, but also on extent to which they are put to good use
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Observations from the Connectivity Scorecard –
For Resource driven economies
2010
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
2011
South Africa – Major inequalities in ICT access
and usage affect score
Tumbles seven spots to rank 9th among
the resource and efficiency-driven
economies
• Significant ICT spends by businesses
• Highest scorer in its group on public sector
related metrics
• Fairly high adult literacy rates
Areas for improvement
• Home penetration of Internet, broadband
• Consumer skills and usage
• Business internet bandwidth, ICT exports
• E-governance
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
CS2011 - Africa
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Services most expected via e-channel:
job opportunities
Importance of receiving services via mobile phone and internet
(ranked by Ghana. Top scores bolded)
Applying to school
Seeking and offering job opportunities
Banking transactions services
Getting certificates
Health treatment and medicines
Getting and submitting government forms
Listening to or downloading music
Paying bills
Watching videos
Travel schedules and bookings
Selling your crops and services
Sending and receiving money
Ghana
(mean)
India
(mean)
2,23
2,1
1,94
1,92
1,89
1,83
1,8
1,78
1,77
1,76
1,7
1,69
1,34
1,72
1,72
1,53
1,44
1,56
1,44
1,55
1,31
1,71
1,14
1,49
South Africa
(mean)
1,87
2,1
1,71
1,49
1,81
1,73
1,68
1,73
1,56
1,8
1,52
1,69
N for Ghana = 315 to 317; India = 324; South Africa = 313
Scale: 1 = unimportant; 2 = important; 3 = very important
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Priority service
across markets
Clear link between
importance of
e-Services and
respondent’s
origin (urban) and
education levels ->
rural connectivity
solutions should
include service
mediation to
support & transfer
the competence
required to service
take up
Framework in bringing digital inclusion via
mobile communications
Universal
Access
Affordable
communications
Total cost of
ownership
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© Nokia Siemens Networks
Cash barrier
for entry
ITU / Dec 2011/ Cape Town
Regulatory
Environment
Sri Lanka
India
Bangladesh
Pakistan
Zimbabwe
Thailand
Paraguay
Indonesia
Mongolia
Ethiopia
China
Sudan
Mauritius
Cambodia
Philippines
Tunisia
Malaysia
Haiti
Egypt
Guatemala
Bolivia
Vietnam
Tajikistan
Kyrgyzstan
Jordan
Ghana
Algeria
Argentina
Dom. Rep.
Botswana
Uganda
Tanzania
Senegal
Colombia
Nigeria
Mozamb.
Honduras
Congo
Kazakhstan
Chad
Angola
Mexico
Namibia
Turkey
Chile
South Africa
Zambia
Azerbaijan
Uruguay
Morocco
Moldova
Kenya
Cameroon
Turkmenistan
Ecuador
US dollars
Monthly Total Cost of Ownership per country
25
20
15
Average 13.16 US dollars
10
5
0
13
Source:
Nokia,
November
2007
Only four countries meet the monthly TCO target of USD 5, all of them in APAC
© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Less structured cash flow of the low –
income consumer
Cash at hand
Mid income
Low income
Time
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Regulatory environment
Government intervention to
extend service into this area
Access
gap
Regulatory obstacles needed to be
removed and/or new business models
with lower cost structure needed to
extend service into this area or segments
Current
expansion
plans
Market
efficiency
gap
Commercially
feasible
POVERTY
Existing access
and penetration
today
GEOGRAPHIC AND AFFORDABILITY ISOLATION
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Politically
& socially
desirable
The vital role of multi-stakeholder cooperation
Private
sector
Affordable
connectivity
Market
expansion
Public sector
Enabling
environment
Socio-economic
benefits
Regulation
& initiatives
ICT
adoption
Income
growth
Social
investment
Civil society
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town
Consumers
Summary
Let there be work, bread, water, salt & Internet for all…
Countries missing out on
opportunity to add
hundreds of billions to their
national revenues
New growth to come from
lower income segment
Connectivity increasing but
utilisation not
Affordability is the key
factor - we need to work on
TCO
Key stakeholders need to come together to make this
happen.
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© Nokia Siemens Networks
ITU / Dec 2011/ Cape Town