ITU Workshop on
“ICT Innovations for Developing Countries”
(Tunis, Tunisia, 20 June 2012)
SMS Exchange:
Mobile credits as an electronic
payment channel.
Case of RWANDA
Jean Pierre NSHIMIYIMANA
Rwanda Utilities Regulatory Agency
&
Independent Researcher
piero425@gmail.com
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OUTLINE
Overview on Rwanda
Mobile Transaction status and Statistics
Challenges for these systems
SMS Exchange System
Conclusion and Recommendations
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RWANDA
Capital
Area
Population
Number of Households
Mobile Penetration
GDP
Rural Population (2009)
Urban Population (2009)
Electricity
Terrain
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Kigali
26,338 km2
10,718,379
2,187,500
42% (April 2012)
502 USD
81.4%
18.6%
16% (2012) and
70% (2017)
Uplands and hills
Photo: Internet
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Mobile Transaction Systems Status
1. Mobile Banking (for Banks)
Eg. To buy electricity
Prerequisites:
To be a Bank customer
To be registered for this
system
To have deposit
The money is deducted
from
user’s
bank
account directly.
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Mobile Banking (Cont.)
Statistics
10,718,379
Population
Bank customers
Mobile Money subscribers
951,500
(9%)
Feb. 2012
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155,986
(16%)
Mobile Transaction Systems Status
(Cont.)
2. Mobile Money (for Telecom)
Prerequisites:
To be a Telecom
customer
To be registered and
to have a mobile
money account
To have deposit
The money is
deducted from user’s
Mobile Money
account directly.
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Mobile Money (Cont.)
Statistics
10,718,379
42%
Population
Mobile Subscribers
Mobile money users
(4,508,666)
6%
(639,673)
Feb. 2012
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These systems are very
FLEXIBLE & AVAILABLE
and technically working well,
But…
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CHALLENGES
1. Low Revenue
The GDP is 502 USD per year
The little revenue becomes “First Aid”!
There is no need to go for deposit
because tomorrow it shall be needed!
The effort to go for deposit = the effort
to buy this utility!
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CHALLENGE (Cont.)
2.Geography
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Because people are scattered in the
village far from the cities, it becomes
difficulty and costly to make a
registration and deposit (as
prerequisites for these systems).
(For Many) The use of these systems
cannot justify the cost to be done
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With this situation,
the purchasing of some services
becomes more
DIFFICULT
and involves a lot of
THIRD PARTY COST
like transport and time consuming
(especially in remote areas).
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SMS EXCHANGE!!
Introduction
Status
Functionality
Comparison
Advantageous
Challenges
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INTRODUCTION
Through a question asked in ICT Forum in
Kigali last year, How can people in the village
can have access to the Mobile systems, A
commitment came to make a research for a
solution, hence the SMS Exchange System.
As these people are having cash, the key
prayer was to find an exchange object, which
should so popular to that be accessed by every
mobile user.
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INTRODUCTION (CONT.)
That exchange point is mobile Credits:
the mobile penetration is 42% (4,508,666)
of the whole population, ie each household
has almost two mobile phones.
This penetration also has a great impact of
Credits availability (almost at each door)
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SMS EXCHANGE STATUS
The system is in the process of being
patented
It also being implemented in one of
Mobile Operators in Rwanda (MTN
Rwanda)
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FUNCTIONALITY
The system is a USSD Application
and Value- Added Service (VAS) to
Mobile Network;
It is connected directly to the
Intelligence Network (Billing
system);
It uses the credits a mobile user has
in his phone to buy/pay some
services.
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FUNCTIONALITY (Cont.)
USE CASE DIAGRAM
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FUNCTIONALITY (Cont.)
DATA FLOW DIAGRAM
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COMPARISON
Mobile Banking
(Banks)
Mobile Money
(Telecom)
SMS Exchange
Users
Only bank
customers re
glistered for it
Only Mobile
subscribers
registered for it.
All Mobile
users
Prerequisites
To be registered
and activated
for this service
To have deposit
To be registered
for this service
To have Deposit
To have units
on the
mobile
number
Sources of
Funds
Deposits
Deposits
The units on
mobile
phone
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COMPARISON (CONT.)
Mobile Banking
(Banks)
Observati
ons
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Limited to specific
bank customers
registered for this
service
The Activation
period takes time
Registration may
be tiresome for
some users
Deposit takes
time (queue) and
may involve third
party costs (like
transport)
Mobile Money
(Telecom)
Limited to specific
mobile
subscribers
registered for this
service
Registration may
be tiresome for
some subscribers
Deposit may take
time (queue) and
may times involve
third party costs
(like transport)
SMS Exchange
Easy to get
airtime
vouchers (
they are
available
almost in
whole country
as well as the
mobile
network
coverage)
Only services
charge (for
USSD session)
ADVANTAGEOUS
Environmental
impact
The system is
economically and
environmentally
successful
because it is
paperless.
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Economic hardship
applicable
The system is very
cost effective
because the mobile
communication
sector is very
competitive and it
will save all the third
party costs (like
transport)
Social Impact
The fact that the system
is environmental and
economical efficient,
automatically, its social
impact is remarkable.
CHALLENGES
The system requires many
interconnections of different players'
System (Operators, Utility Providers),
It requires also an important budget (for
financial reconciliation at a period)
It has not been easy to convince:
It’s new (always this question: Show where
else it has been implemented??)
A big WORRY: It is touching the “HEART”
(billing system).
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CONCLUSIONS & RECOMMENDATIONS
To Telecom
(especially in developing country):
To promote such systems as they can help
a lot of people (especially in remote areas)
To Government & ICT Regulators:
To promote the spirit of research so that
many innovations should come up and ICT
continue to go beyond core communication
(Voice, SMS and Internet) but also impact
the whole life even to people in the heart
of villages
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CONCLUSIONS & RECOMMENDATIONS
(Cont.)
To ITU: to continue such workshops
to help an innovation in one place to
spread an to every one as the globe
has become one home.
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Merci!
Thank You!
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