Productive use of mobiles needed - LIRNEasia survey
Regional information and communication technology (ICT) policy and regulation think-tank, LIRNEasia (Learning Initiatives on Reforms for Network Economies Asia) last week said in a recent survey that although there has been a significant increase in mobile phone use by people at the Bottom of the Pyramid (BoP), the poorest socio-economic group, productive use of the device was a concern. According to a 2011 study, 'Teleuse@BOP4' by LIRNEasia, while there has been a marked rise in mobile phone use by BoP in rural and urban Sri Lanka, India, Bangladesh, Pakistan, Indonesia and Thailand, unfortunately, the device's use is primarily restricted to making or receiving calls or SMSs. In some cases, it is also used as a substitute for radio or as a torch.
"It is more than a voice device, and mobile phone companies need to market those uses more vigorously. People should be made aware that they can use it productively as a business tool," says former Sri Lankan telecom regulator, Rohan Samarajiva, CEO, LIRNEasia, at the release of the study in Bangkok recently.
For example, a Thai woman who runs a laundry at home had to go door-to-door to collect clothes and deliver. After getting a mobile phone, she keeps in touch with her clients, and as business grew, she has arranged for delivery boys.
"The survey in these six countries found that except in Java (Indonesia) BoP mobile ownership was higher in urban areas. But, in India, it was the lowest in both rural and urban areas, at 37 per cent, compared with 65 per cent in Pakistan, 49 per cent in Bangladesh, 71 per cent in Sri Lanka and 89 per cent in Thailand," says Samarajiva.
Overall, the survey found that most BoP people preferred to own a mobile phone over television or radio, but were not aware of its other uses. And except for Thailand, more men than women owned mobile phones. In India, only 20 per cent BoP women own mobiles compared with 50 per cent in Pakistan, close to 70 per cent in Sri Lanka and 30 per cent in Bangladesh.
Another big hindrance to restricted use of mobile phones among the BoP was signal quality. The survey found that while Sri Lanka fared the best in this regard, over 70 per cent users in India and Pakistan complained of high call drop rates, unclear connection or weak signal.
But, users in India and Pakistan admitted that mobile phones helped them in getting access to finance, connect with job-related work and reduced travel time.
With regard to payment mode, top-up cards were found to be most popular in India and Sri Lanka, followed by recharge from local shops or agents. And apart from Sri Lanka and Thailand, most BoP users still prefer pre-paid connections.
In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the 2.5 billion people who live on less than $2.50 per day.