UNICEF: How The Future of Mobile Lies in the Developing World

Another successful example in this space is UNICEF’s RapidSMS initiative: a scalable SMS-based open-source framework for dynamic data collection, logistics coordination and communication. UNICEF currently supports governments across six countries in Sub-Saharan Africa and over 200,000 RapidSMS users in some of the most underserved and rural communities. Frontline health workers who each serve hundreds of women and children make up many of these users. Success in this space is quantified by time, money and lives saved. It is widely used by governments and the international development community, and has also taken off in business communities. For example, in Ghana, a local entrepreneur uses RapidSMS to monitor the sales of cook stoves around the country.

Airtime is Cash

In many countries where the majority of people are unbanked, airtime has become another form of currency. Imagine you need to get a small amount of money to your sister who lives in a village that’s ten hours drive away. The easiest way for you to do that is to buy some airtime, but instead of topping up your own prepaid mobile service you top up hers. For a small fee, she can now go and cash out this airtime with an agent that sells airtime.

M-PESA, a project out of Kenya that was initially set up to distribute micro-loans to and collect payments from the poorest rural communities of Kenya, has now become a large-scale multi-country mobile cash transfer system run by Safaricom in East Africa and Roshan in Afghanistan.

For many governments mobile money is a conundrum. They like that their citizens can access financial services that could significantly improve their lives. On the flip side, it can mean that mobile network operators and other mobile money service providers now operate and benefit from the revenue that normally would go to the central bank?

Challenges remain. The price points of using these services are still out of reach for the poorest communities. There are often too few agents to cash out airtime. People often don’t understand or trust non-traditional forms of financial services.

Yet this creates a huge business opportunity. Even with all the network operators in this space, there are possibilities for a multitude of services that leverage mobile payments. To be able to successfully develop in this space, we need to better examine how people interact with money across the world and build applications that are flexible enough to be customized and be relevant to different cultural patterns.

In San Francisco you might pay your cab driver through his Square reader, but in Nairobi you’ll send him some airtime.

A Phone for the Developing World

iPhones don’t stand a chance due to their inflexibility and high price points. As it stands, the operating system for the developing world smartphone will be Android. However, even the flagship Samsung Galaxy Nexus isn’t the ideal phone. The ideal smartphone will be:

1. Cheap. Last year, Huawei in partnership with Safaricom unveiled an $80 Android phone in Kenya where 40 percent of the population lives on less than $2 a day. At this year’s Mobile World Congress the CEO’s of Bharti AirtelTelefonica Latin America and VimpelCom came out together and stated that $50 is the magic price point for smartphones to become more widely affordable in emerging economies.

2. Rugged and simple. The Nokia 1100 series is the most popular phone in the world. It is dust proof, water resistant, rugged, has a simple menu system, few separate parts and has a flashlight. Every town across the developing world has a local repair shop with spare parts for simple Nokias. When I travel to the developing world, I rely on my trusty Nokia 1100, not my iPhone. Smartphones are delicate creatures that don’t stand up to the daily wear and tear of people’s lives.

3. Battery life of a week. Recharging your phone every night is not an option if you live in a rural village without electricity. At one of UNICEF’s projects in rural Senegal, I encountered a village entrepreneur who started a business where he would collect everyone’s cell phones and for a small fee, bike to an electrified village a few hours away, then bike back with phones at full charge.


 

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