Group items tagged

The technology used to bring slum-dwellers like Das their first bank accounts is so advanced that it isn't available to even the most tech-savvy Americans

But today, some emerging economies are starting to leapfrog ahead. Why build a network of telephone wires out to remote areas when you can go straight to a cutting-edge mobile network at a fraction of the cost? Why burn fossil fuels for electricity and cooking if cleaner - and in some cases cheaper - alternatives, like solar and biogas, are available? Why electrify rural villages with incandescent bulbs if longer-lasting, environmentally friendly options like LEDs or new fluorescent bulbs exist? In many cases, it is mature markets like the United States and Europe, tethered to older systems, that find themselves playing catch-up.

The premise of the work is simple — get to know your potential customers as well as possible before you make a product for them. But when those customers live, say, in a mud hut in Zambia or in a tin-roofed hutong dwelling in China, when you are trying — as Nokia and just about every one of its competitors is — to design a cellphone that will sell to essentially the only people left on earth who don’t yet have one, which is to say people who are illiterate, making $4 per day or less and have no easy access to electricity, the challenges are considerable.

Text messaging, or S.M.S. (short message service), turns out to be a particularly cost-effective way to connect with otherwise unreachable people privately and across great distances. Public health workers in South Africa now send text messages to tuberculosis patients with reminders to take their medication. In Kenya, people can use S.M.S. to ask anonymous questions about culturally taboo subjects like AIDS, breast cancer and sexually transmitted diseases, receiving prompt answers from health experts for no charge.

A cellphone in the hands of an Indian fisherman who uses it to grow his business — which presumably gives him more resources to feed, clothe, educate and safeguard his family — represents a textbook case of bottom-up economic development, a way of empowering individuals by encouraging entrepreneurship

Uganda, the first African country to have more mobiles than fixed telephones, is cited as an example of cultural and economic transformation. Penetration has risen from 0.2% in 1995 to 23% in 2008, with operators making huge investments in infrastructure, particularly in rural areas. Given their low incomes, only about a quarter of Ugandans have a mobile subscription, but street vendors offer mobile access on a per-call basis. They also invite those without access to electricity to charge their phones using car batteries.Popular mobile services include money transfers, allowing people without bank accounts to send money by text message. Many farmers use mobiles to trade and check market prices.