ICTworks

The “M4D Overview 1.0: the 2009 Introduction to Mobile for Development” report aspires to provide an overview of studies on mobile telephony in a developing country context.

It aims to give a broad picture of the phenomenon ‘m4d’ by using three different types of sources, namely research papers, reports from different UN (United Nations) organisations, as well as interviews and reports from the industry, including mobile operators, mobile producers and network producers.

The intended readers for this report are three groups of people ‘d-people without mknowledge’, ‘m-people without d-knowledge’ together with everybody else who is interested in this new field but lacks both m- and d-knowledge.

Why m4d is worth considering

The answer is “It’s all about information”! Information is vital in any activity, private or business; it makes it possible to make more informed decisions. But private life as well as small and informal businesses in developing countries face several information challenges (Jagun 2007). Information can be lacking, uncertain and /or asymmetrical (ibid). Asymmetric information is a matter of incomplete information where not everyone involved has access to relevant and complete data, nor the possibility to assess data or even to apply and adapt the data into information (Sundén & Wicander 2006).

In developing countries, mobile technologies have the capacity to gather, store, deliver and enhance information (Traxler 2006). Personal communication and conversation has become easier by mobiles, enabling all sorts of information to be passed more easily which enables efficient sharing of information (Nielsen 2008b). This results in less need to rely on middlemen who hold vital information (Jagun 2007) or on messengers.

Personal communication and conversation ensure an increase in the number of individuals with direct access to critical, updated, timely and distant information making it possible to make real-time decisions (Nokia 2006). The mobile makes it possible to overcome information asymmetry (UNCTAD 2008). Mobiles are – …flattening information asymmetries. … providing previously inaccessible information…‖ (Heeks & Jagun 2007a).

The mobile has become the entry point for LIC into the information society (UNCTAD 2008). ITU claims that in developing countries where mobile communication constitutes the primary form of access, increased exchange of information on e.g. trade and health services is contributing to development goals (ITU 2003; Donner 2008). The mobile can provide market information.

The UNCTAD report states that those effects will be most pronounced in economies and economic activities with a greater need for information; where added information can result in e.g. improved earnings (ibid). According to the UNCTAD report mobile telephony has the most immediate potential to stimulate growth in developing countries, especially in Africa and particularly in sectors where entrepreneurship and access to information are important to create economic benefits. The mobile has the greatest benefits to those that are information sensitive (Nokia 2006).

The importance of improved information flows is highlighted in a GSMA report (2008b). The importance of better information on a micro level is e.g. shown by Jensen (2007) in Kerala where mobiles helped fishermen to get better prices. This confirmed an earlier study of Abraham (2006) for the support of fishing communities in India (Abraham 2006; Jensen 2007). A study of the grain market in Niger also shows the benefits of improved market information (Aker 2008).

Further the UNCTAD report highlights the role and value of information for productive efficiency; all require information for decision-making. The ability to forecast and prepare timely responses will determine success e.g. for farmers and fishermen. This ability is tied to the capacity to retrieve useful information (UNCTAD 2008:250).

…but, in general, as stated by the report done by Nokia in India (2006:71), mobile communication seems to be of greatest utility for those who have a wide network of personal and businesses contacts, travel for lifestyle or livelihood reasons, and/or are engaged in entrepreneurial or business activities. The greatest benefits are on those that are time, location, and information sensitive (ibid). People with greater resources are most likely to use mobiles and by that have the possibility to benefit more (Souter et al (2005).

Excerpts from the “M4D Overview 1.0: the 2009 Introduction to Mobile for Development” report.