Why mobiles are more than phones

Mobile technology is changing the world more quickly, deeply and profoundly than any other innovation. In emerging markets the scale of uptake and its impact on local communities is too important to be ignored.

In 2000, developing countries accounted for one-quarter of the world's 700 million mobile phones. By the beginning of 2009 that had grown to three-quarters of a total that by then had risen to more than four billion. This has fundamentally changed the mobile telecommunications industry.

Mobile technology is creating opportunities for those in emerging markets and the companies that choose to serve them. The chance to make a difference to people's lives is huge, but it is crucial for anyone thinking of operating in these markets to research heavily, to understand how people are using technology and to tailor mobile devices and services to meet local needs.

The rise of emerging markets

Every day, more than 1.8 million new mobile subscribers are created and signs show that this number is increasing. In fact, by 2013 there will be six billion mobile subscribers with half of these coming from China and India alone. African nations collectively enjoy the highest growth rate of mobile phone subscriptions, while Nigeria has seen one of the most impressive growths in the continent, from close to zero mobile penetration in 2002 to about 40 per cent today.

Phones provide significant opportunities, from new jobs and improved business prospects to access to information. It also promotes economic growth and evidence of this is no longer just anecdotal: in a typical developing country, an increase of ten mobile phones per 100 people boosts GDP by 0.6 per cent .

Offering consumers relevant and localised services is critical, but they must also be affordable. The total cost of ownership of mobile devices and services remains far too high in many markets. Therefore, the key lies in not merely reducing the cost of the handsets, but in all of the other costs associated with mobile phone services.

This first stage was crucial. Local operators created new business models, new tariffs and new deals for lower income consumers. Then, in partnership with manufacturers. They have been working with governments to help reduce taxes.

The right devices

Affordability, coupled with increased competition and innovation is a driving force behind adoption of mobile technology. But the need to work within each market to find highly relevant solutions is key, whether offering mobile devices with flashlights and extended battery life in regions where electricity is scarce, or using durable materials for harsh climates and remote conditions. There is clear evidence that mobile phones enhance productivity and business prospects. A recent study by Nokia Research Centre in Africa reveals that almost all micro-entrepreneurs, with businesses of up to five employees, believe that the mobile phone is the lifeline of their businesses.

Email on your phone

Access to the internet offers a whole new range of opportunities. Many people's first internet experience will be on a mobile device as laptops or PCs have a high upfront cost.

Banking for the unbanked

It is not just education and agricultural tools that can make a difference. In countries where consumers do not have a bank account and mobile phone ownership exceeds bank account usage, there is a market opportunity for mobile financial services.

On a planet with six billion people, there are four billion mobile phones, but only 1.6 billion bank accounts.

Global demand for access to financial services presents a strong opportunity for simple but powerful mobile services. Nokia Money, for instance, will soon offer basic financial management and payments from a mobile phone.

In the future, the digital divide will narrow and the diversity of users will increase even further. Mobile operators, manufacturers and service providers are fuelling second wave of innovation in mobile technology, with many of these innovations created for and happening in emerging markets.

The emerging market landscape is changing rapidly, but it is here that we are likely to see the biggest impact. Businesses and consumers should look to these markets for insights and inspiration. The chance to change people's lives is huge and many of these markets are leading the charge for innovation. 


- The writer is the Vice-President, Mobile Phones, at Nokia. The views expressed are his own