ICT for the Next Five Billion People

ICT for the Next Five Billion People

Arnold Picot Josef Lorenz Editors ICT for the Next F Five Billion People Information and Communication for Sustainable Development

Editors Prof. Dr. Dr. Arnold Picot Universität München Fak. Betriebswirtschaft Institut für Information, Organisation und Management Ludwigstr. 28 80539 München Germany picot@lmu.de Josef Lorenz Nokia Siemens Networks GmbH WSE HoT St.-Martin-Str. 53 80265 München Germany josef.lorenz@nsn.com ISBN 978-3-642-12224-8 e-isbn 978-3-642-12225-5 DOI 10.1007/978-3-642-12225-5 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2010928635 Springer-Verlag Berlin Heidelberg 2010 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Preface Currently, around one to two billion users are able to connect to the Internet, most of them living in the industrialized parts of the world. However, if we want to improve the quality of life of the world population with the help of access to information and education, it is necessary that in the next decade an additional five billion people gain access to the Internet. Such a strategy is needed to fight poverty and inequality. The next five billion Internet users are mainly living in emerging economies. They cannot afford the kind of broadband data services many of us are enjoying today. In fact, most of them do not have internet access at all due to missing infrastructure. Therefore, the main challenge is to lower the economic barrier using new approaches for infrastructure deployment and service delivery, in order to provide affordable Internet access to billions of people living on the lower levels of the income pyramid. Lowering the costs basically means providing new low cost infrastructure, connectivity and terminals. Examples are cloud computing, advanced mobile backhaul solutions, or entry level PCs and novel mobile devices. However, this is not the only target which needs to be reached. Another aspect is to provide tailored services which are relevant to the people in their specific situation. The services should support them in their business, which is usually some kind of microentrepreneurship (e.g. farming or crafts). They also need to help overcome the lack of basic service infrastructure, e.g. by offering micro banking services. Other types of relevant mass market services are healthcare (ehealth), or services like Ambient Assisted Living. Information and Communication Technology (ICT) can help increase the well being of people thus contributing to the economic development. In turn, ICT becomes more affordable to low income communities. Even when the cost-efficient infrastructure and the relevant applications are available, there is still the need to implement new business models to reach out to rural areas and to train the people in using those novel services. Local village entrepreneurs or village kiosk concepts are models to be deployed here. The conference of the Münchner Kreis had looked into and discuss these challenges. Speakers from the ICT industry, academia, non-governmental organizations and governmental development organizations, among them many representatives from emerging economies in Africa and Asia, have presented their activities and share positive as well as negative experiences. They had highlight the real demand for ICT, and what impact ICT creates for the wealth and lifestyle of the people. Necessary measures to improve the speed of deployment were discussed, and ultimately the business opportunities behind these concepts were been shown. Furthermore, what mature economies can learn from the emerging markets was also being discussed. Arnold Picot Josef Lorenz

VI Preface

Content VII Content 1 Opening Remarks 1 Prof. Jörg Eberspächer, Technische Universität München, Munich 2 ICT for the Poor at Large Scale: Innovative Connections to Markets and Services 3 Prof. Dr. Joachim von Braun, International Food Policy Research Institute (IFPRI) 3 People Driven Innovation How to create the Demand for ICT Solutions in Underserved Areas 15 Kazi Islam, Grameen Solutions Limited, Dhaka, Bangladesh APPLICATIONS FOR EMERGING ECONOMIES Chair: Josef Lorenz, Nokia Siemens Networks, Munich 4 Transfer of services to emerging markets mobile services, m-payment & m-health 25 Stanley Chia, Vodafone Group R&D 5 Incubating Micro Enterprises in Rural South Africa The Use Case of Virtual Buying Cooperatives 35 Christian Merz, SAP Research, Karlsruhe 6 What can we learn from the Developing World? Impact of Mobile Applications from developing Markets on Mature Economies Prof. Gary Marsden, University of Cape Town, South Africa 47 BUSINESS MODELS FOR SUSTAINABLE DEVELOPMENT Chair: Christian Merz, SAP Research, Karlsruhe 7 Mobile Broadband Community Centers Jean-Marc Cannet, Alcatel-Lucent, Velizy 55

VIII Content 8 Myths about ICT for the Other Billions Dr. Kentaro Toyama, Microsoft Research India, Bangalore, India 63 AFFORDABLE INFRASTRUCTURE FOR EVERYONE, EVERYWHERE Chair: Prof. Jörg Eberspächer, Technische Universität München 9 From Voice to Broadband Data Affordable Communications in Emerging Markets Frank Oehler, Nokia Siemens Networks, Espoo Finland 10 Leapfrogging ICT with Cloud Computing in Emerging Countries Dr. Hagen Wenzek, Corporate Strategy, IBM, Armonk, NY 11 PANEL DISCUSSION ICT and Economics Development in Underserved Markets A Chicken and Egg Problem Chair: Prof. Dr. Arnold Picot, Ludwig-Maximilians-Universität, Munich Participants: Anriette Esterhuysen, Association for Progressive Communications, Melville, South Africa Dr. Arnulf Heuermann, Detecon International, Bonn Samia Melhem, The Worldbank Group, Washington D.C. Thorsten Scherf, Federal Ministry for Economic Cooperation and Development (BMZ), Bonn 12 Closing Remarks Prof. Dr. Arnold Picot, Ludwig-Maximilians-Universität, Munich Appendix List of Speakers and Chairmen 81 91 99 119 121