External environment for telecenters

1. External environment for telecenters Mobile penetration in Sri Lanka Rohan Samarajiva October 26/28, 2008

2. Fixed and mobile growth, 1992-98

3. New media? • Slightly over 500,000 fixed phones (mostly wireline) and close to 200,000 mobile phones • No ADSL, no WiMAX, no HSPA, little use of SMS, but some info services using cell broadcasting channels and few people using dial-up (even ISDN came in 1999); no WiFi • Few websites exist, but very static (LBO starts in 1998); no blogs; no blog aggregators • ~700,000 calling opportunities

4. Fixed & mobile growth 2001-2007 I million to 8 million mobile; 1 million to 3 million fixed

5. New media? • Close to 3 million fixed phones (majority wireless), 8 million mobile phones (all GSM), around 100,000 fixed broadband users and several thousand mobile broadband users • ADSL since 2003, WiMAX since 2007, HSPA since 2007, WiFi since 2003 • Heavy use of SMS, info services using cell broadcasting channels, mobile voting, mobile payments, cameras on many handsets, MMS available and used • Many websites, almost all newspapers easily accessible (some allowing comments); ~1,000 blogs (in all three languages); 3 blog aggregators; lots of social networking; some twittering • E-commerce, basic e government services emerging • ~11,000,000 calling opportunities

6. Bottom of the Pyramidalmosteveryone has access, but not ownership

7. Overall access is very high • Used phone in the last 3 months

8. But ownership is low | 41% of Sri Lanka BOP in 2006 (higher now, projected 72%)

9. So, mainly use public phones* In Sri Lanka at BOP 30% use public phones

10. Bottom of the Pyramidsome do own phones 41% in Sri Lanka

11. Why own a (mobile) phone?* Convenience is key; privacy is more of a concern for higher income countries

12. ???

13. Mobiles used more often by males at BOP in South Asia % of mobile owners at BOP

14. Female mobile owners at BOPwho pays for their mobile? % of female mobile owners at BOP

15. Bottom of the Pyramidmost don’t own phones… 64%

16. Sri Lanka: second highest gender difference Non-owners at BOP % of non-owners at BOP

17. Gender difference of non-owners* % of non-owners at BOP In Sri Lanka more women use others (neighbors’, friends’) phones, also use public phones

18. Why not own a phone?* Affordability is the key barrier to phone ownership

19. Usage patternsowners + non-owners 100%

20. Low users are non-owners in South Asia % of Diary respondents Source : Diary

21. Internet? What Internet?

22. Bottom of the pyramid International calls: who is calling? Table of contents

23. Mostly local at BOP, but some international in LK & PH Source: Diary

24. 1.5 million expatriate workers, 90% in West Asia • 44% male; 56% female, according to SLBFE • 840,000 women separated from families • 660,000 men separated from families • Don’t they need to talk?

25. International calls: Who is calling/being called? • Primarily rural females, with primary or secondary education, aged 25-54 • Different from the Philippines: more males, mostly living in urban areas, with higher levels of education, mostly below 34. • The bulk of the calls are made by trained & untrained laborers (25 %); Farmers / agricultural workers (16%); Housewives (13%) • Again, different from the Philippines: mostly housewives (32%), those employed in services (18%) or unemployed (17%) 2006 data; excluding N&E provinces

26. Gender of the caller/callee (as a percentage of international calls made)

27. Location of the caller/callee (as a percentage of international calls made)

28. Educational attainment of callers/callees

29. Age of the caller (as a percentage of international calls made)

30. “…if we stop thinking of the poor as a burden and start recognizing them as value conscious consumers, a whole new world of opportunity will open up”C.K. Prahalad. The Fortune at the BOP.