Does quality matter for innovations in low income

markets?The case of the Kenyan mobile phone

sector.

Christopher FosterOxford Internet Institute

(undertaken during PhD research in IDPM, University of Manchester)

Research focus

Innovations and low income groups

• What is an ‘inclusive innovation’?– more than innovation– impact; process

inclusion

• Is quality a key element in this?

Heeks(2013)

Innovation and quality

Low income markets = unclear

1) Extent of quality and effects in low income markets?

• BoP view vs Empirical cases

2) Innovation in/for low income markets is different.• Interlinked stages; Intermediaries; User

appropriation

3) What is effective policy around quality (if any)?• Policy as a process; Public/private standards

Mobile phone sector in Kenya

Scaled and low income focussed:

• Operator coverage: 92%

• Handset access: 70% • Mobile money: 83%

Quality Issues at the fore…

Quality concerns• Short term:

Difficult to evaluate. • Medium term:

Trust, cost, intermediaries

• Long term:Risk of ‘big bang’

“close to 2.4 million mobile phones in the market are counterfeit, representing 9.39 % of

the active mobile devices” (CCK 2013)

Drivers of quality declines• New lead actors

– Partnerships; manufacturers

• New intermedaries– Adaptation

• New users– Appropriation, use

Policy

• Existed in cases– Unclear implementation– Existence of extended intermediaries

ConclusionsQuality becomes key concern in how

innovations are inclusive….

• Recommendations– More focus on innovation and quality– Responsivity to appropriation– Lead firms and low income focus (USF, support)

• Policy is crucial– Firms: Low income entrance vs guarding quality– Policy Making + Implementation– Intermediaries: Policing and policy