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Sowing seeds Unexpected journeys through the digital divide. http://www.flickr.com/photos/ricephotos/2678931029

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Presentation for Over the Air 2010 about mobile devices and the digital divide. Presented by Stephanie Rieger

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Page 1: Sowing seeds by yiibu

Sowing seedsUnexpected journeys through the digital divide.

http://www.flickr.com/photos/ricephotos/2678931029

Page 2: Sowing seeds by yiibu

iPhoneIt’s been an interestingfew years!

Twitter

web 2.0

haptics

Moore’s Law

app store

One Web

Androidcapacitive displays

HTML 5

APIs

widgetsaugmented reality

smartphones

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http://www.flickr.com/photos/kiwanja/3169447879

...this is all well and good, but is any of it trickling down to people with more limited resources?

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including people close to home...

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http://www.flickr.com/photos/featheredtar/3081108482

“The digital divide refers to the gap between people with effective access to digitaland information technology, and thosewith very limited or no access at all.”

- Wikipedia

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so why is technology(and more specifically mobile) so important?

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knowledge

communication

learning

life skills

empowerment inclusion

support

relationships

communityexpression

social

mobility

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increasing access to mobile technologiesis one thing...but ensuring this technology

is useful depends on many factors

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low cost devicesinfrastructurefast networks

cheap dataecosystem

open platformsstandardsbrowsers

regulationsusability

local skillscapacity

local contentliteracy

electricitysecurity

challenges to mobile usage

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i’m going to look at three of them...

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1. low-cost mobile handsets2.a free standards-compliant browser3. locally-created web services and information

Access to...cheaper and more accessible than a desktop computer

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web content is simple and cheap to create, and update

cheaper and more accessible than a desktop computer

1. low-cost mobile handsets2.a free standards-compliant browser3. locally-created web services and information

Access to...

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1. low-cost mobile handsets2.a free standards-compliant browser3. locally-created web services and information

Access to...

the most relevant content is localand the web is an ideal vehicle to disseminate information

web content is simple and cheap to create, and update

cheaper and more accessible than a desktop computer

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ContextA bit of context...

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number of mobile subscriptions4,600,000,000

68% of the population at the beginning of 2010 – source: U.N. Telecommunications Agency

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number of unique users3,400,000,000

many people have multiple SIMS--especially in emerging economies – source: Tomi Ahonen Consulting

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which is *roughly 1/2 the number of people living here...

*2009 estimates put the population around 6.79 billion inhabitants...

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smartphone sales are rising,but are still only 17%* of devices worldwide

source: Morgan Stanley, Smartphone shipment share 08-09

Japan

N. America

W. Europe

EEMEA

APAC

Lat. America

0 15 30 45 60

Market share 09 Market share 08

52%50%

25%21%

23%20%

7%6%

8%8%

5%3%

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indirect manipulation

...most people, own a mobile that looks something like this...

http://www.flickr.com/photos/kiwanja/3169478287

XHTML MPbrowser

(hopefully)

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this is still primarily due to cost,even in developed economies...

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American smartphone ownersare nearly twice as likely to earn...

source: Nielsen

> $100,000 a year

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72%

the largest group, at 28% is the $0-$25K category, source: US Census 2005

percentage of American populationwith household income < $75,000

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11.low cost mobile devices2.a free standards-compliant browser3.locally created web services

and information

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NokiaSamsungLGRIMSony EricssonMotorolaAppleHTCZTEG’FiveOthers

19%

2%2%2%3%

3%

3%

3%

9% 20%

34%Nokia

SamsungLG

Other

Worldwide Mobile Device Sales to End Users in 2Q10 (Thousands of Units, total: 324,556.8)http://www.gartner.com/it/page.jsp?id=1421013

mobile market share in 2010

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19%

2%2%2%3%

3%

3%

3%

9% 20%

34%

NokiaSamsungLGRIMSony EricssonMotorolaAppleHTCZTEG’FiveOthers

Nokia

SamsungLG

Other

Worldwide Mobile Device Sales to End Users in 2Q10 (Thousands of Units, total: 324,556.8)http://www.gartner.com/it/page.jsp?id=1421013

lots of newcomers

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most new brands from India, China and the APAC region

India

MalaysiaIndonesia

China & Taiwan

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India population: 1.17 billion mobile penetration: 53%

http://www.flickr.com/photos/dainismatisons/3570435976

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28 local manufacturers now account for14% of local market share

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MicroMax

3rd largest market share in India

(behind Nokia and Samsung)

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source: Business Week

The average time to market for a MicroMax handset.

mo

nth

s

4

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Spice 4 million Indian users

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• Dual SIM• Radio• Flashlight• 20-30 day standby• Dust resistance• Theft tracking• Preloaded local content

Indian manufacturers primarily compete on retailand wholesale price, and the inclusion

of relevant local features.

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Multi-SIM capability is the most common featuresacross all small Indian manufacturers.

(in fact, across all smaller manufacturers regardless of country)

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• Dual SIM with dual standby

• Both SIMs available at all times

• Enables users to save money by using each SIM for different purposes.

Features are fine tuned to aggressively competewith larger manufacturers.

(people love these, operators...not so much)

• Dual SIM with‘hot-switch’

• Press button to swap from one SIM to another

• Enables family members to share one mobile or easily swap SIMs when traveling

(standby time onthis devices is 6 weeks!)

(for more on this topic, see “The Economist: Nokia gets dual-sim religion”

€30€30Nokia C1Micromax X1i

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population: 1.3 billion mobile penetration: 59%

China

http://www.flickr.com/photos/kouchi/1002634824

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G’Five

portfolio of 300 handsets

sold in (India, Egypt, Saudi Arabia, Nigeria, Kenya, Pakistan, Nepal, Bengal, Peru) , 300 handsets, 2 new models launched

per week

2 released each month

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G’Five also sells handsets around the worldincluding India (where it is the #3 brand).

(if you’re paying attention...MicroMax is also supposedly the #3 brand :-)

Kenya

NigeriaPeru

India

Nepal

Pakistan

Egypt

SaudiArabia

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Other Chinese manufacturers such as ZTE and Huawei are also shipping devices to the America and Europe.

ZTE sells over a million devices annually in the UK

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Hardware, chips and components for mostIndian-designed devices also come from China and Taiwan.

China & Taiwan

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To further reduce costs, manufacturerssuch as A-Link are now assembling mobiles in Africa.

Rwanda

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Shanzhai

Say hello to the ever stylish and most desirable “Voda-Pod-Berry”

“bandit” devices

fake Vodafone

fake Blackberryfake iPhone OSfake Opera Mini

from China

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source: Nielsen

13% of global mobile phone supply is produced by small unlicensed suppliers

i.e. devices with no IMEI

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Indonesia population: 242 million mobile penetration: 80%

http://www.flickr.com/photos/beggs/1506486001

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25% market share, handsets price range £20-£70

currently selling 2 million QWERTY devices per quarter* nexian

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Noticed a pattern yet?

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it’s now also much easier to make a smartphone

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60 devices, 21 OEMs as of June 2010

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end result...

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OPhone, a custom Android variant by China Mobile including handwriting recognition for Chinese characters.

locally customized

user interfaces

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shipping with

local applications

Local mapping

service

Android store and local ‘Blueberry’ app store

Spice Mi300Malaysia

For regional brands, bundling local variants of an app is cheaper than licensing Google’s alternatives,and provides more opportunities for inclusion of local content

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and lower price points

Huawei IDEOSworldwide*

Spice Mi300India, Malaysia

Nexian A890Indonesia

regional models range from £70-£100(compared to £200-300 for devices by larger brands such as Samsung)

*IDEOS designed with Google especially for low-cost market.

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So everyone will be buying Android devices soon?

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Um...no...

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While a £70 smartphone is great, devices at the lowest end of the market are still very basic, yet remain

unaffordable to many consumers.

Cheap and functional for voice, SMS, some include a flashlight...but no browser.

Vodafone 150$15

Nokia 1280$30

USED Nokia 3210~$4

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Android may however create interesting unintended consequences...

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As the freely available and high quality mobile operating system becomes workable on most phones, the Chinese knock-off phones are now much more likely to be using Android/OPhone.It is the low-hanging fruit option....

...those knock off phones are the present realityof many targetable markets today, includingEast Africa’s. Android fragmentation is replacing complete fragmentation. - ICTWorks.org

http://www.flickr.com/photos/kiwanja/3170269018

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21. low cost mobile devices2.a free standards-compliant browser3.locally created web services

and information

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number of internet connections in the world1,802,330,457

26% of the world’s population at the beginning of 2010 – http://www.internetworldstats.com

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number of mobile internet users1,300,000,000

includes WAP and ‘real web’ browsing

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number who access internet only on mobile500,000,000

that’s 29% of the world’s internet use of 2009

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last year, Nokia did something many thought was mad...

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OMG...”

they acquired a company called Novarra

http://www.flickr.com/photos/richardmoross/1413692087

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...some background

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but proxy servers aren’t all bad...

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bbc.co.ukproxy server

limited + costly data free + unlimited data

rendered + optimised on proxy server...

proxy browser

mobile proxy browsers

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Advantages of proxy browsers...1. dramatically lower data costs*2.web pages load 2-3x faster over 2G networks3. can instantly provide support for modern web

technologies (e.g. HTML 5) on older devices

*Opera Mini for example compresses data up to 90 percent.

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mobile proxy browsers

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Opera Mini

used by over 61 million people on more than 1300 handset models

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Data Source: http://gs.statcounter.comPublished Under a Creative Commons Attribution 3.0 Unported LicenseYou are free to copy, distribute and transmit the work and to adapt the work providing it is attributed to www.icrossing.co.uk

http://www.flickr.com/photos/icrossing_uk/4342659861

wow!

wow!

mobile browser market share

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60% market share in China

iPhone Android Symbian Blackberry Windows

UC Browser

or any JAVA MIDP 2 and CLDC 1.0+ device

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browser adoption with ‘Chinese characteristics’

Source: Statcounter

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iPhone Android Symbian Blackberry Windows

Bolt

or any JAVA MIDP 2 and CLDC 1.0+ device

5% market share in India

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iPhone Android Symbian Blackberry Windows

Skyfire

no plans to support S60 3rd Edition, S40, Java or featurephones in general, BlackBerry support postponed

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Ovi Browser

aimed at the 100+ S40 featurephones

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a good proxy browser can breathe new life into old or lower-spec devices

5130 Xpress Musiccirca 2007

BlackBerry 8520circa 2009

HTML 4.01poor JavaScript

support

Nokia N70circa 2005

one of the firstHTML 4.01browsers

XHTML MP1.1

one of the top sellingdevices in the world today*

*based on review of Opera Mini and AdMob usage statistics

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...or instantly add value to a smaller manufacturer’s product line...

Micromax embeds Opera Mini on many devices. UC has recently signed a dealwith Indonesian manufacturers and operators to pre-install its browser on their local devices.

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...or simply lower data costs on yourfavourite smartphone

device with highest Opera Mini traffic in UK and US for July 2010

source: Opera State of the Mobile Web July 2010

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31. low cost mobile devices2.a free standards-compliant browser3.locally created web services

and information

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finding examples of locally created contentand services proved challenging...

(so I will unfortunately generalise quite a bit in this section...)

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and varied hugely by region...(and particularly by country)

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finding content from global brandswas fairly easy

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there were also many local news and marketplace sites

m.vatgia.comVietnam

m.detik.comIndonesia

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...and a growing number of useful services offered by NGOs and philanthropic commercial organisations in the area of education, agriculture, health and commerce.

http://www.flickr.com/photos/ricephotos/2679180720

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the most popular services however used ‘older’ technologies such as voice or SMS

http://www.flickr.com/photos/kiwanja/3169449583

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Africa mobile services still poor overall

http://www.flickr.com/photos/kiwanja/3169413435

but lots of informal innovation

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Major challenges to the development of services include poor infrastructure, high device and airtime costs, and lack of ecosystem maturity (e.g. number portability, taxation, standards, policy.)

http://www.flickr.com/photos/kiwanja/3170244160

Page 87: Sowing seeds by yiibu

There are however many successful initiatives around m-payments and m-transactions using ubiquitous technologies such as SMS and USSD.

http://www.flickr.com/photos/wwarby/2404556325

Unstructured Supplementary Service Data.

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Services such as M-Pesa, initially developedas a mobile money transfer platform have also been ‘adapted’ by consumers for other uses suchas saving money, paying bills and buying goods.

http://www.flickr.com/photos/kiwanja/3169409467

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APAC vibrant market with local

content and services

very high mobile penetration

http://www.flickr.com/photos/gianvc/3544721938

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In this region, the heavy colonial influence has resulted in good infrastructure, early ICT usage,and a strong level of brand and marketing awareness.

http://www.flickr.com/photos/gianvc/3543932785

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Terrestrial telecommunications have howeverremained poor. In Jakarta, home ADSL costs close to $100/mth. By comparison unlimited mobile data on a pay as you go Blackberry costs only ~$17/mth.

http://www.flickr.com/photos/gianvc/3544738106

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The proximity to China (and the presenceof large ethnic Chinese communities throughout the region) means low-cost (and knock-off) devices have been available from the very start.

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Use of social media in APAC is huge....

http://www.flickr.com/photos/istolethetv/4579844255/

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Indonesia’s social media habits are now somewhat legendary.#1 Twitter and MyGamma user base#2 Opera Mini user base#3 Yahoo Go, Taptu and Facebook user base

http://www.flickr.com/photos/basibanget/3726248376

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services from more developed regional economies also have high usage

Mig33 is primarily from Singapore

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0.facebook.com

initiatives such as 0.facebook are reducingusage costs for consumers

100 million people browse Facebook on mobile, source: Facebook

• Agreement between Facebook and >50 operators worldwide.

• Available in 70 languages.• Specifically optimised to

render on low-end devices.• No data charges when

browsing the site itself.

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ok, but what does Facebook have to do with improving people’s lives?

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High social media use is helping improve communication during elections, natural disasters and social initiatives.

http://www.flickr.com/photos/ricephotos/2679727722

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In the Philippines use of SMS, blogging and social media are extensive and often used to keep in touch with family members working overseas.http://www.flickr.com/photos/ricephotos/2679751654/

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In fact economic migration has been one reason for the increase in social media usage worldwide.

http://www.flickr.com/photos/paulk/307442120

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As in Africa, mobile capabilitiesin APAC remains lowest in rural areas.

http://www.flickr.com/photos/ricephotos/2679061676

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4A final perspective

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the digital divide affects developed economies as well

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iPhone market share in EU5(U.K., France, Germany, Spain, Italy)

4 %

Source: Comscore

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Targeting only the iPhone (and Android)will miss populations that are most in need.

http://www.flickr.com/photos/maveric2003/145867209