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Governance & Inclusive Growth……per Mobile

Ashis SanyalFormerly Senior Director

Department of IT, Government of India

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Governance 2.0 and beyond………

In order to enhance governance, Governments across the world has

been embracing Service Orientation to make government more customer-friendly, citizen-centric and service-

conscious, instead of remaining government agency centric

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Governance 2.0 and beyond………2

Governments world over are also focusing on long term sustainable Inclusive Development, providing development opportunities for all

sections of society, especially benefiting rural and traditionally

underserved communities

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The exponential increase in the use of Mobile Phone has opened up new vistas

for better governance and inclusive growth for the countries experiencing unprecedented growth in the Mobile

Communication sector

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The World Scenario !

• Cars 950 Mn• TV 1.5 Bn+• Credit Card 1.6 Bn• Personal Computer Over 1 Bn• Internet Over 1.6 Bn• Mobile Phones 5.75 Bn  

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A Boon for the Good Governance

• Huge user base of mobile phone giving an unprecedented opportunity to expand the reach of public services to each resident, especially in hitherto underserved rural areas

• With mandated reach of e-Governance to maximum number of citizens, government of India has been proactive in making Policy Framework for Mobile-Governance and Delivery of Public Services on Mobile Platform

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……And a real good business as well !!

With this very large number of Potential Users across the country, it makes sound business sense to develop Applications

and Content on Mobile Platform

The Pie is very large….the G2C/C2G service category under National e-Governance Plan

itself numbers 1100+ services

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The Mobile Connectivity Explosion

• South – Asia currently holding the highest cumulative growth rate for mobile subscribers with INDIA leading – adding 15 Mn subscribers each month

• Mobile subscribers among rural population also increasing very rapidly, highly outnumbering bank account holders

• Great possibility emerging to provide basic governance and financial services on mobile platform to reach underserved and un-banked sections in rural areas

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Global Distribution of Mobile Connections

Region Connections in Millions % of World-wide Total % Annual Growth

• Asia-Pacific 3019 50 17

• Africa 648 11 18

• Americas 627 10 11

• Europe,eastern 541 9 6

• Europe,western 539 9 3

• USA/Canada 367 6 9

• Middle East 330 5 11

• World Total 6071 100 13

• Source : Joss Gillet, Senior Analyst, Wireless Intelligence Report 2011

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Look East Mobile Revolution

Country Number of Mobile Connections (cumulative growth)

• Sri Lanka 20 Mn (82 %)

• Pakistan 100 Mn (60%)

• India 871 Mn (70%)

• Bangladesh 60 Mn (35%)

• Nepal 6 Mn (25%)

• Afghanistan 1.3 Mn (35%)

• Bhutan 0.35 Mn (50%)

• Maldives 0.15 Mn (48%)

• Source : Wireless Intelligence Report 2011

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Indian Saga of Mobile Revolution

TV Over 480 Mn

Fixed Line Phone 36 Mn (reducing @ 2.3 Mn / month)

• Internet 17 Mn (+0.2 Mn / month)

• Radio Over 180 Mn

• Newspaper Over 180 Mn

• Mobile Phone 871 Mn ( +15 Mn / mon on July 31,2011)

In an estimate, by 2014 India may have over 1200 Mn mobile connections !

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Public Service Delivery through Mobile

• With 870+ Mn mobile phone subscribers in India, it offers a unique proposition to reach the citizens and deliver services

As on 31-7-2011, mobile subscriber number crossed 871 Mn Share of rural subscribers 33.6% Mobile tele-density 64.7% Urban tele-density 143.4% Rural tele-density 31.1%

Mobile Subscriber Number will cross 1 Bn by 2012

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Mobile Platform can be a very potential tool for Inclusive Growth….can very

effectively transform the public service delivery paradigm and can provide for

much greater access to Capital

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Government of India Draft Consultation Paper on Mobile Governance Policy

Framework

March 2011

www.mit.gov.in/sites/upload_files/dit/files/Draft_Consultation_Paper_on_Mobile_Governanc

e_110411.pdf

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Government of India declared………

• Vision : To provide public services to all residents ,especially in rural areas, through mobile phones and innovative mobile applications, making India World leader in Mobile Governance

• Mission : Transforming delivery of Public services, catalysing innovation and supporting and sustaining required infrastructure for Mobile governance and fostering multi-stakeholder partnerships

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Government of India declared………

• Policy Goals Building MSDG integrating with NeGP

infrastructure Formulating relevant standards for applications for m-governance to

ensure inter-operability among MSPsDeveloping appropriate regulatory regimes for m-governanceDeveloping suitable mechanisms for

mobile payment gateway for the services

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Government of India declared…Policy Goals…..2

• Identifying key public services for delivery through mobile phones

• Formulating Project Assessment Framework• Creating Knowledge Portal and various tool-

kits for deployment of m-Governance• Developing innovative PPP & MSP models for

design and delivery m-Governance services• Developing appropriate CB Framework to

enhance absorption and delivery capacity of m-Governance

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Some Revealing stats of India

• Out of 1210 Mn population nearly 70% lives in Rural India

• Over 90 Mn rural households are on farming• Over 52% of farmer households do not have

access to any credit; either from institutional or non-institutional sources

• 27% of farm households are indebted to formal sources

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Some Revealing stats of India…2

• 13% are availing loans from the banks in the annual income bracket of INR 50,000 or less

• A bank branch in India serves about 16,000 people, a number very high when compared to developed countries

• Low tariff and low cost of handset provide clear value proposition for driving financial inclusion in mobile platform

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Government’s decisive actions….

• Government of India set up an Inter-Ministerial Group (IMG) in November 2009 to work out the relevant norms and modalities that would make mobile banking an integral part of banking services

• Extensive discussions among all stakeholders, IMG finalized its report in March 2010

• Government since approved IMG-recommended Framework as the basis for delivering financial services using mobile technology

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Government of India Framework for Delivery of Basic Financial Services using

Mobile Phones

Report of the Inter-Ministerial Group

www.mit.gov.in/sites/upload_files/dit/files/ReportoftheInterMinisterialGroup.pdf

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Providing financial services in mobile platform

• Issues considered– Goals for delivery of basic financial services– Necessary conditions to be satisfied– Key players of the financial delivery mechanisms

• Key part of the implementation infrastructure

– Know Your Customer (KYC) norms– Ubiquitous infrastructure component– Facilitating management of small value accounts

and micro transactions

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Providing financial services in mobile platform…the framework

• Creation of “mobile-linked-no-frills” account with daily and monthly transaction limits

• Mobile based PIN system

• Mobile Banking PoS (Point-of-Sale)

• Biometric-based micro ATMs of the BCs

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Providing financial services in mobile platform…the framework…..2

• Account Mapper which links UID number,Mobile number and “mobile-linked-no-frills” account

• Inter-operable central payments switch facilitating real time transaction routing amongst BCs, Banks, UIDAI, Account Mapper and Mobile Service Providers

• Inter-operable Repositories for hosting and manging mobile-linked no-frills accounts, by Third Party Agency

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Identifying Stakeholders

• Reserve Bank of India• Unique Identification Authority of India• National Payments Corporation of India• Banks and micro-credit organizations• Mobile Service providers• Department of Post in GoI

– Over 155,000 post offices with 89% in rural India

• Rural citizens• Government Departments running many welfare

programs for rural citizens• Telecom Regulatory Authority of India

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Closing Remarks• Mobile Platform is already exhibiting its potential for paradigm

shift in the quality of life in developing countries, especially in South Asia

• Entry level handets with affordable price. many text-bases VASs, highly competitive environment, government’s pro-active initiative to create enabling eco-system, are all in favour of Mobile Channel for delivery of government services to realise Inclusive Growth

• Good governance through mobile platform is now a reality – the stage of PoC/Pilot is over

• In rural remote areas with no OFC presently , Mobile can be a primary channel till wired Internet connectivity is realised in the remote places

• A very high % of government services can now be delivered through mobile platform….Buisness models required for mobile platform, both as primary & Secondary channels

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Closing Remarks……..2 • Re-engineering of back-end government processes for delivery of

government services over mobile platform is an issue….Deployment of MSDG is a technical requirement

• Security & related issues getting resolved…..Financial transactions for entry level handsets already resolved

• Mobile phone can be a very effective tool for inclusive growth as it enhances the government outreach in a very cost-effective manner

• Innovative applications and content on mobile platform are now the need of the hour

• Technology and associated cost trends indicate towards increasingly higher rates of adoption of this ubiquitous platform for two-way interactions

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Thank You for

Your Kind Attention

Q & A