www.lirneasia.net external environment for telecenters mobile penetration in sri lanka rohan...
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External environment for telecenters Mobile penetration in Sri Lanka
Rohan SamarajivaRohan SamarajivaOctober 26/28, 2008
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Fixed and mobile growth, 1992-98
0
100000
200000
300000
400000
500000
600000
1992 1993 1994 1995 1996 1997 1998
Fixed Mobile
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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
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Fixed & mobile growth 2001-2007
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2001 2002 2003 2004 2005 2006 2007
Fixed Mobile
I million to 8 million mobile;1 million to 3 million fixed
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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
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Bottom of the Pyramid almost everyone has access, but not ownership
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Overall access is very high
South Asia South East Asia
Pakistan IndiaSri
LankaPhilippi
nesThailan
d
Used phone in last 3 months
98% 94% 92% 93% 95%
Used phone in the last 3 months
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Ownership and GDP per capita (USD, PPP)
23%
9%
22%
60%
76%
11%
23%
7%
14%
63.60%
80.70%
59.00%
38.00%
22.70%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Pakistan India Sri Lanka Philippines Thailand
% a
t b
ott
om
of
pyr
amid
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
GD
P p
er c
apit
a, U
SD
(P
PP
)
Own a mobile Own a fixed phone
Own nothing (but use something) Per Capita GDP PPP (US $)
But ownership is low | 41% of Sri Lanka BOP in 2006 (higher now, projected 72%)
Pakistan India Sri Lanka Philippines Thailand
Total number of phones per 100 population
29.38 13.96 29.10 45.30* 57.80**
Source: National regulatory agencies (mid 2006); * 2005, **2004 [F 4.6 M 8.2; U 32 R 2]
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Most frequently used mode
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%%
at
BO
P
Public phone 35% 71% 30% 8% 7%
Relative / friend's phone 10% 1% 12% 14% 6%
Neighbours phone 8% 7% 14% 7% 1%
Mobile of another householdmember
12% 4% 6% 11% 5%
Household fixed phone 14% 9% 21% 4% 8%
Own mobile 21% 9% 17% 56% 73%
Pakistan India Sri Lanka Philippines Thailand
So, mainly use public phones*
In Sri Lanka at BOP 30% use public phonesIn Sri Lanka at BOP 30% use public phones
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41% in Sri Lanka
Bottom of the Pyramidsome do own phones
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Primary reason for choosing to own a mobile (SEC D & E)
64%71% 66% 68%
92%
11%6%
9% 5%
7% 4%
20%17%
18% 16%
4%10%
3%7%
1%1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pakistan India Sri Lanka Philippines Thailand
% o
f mob
ile o
wne
rs a
t the
BO
P
Convenience: accessibile at any time So I don’t depend on others For privacy It is cheaper Other
Why own a (mobile) phone?*
Convenience is key; privacy is more of a concern for higher income countries
Convenience is key; privacy is more of a concern for higher income countries
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???
23%
9%22%
60%
76%
0%
20%
40%
60%
80%
100%
before2001
2001 2002 2003 2004 2005 2006(Q1&2)
Year during which connection was obtained
%(c
um
ula
tiv
e) a
t B
OP
Pakistan India Sri LankaPhilippines Thailand
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www.lirneasia.net Mobiles used more often by males at
BOP in South Asia
30%
12%
22%
56%
76%
11%5%
12%
55%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Pakistan India Sri Lanka Philippines Thailand
Male Female
% o
f m
ob
ile o
wn
ers
at
BO
P
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Female mobile owners at BOPwho pays for their mobile?
73.6%
8.5%
26.4%
91.5%
0%
20%
40%
60%
80%
100%
South Asia South East Asia
Male Female
% o
f fe
male
mob
ile
ow
ners
at
BO
P
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Bottom of the Pyramid most don’t own phones…
64%
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www.lirneasia.net Sri Lanka: second highest gender
difference
57%
78%
55%
37%
19%
71%
84%
63%
39%
17%
0%10%20%30%40%50%60%70%80%90%
Pakistan India Sri Lanka Philippines Thailand
Male Female
% o
f n
on
-ow
ners
at
BO
P
Non-owners at BOP
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Gender difference of non-owners*
48%
77%
34%
89%81%
52%40%
15% 18%
37%32%
85%82%
63%68%
60%
19%11%
66%
23%
0%
20%
40%
60%
80%
100%
Male Female Male Female Male Female Male Female Male Female
Pakistan India Sri Lanka Philippines Thailand
Public Phones Others Phones
In Sri Lanka more women use others (neighbors’, friends’) phones, also use public phones
In Sri Lanka more women use others (neighbors’, friends’) phones, also use public phones
% o
f n
on
-ow
ners
at
BO
P
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Why not own a phone?*
Reasons for not owning a phone
75% 82%72% 77% 77%
18%16%
19% 15% 15%
7% 8% 7% 7%2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pakistan India Sri Lanka Philippines Thailand
% o
f n
on
-ow
ner
s at
BO
P
I cannot afford it Don't need one Other
Affordability is the key barrier to phone ownershipAffordability is the key barrier to phone ownership
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100%
Usage patterns owners + non-owners
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www.lirneasia.net Low users are non-owners in South
Asia
21%
70%
15%
42%
20%
68%59%
70% 72%
93%
79%
30%
85%
58%
80%
32%41%
30% 28%
7%
0%
20%
40%
60%
80%
100%
Low Users HeavyUsers
Low Users HeavyUsers
Low Users HeavyUsers
Low Users HeavyUsers
Low Users HeavyUsers
Pakistan India Sri Lanka Philippines Thailand
Ow ners Non-ow ners
% o
f D
iary
resp
on
den
ts
Source : Diary
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Internet? What Internet?
Pakistan India Sri Lanka Philippines ThailandUse the Internet 1.91% 0.29% 1.51% 8.77% 10.41%
Pakistan India Sri LankaPhilippines ThailandNot heard of
Internet 36% 72% 29% 14% 36%
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Bottom of the pyramidInternational calls: who is calling?
Table of contents
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Type of call (local, long distance, international)
71%78%
62%
88% 84%
28%22%
34%
6% 16%
1% 0% 4% 6% 1%
0%10%20%30%40%50%60%70%80%90%
100%
Pakistan India Sri Lanka Philipines Thailand
% o
f c
alls International call
Long distance call
Local call
Source: Diary
Mostly local at BOP, but some international in LK & PH
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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?
1.5 million expatriate workers, 90% in West Asia
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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
International calls: Who is calling/being called?
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28.8%
46.1%
71.2%
53.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Sri Lanka Philippines
% o
f int
erna
tiona
l cal
ls
FemaleMale
Gender of the caller/callee (as a percentage of international calls made)
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11.7%
70.9%
88.3%
29.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Sri Lanka Philippines
% o
f int
erna
tiona
l cal
ls
RuralUrban
Location of the caller/callee (as a percentage of international calls made)
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97%
67%
3%
19%
0%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sri Lanka Philippines
% o
f int
erna
tiona
l cal
ls
Graduate
Diploma level
Primary or secondaryeducation
Educational attainment of callers/callees
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5.4%
29.7%
36.9%
25.2%
2.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
18-24 25-34 35-44 45-54 55+
Age of the respondent
% o
f in
tern
atio
na
l ca
lls
Sri Lanka
Age of the caller (as a percentage of international calls made)
30.1%
32.0%
16.5%
9.2%
12.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
18-24 25-34 35-44 45-54 55+
Age of the respondent
% o
f in
tern
atio
na
l ca
lls
Philippines
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“…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.