“mobilizing” the developing world.

Yesterday I went to Nicolas Sullivan’s lecture for the Institute for Social Innovation at CMU, and I thought I’d share. It was about cellular telephones, and the huge role that they have played in really driving and increasing connectivity in developing countries. What’s a phone call, though? A phone call means connectivity, and as Sullivan put it, connectivity means productivity, and productivity means an increase in the growth of GDP.

He spoke a lot about Grameenphone and how it came about. Telenor worked with Grameen to really introduce cellular telephony to the 5 million Bangladeshis that they felt could afford the technology. He mentioned that one of the reasons why the cell phone strategy has been so successful is because they didn’t just go in and think that the western cellular phone culture was going to work.

Cell phone market penetration has been very successful in Africa as well. They have utilized pre-paid calling plans, plans that people can afford to connect their businesses and connect them to the world.

Cell phones could be the more realistic answer to the connectivity gap that is so important. Initiatives like the $100 Laptop project could be helpful, but the learning curve on a cell phone is significantly easier. Companies have realized this and are using mobile platforms and technology to make people’s daily transactions a little easier; Specifically with financial transactions. One area you could look at is money that is sent into the country, apparently 20% of the Philippines’ GDP comes from remittances. To expedite this process and make it less expensive, is huge deal.

Further, if transactions can be made by cell phone, that means that people don’t have to walk around with cash or credit card at hand.

Another tidbit I found interesting was that many governments in Africa, realizing the profitability from cell phones, have been taking as much as 30% tax on cell phones and prepaid plans. This could be a potential hurdle in really getting cell phones out in an affordable way, to the masses.

All in all I think it was quite an enjoyable lecture. I’m still waiting for the world of free cell phones that Eric Schmidt said will eventually emerge, but until then, the connectivity that cell phones are providing to the developing world, is a huge boost.