Mobile Phones to Aid Development in Developing Countries

Mobile operators in developing countries have bought or ordered more than 12 million mobile phones from Motorola under the Emerging Market Handset programme run by the GSM Association (GSMA), the global trade association.
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Leading operators in developing markets are buying the ultra-low cost handsets, which are available in more than 50 countries, making mobile telecommunications services available to many more millions of people.

“Motorola is set to exceed the programme’s target of 12 million phones, proving that there is a huge appetite for mobile communications beyond the affluent markets traditionally served by this industry,” said Rob Conway, CEO of the GSMA, which represents more than 680 mobile operators worldwide.

“The widespread availability of ultra-low cost handsets is bringing major social and economic benefits to people who have never before had access to information and communication technologies.”

Motorola has seen strong demand for the two handsets in the second phase of the EMH programme, the C113 and the C113a, which went on sale at the beginning of 2006. Any GSM operator in an emerging market can participate in the programme.

To ensure as many users as possible benefit from the programme, the GSMA has extended its endorsement of Motorola as the Emerging Market Handset vendor for a further six months, representing the period from July 1st 2006 to the end of the year.

They are funding projects designed to stimulate the rollout of ‘shared access’ mobile solutions across the developing world.

One such scheme uses specialized software from South African company Sharedphone, which enables ultra-low cost handsets from Motorola to work like a mobile ‘payphone’. Local entrepreneurs can sell airtime on these phones to people wishing to make a call or send a text message.

This innovative approach allows an entrepreneur to set up a payphone business for just the cost of a handset.

The GSMA’s goal is to give 80% of the world’s population access to mobile communications by 2010 even if they don’t all own a handset. The handset costs only $30 and at the 3GSM World Congress, the GSM Association announced that it had orders for more than 12 million of them.

Mr Phillips, of the GSM Association has told the BBC News that mobile phones could be agents of social change by breaking down barriers that stop businesses and local economies flourishing - the role of telecoms is every single bit as important as electricity and basic infrastructure in enabling development of an economy.

|QUOTE|Farmers and fishermen no longer have to rely on the word of a middleman to find out where they can get the best price for crops or catch. Instead they can call the markets direct and find out for themselves and get a better price for their goods.

"Mobiles are no longer a luxury," he said, "they are essential business tools." he said.

Corporate tax on the purchase of these phones would also contributor to government funds in developing nations, said Mr Phillips "The speed with which mobile networks can be set up can act as a foundation for other changes".

"The role of telecoms is every single bit as important as electricity and basic infrastructure in enabling development of an economy"