MB-An Ericsson ConsumerLab study, “From voice to data -- how Internet can improve life in emerging markets,” shows how the spread of the Internet to rural areas can have a marked impact on society.
Henrik Palsson, head of Ericsson ConsumerLab for Asia Pacific, says: “Internet services can improve the life of people in emerging markets by addressing everyday issues. For example, a fisherman needs the answer to three questions. Where are the fish? Where can I sell my catch at the best price? And how can I avoid bad weather at sea? If the Internet can provide accurate information that answers these questions, it will be a success.”
Rural Internet penetration is limited in many countries, caused in part by cost, lack of infrastructure and low literacy levels, but also by a widespread lack of understanding of the benefits of being connected.
Palsson says the mobile phone experience could be seen as the template for sparking and nurturing interest in the Internet. The success of mobile telephony in emerging markets has been closely tied to income generation, either as a business in itself or as a way of gaining access to broader markets, securing the best price for commodities, or saving time and resources by having accurate, up-to-date information.
A similar argument can be built around the Internet, which has been shown to have a significant impact on the ability of farmers and small businesses to expand their customer base; educate themselves about more commercially attractive products; and use new production techniques to reduce costs.
But a use case is not enough. “Internet-capable mobile phones meet these needs, but these new Internet capabilities must be explained to potential consumers in terms that are relevant to their situation,” Palsson says. “The Internet needs to be easy to use, accessible and affordable if it is to succeed in these low-income areas.”
Johan Haeger, responsible for the Communication for All program at Ericsson, says: “The study gives numerous examples of the tremendous value that Internet access brings to emerging markets. There is still high growth in voice services in these markets, and mobile broadband is now taking off with high growth-figures too. Mass-market, standardized mobile-network technologies with data capabilities such as EDGE, HSPA and LTE will make broadband cost-effective for everyone.”
The benefits of widespread Internet availability make it an important issue that requires a coordinated, long-term approach. The telecom industry -- infrastructure vendors, handset vendors and operators -- has a key role to play but governments, regulators, educators and content players must also play their part if the crucial first step, appreciation of the benefits, is to be achieved.
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