Cultural understanding is key to growth

Mobile phones are key communication devices in emerging markets, due to the general lack of fixed line infrastructure. Personal computer penetration is lagging behind mobile phone penetration globally, and accessing the Web via a handset is often the only way that people in under-developed regions can get online.

Improving customers’ lives through understanding

Telenor’s Per Helmersen, a research scientist, is actively engaged in studying the lifestyles, behaviors and needs of people in growth markets. For the past 10 years, he has advised Telenor on ways that mobile phones and Internet access can improve people’s lives.

“I am a part of a research group of social scientists. We spend our time talking to users and observing them. My goal is to find out what their lives are like and what their aspirations are, with a special focus on communication and information ecologies. My research revolves around how more efficient information and communication flow can enhance existing activities or even suggest entirely new opportunities for inhabitants of remote regions in our Asian markets,” said Per.

Working with NGOs to open doors

Most recently, Per has cooperated with the local NGO Aga Khan Foundation in Pakistan. Through the generous support of the Aga Khan Rural Support Programme (AKRSP), an internationally recognized community-based development program in northern Pakistan, Per gained access to villages, local enterprises, agricultural research institutions and even private homes in numerous villages surrounding Skardu in the northern parts of the country.

“AKRSP provided me with a car, a driver and a translator. So I visited all the villages in northern Pakistan, knocked on doors and introduced myself. I spoke with teachers, doctors, handset vendors, the local Telenor franchisee, the people who sell our SIM cards and others. You never knew what to expect from day-to-day. Remaining in one location for several weeks allows you to build trust and relationships within the local population and to follow up on new leads.”

Learning what’s relevant for a region

Per has heard all kinds of stories during his research adventures. He is often invited for tea and told tales of how the community came together to build the local cable network, or how Telenor’s TeleDoctor service has been particularly relevant for families.

“I once met a man who told me about his wife’s gynecological problems. Since women are not encouraged to visit male doctors, she would have had to travel to Islamabad for a consultation, which would have cost a fortune. Instead they were able to use the mobile phone and contact TeleDoctors,” explained Per.

“When people see the Telenor logo on your shirt, they come running. They want to tell their stories, get help with their mobile services or even accompany you to their village to demonstrate that there is no coverage and show you where to put up a tower.”

Using the research to make decisions

Per’s research is the used to make regionally-relevant decisions that actually apply to the everyday lives of the people in northern Pakistan, for instance. This information can be used to modify pricing strategies – relating it to income levels and customer priorities. Per’s findings are also used to come up with new services that address particular needs.

“We saw a need for dissemination of agricultural market prices in Pakistan, so, in collaboration with AKRSP we developed a pilot called Agricultural Commodity Trade (ACT) where we used the mobile phone to collect and distribute market prices from day-to-day. This allowed the farmers to be alerted to the going rates for potatoes or apples, for example, helping them to quickly calculate where they could get the best prices for their produce.” According to Per, these new service concepts are a priority and with the advent of the mobile Internet, much, much more is now possible.

Have you heard of the Internet?

“One of the first things we ask in a focus group is, “Have you heard of the Internet?” and surprisingly, very few actually have in these remote areas,” said Per. “In Bangladesh the situation is a bit better due to the Community Information Centres (CIC), which goes to show that community access is crucial, not only for service uptake but also for general awareness. This will easily spread to handsets as well, so that instead of visiting the CIC, they will eventually be accessing email or banking services on their phones.”

Per believes that the key to spreading mobile Internet is to create services that contribute to the peoples’ livelihood strategies, much like the Agricultural Commodity Trade pilot. Mobile banking services are already up and running in Pakistan, via Telenor Pakistan’s easypaisa service. Easypaisa allows people to transfer money, pay bills and most recently purchase insurance and savings products, all from their mobile phones.

“Anything that can help people generate income in a more efficient manner will be a real door opener. It could be employment services, healthcare or banking.”

Value-added services are driving Internet uptake

Mobile networks in growth markets are increasingly used to provide information services such as healthcare, education, banking, agriculture updates and even entertainment. These types of value-added services (VAS) are driving uptake.

“We are just seeing the beginning. We’re definitely moving in one direction on this, but there are barriers, – cultural, financial and low literacy levels. The important thing in markets such as Pakistan, India and Bangladesh is approaching cultural barriers in a respectful manner. The key here is knowledge – finding out how things work locally in order to come up with the proper strategies.”

It’s just a matter of time

As of 2009, the number of Internet users from the top 10 emerging markets surpassed Internet users in the top 10 mature markets. The same is expected with the mobile Internet in just a matter of time. Decreasing device prices and the continued rollout of 3G services in all parts of the world are contributing to this growth.

According to Telenor CEO Jon Fredrik Baksaas, in a recent interview with the Singapore Business Times (July 16, 2010), “Greater mobile penetration and greater Internet access generally go hand in hand.” He believes that the trend over the next 10 years will be Internet access and new services created for the users.

“We’re still in the early days of seeing how the mobile Internet will enable local economies,” said Per. “Capturing its impact will be interesting, as the anecdotal evidence so far is quite compelling, indicating that mobile phones and the Internet are powerful enablers of economic activity. Just ask the farmers in northern Pakistan.”