The Use of Mobiles Beyond Voice: Identifying the Conditions for Use at the BOP

Abstract

Mobile phone access is widespread in Asia; voice connectivity has been achieved for the most part through intense competition, with prices being driven down to unsustainable levels. Against the backdrop of intense competition, new services and applications such as price information services, news alerts, as well as the set of applications under the mobile money umbrella (banking, payments, remittances, etc), in addition to mobile Internet services may provide new revenue areas for operators, but also a way to reduce churn. They also offer a way to get information and services to customers at the bottom of the pyramid, potentially with lower transaction costs.

This paper examines the use of such beyond voice services among telecom users at the bottom of the pyramid in emerging Asia. Through a series of logistical regressions, it attempts to understand what factors can predict their use, in order to inform operators on how they can better serve these markets, and how policymakers can assist with policies which will favor greater access.

Keywords: Access, Applications, Consumer, Demand, Emerging markets