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02 December 2008

Mobiles services: Philippines shows the way

The innovative use of mobile applications in the Philippines: lessons for Africa

Authors: S. Mendes, E. Alampay, E. Soriano, C. Soriano
Publisher: Swedish International Development Cooperation Agency, 2007

The Philippines are a leader in the use of mobile telephones for access to a range of services from m-Banking to m-Education and m-Governance.

The country’s experience shows that it is possible to increase access to mobile phones, not only for the wealthiest in society but also for the poorer segments of the society.

This publication looks at this experience and attempts to identify best practices and lessons learned for application in the similar market conditions which exist in Africa

The report finds that the Philippines’ success was due to:

•Regulatory policies that allowed competition in the telecommunication industry, coupled with market

•Innovations that made the technologies, such as mobile phones, more affordable and the process of getting a line, less restrictive

•Existing consumer habits among the poor and a strongly established retail network of small village convenience shops, through which telecommunication companies were able to distribute their prepaid cards and, later, set-up their network of credit load centres.

•Familiarity with the SMS process, and wider acceptance among subscribers.

•Consumers learned how to use payment cards.

•The establishment of a critical mass of mobile phone users on which the market can build (initially, m-commerce may be driven by uptake in urban areas with later expansion to rural areas)

The report also identifies some barriers to success:

•Need for proper legal identification to deposit and withdraw cash.
•Competition between rival m-commerce suppliers. The integration of existing m-currencies into one acceptable form would help here.

Source: Eldis

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