Beijing: In a memorandum of understanding signed at a high profile event at the UN's Beijing office, Mats H. Olsson, President of Ericsson China, and United Nations Resident Coordinator/UNDP Resident Representative in China Khalid Malik agreed to explore ways for mobile telephony and networks to improve access to health, government, education and financial services.
The agreement marks a new milestone in Public-Private Partnerships (PPP), with greater collaboration between development organisations and leading businesses that have common social interests.
The three-year partnership, starting immediately, will showcase the potential for growth in emerging markets, particularly in low-income, rural regions.
The partnership aims to foster growth and bridge the digital divide, using business-led solutions that accelerate and sustain access to services and livelihood opportunities in rural areas.
Guided by China's national development priorities, Ericsson and UNDP will identify promising ways to use mobile technology to achieve social aims and develop pilot projects.
One example is access to rural financial services, which is high on the agenda of China's government. Geographical isolation can make it expensive and difficult for Chinese in rural areas to get credit, send remittances or make deposits.
A mobile phone can change the nature of rural finance by making banking services immediately accessible. Farmers and entrepreneurs can also use mobile communications to get up-to-date market information.
Olsson says: "This is an example of a genuine partnership between public and private sectors that has the potential to lift communities around the world despite location.
Working with UNDP provides Ericsson an opportunity to apply its cost-effective and innovative mobile solutions to create sustainable rural connectivity and mobility to achieve the targets of the UN's Millennium Development Goals, and China is one example of where we have put this commitment in action. This agreement also reflects Ericsson's vision of an all-communicating world."
Malik adds: "There is huge potential for mobile phones to transform people's lives in the developing parts of the world. By opening the doors to concrete, innovative, affordable and effective mobile services, we can provide a whole range of tools to better meet the needs of the poor."
With slight adaptations of existing business models, the private sector can develop large new market segments in areas with low average revenue per user. Initiatives set in motion by the partnership are intended to establish incentives that private and public entities will seize upon, helping expand these segments further.
Ericsson is leading the market with sustainable energy solutions for telecom, and applying these solutions to the rapid growth of the communications sector in China will have a positive contribution to China's overall sustainability goals.
China is also an ideal place to develop new technologies and services: widespread mobile network coverage and use of mobile phones demonstrate that the foundations are in place for the successful introduction of a range of telecom services that will improve socioeconomic conditions.
"This type of innovation at the frontier is precisely what this new partnership aims to foster," Malik says. "By uniting UNDP's vast experience in development with Ericsson's cutting-edge telecom expertise, I am confident that we can find solutions that really make a difference for China and for the world."
Source: i4d and Xinua PR Newswire
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