eINDIA International Conference

, 25-27 August 2009, Hyderabad, India

The Role of Mobile Infomediaries: a BOP approach

By: M.S. Kiran

, Jerry Watkins

, and Jo Tacchi

Abstract

In this paper we explore an information and communication technology (ICT)initiative in the state of Orissa, India that provides asynchronous Internet accessto otherwise unconnected rural communities. It uses technologies in innovativeways, combining computers, Wi-Fi and local buses, to provide low-cost servicesthat are designed to improve access to information and products that areunavailable locally. Its entrepreneurial approach in bringing emerging ICT to a potentially viable rural population reflects to some extent the Bottom of the Pyramid (BOP) model of economic development, by generating low margins froma wide potential customer base.We argue that one of the most important aspects of this initiative is how it promotes engagement with its services and products through human“infomediaries”. This network of travelling sales staff is supported bytechnicians, telephone sales agents, and village-based franchises. Theseinfomediaries provide a human interface for customers, which is helpful inestablishing trust and overcoming some of the barriers to ICT use – such asmobility, literacy, caste and gender. This supports previous research by theauthors which clearly indicates the contribution of human infomediaries to the sustainability of ICT initiatives for development.

Queensland University of Technology

Swinburne University

Conference organized by: Centre for Science, Development and Media Studies, India

eINDIA International Conference

, 25-27 August 2009, Hyderabad, India

1. Background

In 1644, John Milton addressed the British parliament and argued for unhindered access toinformation and knowledge. Over three and a half centuries later, creating a “knowledgesociety” (UNESCO 2005) via informed citizenry (Milton called them “knowing people”) has become a developmental goal. The World Bank's World Development Report (1998)emphasized “knowledge for development” and acknowledged that knowledge is the key toeconomic growth and well-being. The Digital Opportunities Task Force (2000) and DigitalOpportunities for All (2001) by G8 countries proposed that ICTs can narrow socio-economicdivides and enhance wealth creation. The 2005 WSIS-Tunis Agenda for the informationsociety – influenced by the Geneva Deceleration of Principles – laid the foundation for various stakeholders:“financing of ICT infrastructure in most developing countries has been based on public investment. Lately, a significant influx of investment has taken place where private-sector participation has beenencouraged, based on a sound regulatory framework, and where public policies aimed at bridging the digital divide have beenimplemented.”

The WSIS-Tunis Agenda highlighted the need for a collaborative effort that includes private players to “improve the lives of what C.K. Prahalad has called the 'bottom of the pyramid'”(Heeks 2008), a metaphor which describes over four billion people who earn lessthan USD 2 per day.

2. Bottom of the Pyramid

Indeed, it’s been suggested that “a whole new world of opportunity will open up” if low-income earners are considered as latent consumers (Prahalad 2005, p. 1). The poor have littleindividual spending power; but

en masse

they represent a huge potential market, described inthe bottom of the pyramid (BOP) model which maps income distribution to global population(Fig. 1).

Conference organized by: Centre for Science, Development and Media Studies, India

eINDIA International Conference

, 25-27 August 2009, Hyderabad, India

Fi 1: Prahalad & Hart 2002

The sheer size of the BOP population presents a multi-trillion dollar market potential; indeed,informal or extralegal economic activity at the bottom of the pyramid is estimated at 40 to 60 percent of overall activity in developing countries (Prahalad & Hart 2002). Prahalad and Hartregard the potential of billions of latent Tier 4 consumers as the key to profitability at the bottom of the pyramid; could this consumer-driven vision provide another strategy for development projects? In India, personal consumption has played an important role indevelopment, corresponding to 67% of GDP in 2004; second only to the USA at 70%. Incomparison, China’s level of personal consumption was 41%, reflecting a more savings-led philosophy (Aziz & Cui 2007). Yet for those agencies, businesses and entrepreneurs who maysubscribe to consumption-driven bottom-up approach, tapping into this vast market at the bottom of the pyramid needs not just a portfolio of affordable products and services, but alsoan appropriate infrastructure to support market activity. This is no trivial requirement; evencomparatively wealthy developing nations such as India are disadvantaged economically bytransport infrastructure that lags behind that of some of its Asian Tiger neighbours. Indeed, theIndian government is attempting to regain competitive advantage by its heavy investment inthe Golden Quadrilateral, a highway construction project which links Delhi, Kolkata, Chennaiand Mumbai. Still, infrastructure-building isn’t restricted to roads; it also seeks to increaserural teledensity from 12.62%, compared to 81.3% in urban India (February 2009 figures,DNA 2009).

Conference organized by: Centre for Science, Development and Media Studies, India