Africa: Guide to Technologies

8 October 2008

Technologies that may have an impact on lowering prices and widening access in developing countries:

VoIP: In its most immediate form (through services such as Skype) it offers cheap international calling. This may become more widely available on mobiles in the not-too-distant future (www.vyke.com).

Wireless technologies: Wi-Fi and WiMAX are offering alternative operators ways of offering cheaper Internet access. They can also be used to create municipal networks that offer local authorities cheaper voice and data services. If regulators allow it a competitive space, the WiMAX mobile voice standard (802.16e) may yet offer newer mobile operators a way of cutting costs and offering better rates to customers.

Solar base stations: Indian start-up VNL is to manufacture a cheaper, solar-powered base station (see: http://www.vnl.in/). Given the absence of power supply and the cost of diesel for generators, this will have a clear impact on costs if its claims are verified in operational use.

Fibre slung from power lines: Fibre slung on power transmission towers is considerably cheaper to roll out compared to fibre that needs trenches in the ground. A recent example from Africa illustrates the potential (see: http://www.balancingact-africa.com/news/back/balancing-act_416.html).

Mobile Internet and short message service (SMS): A significant percentage of people in developing regions use SMS on their mobile phone as their principal source of daily information. Newer handsets with intuitive graphic interfaces, like the iPhone, will extend this “mobile media” into the Internet.

M-money services: For the un-banked who may carry the risk of losing their cash, m-money services such as Safaricom’s M-Pesa in Kenya (with 2.5 million users) will have an enormous impact. Remittances from diaspora communities in developed countries are now more significant than aid flows for those countries. New mobile-based services may help cut the cost of these transactions from around 12 percent to nearer 6 percent.

Low-cost handsets and computers: The high cost of handsets or computers is one of the primary barriers to greater access. A range of handset manufacturers are focused on trying to reduce the costs of a basic handset. On the same logic, computer manufacturers (including AMD and Intel) have been drawn into the race to provide low-cost laptops by Nicholas Negroponte’s One Laptop per Child initiative (see: http://wiki.laptop.org).

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