The telecommunications industry has changed massively over the past 20 years. It’s hard to believe that people have only been using the internet since 1994. It wasn’t until the late nineties and early 2000s that the average person owned a mobile phone, and the first iPhone didn’t appear until 2007.
The advantages of smartphones are especially apparent in developing countries. Telcos are allowing people who were previously isolated to communicate with friends and family members over long distances. They can now also connect with the web from their smartphones, which means they’re open to a world of economic and cultural possibilities.
While telco infrastructure and networks in the Middle East were slower to develop compared to most western countries, it’s now seeing a boom. Who could forget how Egyptians used social media during the Arab Spring?
We’ll soon see billions of new mobile phone users, and most will be in Asia, Africa, and the Middle East. As technology continues to become faster and cheaper, people living in developing countries will use their phones to improve their fortunes.
Many countries in the developing world are skipping past desktop computers and landlines altogether and have gone straight to mobile technology. For the first time, people who live in remote communities are receiving a sense of a future, opportunity, information, and choice. Studies by the Pew Research Center have found that mobile phones are as common in South Africa and Nigeria as they are in North America. While approximately 90% of adults own mobile phones, most of the phones in Africa are relatively basic and are capable of texting, calling, and sometimes basic web browsing.
As telcos increase coverage to rural areas around the world, the industry has a chance to impact people who need the most help, changing the way they learn, work, handle money, and participate in government.
For many people in developing countries, traditional banking is simply not possible. However, mobile connectivity has allowed millions of people to access the financial system. Financial inclusion, even a first savings account, enables people to invest in their education, start businesses, and be prepared for bad times. Between 2011 and 2014, there was a 20% decrease in the number of adults without a bank account.
M-Pesa was launched in Kenya in 2007, and telcos have created similar systems in other Sub-Saharan African countries. The services allow users to transfer money between accounts via text message, and 61% of Kenyan cell phone owners received or made payments with their cell phones in 2014 alone.
Large portions of populations in developing countries are unable to access financial services that those in developed countries take for granted, like savings accounts, direct deposit services, and credit cards. But mobile phones allow these people to make digital transactions that are safer and cheaper than saving cash at home and paying for goods and services solely with cash.
People living in remote parts of the world can also find it difficult to make their voices heard. One great example of how telcos are helping these people have a say? The U-Report program by UNICEF. This program polls one million people through text messages, gathering opinions and information in 15 countries (in real time). This has had a massive impact in connecting help with the people who need it.
Just a few years ago, the Ugandan government couldn’t understand why few people were applying for a new entrepreneurship grant. The U-Report poll found that the biggest barrier was the requirement of a school diploma. As soon as this requirement was removed, applications flooded in.
As you can see, the telecommunications industry is having a massive impact on poverty in the developing world. As telcos continue to build mobile infrastructure in developing countries, even more people will benefit from the opportunities that this connectivity will bring.
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