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The Future of Mobile Services in Rural Emerging Economies

Secondary Research Document

Introduction
• Ghana is a Lower Middle Income economy, well
endowed with natural resources and a diverse
population
• It has more than twice the per capita output of
the poorer countries in West Africa and remains
one of the world's top gold producers
• Over half of the total labour force in the country
work in agricultural and related sectors
• Ghana, like most countries in Africa is a multi-
ethnic, multi-religious and multi-cultural society.
• Its current population, which is estimated at
about twenty million, is a vast mosaic of large
and small ethnic groups

The Future of Mobile Services in Rural Emerging Economies 5 5

Geography

People and Numbers

Society, Culture and Politics

Economy

Infrastructure

Geography
Demographic Factors
, Age Percentile, 2010

Source US Census Data

• Population: Growth rate of 2.1 % since 1970
• Average Population Density: 107 per sq km
• Urbanization
• Age Structure- Socio economic impacts
• Migration levels :
• Internal Migration- Large movements from the
North to South of Ghana
• External Migration- Ghana struggles to
accommodate returning nationals and foreign
refugees.

Source Ghana Statistical Survey

The Future of Mobile Services in Rural Emerging Economies 7

People and Numbers


Culture and Community
Religious Structure in Ghana Religion
• Christianity rules the majority with a 57%
overall, and more than 80% among the major
cities of Accra, Ho, and Kumasi (Southern
Ghana)
• Ethnic religions
• Islam is a minority religion in Southern regions
but is more predominant in the Northern parts of
Ghana

Ethnicity
Source CIA Factbook
• 4 main ethno-linguistic groups, constituting 86%
of the population
• Akan (49.1%), the Mole Dagbani (16.5%), the
Ewe (12.7%), the Ga Adangbe (8.0%)
• The Mole-Dagbani is the main ethnic group in
the northern regions and most of them are
religiously Muslim
• The largest ethnic group in Accra are
the Ga-Adangbe who are indigenous to the
Accra region
• Ghanaian culture, language, the arts and music

Family Dynamics
• Hierarchical relationships
Source National Geographic • Diaspora: Socio-economic impacts


Politics
The Nkrumah Regime
• Under Kwame Nkrumah’s rule, the state of
Ghana achieved independence from colonial
powers on March 6, 1957
• Charismatic leader of the Convention People’s
Party
• Growth of wide-spread industry reforms under a
socialist framework
• Regime spirals out of control into a highly
tyrannical and oppressive state (in order to
secure a one party rule)
India’s PM Nehru and Ghana’s liberator, Nkrumah, 1964
Chaos and Discontent
• A military coup ousts the Nkrumah’s
administration in 1966
• Beginning of a twenty-year period of constant
regime changes and economic decline.
• 1981, Jerry Rawlings seized control of Ghana
established the PNDC
• Economic collapse in the 1990’s

• 2007- Ghana celebrates 50 years of
Independence and almost 2 decades of political
stability with a multiparty democracy


Ghanaian Economy
% of GDP Composition by Sectors, 2010

Source CIA Factbook, 2010

% of Ghana’s Labour Force by Sector, 2005

Real GDP reached an estimated 5.9% in 2010 and
growth for 2011 has been projected at 12% - more
than double from the previous year.


Ghanaian Economy
FDI Growth in USD, 2010 • FDI has risen exponentially

• Total Exports $7.33 billion:
gold, cocoa, timber, industrial
diamonds, manganese ore, tuna.

• Total Imports $10.18 billion:
petroleum, food, industrial raw
materials, machinery, equipment

• Ghana has been fairly aggressive in
privatization, removing most price controls, and
Import/Export from Ghana, 2010 lowering barriers to generate business.

• World Bank’s ‘Doing Business’ rankings- 4th
among all low middle income countries

• Female labor participation rate (% of female
population ages 15+) is steady at 74%

Major Investors
• Nigeria, China, U.S., U.K., Netherlands, Cote
d’Ivoire, France, India.
Source UNCTAD, 2010


Agriculture
• Agriculture is a major engine of economic growth

• It provides employment for more than half of the
country and contributes to 33.7% to the GDP of
the nation

• Cocoa and timber remain the primary areas for
export. Cocoa cultivation is governed by the
COCOBOD, which aims to reduce the monopoly
of few big farmers

Harvesting Cocoa Pods, Ghana
• Women in Agriculture- representing 60% of
agricultural production
Source: Reuterrs, FAO (Fisheries and Aquaculture
Department) • Mobile Linkages
Ron Giling/Still Pictures
• CocoaLink- due to cover 100,000 farmers

Farming


Education
• With 83% of its children in school, Ghana
currently has one of the highest school enrolment
. rates in West Africa

• The adult literacy rate in Ghana was 66% in
2009, with males at 71.7% and females at 60.3%

• However, location and poverty still remain
important barriers to school
attendance, particularly at secondary school level

• In low income regions, as families struggle to
survive, children are increasingly forced to leave
Literacy Rates, 2009
school and enter the workforce

• Children in Northern and Upper West Regions
are especially vulnerable to poor infrastructural
facilities


Health
• Regional Variations- There is a wide disparity
between the urban and rural centres.
• National Health Insurance Scheme (NHIS)-
introduced in 2007 has increased the number of
patients to hospitals and clinic in rural areas.
• Doctor Patient Ratio: 0.085/1000 for Ghana

Problems
• High premiums on healthcare
• Lack of knowledge of facilities
• Lack of good doctors
A patient in rural Ghana receiving healthcare services
M-Health platforms
Physicians (per 1000 people) • Pilot projects for future health systems
0.2 developed over the mobile ecosystem
• Offer services such as monitoring, support
India – 1 aids, generating records, addressing
US – 3
Germany - 4
emergencies and transport
0.1 0.085

0


Enabling Infrastructure
Ghana:
• 11 Airports
• Total Railways: 947 km
• Total Roadways: 62,221 km
• Major Portways: Takoradi, Tema

Electricity
• Akosombo dam on Lake Volta (the largest man
made lake in the world) generated most of the
electricity for the country
• encourage the establishment of new
Akosombo Dam, Lake Volta industries, stimulate agricultural development,
• provide opportunities for fishing and increased
water transportation.

Transport
• Ghana's transportation and communications
networks are centered in the southern
regions, especially the areas in which
gold, cocoa, and timber are produced.
• Northern and central regions are connected
through a major road system; some
areas, however, remain relatively isolated


Media
Daily newspapers 258 Internet Penetration(per 100), 2009

Radio Stations 89
6
FM Radio Stations 86 5

Television Receivers 1.73 million 4
3
Television Stations 7 (2007)
2
Telephone lines 267389 (2009)
1
Mobile cellular 19,199,137 (2011)
0
subscriptions

Internet Users 1.297 million people (2009)
India Ghana
Source World Bank

Traditional Media- Radio, TV, Print Access
• Popular • Nearly one third of Ghanaians have access to
• Large viewership the internet
• However, no uniform spread over country • Mobile telephones are becoming a significant
source of news. [Source: BBC]
• Reliable internet connections are out of reach
for most citizens


Mobile Telecom
Mobile Subscriber Base growth - Ghana Background
• 1992- the government of Ghana opened doors to
private operators to enter the nation
• 1996- Ghana Telecom company leads the
market with 105,064 subscribers among 6 other
competitors
• After 2002 subscriber base increases manifold
and nears 20 Million subscribers in 2010, a
substantial number considering the population is
24 Million

Source National Communications Authority


Market Share
Market Share, June 2011 Market Share
• Scancom, leads the market with half the total
subscriber base followed by Milicom and
Vodafone.
• Airtel has expanded its market share to 9.8%
with the buyout of Zain in 2010.

• Mobile phones and Income generation

Source National Communications Authority


Introduction
• With a population of just over 1.2 billion, India is
the world’s largest democracy

• In the past decade, the country has witnessed
accelerated economic growth, emerged as a
global player as the world’s fourth largest
economy in purchasing power parity terms, and
made progress on most of the Millennium
Development Goals

• India is moving onto a much faster growth
trajectory than previously expected and is set to
surpass the size of the US economy by 2050

• Though progress has been made, there still
exists a large urban-rural disparity that needs to
be addressed for balanced growth as a nation

• Education and Health care initiatives have
sprung up rapidly to address the cause, but the
huge population still needs more such initiatives
to make real progress

The Future of Mobile Services in Rural Emerging Economies 24 24

Geography
Demographic Factors
Age Percentile, 2010

Source US Census Data

• Population
• Average Population Density- 382 per sq km
• Age Structure : Socio-Economic Impact
• Median Age: 25.3 years
• Bihar: 52.5 % working age population
• Tamil Nadu: 64.8% working age population
• Migration
• Internal - Interstate migration has risen by
53.6%
• External


Tamil Nadu and Bihar - Political Map


Tamil Nadu and Bihar - Physical Map


People and Numbers

30

Tamil Nadu


Bihar


Society, Culture and Politics

33

Religious Structure in India • India has been home to several ancient
civilisations and empires, some dating back to
more than 2,000 BC
• Domestic as well as foreign influences have
ebbed and flowed

Religion
• Intermingling of various religions has led to a
unique cultural fabric

Bihar
• The majority of people are Hindu
• Muslims and Christians comprise a vast minority
• Surprisingly, Bihari Sikhs, in the land that gave
the tenth guru, Guru Gobind Singh, are very few
in number
• Bodh gaya - one of the most important and
sacred Buddhist pilgrimage centers in the world

Tamil Nadu
• Majority of Hindu’s, followed by
Christians, Muslims
• Within Islam: 97% Sunni Muslims
• Not very large numbers of other religious
community members
Source CIA Factbook


Linguistic distribution in India Social Structure
Bihar & Tamil Nadu:
• Tribal & Non Tribal (Castes, Sects) divisions
• Caste - Pervasive social inequality, based on
birth, occupational specialization
• Kinship ties
• Endogamous/ exogamous marriage rituals

Ethno-Linguistic
Bihar
• Hindi is by far the most common language of the
state, understood by all
• There is a significant number of Bengali
speaking people also
• In addition people speak many dialects in
different regions. The major dialects are:
Bhojpuri, Magahi and Maithili

Tamil Nadu
• Tamil is the official language
• Tamil is spoken by most of the people while
around 10% of the people residing in Tamil
Nadu speak Telugu

Source CIA Factbook


Politics
India • Last two decades: Karunanidhi and Jayalalitha
• Nehruvian ‘Tryst with Destiny’’ alternate political leadership roles
• Congress Party remains dominant till the 1980’s
(with a brief hiatus during the 1977 BJP rule) Populist politics in both scenarios
• 1991- Economic reform by PM Narasimha Rao
• Governments: NDA head to head with the UPA Politics of Language
• 2007-First female President
Bihar
Politics of Power • Regional languages relegated to the backseat to
bring in Hindi as the state language
Bihar • Maithili community demands a separate state but
• Laloo Prasad Yadav ruled for 15 years- riddled this was rejected by the State Reorganization
with high levels of corruption ,low economic Committee and the political leaders of the region
growth, and casteist politics (for the upliftment gladly accepted the dominance of Hindi in the
of the lower castes) affairs of the state.
• 2005- rise of the NDA rule under Nitish
Kumer, the current Chief Minister has brought in Tamil Nadu
changes for the upliftment of the entire state • The anti-Hindi movement gained momentum in
Madras after Independence
Tamil Nadu • This was also one of the main reasons DMK took
• 3 Phases over the Congress’ 20 year rule
• Congress rules state for 2 decades till 1967
• Factionalism: DK splits into DMK which further
split into AIADMK in 1972 under MG
Ramachandran


Indian Economy
India’s GDP growth, in $USD % of GDP Composition by Sectors, 2010


% of India’s Labour Force by Sector, 2005

India's nominal GDP for 2010 was US$1.538 trillion
and its estimated GDP for 2011 is US$1.7
trillion, making it the tenth-largest economy in the
world.


Indian Economy
FDI Growth in USD, 2010 Tamil Nadu- % GDP composition by sectors

Export/Import from India, 2010 Bihar- % GDP composition by sectors

Source UNCTAD, 2010


Economy of Bihar
GDP Growth, Bihar • Has the lowest per-capita income of Rs 17,590
in 2009-10

• One of the fastest growing states, registering a
growth of 11.03% between a 5 year period of
2004-2009

• Investing in Bihar - the 'Bihar Aao' (Come to
Bihar) scheme to attract investors would be
launched soon and has attracted industrial
houses like Reliance Industries, IT industries
and Walmart

Source Census India


Economy of Tamil Nadu
GDP Growth, Tamil Nadu • The most urbanized state in India

• Highest number of business enterprises

• Stands second in total employment , compared
to the population share of 6%

• Ranked 3rd in FDI approvals with a 9% of total
FDI in the country (cumulative of $5000
million), next only to Maharashtra and Delhi

• Investing in Tamil Nadu- Ford, Hyundai, HM-
Mitsubishi, Ashok Leyland, TAFE and TVS
Motors have their manufacturing base in Tamil
Nadu

Sources Planning Commission


Agriculture
• Mainstay of the Indian economy
• 1/5th of the total GDP
• Is 10 % of the total export earnings
• 52 % of the total labor force are employed in
this sector
• Centrally sponsored schemes to enhance
production

Bihar
• It is the backbone of Bihar's economy with 81%
of workforce employed in this sector
Farmer s harvesting sugarcane in Bihar
• Generates nearly 35% of the State Domestic
till Pictures Product.
• The principal agricultural crops are
rice, wheat, maize and oil seeds and cash
crops like jute and sugarcane

Tamil Nadu
• Agriculture as the prime profession -10% of
GDP but 56% of the people depend on
agriculture and allied sectors for their livelihood
• Main cash crops are
cotton, oilseeds, coffee, coconut
• Agricultural Export Zones to provide better
opportunities for export
Rice terraces in Tamil Nadu


Education
Literacy Rates, 2009 • Universalization of Elementary Education (UEE)
• Mid Day Meal Scheme - The largest school
lunch programme in the world.
• Kasturba Gandhi Shiksha Yojana- A programme
to establish residential schools for girls in all the
districts which have a particularly low female
literacy rate has been announced
• Operation Blackboard-This scheme launched in
1987, is aimed at improving the school
environment

Bihar
• Bihar Education Project (BEP) was launched in
1991 with the express purpose of bringing about
quantitative and qualitative improvement in the
elementary system in Bihar
• Patna's Super 30

Tamil Nadu
• Was one of the first states to implement the Mid
Day Meal Scheme in the 1960's
• Tamil Nadu is one of the most literate states in
India.
Source Planning Commission


Health
Bihar:
• Infant Mortality Rate: 52% in 2008
• Maternal Mortality Rate : 312/1000
• Family Planning Programs

Tamil Nadu
• Maternal Mortality Rate: 111/1000
• The private health sector in Tamil Nadu: Wide
range of players – single doctor clinics to super-
speciality hospitals; informal service providers
• Partnerships with the non-government sector

A doctor in his clinic in Bihar Limitations
• Health facilities for the rural community also get
affected by cultural barriers like religion &
caste differences
• India’s Health expenditure per capita - $45 • Lack of access to ICTs adversely affects
• 21% have better access to improved sanitation healthcare facilities and awareness level
facilities • Long Distance and lack of transportation
• The National Rural Health Mission – 63% of total facilities within the village is a challenge for
Health and Family welfare budget providing healthcare facilities
• Lack of technological assistance affects different
areas of work of people in villages


Enabling Infrastructure
India:
• 352 Airports
• Railways total: 63,974 km
• In 2009- total roadways : 3,320,410 km
(includes 200 km of expressways

Bihar
• Well connected by roads. NH 30 & 31- 29
national highways with total length of 2,910 km
• Air services connect Patna with
Kolkata, Ranchi, Lucknow, Kanpur, Delhi, Guwa
hati, Ahmedabad, Allahabad and Kathmandu
(Nepal

Tamil Nadu
• Capital city Chennai hasone of the busiest
airports in India
• State road network covers about 153 km per
100 km2 area, which is higher than the country's
average road network coverage of 103 km per
10 km2 area
• 25 National highways
• Tamil Nadu has a total railway track length of
5,952 km (3,698 mi) and there are 532 railway
stations in the state
National Highway in Tamil Nadu


Media
Daily newspapers 76599(1998)
• Indian Media consist s of several different types
of communications media:
Radio Stations 312 TV, Radio, Cinema, Magazines, Newspapers, I
nternet
FM Radio Stations 91(2007)

Television Receivers 63 million(2007) • In 2007, the country consumed 99 million
newspaper copies – making it the second
Television Stations 582(2007)
largest market in the world for newspapers
Telephone lines 37.06 million(2007)
• As of 2009, India had among the 4th largest TV
Mobile cellular 827 million(2011) Broadcast stations the world with nearly 1,400
subscriptions
stations
Internet Users 61.3 million(2009)
• There were 16.18 million Internet subscribers on
31st March 2010 as compared to 13.54 million
on 31st March 2009

• Besides the internet subscribers mentioned
above, there are 117.87 million wireless data
subscribers who are accessing internet through
wireless networks (GSM and CDMA)


Mobile Telecom
Mobile Subscriber Base growth - India • Wireless subscription in Urban Areas increased
from 525.17 million in February 2011 to 538.05
million at the end of March 2011

• Rural subscription increased from 266.21
million to 273.54 million

• This shows higher growth in Rural Subscription
(2.75%) than Urban Subscription (2.45%)

• In February 2011, TRAI registered a total of
811.59 Million mobile subscriptions

• While the overall teledensity of India reached
67.98, the share of urban subscribers
decreased to 66.30% (from 66.30% in March)
where as the share of rural subscribers
increased to 33.70% (from 33.64% in March)

Source TRAI


Telecom
Market Share
Market Share: Bihar • India is the second largest mobile market in
the world with a total of 15 service providers
operating in 22 circles

Bihar
• Mobile subscriber base of Bihar increased by
44.8% during FY2011 to reach 53.5 million
• Bihar is one of the top 5 fastest growing mobile
telecom market in India with the growth rate
considerably higher than the national average of
38.9%.
• Wireless telecom tele-density of Bihar circle is
39.1% indicating a huge untapped market in the
Market Share: Tamil Nadu telecom sector

Tamil Nadu
• Aircel dominates with the highest market share
in Tamil Nadu and has rolled out its 3G services
in Coimbatore and Tamil Nadu
• BSNL has a strong presence in the state of
Tamil Nadu with 12.73% of the market share at
the fourth position after Airtel and Vodafone

Source TRAI


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