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Who wins: Rural Agriculture or Mobile Sector?

mAgri Panel @ GSMA Mobile World Congress

Is rural agriculture a big business opportunity for the mobile industry or the mobile industry is a big business opportunity for rural agriculture?

This is the question that I continue to grapple with as I browse through presentations at the mAgri event during the just ended GSMA Mobile World Congress 2012 in Barcelona, Spain, and also analyze the “charge” by the Chairman of Microsoft at the IFAD Governing Council Meeting in Rome, earlier this year. Below is the recap of the presentations at the event that seem to highlight the importance of these services to the rural smallholder farmer followed by the perspective from Bill Gates.

GSMA Mobile World Congress

Introducing the mAgri event at the Congress, the Managing Director of GSMA Development Fund, Chris Locke reiterated the importance of mobile technologies in improving food security by reaching rural farming communities that are otherwise, not served by the traditional agricultural extension services. He stated that with the continuous support from the Bill and Melinda Gates Foundation and USAID, the goal is to expand the mAgri program to six more countries. “What we are really looking for is a delta in a data – a delta that shows that there is a significant mobile penetration among the audience we are trying to reach but the lack of access to existing services that are trying to give them valuable information to help improve economically and socially, said Locke.”

Subrahmanyam Srinivasan, the CEO of IFFCO Kisan Sanchar Ltd (IKSL) then shared their experience in India through push and pull model of information delivery to their clients. Through an enviable partnership between IFFCO, Bharti Airtel, and Star Global Associate, m-powering utilizes mobile technology to provide agricultural information to over 3million revenue earning farmers in India and another 1million listening farmers.

The Global Product Leader of Nokia Life Tools (NLT), Bhanu Potta also emphasized the importance that Nokia place on educating rural farmers about production of new crop and animal varieties. According to him, these farmers are now switching from the traditional food crops to commercial and cash crop commodities and therefore need actionable, timely, locally relevant information in their local languages, and from trusted sources. The Nokia Life Tools provide farmers with market price information, weather updates, and news and tips on crops within their geographic location. A new feature that was released during the congress will enable interactions among the users and with experts through voice. NLT currently serves over 50million users in the area of health, education, agriculture etc. in India, China, Indonesia and Nigeria.

Mark Davies, CEO of Esoko then explained how access to agricultural information through mobile phone has improved revenue generation of smallholder farmers in Ghana. According to him, through the mobile services of esoko, farmers are able to better negotiate price with traders, avoid traders and go directly to the regional markets, delay selling their products until they can obtain the best price, and socially help address trust issues in marriages when women return from the market with their sales. With the challenge of scaling their services, esoko now serves between 10-20 thousand farmers in Ghana and also franchising their tools to other countries to deliver their own contents.

Finally, Marc Ricau, Vice-President Country and Partnerships of Orange AMEA outlined how the company is shifting focus from urban customers to rural customers in 25 countries (18 in Africa), since about 60-70% of the population in these countries live in rural areas and are farmers. According to him, they are developing and expanding network coverage in these countries and partnering with content developers to serve these rural farmers with mobile services and solutions for their agricultural needs. “Mobile services can bring development in these areas by increasing productivity of the farmers, said Ricau.”

IFAD Governing Council Meeting

Bill Gates at IFAD GC Meeting

From a different perspective, the Microsoft chairman recently charged three UN Organizations – the International Fund for Agricultural Development (IFAD), the World Food Program (WFP) and the Food and Agriculture Organization (FAO) to do better to serve farmers. “Right now, a digital revolution is changing the way farming is done, but poor small farmers aren’t benefiting from it” said Bill Gates. The billionaire philanthropist also criticized countries, food agencies, and donors that aren’t working together in a focused and coordinated way to provide the help small farmers need, when they need it.

So my question remains as to whether the digital revolution is an opportunity for the mobile industry or an opportunity for the smallholder farmer? In other words, who is benefiting from the this huge opportunity – the smallholder farmer or the mobile industry? Is the smallholder farmer really benefiting from all these interesting stories by IKSL, NLT, esoko, Orange and hundreds of ICT and mobile solutions being designed for agriculture? If yes, how and if no, why?

March 21, 2012/by actualize

Connectivity, Originally posted on the GBI Portal

Kenyan undersea cable goes live in April

The Lower Indian Ocean Network (LION2), Kenya’s fourth submarine cable, will become fully operational in April this year, the local telecommunications ministry revealed on Thursday.

Map outlying the LION2 undersea cable

The LION2 cable is a 3000 km line extending from Nyali, via the island of Mayotte, located in the northern Mozambique Channel from Mauritius and is set to significantly boost the nation’s bandwidth. Kenya already enjoys connectivity through The East African Marine System (TEAMS), the Eastern Africa Submarine Cable System (EASSy) and SEACOM.

Orange Kenya, involved with laying cables via its parent company, France Telecom, confirmed the schedule, adding that the cable arrived in Mombasa in December last year and is awaiting connection. Work continues to finish the cable’s connection at the Mombasa landing station, the company said.

Angela Ng’ang’a-Mumo, Orange Kenya’s Chief Corporate Communications Officer, told reporters that progress on LION 2 “is on target”. Orange said the construction of the 1.28 Tbps cable “is expected to cost approximately KES 6.2 billion.”

According to reports, the cable is part of a bigger project by France Telecom and 12 members of the Lower Indian Ocean Network to build a submarine cable linking Madagascar to the rest of the world via Reunion Island and Mauritius.

Samuel Poghisio, Kenyan Information Minister, said he was confident that “once it is switched on, LION2 will intensify competition in the industry and help further lower Internet connectivity charges”.

Joseph Mayton

February 24, 2012/by actualize

Connectivity, Originally posted on the GBI Portal

End of the African telecoms boom?

The upsurge in sub-Saharan Africa mobile telecommunications seems to be subsiding as companies continue to overcrowd the market while trying to gain more clients. Sizeable investments and how businesses aim to win over customers’ favour was investigated in a new report.

As one boom ends, another begins Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications, believes. (image: file)

The Morgan Stanley Research report, a global investing firm, says as firms backed by big money, like Bharti Airtel, continue improving their network coverage and decrease tariffs, Africa will become more competitive. Old timers, such as MTN and Safaricom, that have enjoyed market dominance are set to be affected the most. According to the report, the boom will be replaced by market driven innovation, new products and expanding data services.

“All companies are focusing on driving data usage, and new services to reduce churn. The most important are mobile money services like M-Pesa, where innovation take-up is high,” the report says.

“We expect mobile revenues to grow from 3,4% of gross domestic product (GDP) in 2011 to 3,7% by 2015, as we believe mobile revenue growth will outpace GDP in the next four years,” the report says.

Bitange Ndemo, secretary of the Kenyan Ministry of Information and Communications, says there is little room for new entrants in the local market.

“Unfortunately, there has been market erosion of about 20%, mostly because of competition that has seen cuts in tariffs in the sector. A new entrant would have a lot of problems as the four firms (Safaricom, Bharti Airtel, Yu Mobile, Orange) are struggling due to stiff competition,” Bitange told Daily Nation.

Industry analysts agree with his conclusion. ”What we are seeing is a correction of factors like the supernormal profits that some telecoms have been enjoying in the past,” Techie Makau, a Nairobi-based telecommunications consultant, said.
Makau added that providers now have to focus on provision, customer service and value addition. In the Kenyan market, the average price per minute fell by 80% due to competition largely from Bharti Airtel, between Sh2 and Sh4 ($0.03-0.05).

Despite the report, Bitange believes the data market is set to kick off next. Kenya’s internet penetration is only 30%, so once fibre optic cables expansion starts he believes we are set for another boom. “The data market is beginning to take shape as the fibre optic network continues to expand,” he said, adding: “this will see a lot of consumption of broadband… and that is what the companies should be looking at.”

Nico Gous

February 21, 2012/by actualize

Connectivity, Originally posted on the GBI Portal

Orange Tunisia introduces uncapped internet

The youngest telecom operator in Tunisia, Orange Tunisia, rolled out uncapped mobile internet access for all their ‘Internet Everywhere’ customers.

Orange Tunisia increasing their market share. (image credit: Alamy)

Currently users receive a monthly 7.5GB cap on their 3G network.

Now once the limit is reached, internet speed will slow down to 128kb/s, sufficient for internet browsing.

Customers will be alerted once their bandwidth limit is reached the company said in a statement.

Orange Tunisia was launched in 2010 by the local Mabrouk group and France Telecom.

Ahmed al-Hilali

February 15, 2012/by actualize

Connectivity, Originally posted on the GBI Portal

Orange to provide free access to mobile Wikipedia

In the first partnership of its kind, mobile telecommunications operator Orange and the Wikimedia Foundation will provide more than 70 million Orange customers in Africa and the Middle East (AMEA) with mobile access to Wikipedia – without incurring data usage charges.

Orange and the Wikimedia Foundation will provide 70 million Orange customers with mobile access to Wikipedia (image: PHP Magazine)

Orange and the Wikimedia Foundation today announced a major partnership designed to make knowledge more easily available to Orange mobile customers throughout Africa and the Middle East.

In the partnership Wikipedia, Orange and the Wikimedia Foundation will provide customers in both remote and urban areas of AMEA with access to Wikipedia.

“Wikipedia is an important service, a public good — and so we want people to be able to access it for free, regardless of what device they’re using,” said Sue Gardner, Executive Director of the Wikimedia Foundation.

“This partnership with Orange will enable millions of people to read Wikipedia, who previously couldn’t. We’re thrilled to be Orange’s partner in this important endeavour.”

In 2009, Orange and the Wikimedia Foundation formed the world’s first mobile and Internet partnership to expand the reach of Wikimedia’s projects through channels on Orange mobile and web portals in Europe.

“In countries where access to information is not always readily available, we are making it simple and easy for our customers to use the world’s most comprehensive online encyclopaedia. It is the first partnership of this kind in the world where we are enabling customers to access Wikipedia without incurring any data charges; and shows Orange’s ability, once again, to innovate in Africa and the Middle East, and bring more value to our customers,” added Marc Rennard, Group Executive Vice President of Orange, Africa, the Middle-East and Asia.

This new partnership will be gradually launched throughout 2012 across 20 African and Middle Eastern countries where Orange operates, with the first markets launching early in the year.

Staff writer

January 24, 2012/by actualize

Agriculture, Mobile, Originally posted on the GBI Portal

Orange Money attracts 3-million customers

Orange Money, the mobile payment service from telecommunications company Orange, has reached the threshold of 3-million customers in the eight countries where it is now offered, thus becoming one of the most powerful electronic money services in Africa.

Orange Money has reached the threshold of 3-million customers (image: stock.xchng)

Orange Money has tripled its customer base in the past year and continues to grow with the recent launch of services in two new countries: in Botswana in partnership with the Standard Chartered Bank, and in Cameroon in partnership with the BICEC (BPCE group).

In countries where it is available, mobile phone customers may open an Orange Money account whether or not they have a bank account. Orange Money allows customers to carry out simple banking operations and transactions in total security.

Orange plans to expand the Orange Money offer in the near future to include the possibility of receiving international money transfers. Orange and Western Union, a global leader in international money transfer services, have joined forces to develop this new service, which will enable Orange Money customers to receive transfers directly on their mobile phones via Western Union’s global system.

According to the World Bank, countries in Africa, the Middle East and Asia (AMEA) in which the Group operates receive more than 25 million transfers every year.

“Orange Money is a very important part of our strategy in Africa and emerging markets. Mobile payment services have the potential to bring cost-effective and secure access to banking services to people with low incomes, who often live in rural or remote areas. By providing our customers with the means to save money, pay bills, run their businesses and receive money from abroad, we are not only reinforcing customer fidelity but we are also able to play an active role in the economic and social development of the country,” said Marc Rennard, Orange’s Executive Director for AMEA operations.

January 5, 2012/by actualize

Agriculture, Mobile, Originally posted on the GBI Portal

Leveraging mServices for Development: An Opportunity for MNOs

Photo Credit: City of Dallas

The importance of mobile network operators (MNOs) who are currently investing in mobile agriculture services (m-agri) to view and utilize their investments as part of the wider “mServices strategy” that includes m-health, m-financial services, m-education, m-governance, m-women, etc came up in the just ended mFarmer and e-Agriculture online discussion.

“As competition between operators continues to escalate, the large rural customer base (a great deal of whom are farmers in the markets we are talking about) represents a sizeable business opportunity for MNOs” said an expert.

This comes as new developments are taking place with mobile financial services across the continent of Africa that has a huge market for all kinds of mobile services. Orange, one of the most prolific mobile financial services provider, is expanding further via a new partnership with Western Union to better meet the mobile services needs of its customers in Africa and Middle East.

The service will allow users to carry out simple banking operations and transactions in total security including money transfers – where users can send money using their phone to any Orange mobile customer in the country; payments – giving users an easier way to pay their electricity, water, television or phones bills, as well as providing a simple way to buy mobile phone credit from any location; and financial services – including solutions facilitating savings and insurance.

While all these services seem “financial”, analysts see the general penetration of mobile technology into the developing world as a great opportunity to facilitate services in other sectors such as governance, healthcare, education, agriculture, rural development, water and sanitation, and the overall economic development. Good partnerships among MNOs and between MNOs and other service providers that focus on the wider services should be the target for all.

GSMA has already initiated a number of programs that call for collaboration to leverage resources to better deliver these mobile services to the millions of rural folks currently left unconnected. Examples include:

m-Health service such as supporting community health workers in gathering and managing health information; capturing and analyzing data for disease surveillance; providing remote diagnoses via telemedicine; improving access to health information and resources through health hotlines; facilitating health education, training and emergency support; coordinating drug and medical supply distribution; enhancing rapid disease testing via mobile phone microscopy applications.

m-Farmer service aimed at driving scalable, replicable and commercially successful mFarmer Services; building services that impact farmers’ income and productivity; reducing the barriers for operators to launch or improve mFarmer Services; testing and proving models for delivering mFarmer Services via mobile phones; and promoting a culture of knowledge sharing in the mFarmer ecosystem.

m-Women service with the objectives of increasing access to mobile phones for 150 million women who live at the base of the pyramid over the next three years and leveraging the mobile channel to improve the socio-economic status of women across the developing world.

m-Learning service that will provide access to or deliver educational content and experiences through mobile devices using a number of technologies including Bluetooth, GSM/GPRS/3G, WiFi or WiMAX, via various mediums with the ability to learn anytime, anywhere.

It is time for the Mobile Network Operators (MNOs) to take advantage of these opportunities to maximize revenue for their investments and increase their social development impact on the society, especially the remote communities.

December 7, 2011/by actualize

Tag Archive for: Orange

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