TechTuesday again! I’m really into cellphone tech these days and i found this fascinating read about some interesting ways mobile applications are being used in the Philippines.

The Philippines are a leader in the use of mobile telephones for access to a range of services from m-Banking to m-Education and m-Governance. The Phillipines experience shows that it is possible to increase access to mobile phones, not only for the wealthiest in society but also for the poorer segments of the society. This publication looks at this experience and attempts to identify best practices and lessons learned for application in the similar market conditions which exist in Africa

Click here to read the full text…
or read the research summary after the link…

The report finds that the Philippines’ success was due to:

• * regulatory policies that allowed competition in the telecommunication industry, coupled with market
  innovations that made the technologies, such as mobile phones, more affordable and the process of getting a line, less restrictive
• existing consumer habits among the poor and a strongly established retail network of small village convenience shops, through which telecommunication companies were able to distribute their prepaid cards and, later, set-up their network of credit load centers.
• familiarity with the SMS process, and wider acceptance among subscribers. SMS was initially provided for free, and only once a significant portion of subscribers were using it, were charges introduced
• the prevalence of prepayment cards. Consumers learned how to use cards, call numbers and enter codes in order to purchase credits. They also learned how to check their credit loads and balances.
  This made it easier for users to understand the concept of electronic loading, once this service became offered. Since people were already literally exchanging money for loads, it made it acceptable for some to use loads as a medium of exchange
• the establishment of a critical mass of mobile phone users on which the market can build (initially, m-commerce may be driven by uptake in urban areas with later expansion to rural areas)

The report also identifies some barriers to success:

• the need for proper legal identification to deposit and withdraw cash. It may be necessary for less stringent financial regulatory regimes for small value/low volume users in order to help unleash the potential of m-Commerce in both the Philippines and Africa. A similar concern faces e-governance applications and fraud control
• competition between rival m-commerce suppliers. Sustainable m-Banking may be dependent on the number of institutions, merchants and services that are willing to support/ accept the currency. The integration of existing m-currencies into one acceptable form would help here.