Expanding access to smart devices and mobile internet
Mobile internet is increasingly widespread with 3.3 billion mobile internet subscribers around the world, and it’s predicted that by 2025, 72% of internet users will be accessing the internet exclusively via mobile. Around half of these new users will come from China, India, Indonesia, Nigeria and Pakistan.
But some key challenges need to be overcome if consumers in developing countries are to experience the full benefits of internet access via mobile. Alongside this, the challenges common to all users of smart products and devices must also be addressed, such as safety, security, data privacy and protection.
This World Consumer Rights Day we will highlight these issues and call for smart products and devices that consumers can trust.
This blog delves deeper into the opportunities of the mobile internet for consumers in the global south and explores the challenges that need to be addressed to ensure everyone can benefit from digital, no matter how they connect.
In many low- and middle-income countries, mobile internet is more widely available than cable broadband and mobile-only internet usage is more common. Mobile phone ownership and internet access are far more common amongst young people in these areas too. Once online, these users not only become avid users of social networks but can access consumer services like finance and e-commerce.
In Sub-Saharan Africa, the number of mobile internet subscribers has quadrupled since the start of the decade. GSMA, ‘The Mobile Economy: Sub-Saharan Africa’
Mobile internet is already benefiting consumers in low- and middle-income countries. It can be used to deliver e-health services such as health education, information networks and electronic health records. Mobile applications are even being used to register new-borns, providing them with a legal identity that will help them to access health and social services. Such apps have proven particularly useful in areas of Pakistan and Tanzania, where sufficient public transport and infrastructure is lacking.
In the case of Rwanda, mobile internet has helped to transform the provision of health services:
“Rwanda is currently distributing free mobile phones to thousands of community health workers throughout the country. The phones are used to keep track of pregnant women, send emergency alerts, call ambulances and provide updates on health issues to local clinics”
Damien Ndizeye, ADECOR
45.6% of the world’s registered mobile money customers are located in Sub-Saharan Africa.
GSMA, ‘State of the Industry Report on Mobile Money’
Mobile-only internet users have also benefited from mobile money apps, such as Paga in Nigeria, which enable them to transfer money instantaneously. These services are boosting inclusion by bringing financial services to people who were previously beyond the reach of the traditional financial sector. They have proved particularly successful with businesses and consumers in countries such as Kenya, Uganda and Nigeria.
Despite the growth and benefits that come with easier access to the internet, mobile internet users in the Global South still face substantial challenges:
Affordability: the cost of mobile internet is coming down but remains out of reach for many. The Alliance for Affordable Internet (A4AI) shows that consumers in African countries pay a higher proportion of their income for mobile internet than those of other regions. In Ethiopia, which was ranked lowest in A4AI’s research, the average price of 1GB of mobile data comes to almost 10% of the average monthly income. Progress on improving affordability has been slow, with some governments contributing to the problem by introducing damaging fees and taxes on internet and social media use. As the case of Uganda shows us, such fees can make internet access unaffordable for millions of consumers.
Quality: Consumers in the global south who are able to afford mobile internet then face the problem of poor quality of services. While 3G and 4G coverage is increasing across developing countries, the average download speed is substantially lower for consumers outside of Europe and North America.
Damien Ndizeye, from Rwandan consumer group ADECOR agrees that mobile has contributed to progress in education, good governance, human capacity development, and rural community activities. But he says there is still more to be done in terms of improving the quality of internet services: “In many places, internet connection speeds are slow, network reach is minimal, and the infrastructure is weak.” Ultimately, this prevents developing countries from making the most of the transformative economic benefits of faster mobile internet speeds.
The rise of mobile only internet consumers
The rise of the mobile only internet consumer, and the unique opportunity and challenges they face will also be the subject of a session at this year’s Consumers International Summit, with speakers from civil society and the consumer movement including participants from ADECOR and GSMA.