1. Calling an end to poverty.
- Subjects
- *
CELL phones , *MOBILE communication systems , *POOR people , *CELL phone systems , *UNDERCLASS , *MOBILE businesses , *MOBILE computing , *POVERTY , *CONTRACTS , *INTERNATIONAL cooperation , *EMERGING markets , *TAXATION ,DEVELOPING countries - Abstract
The article reports on how mobile-phone firms have found a profitable way to help the poor help themselves. Mobile phones have become indispensable in the rich world. But they are even more useful in the developing world, where the availability of other forms of communication--roads, postal systems or fixed-line phones--is often limited. But despite rapid subscriber growth in much of the developing world, only a small proportion of people--around five percent in both India and sub-Saharan Africa--have their own mobile phones. Several operators from developing countries have teamed up under the auspices of the GSM Association, which promotes the use of GSM, the world's dominant mobile-phone standard. They invited the handset-makers to bid for a contract to supply up to six million handsets for less than $40 each. The contract was won by Motorola. Delivery of handsets began in April. This week the procurement process began for more handsets, to be delivered from next January. As well as letting smaller operators pool their bargaining power, this scheme aims to draw manufacturers' attention to the needs of developing countries. The GSMA is now making a 50-country study that will, it hopes, provide conclusive proof of the benefits of cutting taxes on mobile phones.
- Published
- 2005