Issue:
Mobile marvels
Rubric:
Network operators in the poor world are cutting costs and increasing access in innovative ways
Location:
Main image:
AlamyDialling low-cost innovation
AlamyDialling low-cost innovation
PROVIDING mobile services in a developing country is very different from doing the same thing in the developed world. For a start, there may not be a reliable electrical grid, or indeed any grid at all, to power the network's base stations, which may therefore need to run on diesel for some or all of the time. That in turn means they must be regularly resupplied with fuel, which can be tricky in remote areas. Then there is the challenge of running the network profitably. In Europe mobile subscribers typically spend about $36 a month, a figure known in the industry as the average revenue per user (ARPU). In America that figure is $51 and in Japan $57. But in China it is only around $10, in India less than $7 (see table 5) and in some African countries even lower. As mobile phones get cheaper and more poor people can afford them, ARPUs across the developing world are ...
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