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Our strategy for contributing to development has three key pillars. All three help us contribute directly to UN Millennium Development Goal 8 to develop a global partnership for development, and specifically to its target for companies to make the benefits of new technologies – especially ICT – available to people in the developing world.
1. Increasing access to communications
Expanding our networks in emerging markets to reach rural and remote areas enables more people to benefit from more reliable telecommunications. This can also facilitate access to the internet, often for the first time. Our networks are rapidly expanding and we already have over 250 million customers in our emerging markets – including four of the world’s least developed countries (as defined by the UN). Information on our network coverage in these markets is available in the interactive map.
There is considerable evidence that access to mobile can change people’s lives for the better by promoting economic growth and development. Our own research into the development benefits of mobile in Africa and India, for example, found that emerging markets with 10% greater mobile penetration show 1.2% higher growth in Gross Domestic Product (GDP) than an otherwise identical country. Read more about our research into the socio-economic impact of mobile.
Cost is a key barrier to access in emerging markets. We tailor the pricing of our products and services to enable as many people as possible to access them, while ensuring they remain commercially viable. Most customers in emerging markets prepay for our services, topping up the credit on their phones as and when they need to rather than committing to a monthly contract. To reduce the cost barrier further, we offer a ‘micro top-up’ service, allowing people to top up a small amount at a time, as well as other tailored tariffs and pricing solutions. These include reduced prices at off-peak times and time-based ‘sachet’ pricing which enables people to access the internet on their mobiles for one day at low cost.
We are also looking specifically to increase women’s access to mobile, as in many markets there is a significant gap between the benefits available to men and women through telecommunications. Read more about our efforts.
2. Lowering the cost of internet-enabled devices
Affordable handsets
In many emerging markets, there are far more mobile phones than there are computers. Affordable mobile internet gives more people the chance to communicate, learn and look for vital information such as jobs and health advice online. Customers in emerging markets can access the internet on several Vodafone-branded low-cost handsets including the Vodafone 340 – our most affordable internet-enabled phone.
All our low-cost mobile internet phones use our customised Opera Mini browser. This is specially developed to offer a high-quality mobile internet experience with affordable handsets on a 2G network – by compressing web pages for faster downloads. This is particularly important in emerging markets where 3G is currently limited. Popular Opera Mini downloadable applications include the MobJobs employment search and a ‘learn English’ service in South Africa.
Vodafone’s innovative new ‘WebBox’ provides low-cost access to the internet on a big screen even without a computer. It costs just US$80 and uses a keyboard with inbuilt mobile technology that connects to a regular television.
Our range of Vodafone-branded low-cost handsets also includes the Vodafone 150 at US$15 and Vodafone 250 at US$18. Both offer voice calls and SMS messaging, and support mobile money transfer services. See our research on the impact of affordable handsets.
3. Developing applications that meet the needs of people in emerging markets
The needs and desires of customers in emerging markets can be quite different from those in mature markets. We work in collaboration with partners to identify opportunities and develop tailored mobile services and applications that meet these needs. Many of these are ‘lifeline’ rather than ‘lifestyle’ services, because they can help improve customers’ quality of life.
Vodafone M-Pesa, for example, was introduced to enable people to transfer small amounts of money to friends and family via mobile phone. It now has 20 million users in six markets, who together use the service to transfer over $500 million a month. The service is continually evolving, with new applications that allow people to pay shopkeepers, access full bank accounts and transfer money internationally. It has been particularly successful in Kenya, where it was originally launched, and Tanzania, with growing uptake in other markets too.
Another major focus area is improving efficiency of healthcare through the Vodafone mHealth Solutions business. Mobile communications have a range of health applications. For example, our Nompilo project in South Africa and Tanzania enables community caregivers to input patient information and access medical records more efficiently using their mobile phone.
The applications we develop often cut across the different aspects of development outlined by the Millennium Development Goals, enabling financial independence, empowering and educating people, and improving health and wellbeing. Read about our priority areas for innovation.
Find out more about how we manage sustainability and view comprehensive performance data.
Download our 2010/11 sustainability report [PDF] and view previous versions.
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