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Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana, 15 September 2007 www.lirneasia. net

Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Page 1: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Teleuse@BOP

Owner-users, non-owner users and how they use phones at the Sri Lanka BOP

Rohan SamarajivaRohan SamarajivaSri Lanka Telecom Limited Media EventHabarana, 15 September 2007

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Page 2: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Bottom of the Pyramid

Emerging markets are ‘where the action is’ The next billion...

Untapped potential at the ‘bottom of the pyramid’

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Reality check . . .

1. What percentage of households had some kind of phone in 2004?

2. How many BOP households had some kind of phone in 2006?

3. Which Province was second highest in phones/households in 2004? Third?

4. Which province was second highest in computers/households in 2004?

5. Did fixed phones outnumber mobile phones or vice versa at the BOP in 2006?

6. What percentage of the BOP made or received international calls in 2006?

7. What percentage of people making international calls were women?

Page 4: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Reality check . . .

8. What percentage of people had made/received a call in past three months, when approached by survey personnel in mid 2006?

9. Do women talk longer than men on the phone at the BOP in Sri Lanka?

10. Do women use the phone for different purposes than men in Sri Lanka? What is the dominant purpose for men? What is the dominant purpose for women?

11. Who makes the decision on whether a woman gets a mobile In Sri Lanka? In Thailand?

Page 5: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Answers?

Not all the right answers in this presentation; some are from the 2004 Consumer Finance Survey of the Central Bank

The importance of challenging common knowledge/popular wisdom Recent fiasco over mobile taxes probably driven by ignorance

Industry needs to use representative surveys more and communicate the results more broadly

Page 6: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Plan of presentation

Methodology and background Everyone has access but not ownership Who owns phones? Why? Getting connected Not getting connected Gender and telecom Beyond basic services at the BOP?

Page 7: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Methodology

6 Focus Group Discussions per country

(30)

Random sample 8,689 F-to-F interviews; in 5 countries

50% diary

Final output

QualitativeQuantitative

Page 8: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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*excluding FANA/FATA – Tribal Areas; **excluding N&E Provinces

Bottom of the Pyramid (BOP) defined

Many definitions of poverty, but this study uses SEC D and E; between ages 18-60

SEC does not take into account income, but it is closely related to income levels

Pakistan India Sri Lanka Philippines Thailand

Population (million) 165 1,095 20 89 64

Target population of study (million)

77* 260 4** 41 15

SEC D & E

SEC A, B & C

Page 9: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Teleuse@BOP

~9,000 sample survey in five countries India, Pakistan, Sri Lanka, Philippines & Thailand

Understand telecom use at the BOP (= SEC Groups D &E) in Developing Asia

Representative of target population SEC D&E, ages 18-60

Page 10: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Bottom of the Pyramid

Everyone has access, but not ownership

Page 11: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Overall access is very high

South Asia South East Asia

Pakistan India Sri Lanka Philippines Thailand

Used phone in last 3 months

98% 94% 92% 93% 95%

Most have used a phone in the last 3 months

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Time it takes to reach nearest phone

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines Thailand

% o

f n

on

-ow

ne

rs a

t th

e B

OP

>60 minutes

45-60 minutes

30-45 minutes

15-30 minutes

10-15 minutes

5-10 minutes

3-5 minutes

< 3 minutes

Phones are close at the BOP

Most can get to a phone in less than 30 mins

Page 13: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Even in rural areas

A small number (6%) in rural areas incur up to US 50 cents to get to a phone

Time to nearest phone: urban vs. rural: Sri Lanka

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Urban Rural

Sri Lanka

% o

f n

on

ow

ner

s at

BO

P Betw een 45 - 60 minutes

Betw een 30 - 45 minutes

Betw een 15 - 30 minutes

Betw een 10 - 15 minutes

Betw een 5 - 10 minutes

Betw een 3 - 5 minutes

Less than 2 - 3 minutes

Page 14: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Ownership and GDP per capita (USD, PPP)

23%

9%

22%

60%

11%

23%

7%

14%

64%

81%

59%

38%

23%

76%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Pakistan India Sri Lanka Philippines Thailand

% a

t b

ott

om

of

pyr

amid

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

GD

P p

er c

apit

a, U

SD

(P

PP

)

Own a mobile Own a fixed phone (household)

Own nothing (but use something) Per Capita GDP PPP (USD)

But phone ownership is low

Just 41% of BOP own their own phone in Sri Lanka 22% own mobiles; 23% own fixed; few have both

Page 15: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Most frequently used mode

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%%

at

BO

P

Public phone 35% 71% 30% 8% 7%

Relative / friend's phone 10% 1% 12% 14% 6%

Neighbours phone 8% 7% 14% 7% 1%

Mobile of another householdmember

12% 4% 6% 11% 5%

Household fixed phone 14% 9% 21% 4% 8%

Own mobile 21% 9% 17% 56% 73%

Pakistan India Sri Lanka Philippines Thailand

BOP in South Asia mainly used public phones

30% of BOP in Sri Lanka used public phones most frequently

Page 16: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Reason for selecting most frequent mode: Sri Lanka

Lower cost18%

Lack of other options30%

Accessibility at any time

35%

Accessibility in any location

2%Other6%

Privacy7%

Quality of connection

2%

Why did they use their most-frequent mode?

Convenience and lack of other options override cost

Users of public phones

Not users of public phones

Page 17: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Bottom of the Pyramid

Who owns phones? Why?

41%of BOP in Sri Lanka own a phone

Page 18: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Why own a mobile phone?

Convenience is key; privacy is more of a concern for Sri Lanka (highest) and Philippines

Primary reason for choosing to own a mobile

64%71% 66% 68%

92%

11%6%

9% 5%

7% 4%

20%17%

18% 16%

4%10%

3%7%

1%1%

0%

20%

40%

60%

80%

100%

Pakistan India Sri Lanka Philippines Thailand

% o

f mob

ile o

wne

rs a

t the

BO

P Other

It is cheaper

For privacy

So I don’t depend onothers

Convenience: accessibileat any time

Page 19: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Primary reason for choosing to own a fixed phone

55%65%

60% 63%

80%

24%

18%

14% 8%

11%10%

7%6%

7%6%

17% 22%

1%

0%

16%

3%

0%

20%

40%

60%

80%

100%

Pakistan India Sri Lanka Philippines Thailand

% o

f fix

ed o

wne

rs a

t th

e B

OP Other

For privacy

So I don’t depend on others

It is cheaper

Convenience: accessibile at anytime

Why own a fixed phone?

Same reasons on fixed

Page 20: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Growth in mobile phone ownership at BOP since 2001

23%

9%22%

60%

76%

0%

20%

40%

60%

80%

100%

before2001

2001 2002 2003 2004 2005 2006(Q1&2)

Year during which connection was obtained

%(c

um

ula

tive

) at

BO

P

Pakistan India Sri LankaPhilippines Thailand

92% of mobiles at Sri Lankan BOP are prepaid

Page 21: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Older fixed connections; LK picked up after 2005

18%

11%

23%

7%

14%

0%

20%

40%

60%

80%

100%

before2001

2001 2002 2003 2004 2005 2006(Q1&2)

Year during which connection was obtained

%(c

um

ula

tive

) a

t B

OP

Pakistan India Sri LankaPhilippines Thailand

Page 22: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Mobiles used more often as the primary phone by males at BOP in South Asia

30%

12%

22%

56%

76%

11%5%

12%

55%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Pakistan India Sri Lanka Philippines Thailand

Male Female

% o

f m

ob

ile o

wn

ers

at

BO

P

Page 23: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Who decides female ownership of phone at BOP? (Patriarchy lives in South Asia!)

74%

9%

26%

91%

0%

20%

40%

60%

80%

100%

South Asia South East Asia

Male Female

% o

f fe

male

mob

ile o

wn

ers

at

BO

P

Who makes the decision to obtain a mobile

(among female mobile owners)?

Page 24: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Bottom of the Pyramid

Getting connected

1.3 millionfrom BOP in Sri Lanka will get connected between mid-2006- mid-2008

Page 25: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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31% of the BOP in Sri Lanka plan to get connected between mid-2006- mid-2008

This means that by mid-2008, 72% of BOP will own their own phone, unless actively hindered

Prospective owners

1.3 million (31% of BOP)

1.8 million (41% of BOP)

1.2 million (28% of BOP)

Don't own and don't

plan to buy a phone

Plan to buy a phone between mid-2006 & mid-

2008

Already own a phone

Page 26: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Hitting the poor (Hutch ARPU = LKR 311; Dialog prepaid ARPU = LKR 414; Dialog postpaid ARPU = LKR 1,709)

Monthly spend (LKR)

Current take (VAT+2.5%)

Orig. proposal (VAT+50+7.5%)

Am. proposal (VAT+10%)

200 35 95 (48%) 50 (25%)

400 70 140 (35%) 100

600 105 185 (31%) 150

800 140 230 (29%) 200

1000 175 275 (28%) 250

1200 210 320 (27%) 300

1400 245 365 (26%) 350

1600 280 410 (26%) 400

1800 315 455 (25%) 450

2000 350 500 (25%) 500 (25%)

Understated because tax on tax not calculated

Page 27: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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The cost of getting connected…Expectation vs. affordability gap

Expected cost of a new phone by non-owners

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines

% o

f no

n-ow

ners

at

BO

P >USD 176

USD 146-175

USD 116-145

USD 86-115

USD 56-85

USD 26-55

<USD 25

Initial cost that prospective owner can afford

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines

% o

f pr

ospe

ctiv

e ow

ners

at

the

BO

P

More than USD 71

USD 51 - 70

USD 31 - 50

USD 10 - 30

Less than USD 10

70% of non-owners at BOP in Sri Lanka believe that the cost to get connected will be greater than USD56

Only 11% can afford more than USD50 Can get new mobile and connection for USD 33; lower with

second-hand phone

Page 28: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Use cost: most can afford USD5 per month on communication

Monthly charges: expected vs. affordable

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

affo

rdab

le

expe

cted

affo

rdab

le

expe

cted

affo

rdab

le

expe

cted

affo

rdab

le

expe

cted

Pakistan India Sri Lanka Philippines

% o

f us

ers More than USD 20

USD 11 - 15USD 5 - 10Less than USD 5

Expectations and affordability are in line Most expect the monthly cost to be less than USD5, which most can afford to

pay Also in line with ARPUs of mobiles (USD 3-4)

Page 29: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Most would use phone for emergency communication & keeping in touch

What respondent would use the phone for if given one at an affordable rate

84%

69%

44%

58%

50% 52%57%

17%13%

26%

11%

21%

10%

18%

5% 3%2% 1% 2% 1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Pakistan India Sri Lanka Philippines

% o

f re

spo

nd

ents

To keep in touch with family andfriends

Only in an emergency

For networking

To enhance my income

Other

s

Page 30: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Type of phone prospective owners would buy

23% 29%

52%

8%

68%67%

40%

91%

9% 4% 7% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines

Not decided yet

Mobile

Fixed phone

Most new connections in Sri Lanka will be fixed phones

Page 31: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Affection for fixed higher in rural Sri Lanka…

Type of phone prospective owner would buy: Urban vs. rural

34%56%

62%36%

4% 8%

0%

20%

40%

60%

80%

100%

Urban Rural

Sri Lanka

% o

f pro

spe

ctiv

e o

wn

ers

at B

OP

Not decided

Mobile

Fixed

Page 32: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Bottom of the Pyramid

Not getting connected

1.2 millionfrom BOP in Sri Lanka will not get connected between mid-2006 & mid-2008

Page 33: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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The biggest barrier to ownership at the BOP is affordability

31% plan to get connected between mid-2006 and mid-2008

BUT, 28% will not

1.3 million (31% of BOP)

1.8 million (41% of BOP)

1.2 million (28% of BOP)

Don't own and don't

plan to buy a phone

Plan to buy a phone between mid-2006 & mid-

2008

Already own a phone

Page 34: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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What do we know about this group?

The majority in Sri Lanka will be females

36%48%

39%47% 44%

64%52%

61%53% 56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines Thailand% o

f non-o

wners

at

BO

P w

ho d

o n

ot

pla

n t

o b

uy

a

phone

FemaleMale

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Among those not planning to buy phones, males are more dependent on public phones, while women are more dependent on other peoples’ phones

78%

32%

88%79%

51%

36%

13%17% 14% 17%

22%

68%

12%21%

49%

64%

87%83% 86% 83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Male Female Male Female Male Female Male Female Male Female

Pakistan India Sri Lanka Philippines Thailand

% o

f th

ose

not

pla

nnin

g t

o b

uy

a p

hone

Other peoples' phones

Public phones

Page 36: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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What do we know about this group?

The large majority in Sri Lanka will be rural

42%53%

14%

46%

8%

58%47%

86%

54%

92%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines Thailand% o

f non-o

wners

at

BO

P w

ho d

o n

ot

pla

n t

o b

uy

a

phone

Rural

Urban

Page 37: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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50%

67%

45%57%

16%

13%

19%

39% 22%

79%

25%

12%15%

13% 14%4% 7% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines Thailand% o

f non-o

wners

at

BO

P w

ho d

o n

ot

pla

n t

o b

uy

a

phone Above 3rd quartile

Median-3rd quartile

1st Quartile-median

Below 1st Quartile

What do we know about this group?

Poorer. The large majority will have monthly household incomes below USD75.81 (median)

Page 38: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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What do we know about this group?

Older The mean age of this group will be 40 years of age

Compared to mean age of mobile owners at BOP of 33 years

Page 39: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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What do we know about this group?

Make fewer calls They make and receive a total of 8.65 calls per month

Compared to the average for the Sri Lankan BOP of 23.2 (compared to those who plan to buy a phone who make and receive a total of 15.05 calls per month)

Non-owners

Do not plan on buying phone by mid-2008

Plan on buyingphone by mid-2008

 Mean monthly number of calls

(incoming + outgoing)8.65 15.05

Source: diary

Page 40: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Gender and telecom at the BOP

Findings from T@BOP2

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Most frequently used phone: males vs. females

22%12%

19%23%

4% 9%

23% 30%

31% 26%

0%

20%

40%

60%

80%

100%

Male Female

Sri Lanka

% o

f B

OP

Public phone

Neighbor/friend/relative's phone

Mobile of anotherhousehold member

Household f ixed phone

Ow n mobile

Access: Primary phone used in Sri Lanka

Small gender divide in access exists at BOP in Sri Lanka Individually owned mobiles and public phones appear to be more

male-dominated access modes Use of household fixed phones, and other people’s phones (within as

well as outside of the house) is more often among females

Ratios: f : m

Public phone 1 : 1.2

Neighbor/friend/relative's phone

1 : 0.8

Mobile of another household member

1 : 0.5

Household fixed phone

1 : 0.8

Own mobile 1 : 1.8

Ratio of 1 indicates equal access between males and females. Ratio > 1 indicates males use access mode more often as primary phone (e.g. mobiles). Ratio < 1 indicates females use access mode more often as primary phone (e.g. neighbor/friend/relative’s phone).

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Most frequently used phone: males vs. females

30%

11%

11%

16%

3%22%

11%

26%

45%

24%

0%

20%

40%

60%

80%

100%

Male Female

Pakistan

% o

f b

ott

om

of

the

pyr

amid Public phone

Neighbor/relative/friend'sphoneMobile of anotherhousehold memberHousehold f ixed phone

Ow n mobile

However, far larger divide exists in India and Pakistan, esp. on mobile, and public phones in Pakistan

Ratios: f : m

India

Public phone 1 : 1.0

Neighbor/friend/relative's phone 1 : 0.6

Mobile of another household member 1 : 0.5

Household fixed phone 1 : 0.9

Own mobile 1 : 2.7

Pakistan

Public phone 1 : 1.9

Neighbor/friend/relative's phone 1 : 0.4

Mobile of another household member 1 : 0.1

Household fixed phone 1 : 0.7

Own mobile 1 : 2.7

Most frequently used phone: males vs. females

12% 5%

9%10%

3%6%

6% 10%

71% 70%

0%

20%

40%

60%

80%

100%

Male Female

India

% o

f b

ott

om

of

the p

yra

mid

Public phone

Neighbor/friend/relative's phone

Mobile of anotherhousehold member

Household f ixedphone

Ow n mobile

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76% 70%

4% 12%7% 4%6% 8%7% 6%

0%

20%

40%

60%

80%

100%

Male Female

Thailand

% o

f B

OP

Public phone

Neighbor/friend/relative's phone

Mobile of anotherhousehold member

Household f ixed phone

Ow n mobile

Access almost equitable in Philippines and Thailand

Most frequently used phone: males vs. females

56% 55%

3% 4%9% 13%

25% 21%

7% 7%

0%

20%

40%

60%

80%

100%

Male Female

Philippines

% o

f B

OP

Public phone

Neighbor/friend/relative'sphone

Mobile of anotherhousehold member

Household f ixed phone

Ow n mobile

Ratios: f:m

Philippines

Public phone 1 : 0.9

Neighbor/friend/relative's phone 1 : 1.2

Mobile of another household member 1 : 0.7

Household fixed phone 1 : 0.7

Own mobile 1 : 1.0

Thailand

Public phone 1 : 1.1

Neighbor/friend/relative's phone 1 : 0.7

Mobile of another household member 1 : 1.9

Household fixed phone 1 : 0.3

Own mobile 1 : 1.1

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Little urban-rural differences in Sri Lanka except on individually owned mobiles

Gender divide on mobile is most severe in rural Pakistan (ratio of 1 : 4.8) and rural India (ratio of 1 : 3.9)

Highest reliance on other peoples’ phones among women in rural Pakistan

Public phones hold strong among women even in rural India

Ratios: f:m

Urban Rural

Public 1 : 1.2 1 : 1.2

Other peoples’ phones 1 : 0.7 1 : 0.7

Fixed 1 : 1.0 1 : 0.8

Own mobile 1 : 1.4 1 : 1.9

19% 14%23%

12%

30%29% 17%

22%

22% 34%28% 40%

28% 23%32% 26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Male Female Male Female

Urban Rural% o

f urb

an o

r ru

ral m

ale

s or

fem

ale

s at

BO

P

public

other peoples

fixed

own mobile

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Access: Urban vs. Rural (India and Pakistan only)

14%6% 10%

3%

38%

18% 22%

5%

8%10%

10%

9%

14%

23% 9%

10%

5%10%

12%22%

12% 36%

15%60%

73% 73% 68% 66%

36%23%

54%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Male Female Male Female Male Female Male Female

Urban Rural Urban Rural

India Pakistan

% o

f urb

an o

r ru

ral m

ale

s or

fem

ale

s at

BO

P

publicother peoplesfixedown mobile

Ratios: f:m

India Pakistan 

  Urban Rural Urban Rural

Public 1 : 1.0 1 : 1.0 1 : 1.6 1 : 2.2

Other peoples’ phones 1 : 0.5 1 : 0.5 1 : 0.3 1 : 0.2

fixed 1 : 0.8 1 : 1.1 1 : 0.6 1 : 0.8

own mobile 1 : 2.3 1 : 3.9 1 : 2.1 1 : 4.8

Page 46: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Use: average number of calls per month

2515

27 2614 15 11 10

48 48

18

10

19 20

9 12

5 5

3732

43

25

46 46

2427

16 15

85

79

0

10

20

30

40

50

60

70

80

90

Male Female Male Female Male Female Male Female Male Female

Pakistan India Sri Lanka Philippines Thailand

ave

rage c

alls

per

month

Outgoing

Incoming

•Only country where differences were significant (95% confidence interval) was Pakistan

Total (in+out)

Page 47: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Use: Average call duration (mins)

3.5 3.4

2.8

3.84.1

4.4

3.4

3.0

3.94.0

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Pakistan India Sri Lanka Philippines Thailand

Ave

rage c

all

dura

tion

Male

Female

•NB, minutes recorded were an approximation (e.g., ‘1 min or less’, ‘2-3 minutes’, ‘about 5 mins,’ ‘about 10 mins’…)

•Only country where differences between men & women were significant (95% confidence interval) was Pakistan

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Use: Purpose of calls

Significant differences: Pakistan: male vs. female use of the phone to keep in touch and for business

purposes (95% confidence interval) India: male vs. female use of the phone for business purposes (90% confidence

interval)

8.70.6

7.0 5.7 3.0 1.6 3.1 2.1

20.0 21.5

32.2

22.8

32.3 33.8

16.6 20.19.2 10.2

63.8 55.81.3

1.9

6.7 6.5

6.08.5

3.9 2.8

1.31.8

0

10

20

30

40

50

60

70

80

90M

ale

Fem

ale

Mal

e

Fem

ale

Mal

e

Fem

ale

Mal

e

Fem

ale

Mal

e

Fem

ale

Pakistan India Sri Lanka Philippines Thailand

aver

age

calls

per

mon

th

Check somethingor delivermessage

Keeping in touch

Business

Page 49: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

Bottom of the Pyramid

What about “beyond-basic” services, including IDD, at the BOP?

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Currently few at the BOP use the Internet; even fewer know what it is

Pakistan India Sri Lanka Philippines Thailand

Use the Internet 1.9% 0.3% 1.5% 8.8% 10.4%

36.0%

71.9%

28.6%

14.3%

35.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Pakistan India Sri Lanka Philippines Thailand

% o

f bott

om

of th

e p

yra

mid

Not heard of Internet

Internet ‘un-awareness’

Next to the Philippines, highest level of knowledge. . .

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Even less so in rural Sri Lanka

23.8%

67.0%

23.5%

9.3% 9.6%

48.7%

77.9%

29.6%

19.8%

42.8%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Pakistan India Sri Lanka Philippines Thailand

% a

t B

OP

Urban

Rural

Pakistan India Sri Lanka Philippines Thailand

Use the Internet Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural

3.0% 0.7% 0.2% 0.1% 2.1% 1.4% 12.8% 4.3% 22.0% 2.3%

Internet ‘un-awareness’

Not a massive urban-rural gap in knowledge

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Use of SMS

50%

35%

60%

100%

30%

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

Pakistan India Sri Lanka Philippines Thailand

% o

f m

ob

ile o

wn

ers

wh

o u

se S

MS

SMS is popular even at BOP

Among non-users, 39% in Sri Lanka state the reason as not knowing how to use it

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Relative cost of an SMS plays a more significant role (than actual cost) on SMS use at BOP

50%

35%

60%

100%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jazz Budget Airtel Regular Dialog KITStandard

Smart TnT

Pakistan India Sri Lanka Philippines

Ra

tio

of

ou

tgo

ing

ca

ll t

o S

MS

ch

arg

e

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

f m

ob

ile

ow

ne

rs a

t B

OP

Call to mobile on-net Call to mobile off-net Use SMS

* This relationship is examined only for the prepaid case, because mobile use at the BOP is predominantly prepaid; charges as at June 2007

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Mostly local at BOP, but some international in LK & PH

Type of call (local, long distance, international)

71%78%

62%

88% 84%

28%22%

34%

6% 16%

1% 0% 4% 6% 1%

0%10%20%30%40%50%60%70%80%90%

100%

Pakistan India Sri Lanka Philipines Thailand

% o

f c

alls International call

Long distance call

Local call

Source: Diary

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1.5 million expatriate workers, 90% in West Asia

44% male; 56% female, according to SLBFE 840,000 women separated from families 660,000 men separated from families

Don’t they need to talk?

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International calls: Who is calling/being called?

Primarily rural females, with primary or secondary education, aged 25-54 Different from the Philippines: more males, mostly living in urban

areas, with higher levels of education, mostly below 34. The bulk of the calls are made by trained & untrained laborers

(25 %); Farmers / agricultural workers (16%); Housewives (13%) Again, different from the Philippines: mostly housewives (32%), those

employed in services (18%) or unemployed (17%)2006 data; excluding N&E provinces

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28.8%

46.1%

71.2%

53.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Sri Lanka Philippines

% o

f int

erna

tiona

l cal

ls

FemaleMale

Gender of the caller/callee (as a percentage of international calls made)

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11.7%

70.9%

88.3%

29.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Sri Lanka Philippines

% o

f int

erna

tiona

l cal

ls

RuralUrban

Location of the caller/callee (as a percentage of international calls made)

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67%

3%

19%

0%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sri Lanka Philippines

% o

f int

erna

tiona

l cal

ls

Graduate

Diploma level

Primary or secondaryeducation

Educational attainment of callers/callees

Page 60: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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5.4%

29.7%

36.9%

25.2%

2.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

18-24 25-34 35-44 45-54 55+

Age of the respondent

% o

f in

tern

atio

na

l ca

lls

Sri Lanka

Age of the caller (as a percentage of international calls made)

30.1%

32.0%

16.5%

9.2%

12.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

18-24 25-34 35-44 45-54 55+

Age of the respondent

% o

f in

tern

atio

na

l ca

lls

Philippines

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Fragmented families in a maldeveloped country . . .

In North as well as South, but more pronounced in Jaffna . . .

Results from a unique snapshot from “between the wars” cleared areas of Jaffna district (2005 end of Q1)

Page 62: Teleuse@BOP Owner-users, non-owner users and how they use phones at the Sri Lanka BOP Rohan Samarajiva Sri Lanka Telecom Limited Media Event Habarana,

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Use for keeping in touch with family and friends abroad

0

10

20

30

40

50

60

70

80

90

100

Urban Rural

Jaffna Sri Lanka

% o

f use

rs FixedMobilePublic access

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People in Jaffna were heavier users, especially on mobiles

Received and made more international calls than any other location in SL

Mobile Fixed

Reflects highly dispersed families: need to keep in touch, arrange for remittances 80% of households in Jaffna district have family/friends outside

district

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Higher % spend longer time talking on their mobiles

Approximate duration of outgoing mobile calls

0

10

20

30

40

50

60

70

80

90

100

Urban Rural Urban Rural

Jaffna Sri Lanka Jaffna Sri Lanka

National International

% o

f mob

ile u

sers

> 3 minutes< 3 minutes

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Jaffna urbanites used the Internet more than others in same socio-economic groups

•Mostly for keeping in touch

Internet Use

0

2

4

6

8

10

12

14

16

Urban Rural Urban Rural Urban Urban Rural

Jaffna Badulla Colombo Hambantota

% w

ho

use

Inte

rnet

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Reality checked

1. What percentage of households had some kind of phone in 2004? 24.5%

2. How many BOP households had some kind of phone in 2006? 41%

3. Which Province was second highest in phones/households in 2004? NWP. Third? Northern (excl. Mannar, Kili, Mulativu districts).

4. Which province was second highest in computers/households in 2004? Northern (as above).

5. Did fixed phones outnumber mobile phones or vice versa at the BOP in 2006? F=23%; M=22%

6. What percentage of the BOP made or received international calls in 2006? 4%

7. What percentage of people making international calls were women? 71%

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Reality checked

8. What percentage of people had made/received a call in past three months, when approached by survey personnel in mid 2006? 92%

9. Do women talk longer than men on the phone at the BOP in Sri Lanka? No

10. Do women use the phone for different purposes than men in Sri Lanka? No What is the dominant purpose for men? Keeping in touch What is the dominant purpose for women? Same

11. Who makes the decision on whether a woman gets a mobile In Sri Lanka? Male In Thailand? Female

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