Wednesday 21 July 2010

Innovation adoption in rural areas: mobile internet in dwindling information gap

How can innovation in information technology be extended to cover not only its richness but also its reach characteristic?
The key here is that the transformation of technology platform from:
1. Products that need significant amount of learning to product less need of learning
2. Product having ‘higher’ price to ‘lower’ price (massive scale of economies)
3. Product that can be economically attractive enough (through its installed and network based) for companies to extend

As an example is the spread use of internet through mobile phone. At a decade ago (i.e. 1990s and early 2000s), when the use of internet was solely mediated through PC/Laptop with cable from the network operator, the digital divide issue was coined intensively and efforts to dwindle such gap were concentrated on the enlargement of wiring network infrastructure. The dominant users of the internet were supposed to be those in the middle class income or those opportune enough to be provided such information at their office.

Nicholas Negroponte, seeing the impact of the digital device on the lag knowledge for those living in poor countries or rural areas, introduced the OLPC (one laptop per child) enabling the next generation to be familiar with the information technology start up kit.

The revolution of mobile phone penetrates not only on the way people connect to each other, but also on the provision of information. The price of mobile phones, first introduced with over $ 1,000 each, has rapidly plunged to a range of $ 30. This price is affordable for rural communities. Not only the price is reduced, but the service is extended to the provision of information such as via mobile internet, with a reasonable price. The extension benefits not only those who has the ability to pay for information access both through mobile and wiring technology, but also for people who never think about the internet, let alone to use it.

Why the mobile internet can become or will become even effective in dwindling the digital divide. By looking at the three factors above, it can be seen that in comparison with the PC or laptop, the mobile phone is relatively straightforward in its function. It is solely tailored for communication but also can be extended for accessing information. Because its function is simple yet flexible enough, a mass scale adoption could be spread for wide range of communities, at cities, urban and rural areas.

With such opportunity, telecom operator is encouraged to invest on larger network by installing Base Transmission Station (BTS) in urban and rural areas. This installed base platform convinces mobile phone makers to introduce low cost mobile phones that can be absorbed by communities in rural areas.