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Written by Amina Mohammed   
Tuesday, 01 May 2007

According to a recent Newsnight report by the BBC's Paul Mason, the technological innovation Kenya's mobile telephone industry is helping in the growth of our economy, and boosting democracy.

Landlines are still prohibitively expensive to maintain in Kenya resulting in an enduring attraction to mobile phones. Paul Mason argues in this programme shot for Newsnight's GeekWeek, that Kenya, and the rest of Africa could skip a whole step in development by taking advantage of the possibilities advanced by mobile telephony.

Recently, when the Kenyan national exam results for both primary and secondary schools were released, it was possibly for the first time to get exam results in a matter of minutes via text messaging .Soon it will be possible to send money through SMS and the service provided by M-Pesa (PDF), while already a farmer can check the price of commodities in various markets on their phone in real time.

In a few months, Safaricom will launch M-Pesa, a service, sponsored by Vodafone, that allows users to transfer and receive money via the mobile telephone. With more than 50% of Kenya's population living in poverty, Mason contends that this money transfer capability will allow for increased money flow as more cash will be rendered liquid. He also reports that once Vodafone takes M-Pesa global, cash remittances from Kenyans living abroad will have a great impact on the economy. At present the Kenyan government approximates that Kenya receives about Ksh. 58 billion in remittances from Kenyans dispersed around the globe.

Mobile telephony further proposes to revolutionise Kenyan agriculture . In the programme Mason meets with a Kenyan farmer who uses his mobile phone to find out in seconds the prevailing prices of his produce in different markets of Kenya cutting out the middleman completely and thus saving costs.

While in Nairobi the BBC crew pay Kibera a visit. Kenya's largest slum is described as a short drive from all the glamour of the city, as its abject destitution is compared to the bustling sheen of commercial Nairobi. A community organizer there speaks about measures to forcefully move the residents of the slum and the effectiveness of mobile use in rallying together the inhabitants of the slums when a section of them are under attack by the eviction enforcing 'Youthwingers.'

Elsewhere in the show a Maasai school teacher talks about the effects of mobile phone on her community, proving its reach and ending the reporters' expectations that they would find an outpost of technological backwardness at the bottom of the Rift Valley. She speaks of telephone conversations with her roaming herdsmen and informs the surprised reporter that over half her villages inhabitants are armed with mobile phones. Mason wonders if mobile phones have had an impact on literacy among the villagers. She is equivoal about her response but adds interesting anecdotes on how spouses are now arguing over unknown callers, and checking through call histories to discover cheating spouses!

 


Amina Mohammed
About the author:

Amina is passionate about social justice. She loves to blog, and writes a lot on gender.

She also thinks kI is a great platform, one that allows her to speak out when many times she feels silenced by the rest of the world. 





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Yes, It\'s a Revolution
written by Kimani S. Njoroge , January 14, 2007
Yes, Kenya is experiencing a technological revolution. Tangible and intangible benefits are experienced by the entire nation, not just Safaricom and its arch rival Celtel. Thanks to better communication infrastructure provided by cell-phone companies, Kenyan economy is opening up to the much needed information industry. Flow of information between individuals and businesses is becoming better everyday, and as we all understand, access to information is vital in this 21st century.

However, the revolution is being slowed by CCK's failure to license more cell-phone service providers. I hold that more companies would stir competition, which means lower prices that even low income earners could afford.

I disagree that “cell phone providers, in Kenya and the rest of Africa, (are) monopolies taking advantage of consumers who buy "credit" on the go.” Africa is a cash-economy-continent. We pay cash for most of our purchases, including cellphone top-ups.
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Its a revolution
written by pndiangui , January 15, 2007
I totally agree it is a revolution, infact in a way disruptive but we are still far off of making use of the greater opportunity it presents.
The infrastructure being laid for wireless communication is greater than we think. What comes into my mind is that Kenyans will pass the landline phenomenon just like they did with horse carriers which had minimal adoption but later people went direct into cars.
Wireless broadband will be converging with mobile telephony soon , and thats where I see real potential.
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written by abdulmote , January 15, 2007
What could we do without the "mobaili". As time progresses, more and more people are somehow touched by this wonderful technology! I as looking for an electrician the other day and there was one. The only problem with the use of mobile phones in Kenya is the prohibitive cost the end users have to suffer through making those essential calls. Infact the pain so endured becomes so obvious, you cannot fail to notice the Kenyan caller's attitude if you are the receiver on the other end :shock: Forget about the old customary "Tutaonana baadae". They'll simply cut you off before you know it!

And the abundance of those 'missed calls'. Sometimes you just wonder as to why anybody who may want something to do with you, expect you to do the honarable thing and spend your valuable credits to call them!

OK, maybe many people can't afford the so called 'airtime' to call everyone they may have liked to. "Basi nisambazie Bamba uncle" (send me 50 shs airtime from your own credits uncle). And then you think; For God's sake, what will such an amount worth of credit airtime do you?

Safaricom cleverly went round the obstacle by providing free massaging service which simply says "please call me" by the sender. Then its upto you, mr or mrs moneybags, to call the sender. Brilliant! I am telling you, the mobile phone culture is so special, I could easily find the convenience of "my phone did not have credits" excuse if I had decided to reply to anyone :twisted:
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written by Stephen Wanyama , January 16, 2007
What struck me the most about the show and the advent of M-Pesa was that it could quickly stand in for credit and debit cards, the absence of which has stood in the way of Kenyan e-commerce.

Kimani,
I am not sure the entrance into the market of more players will be particularly useful, at best they may provide a niche service, the advantage being enjoyed by Safaricom and Celtel being so large. Like has been argued with regard to the insurance sector elsewhere on these pages, price is not by itself a means of disrupting the market share, unless a big player can come in and shake things up, I am not sure it would be much use.

Hoping for a big player seems like something of an act of futility though with Africa having undergone a partition of sorts with the large players abiding by a silent rule that restricts each to his sphere of influence. Perhaps they will start to compete soon, and encroach on each others' markets, but they are unlikely to break their oligopolistic choke-hold on a market that is earning them billions.
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written by emmo opoti , January 16, 2007
When you see the charge,almost like a gold-rush, into the mobile telphone arena, and the rapid realignment going on across the continent, you wonder why the government of Kenya would even think it should divest itself of its stake in Safaricom, the most profitable company in the land, in a booming industry where it enjoys favourable market share.

Ah, the fatuous dogma about government and business, sigh!
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re: Its a revolution
written by Dave Nyambati , January 16, 2007
Wireless broadband will be converging with mobile telephony soon , and thats where I see real potential.


This will have a much a much larger impact than most people anticipate. Picture the phenomenon; 1-in-3 adults having the access to the web anywhere, anytime. Kenya's Mobile Industry has the potential to rival most in the developed world.
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Cable will never die
written by kendirangu , January 17, 2007
Frequency is a scarce resource, not everyone can go wireless and even on wireless there are some big technological barriers - (Bandwidth, intereference, signal propagation, distance etc..)
If we dont invest in FTTX soon, we will be left holding gadgets that wont function in congested cities.
look at cities like London and Tokyo moving to fiber to the home technologies, it's to offload the bulk of the bandwith requirements that wireless will never be able to support.

Wireless is great, but it's a supplement to cable.

Stephen Wanyama: The larger players dont even need to come in, it's the regulations that need to be sorted out. voice revenue per user has been falling despite the rosy increase in subscribers, whats going to rock the boat is voip services. If CCK can let ISP's interconnect with the phone companies then international and regional voice prices will take a plunge too.
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Mobile Revolution
written by noel , January 17, 2007
Indeed there has been a great increase in the number and percentage of Kenyans in posession of mobile phones.It has really revolutionised communication. Businesses acknowledge that clientelle will have an easier time to reaching them are including a mobile number on their business cards.
Mobile phones have flooded the Kenyan market to such a great extent that there are phones available for all, within a variety of price ranges.
Mobile service providers;Celtel and Safaricom, have taken notice of the greater demand for mobile services and lowered their SIM card/line prices. A Safaricom line for instance initially cost close to over Ksh.2000. Today one can spend the same amount to buy a cellphone and a line! This has made the cell phone accessible to people from all walks of life.
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written by Kenyanentrepreneur.com , May 01, 2007
To pndiangui:

Would you be willing to provide some practical examples of how you see broadband and mobile phone usage evolving in Africa?
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The Potential
written by pndiangui , May 01, 2007
Basically, I see the potential from an economic and social gain point of view.

The current deployment of CDMA-based infrastructure by Telkom show early days of what will be a growing phenomenon.

TEAMS, EASSY and KDN fibre optic fibres all point to the Mombasa port and their extension to the country-side will provide the base infrastructure for later roll-outs of Mobile broadband.

In fact GPRS technology that has lesser capability in the transmission of larger amounts of data and the expensive v-sat will see increasing challenges.

Online rolling-out which I think is based on some principles of 'wimax' and SDMA (not sure on this I will do some more research) but branded as 'iburst' whose equipments are manufactured by Japanese kyocera as an OEM of , a US patented technology provider that expanded on 'wifi'( it can be said to be a wider covering 'wifi').

An interesting thing to note here is that iburst is compatible with Voip, so people will be able to make calls from their devices. Currently this service is prohibitively expensive (at about 8,000 per month excluding the cost of the wireless card) , but I think it is at where the mobile telephony was in say 1997.

This iburst service quotin from Kyocera is compatible with VoIP, offers a wireless broadband Internet environment that enables users to receive data at up to 1Mbps for download links, while maintaining stable, high communication speed even with many simultaneous accesses

This is happening when the back-end or what we can call the underlying infrastructure of internet connectivity is still based on expensive satellite and terrestrial copper wires. You can figure out at what rates this service will shift with the arrival of a fibre-optic back-bone infrastructure.

It is now accessible on laptops pointing to a growing need by many mobile phone makers to get some of the PC functionalities on their gadgets. The ability to access the net at the cost of an sms or even lower will significantly change many things. An accelerated literacy rate (from things like free primary schooling and may be free high school tuition as was introduced yesterday) , will see many Kenyans start mining information from the net.

The cost of laptops and desktops will continue falling marginally , and with the already existing tax exemption of these devices net access in Kenya can only go up.

After this phase of access growth , the next phase that comes to mind is one of content and services[/b. An an entrepreneur , these will present many opportunities as had in the Asian region. We have seen the likes of ntdocommo , make significant reaps on content. Services is bringing on board true transaction services online like e-banking , e-commerce (which in this case will be a sort of m/e-commerce.

Basically this is how I see it moving.

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