The ingenuity of users to take up offerings and adapt them to their own needs can mean technology is used in a way the designers might not have anticipated. That’s really the definition of disruptive technology.
As Digicel and Vodafone begin early rounds of jostling for market share, it might help consumers in Fiji to understand what the possibilities for the technology are. Consider the example of mobile banking in Kenya. The incumbent operator Safaricom (a Vodafone partner) launched a service that would allow for prepaid cell phone plan users to send minutes to family members. The service was immensely popular and allowed users to apply the technology to solve other problems:
According to Eagle, local incumbent Safaricom had started a minute-sharing service for its prepaid cell phone plans a few years back. The idea was to enable users to send minutes to family members in rural areas, who weren’t otherwise able to buy prepaid phone cards. However, Kenyans quickly came up with other uses. “Lots and lots of people were using it as a surrogate for currency,” Eagle said. “[You] could literally pay for taxi cab rides using cell phone credit.”
The use of mobile phones in this manner has been a key part of how technological innovation has transformed Kenyan society for the better. Unlocking the keys to these kinds of possibilities requires the ability to be responsive to the needs of customers . Can we count on our local mobile operators to come up with such ingenious offerings? It might be helpful to look at the types of promotions being put out by Digicel and Vodafone and see if it offers us a glimpse of future possibilities.
Digicel clearly is looking down the road and recognizes that wide take-up of mobile internet service offers a lucrative revenue stream. Their current offering includes access to 1 gigabyte of internet use. They must get praise for offering promotions that propagate cutting-edge technology to users.
Over at Vodafone, their messaging seems to suggest that they are willing to concede first-mover status to Digicel. They are aware of the fact that few people are willing to actually make the switch between providers and that Digicel’s early inroads will come from previously unreached users.
Word of their offering came to me via an article on Fijilive:
“The reduced call charges of 5 cents a unit can also be enjoyed from 12am (midnight) to 5am every other day of the week for the month of March,” Prasad said.
Come on Vodafone, that’s the best you can do? Offering for two weeks, the chance to make phone calls at reduced rate, in the middle of the night? To be fair, that was just one part of the promotion. Text messages have also been reduced to 5 cents, but its unclear if that is also just for the two weeks of the promotion.
We’re left with questions like, “on what days is the promotion actually valid?” Undoubtedly Mr. Prasad will straighten it all out in upcoming letters to the editor of the newspapers. It is concerning to see that Vodafone’s marketing effort still has the markings of the bad-old monopoly days. Maybe they have chosen to see what kind of progress Digicel makes before they get serious about making offers on new services?
A new type of mindset is needed to foster the development of innovative ideas. We see progress coming from so many different parts of the world. If we are to plot a course from today to the point where services like the one in Kenya become commonplace in our own country, then we need to be able to count on our operators to show some vision.
Safaricom users can use their mobile phones for a wide range of banking services
9 comments
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March 16, 2009 at 1:39 pm
laminar_flow
Check out Mobile Millenium Project, for applications in Fiji.
March 16, 2009 at 8:26 pm
jonathan segal
Vodafone’s ShareCredit service enables any pre-pay user to pass along credit to a friend/family member.
https://www.vodafone.com.fj/pages.cfm/personal/services/share-credit.html
They’ve had this service since last year and works just like Safaricom’s product.
I agree that the entire telecommunications market does reek, at times, with an old-school monopoly activity. Completely natural too given the evolution of the industry in Fiji. [Disclaimer: I do work with Vodafone but I obviously don't speak for them.]
I’m certain, however, that Vodafone’s marketing is not entirely old-school at all. On the contrary, they’ve done a pretty admirable job developing offers to maintain a customer base in the face of competition. “Old school” mentality is more often part of an organisation’s entire DNA than just within one department anyway.
March 16, 2009 at 10:35 pm
Niuミクロ
You know, I think this voda promo might actually work (in a way) because from what Ive seen so far people don’t understand that the offer is only for two weeks and only applies while you are asleep except on Sunday. One guy I talked to thought it was all day everyday 5c a unit. It’s too confusing. Also, to update your digicel ad that you posted, they are now selling 3 or 4 different phones all for $59 with the same free talk time and free internet. Im getting lost in all these promos.
On the other hand, the Kenya model is pretty inspiring and could be quite promising for the Pacific.
March 18, 2009 at 2:49 am
Niuミクロ
Digicel promo is now 90 days free internet and etc. with purchase of $59 phone. I want to buy the phone just for the free internet access.
March 19, 2009 at 8:19 am
Coconut Wireless
Jonathon, a couple of people pointed that out to me while I was writing the post. Still, you acknowledge that it’s not as much about the technology as it is about the marketing of the services. I just thought it was an appropriate gauge of what kind of vision the companies have for Fiji’s future.
Niuミクロ thank you for your enthusiasm in sharing the latest Digicel promo. Absolutely, that deal is unreal.
When you think about the mobile-banking example, Digi is absolutely on the right path in promoting new areas of economic growth.
Thank you. This has been one of the most widely read posts.
March 19, 2009 at 2:44 pm
Emmanuel
CW, I like your 3 tier approach for WiMax. Would most definitely work I believe. I think in the short term Digicel can expand their Data network beyond ‘Black Berry’s’ like they have in PNG (http://masalai.wordpress.com/2009/02/25/digicel-launches-black-berry-in-png/).
Something like Telstra’s USB internet connection (http://www.telstra.com.au/bigpond_internet/wireless_broadband.html) would help us get closer to a WiMax like setup where we can access the internet more conveniently on laptops as opposed to squinting over a Black Berry. Telstra’s been running that service since 2006.
In the long term though we need more than one ISP providing internet services, because again competition is the only way to safeguard competitive pricing and service quality.
Vanuatu used a WiMax setup for their Fest’Napuan Music Festival in 2007, http://masalai.wordpress.com/2007/10/07/fest-napuan-live-stream-over-the-internet-a-success/ So it’s getting there…
March 26, 2009 at 5:28 am
Coconut Wireless
This blog is a great resource produced by the Consultative Group on Assisting the Poor:
http://technology.cgap.org/
Updates on the most recent developments on the mobile banking front
April 1, 2009 at 10:44 am
Coconut Wireless
Nokia pays $70 million for a slice of the mobile payment pie
http://www.business-standard.com/india/news/nokia-pays-70-mn-forslicemobile-payment-pie/57496/on
An excerpt:
Obopay’s payment platform, available in the US and India, allows users to pay through SMS. The funds can either be directed to come out of bank account or credit cards. And it does not stop here. People who lack bank accounts can prepay funds into an Obopay account and then simply zap SMSes to buy services.
May 11, 2009 at 6:03 pm
Wireless innovation competition addresses challenges in the developing world « The Coconut Wireless
[...] the posting on the Safaricom mobile banking example from Kenya, I was reminded that the offering had existed in Fiji for quite some time, but that only made me [...]