Harnessing the Power of MobileTowards Social Good (and Change the World)

Ludovic BODIN – Founder of Kalibrio / Social Venture Forum

Cover picture: http://weblogs.annenberg.edu/diy/boatphonebooth.jpg

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About the speaker

• Ludovic Bodin ( 德邓 伟 )– First venture: 20 y.o.

• 4 years in Latin America– Modernization of operators– UN Telecom projects

• 4 years in China / Asia– Starting Internet startups– Beijing, Macau, Seoul– www.kalibrio.com

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Social Venture Forum

Seed Social Ventures in Chinawww.socialventureforum.com

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Social Ventures

Today is not to

Raise fundsEnroll for NGOs

Sell anything

But share an idea:

Business driven by profit and social good

Social VentureSocial Venture

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Social Venture?

Business

SocialGood

NGO

CSR

‘Old’ CapitalistBusiness

VenturePhilanthropy

SocialVenture

Source: SocialVentureForum.com

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A few figures

2.5 billion mobile users worldwideThe majority (59%) lives in developing countries

Grew by 500 million in the past 12 months25% coming from China and India

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Historical change!

This is the first time in historythat a telecom technology has

more users in developing countriesthan in the developed world

So there is a clear advantage in learning from other developing markets(even if they do not have 3G…)

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Question

Nelson Mandela1993 Nobel Peace Prize

Can any of thiswhiz-bang technology

be used foralleviating poverty?

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Case 1: the fish (India)

(1) Fish(2) Go to the nearest market(3) Sell the fish

Business process:

Problem:No clue about the market

(demand & offer)

What to fish?Where to fish?

Where to sell?

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Problems

Result 2:Unpredictable income

Result 1:Waste of fish (5 to 8%)

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Solution

Solution:Fishermen network

Call each otherto determine market demand,

offer and best price

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Results

Result 1:Fisherman profit growth: 8%

Result 2:Consumer price decline: 4%

Source: Harvard Kennedy School - 1997

Result 3:Waste decline: from 8% to 0+%

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Some words of wisdom

Give a man a fish and you will feed him for a day. Teach him how to fish and you will feed him for a lifetime.

Our job is not to give people fish, it's not to teach them how to fish, it's to build new and better fishing industries. Bill Drayton

Ashoka founder

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Effect of mobile phones

Mobile phones can supportmore efficient markets

and encourage economic activity

+10% mobile penetration rate=

+0.5% GDP growth

Source: Leonard Waverman, London Business School - 2005

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Case 2: the jackfruit (Bangladesh)

Problem:

Less developed areashave less information

on market prices of goods

Consequence:

They often are(and feel)abused

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Solution: CellBazaar

Mobile classified adsPuts buyers & sellers in contact(‘mobile Craigslist’ for all kinds of goods:

commodities, bicycles, etc and jobs)

Source: www.cellbazaar.com

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Business Model

• Service is free(regular call charges)

• Revenues from calls are shared with operator Grameen Telecom

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Some words of wisdom

The service is not just mobile classified ads but a social development service.

Kamal QuadirCellBazaar creator

It cuts out the middlemen for buyers and sellers, which means more profits and savings for them.

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Case 3: the small business (Bangladesh)

We saw:Mobile can be a source

of productivity

Problem:Still some people can’t

afford a handset

Opportunity:Is there a way to turnmobile phones into

a business for its owner?

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Some words of wisdom

For a rural entrepreneur, a cell phone could be a cow

Iqbal QuadirCo-founder of Grameen Phone

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Grameen Phone’s ‘Phone Ladies’

“Phone Ladies” let non-ownersuse their phone for a small fee

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Creating new revenue sources

Over 200,000 phone ladies in Bangladesh

Average income of a Phone Lady= $1000/year

Average income in Bangladesh= US$300/year

Source: Canadian International Development Agency

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About Grameen Phone

Today: leading mobile operator in Bangladesh

>10 million subscribers 95% of population coverage

Top 10 mobile market growthin Asia-Pacific

+130% users growth in 2005+80% users growth in 2006

Source: Grameen Phone - 2006

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Case 4: Banking without bank (Philippines)

Problem:Accessibility of capital

Micro-entrepreneurs have skillsbut lack access to capital to start their business

No rural banking infrastructure

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Case 4: Banking without bank (Philippines)

Retailers partners

G-cash (Telco: Globe)

Shop, Bank, micro-credit, Retailers, etc

$$$Airtime

$ P

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Results

Result 1:1.3 million G-cash registered users

US$100M transaction per day

Result 2: 700,000 ‘airtime loading’ retailers (Larger than Coca-Cola’s network)

Other initiatives in:Mexico, South Africa, Kenya, Etc.

Source: G-cash – March 2006

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Openings: many other opportunities

Poverty Reduction

Health EnvironmentCulturalDiversity

Education

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A few quick ideas

• Mobile consultation – Health Line Service

• Mobile reminders– Aids treatment

• Targeted service notification– Flu vaccination season

Source: African Medical and Research Foundation (AMREF), Tomi Ahonen, 2006

• Allergy management – Alert pollution via sms

• Green mobile marketing – Plant a tree via sms

• Help communication between culture– SMS services for expats

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What about China?

Mobile rural bank systemProject by Bank of China

If bank infrastructure:>$2 billion(for 130 terminals & ATMs per 1M people)

Cost of mobile rural bank system:$40 million to $60 million

Source: South China Morning Post - March 2007

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Next : what are you waiting for?

Contact us: ludovic [at] kalibrio.com

“Interested by starting up

a new Social Venture? A new idea to develop in China?”

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Wish list for 2008:

- Participatory platform- Collective intelligence- Re-engineering of games technology for social applications- Poverty reduction platform- Participatory community of informed buyers- Participatory community of doctors- Participatory community of real estate agents

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Greetings and Contact

• My heartfelt thanks to all the individuals who contributed to this document, and in particular:– Benjamin Joffe, CEO, +8* Ltd & Mobile Monday Beijing Organizer– Mike Kaiser, CEO, Agelos– Kate Druschel, Regional Coordinator – Grameen Foundation– Gabrielle Harris, Executive Director, PlanetFinance China– Florent Obesse, Sales Director, Cellicium

• And to all of you who attended the presentation at Mobile Monday Beijing or will take interest in Social Ventures!

• Feel free to update | share this presentation, other cases, comment, ideas, entrepreneurs are welcome to ludovic [at] kalibrio.com!