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 ( 邓德伟 )– 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 China

www.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 worldwide

The majority (59%) lives in developing countries

Grew by 500 million in the past 12 months

25% 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.

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.

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.

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.

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

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!