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Secondary Research Document

The Future of Mobile Services in Rural Emerging Economies

Country Profiles

Ghana

India


Introduction

• Ghana is a Lower Middle Income economy, well

endowed with natural resources and a diverse

population

• It has more than twice the per capita output of

the poorer countries in West Africa and remains

one of the world's top gold producers

• Over half of the total labour force in the country

work in agricultural and related sectors

• Ghana, like most countries in Africa is a multi-

ethnic, multi-religious and multi-cultural society.

• Its current population, which is estimated at

about twenty million, is a vast mosaic of large

and small ethnic groups

5

Introduction

5

Geography

People and Numbers

Society, Culture and Politics

Economy

Infrastructure


Demographic Factors

,

Geography

7

Age Percentile, 2010

Source US Census Data

• Population: Growth rate of 2.1 % since 1970

• Average Population Density: 107 per sq km\

• Urbanization

• Age Structure- Socio economic impacts

• Migration levels :

• Internal Migration- Large movements from the

North to South of Ghana

• External Migration- Ghana struggles to

accommodate returning nationals and foreign

refugees.

Source Ghana Statistical Survey


People and Numbers

8


Culture and Community

Religion

• Christianity rules the majority with a 57%

overall, and more than 80% among the major

cities of Accra, Ho, and Kumasi (Southern

Ghana)

• Ethnic religions

• Islam is a minority religion in Southern regions

but is more predominant in the Northern parts of

Ghana

Ethnicity

• 4 main ethno-linguistic groups, constituting 86%

of the population

• Akan (49.1%), the Mole Dagbani (16.5%), the

Ewe (12.7%), the Ga Adangbe (8.0%)

• The Mole-Dagbani is the main ethnic group in

the northern regions and most of them are

religiously Muslim

• The largest ethnic group in Accra are

the Ga-Adangbe who are indigenous to the

Accra region

• Ghanaian culture, language, the arts and music

Family Dynamics

• Hierarchical relationships

• Diaspora: Socio-economic impacts

Religious Structure in Ghana

10

Source CIA Factbook

Source National Geographic


Politics

The Nkrumah Regime

• Under Kwame Nkrumah’s rule, the state of

Ghana achieved independence from colonial

powers on March 6, 1957

• Charismatic leader of the Convention People’s

Party

• Growth of wide-spread industry reforms under a

socialist framework

• Regime spirals out of control into a highly

tyrannical and oppressive state (in order to

secure a one party rule)

Chaos and Discontent

• A military coup ousts the Nkrumah’s

administration in 1966

• Beginning of a twenty-year period of constant

regime changes and economic decline.

• 1981, Jerry Rawlings seized control of Ghana

established the PNDC

• Economic collapse in the 1990’s

• 2007- Ghana celebrates 50 years of

Independence and almost 2 decades of political

stability with a multiparty democracy

India’s PM Nehru and Ghana’s liberator, Nkrumah, 1964

11

Economy

12

The Future of Mobile Services in Rural Emerging Economies 13

% of GDP Composition by Sectors, 2010

Source CIA Factbook, 2010

% of Ghana’s Labour Force by Sector, 2005

Real GDP reached an estimated 5.9% in 2010 and

growth for 2011 has been projected at 12% - more

than double from the previous year.


Ghanaian Economy


Ghanaian Economy

• FDI has risen exponentially

• Total Exports $7.33 billion:

gold, cocoa, timber, industrial

diamonds, manganese ore, tuna.

• Total Imports $10.18 billion:

petroleum, food, industrial raw

materials, machinery, equipment

• Ghana has been fairly aggressive in

privatization, removing most price controls, and

lowering barriers to generate business.

• World Bank’s ‘Doing Business’ rankings- 4th

among all low middle income countries

• Female labor participation rate (% of female

population ages 15+) is steady at 74%

Major Investors

• Nigeria, China, U.S., U.K., Netherlands, Cote

d’Ivoire, France, India.

14

FDI Growth in USD, 2010

Source UNCTAD, 2010

Import/Export from Ghana, 2010


Agriculture

• Agriculture is a major engine of economic growth

• It provides employment for more than half of the

country and contributes to 33.7% to the GDP of

the nation

• Cocoa and timber remain the primary areas for

export. Cocoa cultivation is governed by the

COCOBOD, which aims to reduce the monopoly

of few big farmers

• Women in Agriculture- representing 60% of

agricultural production

• Mobile Linkages

• CocoaLink- due to cover 100,000 farmers

Harvesting Cocoa Pods, Ghana

Source: Reuterrs, FAO (Fisheries and Aquaculture

Department)

Ron Giling/Still Pictures

15

Farming

Infrastructure

16


Education

.

17

• With 83% of its children in school, Ghana

currently has one of the highest school enrolment

rates in West Africa

• The adult literacy rate in Ghana was 66% in

2009, with males at 71.7% and females at 60.3%

• However, location and poverty still remain

important barriers to school

attendance, particularly at secondary school level

• In low income regions, as families struggle to

survive, children are increasingly forced to leave

school and enter the workforce

• Children in Northern and Upper West Regions

are especially vulnerable to poor infrastructural

facilities

Literacy Rates, 2009


Health

• Regional Variations- There is a wide disparity

between the urban and rural centres.

• National Health Insurance Scheme (NHIS)-

introduced in 2007 has increased the number of

patients to hospitals and clinic in rural areas.

• Doctor Patient Ratio: 0.085/1000 for Ghana

Problems

• High premiums on healthcare

• Lack of knowledge of facilities

• Lack of good doctors

M-Health platforms

• Pilot projects for future health systems

developed over the mobile ecosystem

• Offer services such as monitoring, support

aids, generating records, addressing

emergencies and transport

A patient in rural Ghana receiving healthcare services

18

0

0.1

0.2

Physicians (per 1000 people)

0.085

India – 1 US – 3Germany - 4


Enabling Infrastructure

Ghana:

• 11 Airports

• Total Railways: 947 km

• Total Roadways: 62,221 km

• Major Portways: Takoradi, Tema

Electricity

• Akosombo dam on Lake Volta (the largest man

made lake in the world) generated most of the

electricity for the country

• encourage the establishment of new

industries, stimulate agricultural development,

• provide opportunities for fishing and increased

water transportation.

Transport

• Ghana's transportation and communications

networks are centered in the southern

regions, especially the areas in which

gold, cocoa, and timber are produced.

• Northern and central regions are connected

through a major road system; some

areas, however, remain relatively isolated

Akosombo Dam, Lake Volta

19


Media

Traditional Media- Radio, TV, Print

• Popular

• Large viewership

• However, no uniform spread over country

20

Daily newspapers 258

Radio Stations 89

FM Radio Stations 86

Television Receivers 1.73 million

Television Stations 7 (2007)

Telephone lines 267389 (2009)

Mobile cellular subscriptions

19,199,137 (2011)

Internet Users 1.297 million people (2009)

Access

• Nearly one third of Ghanaians have access to

the internet

• Mobile telephones are becoming a significant

source of news. [Source: BBC]

• Reliable internet connections are out of reach

for most citizens

Internet Penetration(per 100), 2009

Source World Bank

0

1

2

3

4

5

6

India Ghana


Mobile Subscriber Base growth - Ghana

Mobile Telecom

Background

• 1992- the government of Ghana opened doors to

private operators to enter the nation

• 1996- Ghana Telecom company leads the

market with 105,064 subscribers among 6 other

competitors

• After 2002 subscriber base increases manifold

and nears 20 Million subscribers in 2010, a

substantial number considering the population is

24 Million

21

Source National Communications Authority


Market Share

Market Share

• Scancom, leads the market with half the total

subscriber base followed by Milicom and

Vodafone.

• Airtel has expanded its market share to 9.8%

with the buyout of Zain in 2010.

• Mobile phones and Income generation

22

Source National Communications Authority

Market Share, June 2011


Introduction

• With a population of just over 1.2 billion, India is

the world’s largest democracy

• In the past decade, the country has witnessed

accelerated economic growth, emerged as a

global player as the world’s fourth largest

economy in purchasing power parity terms, and

made progress on most of the Millennium

Development Goals

• India is moving onto a much faster growth

trajectory than previously expected and is set to

surpass the size of the US economy by 2050

• Though progress has been made, there still

exists a large urban-rural disparity that needs to

be addressed for balanced growth as a nation

• Education and Health care initiatives have

sprung up rapidly to address the cause, but the

huge population still needs more such initiatives

to make real progress

24 24

Geography

People and Numbers


Economy

Infrastructure

Geography


Demographic FactorsGeography

27

Age Percentile, 2010

Source US Census Data

• Population

• Average Population Density- 382 per sq km

• Age Structure : Socio-Economic Impact

• Median Age: 25.3 years

• Bihar: 52.5 % working age population

• Tamil Nadu: 64.8% working age population

• Migration

• Internal - Interstate migration has risen by

53.6%

• External


Tamil Nadu and Bihar - Political Map

28


Tamil Nadu and Bihar - Physical Map

29

People and Numbers

30


Tamil Nadu

31


Bihar

32


33



• India has been home to several ancient

civilisations and empires, some dating back to

more than 2,000 BC

• Domestic as well as foreign influences have

ebbed and flowed

Religion

• Intermingling of various religions has led to a

unique cultural fabric

Bihar

• The majority of people are Hindu

• Muslims and Christians comprise a vast minority

• Surprisingly, Bihari Sikhs, in the land that gave

the tenth guru, Guru Gobind Singh, are very few

in number

• Bodh gaya - one of the most important and

sacred Buddhist pilgrimage centers in the world

Tamil Nadu

• Majority of Hindu’s, followed by

Christians, Muslims

• Within Islam: 97% Sunni Muslims

• Not very large numbers of other religious

community members

34

Religious Structure in India

Source CIA Factbook



Social Structure

Bihar & Tamil Nadu:

• Tribal & Non Tribal (Castes, Sects) divisions

• Caste - Pervasive social inequality, based on

birth, occupational specialization

• Kinship ties

• Endogamous/ exogamous marriage rituals

Ethno-Linguistic

Bihar

• Hindi is by far the most common language of the

state, understood by all

• There is a significant number of Bengali

speaking people also

• In addition people speak many dialects in

different regions. The major dialects are:

Bhojpuri, Magahi and Maithili

Tamil Nadu

• Tamil is the official language

• Tamil is spoken by most of the people while

around 10% of the people residing in Tamil

Nadu speak Telugu

35

Linguistic distribution in India

Source CIA Factbook


India

• Nehruvian ‘Tryst with Destiny’’

• Congress Party remains dominant till the 1980’s

(with a brief hiatus during the 1977 BJP rule)

• 1991- Economic reform by PM Narasimha Rao

• Governments: NDA head to head with the UPA

• 2007-First female President

Politics of Power

Bihar

• Laloo Prasad Yadav ruled for 15 years- riddled

with high levels of corruption ,low economic

growth, and casteist politics (for the upliftment

of the lower castes)

• 2005- rise of the NDA rule under Nitish

Kumer, the current Chief Minister has brought in

changes for the upliftment of the entire state

Tamil Nadu

• 3 Phases

• Congress rules state for 2 decades till 1967

• Factionalism: DK splits into DMK which further

split into AIADMK in 1972 under MG

Ramachandran

Politics

• Last two decades: Karunanidhi and Jayalalitha

alternate political leadership roles

Populist politics in both scenarios

Politics of Language

Bihar

• Regional languages relegated to the backseat to

bring in Hindi as the state language

• Maithili community demands a separate state but

this was rejected by the State Reorganization

Committee and the political leaders of the region

gladly accepted the dominance of Hindi in the

affairs of the state.

Tamil Nadu

• The anti-Hindi movement gained momentum in

Madras after Independence

• This was also one of the main reasons DMK took

over the Congress’ 20 year rule

36

Economy

37


% of India’s Labour Force by Sector, 2005

Indian Economy

36

% of GDP Composition by Sectors, 2010


India's nominal GDP for 2010 was US$1.538 trillion

and its estimated GDP for 2011 is US$1.7

trillion, making it the tenth-largest economy in the

world.


India’s GDP growth, in $USD


Indian Economy

39

Export/Import from India, 2010

FDI Growth in USD, 2010

Source UNCTAD, 2010

Tamil Nadu- % GDP composition by sectors

Bihar- % GDP composition by sectors


Economy of Bihar

• Has the lowest per-capita income of Rs 17,590

in 2009-10

• One of the fastest growing states, registering a

growth of 11.03% between a 5 year period of

2004-2009

• Investing in Bihar - the 'Bihar Aao' (Come to

Bihar) scheme to attract investors would be

launched soon and has attracted industrial

houses like Reliance Industries, IT industries

and Walmart

40

GDP Growth, Bihar

Source Census India


• The most urbanized state in India

• Highest number of business enterprises

• Stands second in total employment , compared

to the population share of 6%

• Ranked 3rd in FDI approvals with a 9% of total

FDI in the country (cumulative of $5000

million), next only to Maharashtra and Delhi

• Investing in Tamil Nadu- Ford, Hyundai, HM-

Mitsubishi, Ashok Leyland, TAFE and TVS

Motors have their manufacturing base in Tamil

Nadu

Economy of Tamil Nadu

41

GDP Growth, Tamil Nadu

Sources Planning Commission


Agriculture

• Mainstay of the Indian economy

• 1/5th of the total GDP

• Is 10 % of the total export earnings

• 52 % of the total labor force are employed in

this sector

• Centrally sponsored schemes to enhance

production

Bihar

• It is the backbone of Bihar's economy with 81%

of workforce employed in this sector

• Generates nearly 35% of the State Domestic

Product.

• The principal agricultural crops are

rice, wheat, maize and oil seeds and cash

crops like jute and sugarcane

Tamil Nadu

• Agriculture as the prime profession -10% of

GDP but 56% of the people depend on

agriculture and allied sectors for their livelihood

• Main cash crops are

cotton, oilseeds, coffee, coconut

• Agricultural Export Zones to provide better

opportunities for export

Farmer s harvesting sugarcane in Bihar

till Pictures

42

Rice terraces in Tamil Nadu

Infrastructure

43


Education

• Universalization of Elementary Education (UEE)

• Mid Day Meal Scheme - The largest school

lunch programme in the world.

• Kasturba Gandhi Shiksha Yojana- A programme

to establish residential schools for girls in all the

districts which have a particularly low female

literacy rate has been announced

• Operation Blackboard-This scheme launched in

1987, is aimed at improving the school

environment

Bihar

• Bihar Education Project (BEP) was launched in

1991 with the express purpose of bringing about

quantitative and qualitative improvement in the

elementary system in Bihar

• Patna's Super 30

Tamil Nadu

• Was one of the first states to implement the Mid

Day Meal Scheme in the 1960's

• Tamil Nadu is one of the most literate states in

India.

44

Literacy Rates, 2009

Source Planning Commission


Health

Bihar:

• Infant Mortality Rate: 52% in 2008

• Maternal Mortality Rate : 312/1000

• Family Planning Programs

Tamil Nadu

• Maternal Mortality Rate: 111/1000

• The private health sector in Tamil Nadu: Wide

range of players – single doctor clinics to super-

speciality hospitals; informal service providers

• Partnerships with the non-government sector

Limitations

• Health facilities for the rural community also get

affected by cultural barriers like religion &

caste differences

• Lack of access to ICTs adversely affects

healthcare facilities and awareness level

• Long Distance and lack of transportation

facilities within the village is a challenge for

providing healthcare facilities

• Lack of technological assistance affects different

areas of work of people in villages

A doctor in his clinic in Bihar

45

• India’s Health expenditure per capita - $45

• 21% have better access to improved sanitation

facilities

• The National Rural Health Mission – 63% of total

Health and Family welfare budget


Enabling Infrastructure

India:

• 352 Airports

• Railways total: 63,974 km

• In 2009- total roadways : 3,320,410 km

(includes 200 km of expressways

Bihar

• Well connected by roads. NH 30 & 31- 29

national highways with total length of 2,910 km

• Air services connect Patna with

Kolkata, Ranchi, Lucknow, Kanpur, Delhi, Guwa

hati, Ahmedabad, Allahabad and Kathmandu

(Nepal

Tamil Nadu

• Capital city Chennai hasone of the busiest

airports in India

• State road network covers about 153 km per

100 km2 area, which is higher than the country's

average road network coverage of 103 km per

10 km2 area

• 25 National highways

• Tamil Nadu has a total railway track length of

5,952 km (3,698 mi) and there are 532 railway

stations in the state

46

National Highway in Tamil Nadu

http://www.flickr.com/photos/mehitabelstravel/3155520863/in/photostream/


Media

• Indian Media consist s of several different types

of communications media:

TV, Radio, Cinema, Magazines, Newspapers, I

nternet

• In 2007, the country consumed 99 million

newspaper copies – making it the second

largest market in the world for newspapers

• As of 2009, India had among the 4th largest TV

Broadcast stations the world with nearly 1,400

stations

• There were 16.18 million Internet subscribers on

31st March 2010 as compared to 13.54 million

on 31st March 2009

• Besides the internet subscribers mentioned

above, there are 117.87 million wireless data

subscribers who are accessing internet through

wireless networks (GSM and CDMA)

47

Daily newspapers 76599(1998)

Radio Stations 312

FM Radio Stations 91(2007)

Television Receivers 63 million(2007)

Television Stations 582(2007)

Telephone lines 37.06 million(2007)

Mobile cellular subscriptions

827 million(2011)

Internet Users 61.3 million(2009)


Mobile Subscriber Base growth - India

Mobile Telecom

• Wireless subscription in Urban Areas increased

from 525.17 million in February 2011 to 538.05

million at the end of March 2011

• Rural subscription increased from 266.21

million to 273.54 million

• This shows higher growth in Rural Subscription

(2.75%) than Urban Subscription (2.45%)

• In February 2011, TRAI registered a total of

811.59 Million mobile subscriptions

• While the overall teledensity of India reached

67.98, the share of urban subscribers

decreased to 66.30% (from 66.30% in March)

where as the share of rural subscribers

increased to 33.70% (from 33.64% in March)

48

Source TRAI


Telecom

• India is the second largest mobile market in

the world with a total of 15 service providers

operating in 22 circles

Bihar

• Mobile subscriber base of Bihar increased by

44.8% during FY2011 to reach 53.5 million

• Bihar is one of the top 5 fastest growing mobile

telecom market in India with the growth rate

considerably higher than the national average of

38.9%.

• Wireless telecom tele-density of Bihar circle is

39.1% indicating a huge untapped market in the

telecom sector

Tamil Nadu

• Aircel dominates with the highest market share

in Tamil Nadu and has rolled out its 3G services

in Coimbatore and Tamil Nadu

• BSNL has a strong presence in the state of

Tamil Nadu with 12.73% of the market share at

the fourth position after Airtel and Vodafone

49

Market Share

Market Share: Tamil Nadu

Market Share: Bihar

Source TRAI

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