Mobile

[More Pop!Tech Fellows 2009 pictures]

There are a lot of reasons to come to Pop!Tech, the conference, but honestly the highlight of my Fall is the Pop!Tech Fellows program that precedes it. It’s one of those seamlessly executed events where every detail is taken care of, which is a tribute to those orchestrating it, that pulls together some of the most amazing minds in the social innovator space into one place for a 5 days of immersion. The faculty is world-class and the innovation Fellows are exceptional in so many ways, not least among them their areas of focus.

This year I’ve met a young man figuring out ways to turn waste products into charcoal soil additives that increase crop yield by up to 200%. I thought I knew a little about the mobile space in Africa – and I did know a little, very little, especially compared to what Nigel Waller knows… Oh, and I sat amazed as a lady from Saudi Arabia shares how she won both the MIT and Harvard prizes for innovative business ideas (as a non-profit!) in one year – which is unheard of.

The first thing you need to understand about this pre-conference Fellows event is that it takes place in an incredible location. It’s Fall in the woods of Maine, where we’re housed in cabins surrounded by trees of varying shades of yellow, orange and red. The bay sits below us, with wooded hills behind the idyllic and well-appointed retreat center. It’s the perfect setting to leave behind your daily life and embrace a few days of learning, discussion, renewal and growth.

I was fortunate enough to be part of last year’s inaugural Fellows class, where fast-friends were made that still stay in contact. This year, I’m here as one of the two returning Fellows from 2008, with my partner Abby Falik, to serve as a bridge between the classes and help maintain a consistent ethos and to lend a helping hand wherever necessary.

One of the things I’ve been asked to do this year is help photograph the Fellows program. I can’t hold a candle to Kris Krug’s brilliant work from last year. Fortunately, Andrew Zolli (Pop!Tech’s curator) is letting me borrow his much better camera, which I hope will make up for any lack of talent.

[More Pop!Tech Fellows 2009 pictures]

Beyond the photos, beyond the scenery, beyond the relaxing wood cabins – this event is about feeding my brain. It’s about the chance to meet and share a unique experience with my peers and learn from some of the world-class faculty. It’s about challenging ourselves and not just talking about the successes and “good stuff”, but about ways we can all be better and speak openly of our failures.

Transacting money to and from Africa comes in a variety of flavors. Generally, besides country-specific solutions, there are: bank wires, Western Union or MoneyGram, buying phone cards in-country that can be resold, cash in a suitcase, mail a check (that will be stolen in the post office), etc.

As you can see, there are limited practical ways for getting money transferred internationally on a regular basis. It’s no wonder then, that even with the transaction costs ranging from $15-70, people tend to use the safer, more secure methods of banks, and money transfer businesses like Western Union and MoneyGram. I’ve used all three of these, and over time have started to drift towards MoneyGram as my favorite. They have a cheaper transaction cost than the other two, and I’ve experienced a much easier time with them over the hurdles that Western Union decides to throw in your way.

All this to say, if we consider banks wires a static white-collar service, then MoneyGram is quickly becoming the best option as the common man’s way to transfer money internationally. As such, I’ve been getting deeper into their services, seeing what types of API and digital offerings that they have which could be useful.

Mobile Payments

Currently, MoneyGram has around 180,000 agent locations around the world. More importantly, they’ve just announced that they are set to tackle the mobile payments space by creating relationships with the mobile networks.

“Mobile money transfer services are an emerging part of our product offering and we are eager to bring these services to the Middle East. Overall, we expect mobile service to be in highest demand in developing economies where individuals are more likely to have mobile phones than bank accounts.”

This is an important point, as it merges two different ecosystems of payments. At the local level, in countries that have the right tools and cultures for them, mobile payment solutions act as transfer services for people within the country. Traditionally, this local mobile payment system is not available for use by those internationally.

Right now MoneyGram’s connection to the mobile payments agents is focused on the Middle East and Asia, my hope is that countries in Africa will soon follow. My guess is that Zain’s Zap service might be one of the first, due to their connection to the Middle East, but no one knows for sure yet.

[Update: Just before posting this I heard about a couple of banks and Western Union in the UK working with Mpesa in Kenya to do transfers via mobile. Others are working hard in this space too, and for good reason, it provides a great deal more usability for end-users on both sides of the ocean. If one entity catches that mindshare, they’ll have a lot more profitability in the space)

There aren’t a lot of African gamers, as would be expected due to the general lack of access to gaming technology and platforms in Africa, relative to other parts of the world. There are even fewer game developers on the continent. Due to being a gamer myself, I like to keep track of this as much as possible, and it’s always fun to announce a new one.

iWarrior is an iPhone game (iTunes link), created by the cross-Afrian team of Kenyan Wesley Kirinya and Ghanaian Eyram Tawia of Leti Games. It’s a unique top-down shooter game that utilizes the iPhone’s inbuilt accelerometer to both move and shoot. Your goal: protect your village, livestock and garden from the incoming marauding animals.

It’s a great first-effort from the team, and I believe it’s the first game created by a team in Africa. This itself is a much more difficult task than what many might expect. Just to get an iTunes account and a way to be be paid for your application is a challenge due to Apple’s inbuilt prejudice against Africa (they’re not alone in this, as many other platforms, like PayPal’s or Google Checkout’s are the same). That seems like a dramatic statement to make, but I ask you to stay your judgment until you’ve walked in the shoes of an African programmer.

Gameplay
I’m not an exceptionally talented twitch gamer, so I found the unique movement plus shooting actions hard to come to terms with. However, as I played it longer, I found myself slowly figuring it out and getting better at it. Thankfully, the team has built in a completely different way to play using your finger to slide and tap, you can move and shoot. So, for the accelerometer-challenged (like me) there’s another option.

iWarrior also allows you to play your own music while playing the game. This might seem small, but it’s something a lot of game maker’s overlook, and it’s a lot more fun than listening to the same repetitious in-game music.

The game costs $2.99, which is a little steep for new games on the iPhone. For many reasons the costs of most applications (games or otherwise) on the App Store have been driven to about 99cents. So, it takes either a really big name or an app that has hard to replicate features in order to break past $1.99 and sell a lot. In the team’s defense, it’s difficult for them to download paid games to test and see if they compare to their own prior to putting it on the market (again, due to them being in Africa).

Graphics
The graphics are okay. I’m a stickler on this type of thing though, and I go for either over-the-top quality or simplicity. Examples of this is comparing Fieldrunners to Doodle Jump, both excellent graphically, yet with completely different aesthetics.

So, I’m going to ding the team on this part of the game. This, after a lengthy discussion in Ghana with Eyram over the difficulties of finding quality digital artists. It’s not an easy thing to do, the best designers aren’t digitally literate, with a few exceptions. So, you get great sketching and painting, but few can put that into vector graphics, 3d or even Photoshop.

Though the challenge is high, we live in a digitally connected world where top quality digital artists from Asia and Eastern Europe can be found to do the work at acceptable rates. There are other options, and a game can be made or broken on looks alone.

Summary

iWarrior is an excellent first game on the iPhone platform from two highly talented and creative African game developers. I expect that there will be a lot of good games, and other applications, coming from this team over time – both on the iPhone and other platforms. It’s a game to be proud of and one that I hope a lot of others will buy.

Timi Agama was frustrated with his experiences in trying to get information about flights in Nigeria. It just didn’t make sense that there was no electronic means to track flight schedules. About five years ago he set out on a path to create a mobile solution for the problem. Out of that came Text2Fly, a mobile service that let’s you search for flight schedules by sending an SMS.

“The simple task of finding the next available flight is an inefficient and labor intensive undertaking for the Nigerian business traveller. Nigerian airlines don’t operate call centers and the Internet is slow. So the business traveller must assign staff to search all airline web sites or even send them to the ticketing office through stifling traffic.”

How it Works

A user sends in a text message to +447786201082 with a simple command, like “From Lagos to Abuja on Monday at 8am”. In response, the system gathers the information about all of the flights in Nigeria that fit your requirements, and sends them back to you as an SMS message.

As Timi states, this is ” A Nigerian solution to a Nigerian problem”. Interestingly, it’s not only useful in Nigeria, and I could see this same application being used elsewhere, not just in Africa but in the developed world as well.

I’m curious as to why the service is only available via SMS. It seems that if you have the data, then it’s easy to make it web-accessible. The advantage there is that you also can start creating ways for people to purchase tickets and thereby have another revenue stream.

The Business Behind Text2Fly

In terms of business model Text2Fly is paid for by premium SMS once it officially launches. It’s free right now though, so definitely worth testing out to see how much it helps in your daily life.

User numbers are still modest because the site and backend system was only flipped on 3 weeks ago. There has been very limited marketing to this point, but there is a plan to launch a real-world and digital campaign once the service is fully tested and stable.

When I asked Timi about how local Nigerians are taking to the product, he stated:

The reactions from people who have used the service has been far better than I could have imagined. One chap I spoke to on the phone enthused about how Text2Fly is not just for busy business people but for “everybody”. Another told me a story of how he showed it to some friends while they were having a drink and all 7 of them stored the Text2Fly number.

[Note: David Ajao has also done a review, worth reading as he's a fellow Nigerian.]

Understanding what drives Mpesa agents
Growing the agent network is one of the most challenging parts of a mobile payment system.

“The number one cost for most agents was liquidity management – moving cash. Agents report a host of expenses, including bank charges, transport costs, and fees to aggregators who advance commissions and provide easy float/cash swaps for agents. On average, liquidity management consumed 30% of total expenses.”

Asynchronous Info, Disjointed Data and Crisis Reporting
Jon Gosier talks about Uganda’s riots and what he’s learned in the process.

Africa’s diaspora and the cloud
Teddy Ruge writes a great essay on the web and Africa’s diaspora.

“There’s a cloud gathering over Africa; a storm of connected thoughts and ideas that are pushing African countries violently forward. The Diaspora is using emerging web technologies in increasing numbers, frequency, and variety to stay connect with Africa, simultaneously charting a new digital course for it’s economic independence on the world stage.”

New Africa broadband ‘ready’
The BBC Digital Planet team is in Kenya and doing a knock-up job of interviewing people about what’s going on around the tech space there.

(Note: all the people in the BBC “in pictures” for this day are part of the Ushahidi extended dev team in Kenya)

Mobiles offer lifelines in Africa
Ken Banks writes about mobile phone growth and development in Africa, stating “Africans are not the passive recipients of technology many people seem to think they are.”

We’re never good enough when it comes to speed, stability or simplicity of our mobile and web applications. This is a three-part series where I unpack my experience building apps on each of these subjects. It’s not just for those of us working on Ushahidi, these are the three most crucial abilities of any web or mobile application.

Let me tell you a personal story:

Libera, March 2009

I’m sitting, sweating in the sweltering heat of a Monrovia cyber cafe, I have my notebook out and my am watching the clock. My goal is to see how fast I can load up the Ushahidi home page for the Democratic Republic of the Congo, it has a map, timeline and list of recent events tracking the current level of unrest in the country.

It’s not looking good. As I look around, waiting for the page to load, I count 8 others in the room – 6 of which have fired up stuttering and unusable Yahoo and Skype video chat windows. Why this is the channel and usage of choice, when it so obviously doesn’t work, I cannot answer. But this is reality, and if we expect ordinary Africans to use our application, we had better make sure that it loads up relatively fast on the low-bandwidth, shared internet connections that proliferate across the continent.

Utter failure. After 20 minutes painfully watching the page load byte by byte, I give up. I quickly type out a message to our team, imploring everyone to streamline this “fat, squeeling pig of a page”. Peppering them with questions… Can I buy some caching please? What can we do with this map to make it not kill the load? Can we get rid of 75% of the images on the page? Do we need to redesign this from the ground up?

Granted, Liberia’s internet situation is worse than almost any other on the continent. Especially when it comes to the grinding halt you see in the cyber cafes during the daylight hours as the local population piles on at the same time, completely overwhelming the limited satellite connection. That’s no excuse though. Ushahidi is built on the idea that the lowest common denominator, whether it’s PC or mobile-phone based access, will work. The PC-side is clearly failing.

Worst of all, my patience is short, Liberia is pissing me off with the heat, humidity, lack of bandwidth and no electricity grid. Objectively, this is the perfect state to be in, I am now able to come up with a solution for normal users in Africa.

What other’s know

Speed… if there’s only one thing that you do with your application, make it faster. No, it’s not fast enough.

This isn’t news to anyone, or it shouldn’t be. For years the major web sites around the world have known this and have been building for it. Mozilla, Amazon, Google and Facebook are all aware of just how critical speed is to their success. It boils down to attention threshold and what we, as users ourselves, are willing to put up with.

There is no area in which our team has felt more pain than in trying to speed up the page loads of our apps. Maps tend to be page killers by themselves. Once we add multiple calls to the database we start to get some truly agonizing speeds. It’s a constant pressure that sits on every one of our development cycles, and for which we dedicate a great deal of energy.

User experience research needed in Africa

One area that hasn’t seen enough true user experience testing is Africa. We know that internet speeds are slower, sometimes by orders of magnitude. I’ve got a lot of questions, more than answers at this point. Should we cut out the maps and all images? What’s the true cost of a page load +/- 7 seconds? What is the real value of maps in Africa compared to the West – do they matter?

Jessica Colaco is a top-notch programmer who has shifted to doing research in Kenya. I hope that she, and others like Eric Osiakwan and his team from Internet Research in Ghana, will help us dig out these answers. More than that, I hope they will help us ask the right questions.

Probably one of my favorite discussions of this trip was entered into after the Uganda Linux User Group (LUG) meeting here in Kampala. It was about whether we should be providing internet protocol (IP) services first, rather than SMS. If cost is the single most important factor for any mobile service aimed at ordinary Africans, then what will it take to move the ball from the SMS court to the IP court? This isn’t just for non-profits to consider, but everyday businesses as well.

Phones that can access data networks have always been in short supply here, so the easy answer has always been to use SMS, just because that’s what people have in their pocket and can use right now. While there are great arguments for either decreasing the costs of SMS, or of moving to IP, the practicality of that was remote due to the costs involved. Either you need a big organization, or a government, who can force the mobile operators to lower their rates on SMS (their cash cow), or you need to have the costs of data-enabled phones to decrease enough that the majority of users switch to them.

There is an argument that says that Grameen’s and Google’s recent deal with MTN Uganda didn’t go far enough in pushing for free, or cheaper, messaging for their new services. Whether you agree or disagree on that matter isn’t relevant if you bypass the argument altogether and provide services via data, which is drastically cheaper, using SMS as the backup.

What a lot of people don’t realize is that for the first time, last year, mobile phones shipped to Africa with data service capabilities outnumbered the simple SMS-only phones that are so prevalent on the continent (Gartner 2009). Of course, this doesn’t mean that there will be a majority of IP accessible phone users immediately, but it is on its way.

Equally important to understand, and a point that increases the momentum of the mobile services over IP argument, is the fact that where there is mobile penetration, there is also available data services. This stands true in Uganda, where MTN says there is 92% GPRS coverage on their network. It’s even true in countries still trying to catch up, like Liberia, where though there are only islands of coverage, that coverage generally comes with data.

Reinier Battenberg, who runs the only local hosting in Uganda, brought up a great point. The fact that Google and Grameen weren’t able to significantly alter MTN’s position on the prices of SMS doesn’t matter. What matters is that Google didn’t offer an IP-based solution for their new Google Trader that they launched. That’s simply unbelievable! It’s doubtful if that type of work would take more than a day for an engineer to implement. Instead of effectively providing an end-run on the strategy around SMS, they just played the same game that the operator wants to play and will win. Something that Google really wants to do is drive people to the web, so why not at least provide web-services for those that can use it? It doesn’t make sense… all around it’s both curious and a questionable strategy.

Benjamin Lyon started CreditSMS, a new outfit that is focused on providing an efficient an accessible platform for microfinance institutions to deliver and track loans via SMS. I’ve been tracking what they’ve been doing since they first popped on the radar two months ago. I’m intrigued by the question: can we decrease the cost for MFI’s with the use of simple SMS technology?

The crux of the inefficiencies can be found in the number, distance and expense of MFI personnel to track and receive payments. Ben states it this way:

“By allowing microloan officers to receive weekly loan repayments via SMS instead of spending time and money to travel to group meetings, MFIs will spend significantly less on fuel and have more time to pursue and manage a larger loan portfolio.”

This might very well be true, and I’m at least interested in seeing the experiment go forward.

A Mobile Money Transfer Directory

In the course of their research they needed to do more discovery on the possible ways to transfer funds with in Africa. This meant embarking on a study of the types of options available by every operator in every country. With that data, they decided to create the Mobile Money Transfer Directory.

This first stage looks like its about creating a simple index of the operator, the money transfer service and a designation of the service. I can see this becoming more dynamic later, with data points like “transaction cost” and “number of merchants”, along with a slew of other pieces of information needed to understand the mobile money transfer systems (and how they differ) in each African country.

[Note: African Signals, the wiki for mobile/web pricing in Africa, turned out quite useful. Ben used that as a starting point in gathering much of his information.]

Though I’ve been busy running around getting ready for this Maker Faire Africa event, I’ve also had some nice chats with the a few of the programmers and designers in Accra. I know there are still a lot that I haven’t met, but this has been a good start.

I’ll start out by saying this: one of the most disappointing things that I’ve come across here is the lack of community within the tech scene. There is no mailing list, forum, or other digital touch-point for the devs to keep in touch with each other and discuss pertinent local issues. I know just how valuable this is due to my involvement with the Skunkworks tech community in Nairobi.

Offsetting that is the fact that they do have places like Busy Internet and AITI, two facilities that are well-known for supporting the tech community, that act as nexus points for tech meetups and user groups. There are also a number of good tech outfits with quality programmers.

First impressions leave me excited about the talent, but surprised at the lack of connectivity within the community.

Ushahidi meetup

Tonight we had an Ushahidi meetup night in Accra over at the Suuch Solutions office. It’s a great location, butting up to a hotel with nice seating for a get together like ours. We had a couple devs from BusyLab (which I’ll write a full post on soon), a couple from Succh, as well as Henry Addo from our team.

It looks like we have a couple new guys to help out on some interesting parts of the platform. George is an HTML markup guy who is itching to get his hands into some design work, and Chinedu is going to dig into the API with Henry.

The BugLabs Device

We also had a chance to break out the Bug kit from BugLabs, a completely modular hardware device that can be programmed using Java. I’m not sure who will be having the first crack at it, but everyone was amazed with it. What geek doesn’t like this type of stuff? I mean, accelerometer, GPS, camera, LCD, WiFi and control unit. It’s just such a crazy-cool device.

Last month I had a surreal experience as I sat in the Global Messaging Congress in London, listening to mobile operators talk about mobile phone services from their perspective. It’s a crazy world really, one where the providers of the infrastructure also mercilessly try to hold onto and strangle every drop of profit from any service that sits on their network.

We’re all born in a small “company town“, where the mobile operators are the landlord and the bank, the grocery store and the mafia.

Interestingly enough, there is a completely different industry built on a much more open standard that separates infrastructure from content, transactions and use. That is, the internet. So, as we get closer to a world where there is less of a difference between the mobile and web worlds, then we see what happens when a strangling monopoly won’t give in to an open system. The open system bypasses it.

Some examples

Multimedia
It starts getting humorous when you start looking at value-added services like location, video or images. I sat there and listened to the mobile operators talk about how “MMS will never be the equivalent of SMS” – their cash cow. Of course, not with them running it.

However, 2 days later we see this headline from YouTube, “just since last Friday, when the iPhone 3GS came out, uploads increased by 400% a day.” What? Yes, that’s a staggering number and it’s due to the fact that no operator is running it, they’re just selling the underlying data structure.

Messaging
Twitter is a great service that allows personal networks to form and SMS messaging to take place on an ever extending one-to-many and many-to-many basis. It also works on the web, in fact, that’s one of it’s great strengths – the ability to treat any channel as native. When I look at Twitter, which is 3 years old now, I have to wonder why we still don’t see a Twitter-clone offered up by any of the operators working in the 192 countries that Twitter isn’t in. For goodness sake, the only major cost for Twitter is the “to-many” part of it, and that’s virtually free to an operator on their own network.

Location based services
When the mobile operators of the world wanted to control their location services, in the early 2000s they kept their prices too high for large and small consumer-facing organizations to buy their services. So, the web went around them… The entrepreneurs saw an advantage to going out and getting the number off of every mobile phone tower and doing basic triangulation from them and WiFi signals. Voila, the operator is bypassed and now makes no revenue off of a service that it could have provided for a lower fee.

Operators can’t build real consumer services

I’ve heard a a number of comments from within the industry like this:

“we’ve had the ability to do such-and-such (insert your favorite third-party service here) for a long time, there’s nothing special about YouTube/Twitter/Apple doing this.”

This is a true statement (most of the time), so why are there millions clamoring for these other services and not the ones that the operators offer?

The release of increasingly more user-friendly phones, coupled with services that bypass the traditional restrictions placed upon everyone by the operators, has created a way for the internet players to replicate or make irrelevant many of these same services offered by the operators. This will continue to be the pattern too, as the two industries collide.

What the operators should do is open up their basic infrastructure for third-parties to build consumer-facing applications on. Take a smaller cut on each application or service, and create a true ecosystem that supports more developers and companies trying to figure out ways to make more money off of your framework.

This last week has seen a higher than average number of great technology blog pieces by a number of people. Here are my favorites.

Bankelele writes about Professor Calestous Juma with a review of a talk that he gave on how Africa can use technological innovation to stimulate economic recovery, spur economic growth and spread prosperity.

Aptivate gave us their Top 10 Rules for Designing Low-Bandwidth Websites. This is a goldmine, every web designer in Africa should print this out and hang it above their monitor.

Jon Gosier gave us a Comparison between On- and Off-network GSM Rates in Nigeria. Proving that, “with the exception of Etisalat, it’s quite clear that it’s cheaper to own four cell phones than one [in Nigeria].” (I hope this data makes its way to African Signals)

Ethan writes about Mike Best and his team’s work in post-conflict Liberia around digital storytelling.

South Africa’s popular mobile social networking application, Mxit, is now at 14 million users. “MXit users currently send approximately 35,000 messages per second during peak times and visit the system more than 20 million times per day.” Wow!

Bill does a review of Ndiyo, the thin-client computing solution for Africa. Specifically, on how Ndiyo “provides an alternative to traditional Western notions of how technologies should be deployed, used and paid for in developing countries”.

There’s an excellent post up on MobileActive about the recent mLearning Summit held in Zambia, titled “Go Mobile: Using Mobile Learning to Teach 21st Century Skills”. Steve Vosloo is a South African who has spent a lot of time researching how mobile phones can be used in education, here’s a video put together by him from this event.

“Steve Vosloo noted that m-learning summits have two main goals: To introduce and popularize the mobile phone as a tool for engaging students, and secondly, to identify local content needs. Examples of this may include applications that support grade submissions and attendance in remote locations or projects that explore how texting can be used in literacy.”

eNowNow is a service in Nigeria where anyone with a mobile phone can sign up to receive updates on traffic conditions in different areas around Lagos.

How it Works

Armed with a mobile phone, a team of 4-6 motorcyclists ride to different, pre-designate parts of the city. They take pictures of the current traffic conditions and MMS that image to the central office. That image is then geolocated and given a score of “slow”, “moving” or “free”. Anyone who has signed up for SMS or email alerts is then sent a message with the traffic update.

Challenges

I asked Simon, one of the people putting the service into action, what some of their challenges are. His reply:

“Collecting information in this way, although not that technical (lots of people have said why not use stationary webcams it would be technically superior), is turning out to be more difficult than we expected. Finding people who can grasp the concept behind the service, ride well through the crazy Lagos traffic, and are reliable has been tricky, added to that we’ve had lots of issues around harassment and even arrests from the police (many police officers apparently believe you need special police permission to take photos of traffic) and just recently the weather has been in our way as the rainy season has just started in Lagos making operations more difficult and a few phones have been dropped in puddles! “

The business side

eNowNow doesn’t see much value in charging premium SMS rates for their services. They believe margins are low, and they don’t think the uptake would be high enough amongst their target market to make it work. Instead, they have plans to subsidize the service with revenues from licensing traffic information to Sat Nav providers and logistics companies.

“In Nigeria the networks will take anything between 40 and 75% of a premium SMS’s cost to a subscriber for themselves (pull or push) leaving you a tiny margin for profitability and driving the industry standard (and therefore what the networks will allow you) per SMS cost higher. Most people think that traffic only affects those in cars and they can therefore afford to pay for a service, but most of Lagos’ population aren’t in that bracket and those on public transport still have choices about which buses they take, which routes and what time they leave work.”

Thoughts and ideas

Maybe it’s because I’m a motorcycle fan, or maybe it’s because I have a deeply ingrained detestation for being stuck in traffic in Africa’s mega cities, but this application hits the sweet spot for me. I’ve been wanting just this type of thing in Nairobi for a long time…

One additional idea, to make this even more dynamic, and spread it over the whole city is to create a way for ordinary drivers to text into the system when they come across a new or growing traffic problem. I imagine that Lagos has areas with traffic that is not on the pre-designated points that eNowNow operates in currently.

This is a classic locally grown tech initiative, and I hope that they can pull it off. If so, it can definitely be replicated in other major metro markets across the continent.

A couple weeks ago I had a discussion with President Obama’s New Media team, where we talked about what they might do to reach out to ordinary Ghanaians on his trip next week – which will culminate in his speech in Accra on July 11th. There is a lot of excitement in Africa around Obama, and this trip is going to set the continent humming.

WhiteHouse.gov/Ghana isn’t live yet, but on July 11th, it will become available. They are going to stream the talk at whitehouse.gov/live.

It’s a fairly interesting initiative to undertake, with a slew of problems, as you try to engage with as many individuals in an open travel campaign as possible. At the same time, you know that any channel you open up will get absolutely flooded with incoming comments, questions and spam of every sort. In the end, the team decided that Radio, SMS, then Facebook would be the primary new media access points – and in that order.

Radio, SMS and Facebook

Radio is still the number one communications medium across Africa, and Ghana has a particularly vibrant and active one with a lot of local and national community interaction.

As everyone knows, mobile phone penetration has grown at an explosive rate in Africa, this means that SMS is a fairly democratic means for getting feedback from people of every demographic across the nation. (Funnily enough, not available to US-based residents – more below on that)

Lastly, there are no major homegrown web-based social networks in Ghana, and like many other countries across Africa Facebook has a decent amount of penetration. In Ghana, it’s at 100,000+, so it makes the most sense for the new media team to engage and interact without splitting their energy over too many services. Having Twitter on as a backup is natural, as there will be a great deal of chatter there as well.

The details (from the White House)

SMS. We’re launching an SMS platform to allow citizens to submit questions, comments and words of welcome (in English and in French) . Using a local SMS short code in Ghana (1731) , Nigeria (32969) , South Africa (31958) and Kenya (5683), as well as a long code across the rest of the world*, Africans and citizens worldwide will be encouraged to text their messages to the President. SMS participants will also be able to subscribe to speech highlights in English and French. Long numbers for mobile registration pan-Africa: 61418601934 and 45609910343.

This SMS platform is not available to US participants due to the Smith Mundt Act (The act also prohibits domestic distribution of information intended for foreign audiences).

Radio. A live audio stream of the President’s speech will be pushed to national and local radio stations during the speech. After the speech, a taped audio recording of the President’s answers to the SMS messages received will be made available to radio stations and websites. The President hopes to answer a variety of questions and comments by topic and region. The audio recording will also be made available for download on White House website and iTunes.

Video. The speech will be livestreamed at www.whitehouse.gov/live. The embed code for this video is available so you may also host the livestream on any Website.

Online chat. We will host a live web chat around the speech on Facebook (it will be at http://apps.facebook.com/whitehouselive). The White House will also create a Facebook “event” around the speech wherein participants from around the world can engage with one another. A Twitter hashtag (i.e. #obamaghana) will also be created and promoted to consolidate input and reaction around the event.

Obama talks about his upcoming trip

Part 1

Part 2

If you provide services to poor people, should you make a profit?

That’s essentially the question raised by Katrin Verclas on MobileActive, and it’s an excellent one. Specifically, Katrin calls out the new Google Trader service offered by Google in Uganda, in conjunction with the release yesterday of their SMS products with Grameen and MTN Uganda, one of the local mobile phone operators. Basically, they charge 220 Ugandan Shillings per use, instead of the median 110 UGS charge across most networks. This is called a premium SMS rate.

Premium SMS rates are charged so that third-party service providers can make money off of services that they provide over the mobile phone network. The operator makes their (ridiculously high) profit as normal, and the overage is for the third-party. You’ll find a lot of dating, event and sports services offered in this way all over the world, not least across Africa.

Back to the question

The question posed is if people who are claiming to help the poor should charge, and if so, should they make a profit?

I think we’ve seen from the Grameen model in Bangladesh (ex: Grameen Bank and Grameen Phone’s Village Phone program) that you can (and possibly should). By doing so you help both parties; first, by providing a service that consumers value and are willing to pay for, and second by making the business of running an operation self-sustaining. Many good business, or project, ideas die due to lack of sustainable cash flow.

For instance, if a 220 shilling SMS can save you the 1500 shilling visit to the doctor or veterinarian, or give you a 10% higher return for your crops, is it worth it?

Is there a problem in the question?

There ends up being a paternalist nuance to that original question. After all, is it up to us to decide what services to offer the poor and at what price? Aren’t poor people able to make the value-based decision on whether a trip to the doctor is more useful to them than a call or an SMS to one? If services are being offered, the person making the decision to call, SMS or go physically to solve their problem, or not, is ultimately the arbiter of whether or not a service has merit and should be offered. It’s a classic market-led approach – if the price is too high for the service, equilibrium will not be reached and one will give, usually price.

This is particularly true when talking about for-profit companies offering services – like Google is with Google Trader. They don’t operate under the same development/grant funded subsidization that a lot of others do in Africa. Even if their goal was not to make a profit on this service, they still need to cover internal costs, as does every organization that isn’t provided with free money.

Final thoughts

This space in Africa, of offering services to the poor (in lieu of the governments actually doing their jobs), has been primarily “owned” by large development and aid organizations. This has created a false floor for the economy, as projects and initiatives are propped up by outside money and services rarely have to survive on their own. This is changing, as low cost and high value options come into the market, be they mobile phone operators providing new communication opportunities, or cheap chinese batteries and LED lights for local energy/lighting needs.

I’m sensing a flux in the space, like two bull buffaloes before they fight, the heavyweights in the aid industry and in business are circling each other before they knock heads. The marketing is over who is helping the poor and marginalized in Africa best. In the end the market will decide, and regardless of the messages spouted by both sides, the “poor African” will choose the winner.

If there’s a problem with collusion and price fixing in an industry (like there sometimes seems to be with SMS services in a country), that’s something beyond the scope of individuals and needs to be tackled separately by regulation. However, that’s not the case here, we have expensive SMS services in East Africa, but the new entrants into the space always offer low rates, and the costs of switching providers is relatively low.

No, this is market-based competitive services and both non-profits and for-profits have the right to offer them at whatever price they like. Equally, individuals have the right to use it or not, be they premium SMS rates or not.

I’d like to hear some other African’s thoughts on this.

Do you want big multinationals like Google and MTN coming in and providing their services to you? Should we be asking questions for the poor, or is that condescending in itself? What is the sticking point here, and is there a side that I’m missing?

**UPDATE**
Thanks to Katrin’s email to Rachel Payne, Google’s lead in Uganda, we have the following response from her on this topic, and it does clarify quite a few unknowns:

Hi Katrin.

Yes, I saw your blog post where you speak in detail about the pricing. However, what is written is not quite accurate. You see, Google, Grameen and MTN launched three types of mobile services yesterday: Google SMS Tips (targeting low-income, rural users primarily), Google SMS Search (urban, mainstream) and Google Trader (all users).

The second service is somewhat similar to other “premium SMS” content services currently available (except that it is built on Google search technology) and therefore, is the same price as other content services. To accommodate the first group, we have priced Google SMS Tips at half the price of a content service; this is available for the cost of a person-to-person SMS, which many rural individuals are willing and able to afford currently.

The third service drives income and livelihood benefits, so we decided to begin charging at the normal content service rate and monitor whether this excludes rural communities or not (we did extensive testing during the pilot, which included pricing discussions and most of the users found that Google Trader provided far greater, direct value than the 110 shilling price difference). For all services, we are offering them for free for the first few months, just to ensure that all users have an equal opportunity to try them out, risk-free and allow them to access critical content during this period so that they can assess whether or not they would like to continue to use the service.

I hope this helps provide a bit more information that clarifies the questions raised.