I recently posted similar thoughts on why we should attempt, whenever possible to charge for perceived development solutions:
http://www.cashewman.com/2009/08/8-reasons-to-charge-people-for-your-development-solution/

Of course, I wasn’t talking about profit explicitly, as you are. But many of the reasons are the same, and there’s a common theme through our perspectives: we should trust people to make economic decisions that work for them. Whether it’s for a text or water pump, they’ll do what works for them. Let’s leave the pity and judgment at home.

Again, good post.

B

If the service sucks, it will fail. If the users dont see value at that price point, it will fail … I am interested in see what will happen 4 months down the road or 1 year down the road. I dont agree that just because its Africa, all things have to be cheap. If there is a new service that saves the masses time and money, its fair that the provider charge a premium. This will be the biggest motivation for providers to come here to Africa and invest in improving stuff

In many markets, people pay a premium for some products till when the market changes things … think iPhone, SMS in Africa, Internet in Africa… many cases

Google has done a good thing, and I dont believe there are in it for the money (220UGX?)

I hope the service works.

Thanks

– are people using the system ?
– will it grow ?

(i) This is the lowest price ever for a premium SMS service in Uganda.

I was talking about this debate to a director of one of most prominent software companies in Uganda. He reminded me that this is the first time in the industry’s history that a premium service has gone for less than 220UGX. This is a good first step, but most likely not a deal that anyone besides Google could get immediately. Many of the premium SMS services [usually targeting the rich] are adding their own fee (usually around 60UGX) onto the 220UGX base and making a killing

(ii) What kind of pressure would it take to get network providers to lower SMS rates voluntarily?

In Uganda, the best things are done without government intervention. Think about how amazing it is that an NGO, an Internet company and mobile company got together to launch this program without government intervention (contra programs run by, say, USAID or UNDP). Often when the public pressures an industry to reform, the industry comes together to create voluntary restrictions. This recently happened when the Internet industry came under fire for violating human rights in China. Is this concievable with the mobile industry in Uganda? If so, it would have to start with pressure from companies that are innovating in the SMS information space.

the other thought is whether Google’s information SMS could be ad supported like the “call me back” facility in South Africa? That would simply be a variation on their existing model