1. A FRAMEWORK FOR SUSTAINABILITY IN ICT FOR DEVELOPMENT INITIATIVES 1 Heather Thorne ICT Innovation Group UNGIS, Financial Mechanisms for Meeting the Challenges of ICT for Development October 7, 2009

2. Agenda  Overview of Grameen Foundation and our approach to fighting poverty  A Framework for Sustainability in ICT for Development efforts  Summary

3. Overview of Grameen Foundation (GF) Headquarters: Washington, DC Grameen Technology Center: Seattle, WA Asia Offices: Hong Kong, Indonesia, Philippines Africa Offices: Ghana, Uganda Our Mission: To enable the poor, especially the poorest, to create a world without poverty MicrofinanceTechnology Released $145 million to create 800,000 microloans Aided 45 million people in 30 countries 350,000 MF clients served on open MIS (Mifos) Village Phone in 6 countries with over 25,000 businesses 5 mobile applications w/heavy usage

4. GF’s approach to fighting poverty  Championing initiatives that reach the poorest and most neglected people  Using technology to scale information access and sustainable business opportunities  Empowering the poor to help themselves + MICROFINANCE TECHNOLOGY

5. Of 3 billion mobile phone users WW …where the poor have much to gain from improved access to information services that can improve their lives & livelihoods Teledensity Usage is growing fastest in developing countries…

6.  Voice communications drive initial ICT usage, but further growth (and social impact) will depend on:  Lower prices for basic infrastructure and access  Availability of relevant social applications / information services in the market  Business models that maximize contributions of, and value for partners, while honoring the needs of the poor  Sustaining local entities that ensure ongoing innovation and availability of services, and means of scaling broadly Fulfilling ICT’s promise to the poor © Grameen Foundation 2009

7. Health Jobs/Transport One approach: GF’s ICT Innovation “AppLab” Education Agriculture Finance/Legal While strategic partnerships and grants fund proof of concept, sustainability requires: Designing it into the product & business model from the start Rigorous testing with users for demand, impact & willingness to pay Building apps that work on existing phones to ensure access by the poor Partnering with local context experts Iterating rapidly, relying on local developers Scaling broadly, which necessitates close partnership with mobile operators Ghana Health Worker © Grameen Foundation 2009 Community Knowledge Worker AppLab UgandaAppLab Indonesia

8. Criteria for application selection  Impacts lives and livelihoods of the poor  Technology (and exchange of information) play a primary role in the solution  Innovation, including enhancements to existing products to better meet needs of the poor  Potential volume of unmet demand (bridges gaps)  Low complexity of business model/ technical solution  Sustainable business model (often requires creativity)  Scalability across the population of target users, and portability beyond pilot country © Grameen Foundation 2009

9. Applab in Uganda Mobile Applications HealthAgriculture MarketplaceWeather Google Trader Weather Farmer’s Friend Clinic Directory + Sexual/ Reproductive Health Tips © Grameen Foundation 2009 www.applab.org

10. Business model is the second key © Grameen Foundation 2009 Sustainability can be achieved through:  Creative partnerships that maximize sources of contributions and value received for each stakeholder  Collaboration with other NGOs with related goals  A business model that generates enough profit to fund continued innovation & updating of content  Baskets of apps with cross-subsidization of those delivering a social good  Good-Better-Best offerings: “Best” has more information / better user experience, costs more; subsidizes “Good” offer  Advertising-based models

11. Creating value for all stakeholders  Mobile Operators  OEMs  Tech companies  Aggregators/ Content providers  NGO subject matter experts  Governments Example ContributionPossible Value Derived Discounted airtime during pilot phase, marketing New customers, data usage, revenue share, PR Handset discounts for pilotsNew market access, PR Start-up social capital (grants), engineering, strategic guidance, contacts New market access, new users, search volume, market info, PR Discounted content aggregation during pilot Publicity from program, revenue share Content for mobile information services Distribution of their content, publicity PublicityAchieve social goals Creating sustainable business models requires assembling partners who can contribute unique value, and derive unique from the effort, while collectively focusing on meeting the needs of the poor

12. Life cycle approach to sustainability Time Cost/ Unit Time Costs Revenues Launch Idea generation/ early testing & development Active pilots, iteration and testing Market seeding and launch preparation “CAPEX” (donor/partner funded) “OPEX” (sustainable business) Marketing and Promotion © Grameen Foundation 2009 Start-up organization, potentially ex-pat leadership Sustaining entity, all local staff

13. Local entities and scaling are the final keys © Grameen Foundation 2009 Sustainability can be achieved through:  Creating a local for-profit social enterprise that receives sufficient revenue to cover operating costs for  Further innovation and app development  Updating of content  Marketing  Means of scaling, including through Microfranchise networks that use the mobile phone as a productive asset, and distribute information services in their communities, e.g.,  GF’s evolved Village Phone model being deployed in Indonesia  GF’s “Community Knowledge Worker” model in Uganda

14. PT Ruma Indonesia example Qualcomm Grameen Foundation MFIs Poverty focused NGOs Direct Channels Operators Distributors OEMs Suppliers Local for-profit social business created to act as convener, microfranchisor and channel manager in support of Village Phone micro-entrepreneurs Indonesian Social Business (PT RUMA) Airtime, network access, handsets …plus training, support, discounts Funding, strategic guidance

15. Ways to learn more and get involved  Visit www.applab.org for additional detailswww.applab.org  Consider:  Gaining local insights from Community Knowledge Workers (run an information collection pilot)  Working with AppLab to develop mobile information services  Partnering with PT Ruma to deliver microfranchise business opportunities  Starting a Village Phone microfranchise program in your country  Contact Heather Thorne with questions (hthorne@grameenfoundation.org)hthorne@grameenfoundation.org © Grameen Foundation 2009

16. Questions?

17. BACKUPS

18. Conducted detailed ethnographic and needs assessment research Reviewed more than 50 application ideas and concepts Designed and implemented 10 SMS application pilots that reached more than 8,000 people which generated more than 54,000 queries Led partner content generation and editing process yielding >1,000 Tips Seeded Google Trader with >5,000 posts by enlisting partners in select agriculture verticals Formed a “trusted tester” base of >250 intermediaries in 20 Ugandan districts Trained 12 NGOs and gov’t entities to contribute to building the ecosystem Collected and analyzed feedback about product perception and willingness to pay ~18 months later – five services successfully launched 18 © Grameen Foundation 2009 What it took to launch 5 services

19. AppLab Apps: Farmer’s Friend 0000 matooke disease How do I control disease on my matooke? To control banana diseases, crush sweet potato leaves and mix with water to spray. Reply with 1. Wilt 2. Weevils 3. Pests 4. Help 0000 weather Mbarara Should I harvest my pineapple for drying this week – or will it rain? 20 May Mbarara Morning: Sunny Afternoon: Party cloudy Next 3 days: Sunny intervals with moderate wet conditions Community “Information Hub” 1 © Grameen Foundation 2009

20. AppLab Apps: Health Tips 0000 Can I get AIDS from kissing Can I get AIDS from kissing? 1 © Grameen Foundation 2009

21. 1 st Generation 2 nd Generation 3 rd Generation How GF’s Village Phone program Affordable phone in the community voice sms Expanding business model voice sms airtime For-profit supporting entity Information hub in the community voice sms airtime Apps ++ © Grameen Foundation 2009 evolved to address the need for sustainability

22. Grameen Foundation IFC UNDP MTN Orange Zain Zantel Evolution of Village Phone Programs systematizereplicatescale Bangladesh Grameen Phone Grameen Telecom Grameen Bank Uganda Rwanda Cameroon Philippines Cambodia Indonesia Grameen Foundation Nigeria Madagascar Malawi Tanzania Sierra Leone Mozambique Mali Ghana 22