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Mobile communication and development: a study of mobile phone appropriation in Ghana
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Content
MOBILE COMMUNICATION AND DEVELOPMENT: A STUDY OF MOBILE PHONE
APPROPRIATION IN GHANA
by
Araba Sey
A Dissertation Presented to the
FACULTY OF THE GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
(COMMUNICATION)
August 2008
Copyright 2008 Araba Sey
ii
Acknowledgements
My sincere gratitude goes to my supervisory committee chair, Manuel Castells, and
committee members Francois Bar, Mizuko Ito and Clara Irazabal. Their guidance, support
and critical comments throughout this process have been both challenging and intellectually
stimulating. I had the privilege of financial support from the International Development
Research Center (IDRC), without which I could not have conducted the amount of fieldwork
needed for this research. I am grateful to all the IDRC officers who were involved in the
administration of my grant, in particular Laurent Elder, Stephane Roberge, Steve Song, Jean-
Claude Dumais and Khaled Fourati. An additional grant from the Annenberg School for
Communication made it possible for me to carry out follow-up fieldwork. I acknowledge the
contribution of my research assistants – Ofori, Charles, Harriet, Abigail, Jerry, Vincent, and
Kwesi – not only in doing significant legwork, but also participating in several discussions
which gave me unique insights into the communication technology landscape in Ghana. All
of my research respondents (several of whom wish to remain anonymous) deserve mention
for the time and energy they committed to enabling me acquire the data I needed. Several
friends and colleagues were a continual source of encouragement and inspiration to me
throughout my doctoral studies. From the University of Ghana, Dr. Kwasi Ansu-Kyeremeh
consistently pushed me to complete the doctoral program as quickly and excellently as
possible; and Dr. Owuraku Sakyi Dawson was a rich source of ideas on research literature
and appropriate processes for my project. Likewise, Dr. Godfred Frempong of the Science,
Technology and Policy Research Institute (STEPRI) and Dr. Amos Anyimadu of the
Technology Assessment Project (TAP) were invaluable informants on the Ghanaian mobile
phone industry. Finally I am grateful to my family: KK, Baaba, Esi, Ekow, and Arama; and
friends Larry, Jemima, Daniel and Esi for uncountable moments of practical and spiritual
encouragement.
iii
Table of Contents
Acknowledgements ii
List of Tables viii
List of Figures xi
Abstract xiii
CHAPTER 1: Introduction 1
1.1 Background to the Dissertation 1
1.2 Mobile Phone Adoption in the Developing World 3
1.3 Communication, Communication Technologies and Socio-Economic Development 5
1.4 Mobile Phones and Internet Access 8
1.5 What Works? Targeting Consumers at the “Bottom of the Pyramid” 11
1.6 Research Problem and Study Objectives 14
1.7 Scope of the Study 18
1.8 Outline of the Dissertation 19
CHAPTER 2: Theoretical Framework 22
2.1 ICTs, Economic Development and Poverty Reduction 22
2.1.1 Digital Divides, Leapfrogging and Universal Access 22
2.1.2 Explaining the Link between ICTs and Development 27
2.1.3 Facilitating ICT Use for Social and Economic Development 35
2.1.4 Shared Access to ICTs: The Model for Developing Countries? 39
2.1.4.1 Mobile Phone-Based Shared Access: Mobile Payphones 40
2.1.4.2 Access and Use of Public Payphones in African countries 42
2.1.5 Cost: A Major Barrier to ICT Adoption and Use 46
2.1.6 The Role of Intermediaries in the ICT Industry 47
2.2 The Sustainable Livelihoods Approach to Poverty Reduction 49
2.2.1 The Sustainable Livelihoods Framework 49
2.2.2 Critique of the Sustainable Livelihoods Approach 53
2.2.3 ICTs and the Sustainable Livelihoods Approach 55
2.2.4 Mobile Phones and Livelihood Sustainability 56
2.3 Innovation, Adoption and Technology Appropriation 57
2.3.1 Approaches to the Role of Technology in Society 57
2.3.2 Diffusion of Innovation 60
2.3.3 User-Driven Innovation 61
2.3.4 Technology Appropriation 63
2.3.4.1 Definitions and Models of Technology Appropriation 65
2.3.4.1.1 Technology Appropriation in Organizational Context 66
2.3.4.1.1.1 Structurational Model of Technology 66
2.3.4.1.1.2 Adaptive Structuration Theory 69
2.3.4.1.1.3 Technology Adaptation Process 71
2.3.4.1.2 Technology Appropriation in Social Context 74
2.3.4.1.2.1 BEAN Framework 74
2.3.4.1.2.2 Technology Appropriation Model 75
iv
2.3.4.1.2.3 Production-Consumption Continuum 77
2.3.4.1.2.4 Technology Evolution Cycle 79
2.3.4.2 Designing for Appropriation 81
2.3.4.3 A Technology Appropriation Framework for Mobile Telephony in Ghana 85
2.4 The Research Goals 89
CHAPTER 3: Methodology 92
3.1 Research Design 92
3.2 Finding a Starting Point 93
3.3 Data collection 94
3.3.1 Interviews 95
3.3.2 Surveys 97
3.3.3 Field Observation 97
3.3.4 Mobile Payphone Operators’ Business Records 97
3.4 Selection of Research Sites 98
3.4.1 Urban Sites 100
3.4.2 Rural Sites 102
3.5 Sampling 103
3.5.1 Interview Sample 104
3.5.2 Survey Sample 105
3.6 Research Process 108
3.6.1 Interviewing 108
3.6.1.1 Equipment Vendors 109
3.6.1.2 Mobile Phone Network Providers 110
3.6.1.3 Payphone Operators 111
3.6.1.4 Mobile Phone Subscribers and Users 113
3.6.2 Observation 114
3.6.3 Surveys 115
3.7 Data Analysis 115
3.8 Field Challenges 116
3.8.1 Selection of Research Population 116
3.8.2 Interviewing Company and Government Officials 117
3.8.3 Interviewing Mobile Payphone Operators 117
CHAPTER 4: Structure of the Mobile Phone Industry in Ghana 119
4.1 A Brief History of Telecommunications Development in Ghana 119
4.2 The ICT for Accelerated Development Policy 126
4.3 Mobile Phone Use in Ghana: Research Evidence 129
4.4 From Contract Phones to Prepaid Transfers: Evolution of the Mobile Phone
Industry 132
4.4.1 Introduction of Mobile Telephony 132
4.4.2. From Analog to Digital 134
4.4.3 Introduction of Prepaid Billing 136
4.4.4. Introduction of Mobile Payphones: The Space-to-Space Phenomenon 140
4.4.5. Introduction of Electronic Airtime Transfers 146
4.4.6 Value-Added Services 148
4.5 Market Characteristics 149
4.5.1. Network Coverage and Subscriptions 149
v
4.5.2. ARPU Support Strategies 155
4.5.3. Billing and Pricing 155
4.5.4. Handsets and SIM Cards 159
4.6 Network Technology 163
4.7 Market Fragmentation 166
4.8 Innovativeness in the Ghanaian Mobile Phone Industry 168
4.9 Conclusion 172
CHAPTER 5: Intermediary Services – Mobile Payphone Operators 175
5.1. Intermediary Services in the Mobile Phone Access/Use Gap 175
5.1.1. Signal Coverage 175
5.1.2. Physical Presence of Network Providers and Points of Sale 177
5.1.3. Affordability 179
5.2. Mobile Payphone Operators: Characteristics and Experiences 180
5.2.1. Overview of Survey Responses 181
5.2.1.1. Operators 181
5.2.1.2. Patronage 184
5.2.1.3. Benefits and Challenges 185
5.2.2. Mobile Payphones in Community Context 186
5.2.2.1 Rural Research Site: Apemanim 186
5.2.2.1.1. Access to Media and Telecommunications 189
5.2.2.1.2. Payphone Services in Apemanim 191
5.2.2.1.2.1 Operators 191
5.2.2.1.2.2. Payphone Usage Patterns 194
5.2.2.1.2.3. Clientele 197
5.2.2.2. Peri-Urban Research Site: Prampram 198
5.2.2.2.1 Access to Media and Telecommunications 200
5.2.2.2.2. Payphone Services in Prampram 202
5.2.2.2.2.1. Operators 202
5.2.2.2.2.2 Services and Usage Patterns 204
5.2.2.2.2.3. Clientele 209
5.2.2.3. Urban Research Site: Osu 210
5.2.2.3.1. Access to Media and Telecommunications 210
5.2.2.3.2. Payphone Services in Accra 211
5.2.2.3.2.1. Operators 211
5.2.2.3.2.2. Services and Usage Patterns 212
5.2.2.3.2.3. Clientele 222
5.3. Rural and Urban Variations in Revenue Generation 222
5.4 Impact of Electronic Transfer System 224
5.5 Conclusion 229
CHAPTER 6: Consumer Appropriation of Mobile Telephony – Owning, Sharing,
Using 232
6.1 Accessing Mobile Telephony 233
6.1.1 Paths to Ownership and Subscription 233
6.1.2 Multiple Subscriptions 237
6.1.3 Access for Non-Subscribers 241
6.1.4 Sharing Access 242
vi
6.1.4.1 Non-Commercial Sharing between Subscribers and Non-Subscribers 243
6.1.4.2 Non-Commercial Sharing between Subscribers 251
6.1.4.3 Commercial Sharing: Payphones 253
6.2 Mobile Phone Usage Patterns 264
6.2.1 Calling Patterns to Manage Cost 264
6.2.2 Conserving airtime 265
6.2.3 Buying Airtime 267
6.2.4 Major Mobile Phone Uses 271
6.2.4.1. Call Frequency and Duration 271
6.2.4.2 Free Late Night Calls 274
6.2.4.3 Flashing 275
6.2.4.3.1 Flashing to get a Return Call 276
6.2.4.3.2 Flashing to Greet or Tease 277
6.2.4.3.3 Flashing as “Women’s Work” 281
6.2.5 Text Messaging 282
6.2.6 Beyond Calling, Flashing and Texting: Use of Other Phone Features 284
6.3 Mobile Phones and Livelihoods 285
6.3.1 Business vs. Personal Use 285
6.3.2 Perceived Value of Mobile Phone Ownership and Use 289
6.3.4 The Downside of Mobile Phone Use 291
6.4 Conclusion 292
CHAPTER 7: Interactions: Network Providers, Intermediaries and Users 294
7.1 Owning 295
7.1.1 Prepaid Billing 295
7.1.2 Multiple Network Subscriptions 296
7.2 Sharing: Mobile Payphones 299
7.3 Using Airtime 307
7.3.1 ARPU Support 307
7.3.2 Flashing 309
7.3.4 Free Late Night Calls 311
7.4.4 Electronic Credit Transfers 312
7.5 Policy and Regulation 318
7.6 Mobile Phones as a Livelihood Resource and as a Source of Livelihood 319
7.7 Conclusion 320
CHAPTER 8: Conclusion 323
8.1 Network Providers: Technology, Business Models and Profit at the Bottom of
the Pyramid 324
8.2 Mobile Payphone Operators: Shared Access to Mobile Telephony 325
8.3 Mobile Phone Users: Access, Affordability and Communication 327
8.4 Mobile Phone Use as Technology Appropriation 329
8.5 Mobile Phones and Poverty Reduction 333
8.6 Theoretical and Policy Implications 334
GLOSSARY 344
REFERENCES 346
vii
APPENDICES 368
Appendix A: Additional Data Collection Methods 368
Appendix B: Interview Respondents 370
Appendix C: Data Collection Instruments 372
viii
List of Tables
Table 2.1: Access to and Use of Payphones (approximate % of respondents) 42
Table 3.1: Summary of Research Site Characteristics 100
Table 3.2: Interviews and Surveys 103
Table 3.3: Survey Sample Characteristics – Mobile Payphone Operators 106
Table 3.4: Survey Sample Characteristics – Mobile Phone Subscribers and Users 108
Table 4.1: Regional distribution of GT payphones (2002) 124
Table 4.2: Mobile Phone Network Providers 135
Table 4.3 Flashing Units 139
Table 4.4: Number of SIM Cards Owned 153
Table 4.5: Prepaid Tariffs (2006) 156
Table 4.6: Change in Prepaid Tariffs 2003 - 2007 157
Table 4.7: Airtime Price and Expiry Periods - Areeba 158
Table 4.8: Airtime Price and Expiry Periods - Onetouch 158
Table 4.9: Airtime Price and Expiry Periods - tiGo 158
Table 4.10: Electronic (Unit) Transfer Amounts and Expiry Periods – Kasapa 159
Table 5.1: Year Business Started 182
Table 5.2: Type of Business 183
Table 5.3: Type of Payphone 183
Table 5.4: Number of Customers Per Day – All Intermediaries 184
Table 5.5: Most Frequently Purchased Prepaid Cards 185
Table 5.6: Apemanim Payphone Services 191
Table 5.7: Start Year 202
Table 5.8: Main occupation – Prampram Intermediaries 204
ix
Table 5.9: Ownership of Business – Prampram Intermediaries 204
Table 5.10: Age - Prampram Intermediaries 204
Table 5.11: Type of business – Prampram Intermediaries 205
Table 5.12: Number of Customers per Day – Prampram Intermediaries 205
Table 5.13: Services – Interview Respondents 206
Table 5.14: Profit Generation: Prampram Intermediaries 207
Table 5.15: Ownership of Business – Accra Intermediaries 212
Table 5.16: Age - Accra Intermediaries 212
Table 5.17: Type of business – Accra Intermediaries 213
Table 5.18: Snapshot of Some Interview Respondents 214
Table 5.19: Number of Customers per Day – Accra Intermediaries 216
Table 5.20: Christian Credit Transfers (tiGo) – August 14 – September 10, 2006 227
Table 5.21: Ayisha Credit Transfers (Areeba) – August 28 – September 17 227
Table 6.1: Year of Acquiring Mobile Phone 236
Table 6.2: Income and Number of SIM cards 239
Table 6.3: Monthly Income (%) 242
Table 6.4: How often do the Following People Use Your Mobile Phone? 245
Table 6.5: How often do Family Members use your mobile phone? (%) 245
Table 6.6: How often do Friends use your mobile phone? (%) 246
Table 6.7: How often do Neighbors use your mobile phone? (%) 246
Table 6.8: How often do Work colleagues use your mobile phone? (%) 246
Table 6.9: Frequency of using a Family Member's Phone (%) 247
Table 6.10: Frequency of using Friend or Neighbor's Phone (%) 247
Table 6.11: Frequency of using a payphone (%) 248
Table 6.12: Distance from Home to Nearest Payphone 254
x
Table 6.13: Frequency of Payphone Use for Making Calls (%) 255
Table 6.14: Frequency of Payphone Use for Receiving Calls (%) 255
Table 6.15: Weekly Expenditure on Payphone Calls (%) 260
Table 6.16: Frequency of using a Space-to-Space Payphone to Make Calls 261
Table 6.17: Weekly Expenditure on Payphone Calls 262
Table 6.18: What do you do when you run out of credits? (%) 268
Table 6.19: Frequency of Transferring Units to Family/Friends (peer to peer) 269
Table 6.20: Frequency of Calling 272
Table 6.21: Frequency of Calling 273
Table 6.22: Frequency of Making Free Late Night Calls 275
Table 6.23: Frequency of Flashing (%) 276
Table 6.24: Main Reasons for Flashing (%) 278
Table 6.25: Frequency of Text Messaging (%) 283
Table 6.26: Most Frequently Used Phone Features (%) 284
Table 6.27: Less Frequently Used Phone Features (%) 284
Table 6.28: Main Reason for Making Phone Calls 288
Table 6.29: Major Benefits of Owning a Mobile Phone 288
Table 6.30: Major Disadvantages of Mobile Phone Ownership 291
Table 7.1: Average Revenue Per User 307
Table 7.2: Preferences for Mobile Phone Behaviors 317
Table 7.3: Summary of Mobile Phone Appropriations 317
xi
List of Figures
Figure 2.1: Components and Flows in a Livelihood 50
Figure 2.2: DFID Sustainable Livelihoods Framework 52
Figure 2.3: Structurational Model of Technology 66
Figure 2.4: Enactment of Technologies in Practice 68
Figure 2.5: Major Constructs and Propositions of Adaptive Structuration Theory 70
Figure 2.6: Model of Adaptation Process 72
Figure 2.7: Access, Adoption, Appropriation Ladder 73
Figure 2.8: Technology Appropriation Model 76
Figure 2.9: Technology Appropriation in the Consumption-Production Dimension 78
Figure 2.10: Technology Appropriation at the Margins of Social Power 79
Figure 2.11: Technology Evolution Cycle 80
Figure 2.12: Adapted Technology Evolution Cycle 86
Figure 3.1: Research Sites 99
Figure 4.1: Total Telephone Lines 1993 – 2006 137
Figure 4.2: Weekly Space-to-Space Payphones Sales 145
Figure 4.3: Network Coverage Maps (2006/2007) 151
Figure 4.4: Mobile Phone Subscriptions 1994-2006 153
Figure 4.5: Areeba Prepaid Card Promotion 160
Figure 4.6: Unlocking Services 162
Figure 5.1: Apemanim, Central Street 187
Figure 5.2: Road to Apemanim 191
Figure 5.3: Fati and Mohammed’s Payphone Sign 193
Figure 5.4: Number of Payphone Calls - Afrifa 195
xii
Figure 5.5: Mobile Payphone Revenue - Afrifa 195
Figure 5.6: Length of Payphone Calls – Afrifa 196
Figure 5.7: Prampram 198
Figure 5.8: Length of Calls – Christian 217
Figure 5.9: Payphone and Credit Transfer Revenue - Christian 218
Figure 5.10: Payphone and Credit Transfer Transactions - Christian 218
Figure 5.11: Average Weekly Payphone Calls 223
Figure 5.12: Average Weekly Revenue 223
Figure 5.13: Average Weekly Credit Transfer Revenue – Ayisha and Christian 225
Figure 5.14: Number of Payphone and Credit Transfer Transactions – Christian 226
Figure 7.1: Transfer Price List (2006) 314
Figure 7.2: Transfer Price List (2007) 314
xiii
Abstract
The last decade has seen rapid growth in the uptake of mobile communication technologies
around the world. Mobile telephones in particular have demonstrated an exceptional ability
to cut through hitherto obstinate barriers to adoption in developing countries. This
dissertation examines the processes involved in the introduction, adoption and use of mobile
phones ni Ghana, with a view to contribute to understanding of the link between information
and communication technologies (ICTs) and socio-econoic development in low-income
countries. Through interviews, surveys and field observations, multiple actors in the mobile
phone industry are studied – network providers, payphone operators and other
intermediaries, and mobile phone users. Using the lenses of technology appropriation,
sustainable livelihoods, and ICTs for development, mobile phone use is characterized as a
cycle of interaction between service providers and mobile phone users. These interactions
are, for the moment, driven by cost and affordability considerations linked not only to users’
efforts to conserve income, but also to service providers’ efforts to generate revenue. Thus a
stream of innovative delivery and usage strategies circulates between these parties. Amongst
these strategies, the role of micro-entrepreneurial intermediaries such as payphone operators
has been significant in making mobile telephony more accessible to people with limited
income. However, the flow of innovations also has had the result of undercutting the
livelihood of these intermediaries. It is suggested that from the perspective of poverty
reduction, the major long-term benefits of mobile telephony are more likely to be derived
from its use as a livelihood resource (that is, as a communication tool for all activities) than
from its use as a source of livelihood (that is, as a direct means of generating revenue).
1
CHAPTER 1: Introduction
1.1 Background to the Dissertation
Information and the ability to communicate are essential components of human
existence. Electronic communication technologies have made it easier, faster, and cheaper to
communicate over short and long distances, bringing personal and competitive advantage to
users. The desire to enjoy these advantages is evident in the national communication policies
of developing countries, as well as the programs of international development agencies, all
of which seek to harness the potential of information and communication technologies
(ICTs) for the transformation of their economies. In the process, a variety of policy and
practical best practices have been developed to address the challenges of introducing,
deploying and enabling the use of these technologies in contexts that differ significantly
from the contexts in which the technologies were created. It has also become clear that
attention to policy and project planning are not enough to ensure that the
telecommunications industry is transformed into a development machine; other forces can
influence the shape and impacts of the industry – including social, economic and political
structures, as well as the politics of different demand groups (e.g., Singh, 1999).
In recent years, a new hope for ICT access in developing countries has emerged in
mobile telephony. Compared to computer-based ICTs, mobile phone adoption rates have
been exceptionally high worldwide, hitting 50% (3.3bn subscriptions) of the global
population in November 2007 (Reuters, 2007; Telecoms.com, 2007a).
1
The process began in
August 1981 with the launch of the first mobile phone network in Sweden and Norway and
zero percent penetration. However, after taking 20 years to connect 500m subscribers
globally, it took the industy just seven more years to reach the 3bn mark (Telecoms.com,
1
As reports on this landmark note however, this does not mean that half the world’s population has a
mobile phone subscription, since penetration rates in 59 countries are in excess of 100%, indicating
that some individuals have multiple subscriptions (Reuters, 2007; Telecoms.com, 2007a).
2
2007a).
2
Additionally, by 2002, the total number of mobile phone lines had officially
surpassed fixed phone lines. These statistics are all the more spectacular because the highest
growth rates are now occurring in the developing world regions of Africa, Asia and South
America. This trend has generated significant interest in the deployment of mobile telephony
vis-à-vis other ICTs in developing countries. On the one hand, this interest is demonstrated
in the drive by major industry players to pour significant investment into mobile telephone
networks in these regions.
3
On the other hand, there is increasing recognition of the potential
for mobile telephony to bring socio-economic advancement to low-income populations, by
addressing longstanding barriers to information and communication capability. There are
thus two elements to this story: the delivery of mobile phone infrastructure and services, and
the actual use of the technology for global development.
It is against this backdrop that this dissertation examines individual and shared
access to mobile phones in Ghana. It is concerned with shedding light on the relationship
between ICTs and the development process from a user-centered perspective. The user
perspective has come to the fore in developing countries, following sharp increases in the
adoption of mobile telephony in the 2000s. This chapter introduces the research topic
through a discussion of the rationale for the role of ICTs in development, in light of the
emergence of wireless communication technologies and the growing popularity of mobile
phones.
2
Global penetration was 10% in 2000, 30% in 2005 and 40% in 2006 (Telecoms.com, 2007b).
3
For example, the GSM association reports mobile phone industry plans to invest over $50bn in sub-
Saharan Africa between 2007 and 2012 (Telecoms.com, 2007c).
3
1.2 Mobile Phone Adoption in the Developing World
In 1999 there were 1.7 fixed lines, less than one (0.98) mobile phone, and even
fewer (0.12) internet subscribers for every 100 inhabitants in Africa.
4
By the end of 2006,
while fixed line teledensity had grown to 3.1% (about 6% over 2001 levels), and internet
subscriptions had grown to 1.2%, mobile phone teledensity had grown to 22%, more than
50% over 2001 levels. In less than one decade, mobile phones have surpassed fixed lines as
the communication tool of choice. Similar growth trends can be observed around the
developing world. From ITU reports announcing the discovery of the “missing link” (Kelly,
Minges & Gray, 2002) in the telecommunications and development problem, to researchers
and journalists reporting on how mobile phones are empowering farmers, fishermen, traders
and poor people in general with increased operation efficiency, higher revenues and access
to resources, there is widespread recognition of the unexpected impact of mobile telephony
in the developing world. Although developing countries still lag behind other world regions
in the diffusion of information and communication technologies (ICTs), the global landscape
of communication has been transformed by developments in mobile telephony. These trends
in mobile telephony could not have been foreseen by scholars such as Guttman (1986, p.
333), who described telecommunications problems in sub-Saharan Africa as “almost
overwhelming in their pervasiveness and complexity”, predicting that at the then current rate
of growth it would take until the year 2027 for the region to achieve a teledensity of .01.
Mobile phones have not experienced such growth simply because they are inherently
preferable to fixed lines, but because in the context of the telecommunications industry in
developing economies, they have become the most readily accessible communications
4
Unless otherwise indicated, all telecommunications diffusion data in this dissertation comes from the
International Telecommunications Union (ITU) Statistics Database.
4
technology.
5
Essentially, the liberalization of telecommunications markets, the design of
mobile phone technology, and the creation of innovative service delivery models have
enabled network providers to overcome some of the challenges of rolling out their networks
and of serving low-income consumers.
Most African governments, trying to protect the state monopoly in
telecommunications, have inhibited the private sector from entering the fixed telephone line
sector. They have however been more open to liberalizing mobile telephony. The inability to
break into the fixed line market has ultimately been a blessing for private
telecommunications investors because as it turned out, the lower costs of establishing a
mobile phone network make it a more attractive investment. Compared to fixed line
infrastructure, the start up costs for rolling out mobile phone networks are relatively low due
to the elimination of ground cabling and connections to individual households. Driven by the
profit motive, and relatively more efficient business practices, and assisted by pent up
demand for telephony from people who could afford fixed line subscription but were
lingering on long waiting lists, the mobile phone industry had a big boost from the start.
Even so, mobile telephony remained a luxury good until the late 1990s when a combination
of prepaid billing, falling call tariffs, and cheaper handsets made the technology accessible to
a wider population. For users as well, the initial cost of subscribing to a mobile phone
network has become lower than that for a fixed line in terms of ease of subscription and
actual monetary outlay. Although maintenance costs may be higher than for a fixed line,
people with limited income have responded exponentially to the opportunity to finally own a
5
A study by Hamilton (2003) found that in African countries mobile phones are serving as substitutes
for fixed lines in some cases, and as complements in others. Hodge (2005) also concluded that the
structure of tariffs for mobile telephony result in a lower overall cost of communication compared to
fixed lines, thus for low-income consumers, it is usually adopted as a substitute for fixed lines.
5
means of communication, evidenced in some of the fastest adoption rates in the world. This
has led to renewed hope within the ICT for development (ICT4D) community for the
achievement of leapfrog development using ICTs.
1.3 Communication, Communication Technologies and Socio-Economic
Development
Before ICT4D, there was development communication. Based largely on print and
broadcast media, and flowing from the work of theorists such as Daniel Lerner (1958) and
Wilbur Schramm (1964), development communication proposed the view that the media
could be used to bring about modernization in developing countries. However, the spread of
mass media systems did not bring about the degree of results expected. Additionally,
critiques of the “modernization as westernization” orientation of development
communication in its early form have led to significant changes in this approach over time.
At the core of these changes is the definition of development. Notions of development have
subsequently passed from modernization, which defined development as economic growth;
through dependency, which defined development as self-sufficiency; to multiplicity and
participatory models, which define development as self-determination (Mazrui & Okigbo,
2004; Rogers, 1976a; Servaes, 2004). In the current ICT4D age, development is seen as
ideally incorporating all three elements – economic growth, self-sufficiency and self-
determination – and more. Throughout this process of change, an undeniable legacy of
development communication is its highlighting of the importance of information as well as
the ability to communicate. As Hanna has noted, “poverty has multiple and mutually
reinforcing causes, and lack of access to information and communication exacerbates all of
them” (2003, p.7). Consequently, improving people’s access to information and their ability
6
to communicate with each other and with their environment should give them the power to
improve their quality of life.
The historical importance of communication capability for social and economic
development has been demonstrated in the instance of fixed lines for the industrialized world
(e.g., Roller & Waverman, 2001; Saunders, Warford, & Wellenius, 1994). More recently,
similar results are being identified with mobile phone lines in the developing world where
for example, Waverman, Meschi and Fuss (2005) have established that 10 more mobile
phones per 100 inhabitants would lead to 0.59% increase in GDP in low-income countries.
Likewise, Sridhar & Sridhar (2007) found a clear relationship between both fixed and
mobile telecommunications infrastructure, and economic gains at the national level. These
benefits derive from the characteristics of telecommunications as an extremely cost-effective
means of communication; a facilitator of interaction between all economic and social sectors
of an economy; a means of overcoming physical barriers to organizational communication,
reducing the energy required for communication, and providing access to information by
organizations and individuals, which in turn enhances economic productivity and social
well-being (Economic Commission for Africa, 1999a; Hanna, 2003; Keating, 2001;
Kwankan & Ningo, 1997; Saunders, Warford, & Wellenius, 1983). ICTs have applicability
to practically all areas of human existence and have the ability to break through significant
barriers to human development – barriers to knowledge, participation and economic
opportunity.
On another level, the emergence of a global economy driven by information
networks has made it practically imperative that ICTs be incorporated into the economies of
all nations or else they risk damaging insignificance in world affairs. While the development
of ICTs has always been of relative concern, in recent times, developing countries have
7
come under considerable pressure to improve their telecommunications systems. As Wilson
(2004) has observed,
Economically, advances in information and communication technologies are
contributing to a wave of change that is sweeping around the world like a tidal wave,
pushing men and women selectively to create new relationships and new forms of
organization that facilitate their use of new technologies. Countries that anticipate
and respond innovatively to these new threats and opportunities will excel during the
coming decades; those that fail to anticipate and innovate will perform poorly.
Leaders who fail to seize ICT opportunities may produce the same results as leaders
who failed to build factories or railroads in the early stages of the industrial
revolution. (p. 5)
It is becoming clear that information and communication technologies in themselves have
secured a life of their own, in that they enhance the ability to communicate, and deliver
competitive advantages to those who have the most advanced ICTs. For example, the level
of ICT capability that one has (e.g., dial-up vs. broadband Internet access) affects the type of
participation one can engage in, and the types of foreign investment that nations can attract.
Overall, ICTs have become critical components for any development drives because of the
inherent advantages of being able to communicate and because of the importance of
communication technologies in the contemporary global environment. And simple access to
ICTs is the first stage that must be crossed to bring the benefits to disadvantaged
populations. Whereas fixed line networks were the basis for ICT-related development in
industrial economies, mobile phone networks are playing a similar role in developing
countries. The question is whether they can deliver the same capabilities that fixed lines
brought to other economies, first of all, universal service in terms of basic telephony, and
then adequate Internet access, especially in the context of continuous technological change.
8
1.4 Mobile Phones and Internet Access
Despite the Internet market being the most competitive telecommunication market in
Africa (ITU, 2007a)
6
the growth of computer and Internet diffusion in Africa has been less
impressive than that of mobile phones. The average Internet penetration for the whole of
Africa is just 4.8% and the top ten connected countries on the continent have Internet
diffusion rates ranging from 8% to 38% (ITU, 2007a).
7
Poor communities are especially
disadvantaged in this area. At present, the ITU (2007b) estimates that just about 0.5% of
villages in Africa have a public access Internet facility. Broadband access is even lower,
with about just 10% of Internet subscribers having broadband access, of which over three-
quarters are in four North African countries.
In terms of what it can contribute to the development effort, the Internet can be
considered superior to other communication technologies. Different technologies deliver
different capabilities to users, however, the Internet, through its programmable quality and
the convergence of technologies uniquely embodies multiple capabilities, including most of
the capabilities of earlier technologies such as radio, television and telephones. Yet the
Internet, and associated infrastructural, equipment, and skill requirements, is particularly
challenging to implement effectively in ways that could facilitate economic development in
African countries. Two critical inhibitors of internet diffusion in Africa are the lack of fixed
line infrastructure and broadband capacity, as well as the high cost of computer equipment.
Both barriers are significantly lowered with wireless communication technology,
and the ultimate frontier, from the perspective of the development community, would be to
6
In 2006 the internet market was fully competitive in 68.8% of African countries compared to 43.1%
for the mobile and 25.5% for the fixed line markets (ITU, 2007a).
7
User levels are significantly higher than subscriber levels due to the existence of public access via
Internet cafes and telecenters. For example, in 2006 there were 1.2 Internet subscribers but 4.7
Internet users for every 100 inhabitants in Africa.
9
realize the potential of wireless communication technology to deliver Internet access beyond
the diplomatic and business classes of society. In the absence of fixed line infrastructure on
which to build broadband access, wireless technologies are seen as having the potential to
fill that gap. Already some attempts are on the ground to capitalize on wireless technology to
deliver some level of Internet-based services to un-served communities. Some agencies have
experimented with mobile units that periodically pass through communities downloading,
caching and uploading emails and/or web pages to local servers, or providing temporary
internet access and training (e.g., World Links’ Blue Bus mobile ICT vans in Zimbabwe
8
).
Nevertheless, as the ITU (2007a) report on telecommunications developments in Africa
notes, “last mile wireless solutions rely on strong fixed infrastructure. There is no alternative
for connecting Africa to the global backbones” (p.16). This is a serious challenge for
network providers in Africa, where backbone capacity is either non-existent or prohibitively
priced.
While some agencies are approaching the Internet access problem by working on
low-cost laptop computers (such as Nicholas Negroponte’s One Laptop Per Child project),
there is growing belief that the wireless Internet will be made possible via mobile phones
(e.g., Bell, 2006; Kirkman, 2001). The dominant mobile phone technology on the continent,
GSM has so far proven unsuitable for the task, and providers are turning to other more
robust technologies such as WiMAX and third generation standards like EDGE which show
more promise. To take the fullest advantage of existing GSM and other mobile phone
technologies, some scholars and practitioners are trying to think of data access in creative
ways that can be delivered on mobile phone platforms. This is particularly evident in the
health and employment areas with services such as Tradenet in Ghana connecting farmers
with potential trading partners through SMS exchanges (personal correspondence with
8
Bloom (2001).
10
Busynet manager); jobseekers getting vacancy alerts by SMS in Kenya and South Africa
(Balancing Act, 2007); AIDS patients in South Africa getting medication reminders via SMS
(World Resources Institute, 2004); or midwives being equipped with mobile phones in
Indonesia (Chib, 2006). There is also considerable interest in developing mobile banking or
mobile payment systems targeted at both banked and unbanked populations in developing
countries (e.g., Brown, Cajee, Davies, & Stroebel, 2003; Ivatury & Pickens, 2006).
9
Non-computer based Internet access requires new ways of thinking about the
Internet, since the mobile (and especially mobile phone) Internet experience is markedly
different from the broadband computer-based experience.
10
Furthermore, technical, socio-
cultural and socio-economic elements affect the fit of this mode of access to different
societies
11
and therefore the technologies, content and delivery systems must be designed
appropriately. As the examples in the previous paragraph demonstrate, current trends are
focused on providing specific types of data rather than open access to the Internet.
12
In
addition to keeping up with new divides resulting from technological advances and service
delivery strategies, these organized efforts to appropriate mobile telephony for human
development have to contend with issues relating to commercial viability and creating value
9
Examples include Safaricom’s M-PESA system in Kenya, WIZZIT in South Africa, Celpay in
Zambia and GSMA’s global Mobile Money Transfer program.
10
Indeed some argue that the bandwidth requirements as well as other features such as accessibility of
content on mobile phone screens and access to printing facilities make mobile phones inferior to
traditional computers for the delivery of Internet content.
11
For example, the mobile internet in the US is largely laptop-based, while in Asia it is generally
mobile phone-based (See Castells, Fernandez-Ardevol, Qui & Sey, 2007, for a global survey of
mobile communications including discussions of the various shapes of the mobile internet in different
regions).
12
That is, from a socio-economic development perspective. Commercial mobile phone network
providers already have full email and Internet access services available to their subscribers who can
afford it in several African countries. There are still limitations to the level of Internet access that can
be achieved via mobile phones, e.g., in terms of web page browsing.
11
for users with limited funds to spare. For the wireless Internet to be effectively integrated
into new populations in developing countries, it will be important to understand pre-existing
conditions of telecommunications access in general, as well as patterns of wireless
communication use specifically. For example, when viewed from the perspective of private
individual ownership of mobile communications tools versus public shared access modes,
the type of access people have is likely to influence the Internet-based services they can or
will use.
1.5 What Works? Targeting Consumers at the “Bottom of the Pyramid”
By and large, the idea of direct public or government involvement in the provision
of ICT services has been rejected worldwide in favor of private sector leadership.
13
While
government initiatives have their disadvantages (such as inefficiency of the bureaucracy and
over-employment), private sector-led telecommunications network and service expansion is
also subject to some limitations, principally related to their profit-orientation. However, the
extraordinary success of private mobile phone companies in developing countries has
demonstrated at least three things. First, that the ability to communicate via
telecommunications devices is a high priority even for low-income populations; second that
for this reason, the private sector can serve low-income populations profitably; and third that
notwithstanding the previous two points, some populations will remain highly unattractive to
private network providers using their standard models of service provision.
The combined effect of these three issues is an emerging shift from discussions of
digital divides, dividends and opportunities, to discussions of how to mine the “fortune at the
13
Apart from a mandate to foster enabling environments for private and community-based initiatives,
governments are mostly expected to focus on using ICTs to improve their own in-house operations,
and implementing e-governance systems to promote civic participation.
12
bottom of the pyramid” (Pralahad, 2006). This new terminology, with its distinctly corporate
flavor, has only recently started to circulate in ICT4D circles and can be squarely linked to
the mobile phone phenomenon in developing countries. It is in this context that micro-
entrepreneurs have carved out a niche to provide value in the mobile telephony supply chain.
Their operations have been a revelation to industry and observers alike. By sharing access,
breaking down units and moving service to areas where they are needed, these
intermediaries have played a critical role in exposing the purchasing power and needs of
consumers at the bottom of the pyramid (BOP). Their role is frequently alluded to in stories
about prepaid card sales and payphone services, but has rarely been examined in detail, the
focus being more on overall outcomes rather than the actual process of service provision at
this level.
The emergence of micro-entrepreneurial intermediaries in the mobile phone industry
in developing countries arguably marks an “inflection point” defined by Cowhey, Aronson,
and Richardson (forthcoming) as “a strategic change in direction of major import in business
circles” (p.2). These developments are symptomatic of processes playing out on the global
scene, though with a slightly different logic. The main feature is an increasing
modularization of the telecommunications industry, a process characterized by “the growing
ability to mix and match individual terminals and sensors, pieces of software, massive
computational capability, data sources, and ubiquitous broadband communications
capabilities on a flexible and experimental basis” (Cowhey, Aronson & Richardson,
forthcoming, p.8). Cowhey et al argue that modularization results in the weakening of
competitive advantages and hence the need for new competitive strategies, the dissolution of
geographic and functional boundaries for ICT products and applications, and fewer
opportunities for market dominance by any single actor. In the African context, stories of
individual mobile phone subscribers sharing their access via payphone services, renting out
13
prepaid phone cards, or selling micro prepaid airtime, are all examples of modularization in
practice.
The advancements made in mobile telephony and the evolution of the industry in
developing countries have made it clear that the key to serving the low-income ICT
consumer is to develop targeted yet flexible service delivery models and strategies. A sample
of the conversations emerging from this environmental change can be found at the virtual
conference held by the World Resources Institute’s Digital Dividends program in 2004
(Paul, 2004). Topics discussed at the conference included the following: “is profitability
essential for sustainability?” “win-win business models,” what new technologies and
business models are on the horizon,” and “what do we mean by poor?” Similar issues are
being discussed in other fora (e.g., GSMA, 2006; Prahalad, & Hammond, 2002;
International Conference on Information and Communications Technologies and
Development, 2006). At the technical level, the need for technological designs that are
appropriate but also adaptable to new, evolving, and diverse use situations is also gaining
prominence. An example of this is Nokia’s development of mobile phone handsets that
account for consumer sharing by providing for multiple address books. Tongia (2007)
provides a useful overview of technical, business and policy considerations that could
facilitate the diffusion of fixed and wireless telecommunication in developing countries. On
the other hand, Mahan (2003) sounding a critical warning to regulators about the
discriminatory tendencies of the prepaid concept states, “where prepaid, or even mobile
generally is the only available point of network access then questions of quality of service
become paramount, as users risk being trapped in a lower quality stand-in for fixed line
access” (p.40). This is an important consideration to keep mind as private sector
telecommunications service provision becomes the norm.
14
1.6 Research Problem and Study Objectives
There is general agreement on the close linking of information and communication
technologies with socio-economic development in general and poverty reduction in
particular. However, while development projects continue to reveal much about the potential
of ICTs to improve poor people’s lives, the search continues for how to translate this
potential into widespread reality. No single communication technology, print media, radio,
television, video, telephones, or the Internet, has proven to be the panacea to poverty, in its
economic and non-economic forms, some for reason of inadequate access, others for reason
of inadequate content. Yet the potential usefulness of ICTs cannot be denied. Currently, with
their small size, relative ease of deployment, relative low cost and easy usability, mobile
phones have become the latest champions of poverty reduction. And indeed, mobile
telephony appears to have uniquely surmounted several barriers that have limited access to
other ICTs. But even here, the all-important access barriers have not been completely
eliminated. With the abundance of studies supporting the usefulness of ICTs in poverty
reduction, how can access to these technologies be fostered such that poor people can
effectively use and derive the desired benefits?
The broad objective of this study was to contribute to understanding the relationship
between communication technology and socio-economic development by exploring mobile
communication and poverty reduction in developing countries. Specific objectives included:
to find out how shared access systems (mobile payphones) are contributing to the expansion
of the telecommunications network into poor communities, what benefit this is bringing
about and to whom and thereby to assess the potential of this mode of access; to find out
how mobile phone subscribers and users are integrating the technology into their everyday
lives; to identify innovative use patterns, their origins, the factors that make them possible,
15
and how they are linked to users’ attempts to manage access to telephony; and to identify
how network providers are responding to the behavior of intermediaries and end-users.
The study sought to illuminate the question of the relationship between ICTs and
development by examining mobile phone use in general and the emergence of public access
mobile telephony in particular. While it has been widely observed that access to telephony
has expanded tremendously there is less discussion about exactly how it happened. The
study addresses this gap by proposing that micro-entrepreneurial intermediaries, such as
mobile payphone operators have played a significant (and crucial) role in the expansion of
access to mobile telephony and contributed to a shift in the modes of network service
delivery. However, their activities cannot be considered in isolation. Intermediary services
and the way consumers use them, both shape and are shaped by various dynamics in the
telecommunications industry, and this process has been an important driver of the rising
adoption of mobile telephony in developing countries. The trajectory of development of the
intermediary role in the telecommunications industry is not only an indication of the
contributions intermediaries have made to universal access, but also a pointer to future
developments. Important lessons can be learnt from the successes and challenges of this
element of the industry, including issues relating to the relative strengths of public vs.
private and individual vs. shared models of access to telephony; the role of technology
design, technological and marketing innovation, and end-user resources and preferences.
These all affect telecommunications network expansion and access.
Most studies seeking answers to these types of issues focus on pilot project results
and particular potential uses such as e-commerce, e-health, or e-government.
14
However, this
14
There are some noteworthy exceptions such as research conducted by Akther, Onishi, & Kidokoro
(2006), Eggleston, Jensen, & Zeckhauser (2002), Jensen (2007), Osee (2006), Slater & Kwami
(2005), and Vodafone (2005).
16
approach is likely to overlook some important aspects of how ICTs interact with people’s
lives. In fact, it has been observed that most ICT for development projects are either partial
or total failures, in significant part due to issues related to project design and implementation
(e.g., Heeks, 2002a; Tongia & Subrahmanian, 2006). In the meantime, life goes on for
people, regardless of the availability or not of ICT projects, their concern being to make do
with whatever communication technologies are available, accessible, affordable and useful
to them. This study investigated the uses of mobile telephony in the everyday lives of
ordinary people to uncover patterns of technology appropriation and their implications for
the deliberate use of ICTs in the socio-economic development process. The approach of this
study is therefore to focus on what people actually do with the communication technologies
at their disposal, based on their own goal-driven choices. It responds to Slater and Kwami’s
admonishment,
This picture asks that we detach the potential relationships between ICTs and
poverty reduction from global and abstract generalizations about information society
and about information goods. Instead, it asks us to attend to the assemblage of
communicative means and social networks that is in actual fact being constructed
through everyday practice. In plain speak: if we want to get anywhere we had better
start from where we are. (2005, p.15)
Another characteristic of ICT4D research in Africa is that most studies tend to be
conducted at the macro level, or if micro, are largely anecdotal. Few have performed in-
depth analyses at the user level, and none have examined multiple levels and the interactions
between them. In contrast, this study, while delving into end-user behavior, also closely
examines the intersection of macro, meso and micro levels of mobile telephony.
The emergence of mobile payphone services in Ghana
15
is an interesting case study
of technology appropriation at the grassroots of consumer society. It is an ideal location to
start this investigation because of the unique origins of the system – unlike popular
15
See Castells, Fernandez-Ardevol, Qui & Sey (2007).
17
conceptions of the mobile payphone systems (represented by the Grameen Village Phone
system), mobile payphones in Ghana were an evolution of a strategy designed to solve
interconnection problems rather than explicit poverty reduction initiatives. This is an
opportunity to study a somewhat spontaneous development and to satisfy the research goal
of starting “where we are” (Slater & Kwami, 2005, p.15). The Ghanaian mobile phone
market is one of the most competitive in the region – with 5 network providers for an adult
population of about 13million.
16
The competitive nature of the market contributed to the
interconnection problems that led to the development of the mobile payphone system, and
which together, have made activated the mobile phone industry, making telephony more
accessible to several populations, while providing a source of income for some.
As a single country study, the findings are limited in their applicability to other
countries, even within Africa. Despite this, similarities in the spread of mobile phone
technology across Africa make it possible and even likely that the trends observed in one
country have some crossover with those in other countries in the region. Furthermore,
documentation of the conditions in Ghana will stand as a record for comparison with future
studies in the same or other African countries.
Based on a review of literature on the use of ICTs in developing countries,
sustainable livelihoods, and technology appropriation, mobile phone use in Ghana is
characterized as a process of technology appropriation involving network providers,
intermediaries and end-users that engenders technological, economic and social
transformation. The research framework and activities were therefore designed to examine
the activities of each of these three groups – network providers, intermediaries and end-
16
By 2006, the penetration of mobile phones stood at 23%, almost twice the sub-Saharan average of
13%, and slightly higher than the African average of 22%. Internet access, on the other hand is low,
despite the proliferation of Internet cafes – 2.7% in 2006 compared to 3.16 for sub-Saharan Africa.
18
users. A variety of largely qualitative methods were used to collect data for this study,
including in-depth interviews, analysis of business records, nonrandom surveys, and field
observations. The research population included policymakers and regulators, mobile phone
network providers, mobile phone equipment vendors, mobile payphone operators, mobile
phone subscribers, and mobile phone users. The triangulation of methods contributed both
breadth and depth to the study. For the purpose of comparison, the study included three sites,
one rural, one peri-urban and one urban. Fieldwork was conducted over seven months in
2006 (June-January) and an additional six weeks in 2007 (July-August).
1.7 Scope of the Study
This study addresses how users adapt mobile phone technology to local conditions,
regardless of whether this feeds back into the design of the technology. The issue of concern
is how society is finding ways to use mobile telephony in locally beneficial ways, such that it
is not the technology per se that is changing but the ways in which it is used, which may
differ from what was foreseen at the design stage, but which were not ruled out by the
design. This perspective was taken in order to maintain the focus on users rather than
manufacturers. Nevertheless, because economic development and poverty reduction are of
interest, and because most new communication technologies tend to be conceived and
developed outside Africa, a demand-level analysis may show how social informatics can be
applied to involve African people more directly in the process of designing technologies to
improve their condition. Thus the implications for technology design are of interest.
Although the study is essentially a broad stroke analysis covering multiple levels of
the telecommunications industry, it does not investigate all possible aspects. Furthermore, its
primary focus is on the interaction of those levels, rather than on each level individually.
19
Therefore, the study does not include an analysis of telecommunications policy as such, or
the political economy of telecommunications in Ghana. Neither does it investigate
administrative nor management practices within the industry, other than those relating to
marketing and sales strategies. The software, Internet and ICT software industries are not
included in this study. Additionally, the study does not examine particular development
issues or initiatives such as the role of ICTs in health, governance or education.
Organizational uses of mobile telephony are also beyond the scope of this study. Finally,
because of the focus on poverty reduction, patterns of mobile phone use amongst wealthy
people are not examined.
1.8 Outline of the Dissertation
Chapter One introduces the study with a general discussion of ICTs and the
development agenda in Africa; background information on telecommunications in Ghana; a
description of the research problem, study objectives, concepts; and a summary of the
research process and overall findings.
Chapter Two presents the theoretical framework of the study. It draws from three
fields of research. First, the literature on ICTs, economic development and poverty reduction
is reviewed and the general conclusions summarized, with particular attention to the role of
shared access models of telecommunications. Secondly the sustainable livelihoods approach
to poverty reduction is discussed and recommended as an analytical tool to ensure the study
maintains a people-centered focus. Finally, after a brief overview of theoretical perspectives
on the relationship between technology and society, the concept of technology appropriation
is discussed along with a number of models that have been developed to represent the
appropriation process. One of these models – the technology evolution cycle – is adapted as
20
a framework for the study. These three strands of literature together capture different
dimensions of the ICT for development problem – the question of how to use ICTs in the
development process being addressed at the macro level; people’s everyday search for a
secure livelihood free from the burdens of poverty; and how individuals, together with ICT
service providers, use available ICTs to pursue this end.
Chapter Three describes the research methodology and the next four chapters
present the research findings. Chapter Four begins the discussion of research findings with
the mobile phone industry. In this chapter, the structure of the industry is outlined, tracing
changes in the industry from its inception until the research period. The main focus is on the
emergence of strategies, products and services to address network providers’ desire to attract
new subscribers and make profits in a low-income market.
Chapter Five delves into the role of intermediaries in the mobile phone industry by
analyzing the activities of mobile payphone operators in three (rural, peri-urban and urban)
communities. As one of the most dramatic consumer appropriations of mobile telephony in
Ghana, their contribution to network service, characteristics of their services and clientele,
and their long-term sustainability prospects are discussed.
Chapter Six discusses mobile phone access strategies and usage patterns amongst
subscribers and users. Ownership levels and dominant practices are outlined with a view to
address the all-important question of which arenas of life the mobile phone is most
implicated in – e.g., economic and social. The chapter also highlights the place of shared
access telephony (with implications for the mobile payphone) in user strategies.
Chapter Seven places the research results within a technology appropriation cycle
and discusses how the interaction of the mobile phone industry, payphone industry and
mobile phone users culminates in a process of technology appropriation by all participants,
each seeking their own peculiar goals. The outcomes of this process and implications for the
21
use of mobile telephony as a development tool are discussed in the context of Ghana’s
pursuance of a development agenda that has the production and supply of ICTs and ICT
services at its core.
Chapter Eight reflects on the research results and discusses their theoretical, policy
and practical implications.
Mobile phone technology has demonstrated immense potential to transform the
economies of developing countries and the lives of poor people around the world. However,
as with other ICTs there are continuing challenges of making the technology accessible,
affordable and useful. The current trend towards seeking strategies to meet demand at the
bottom of the pyramid is a striking characteristic of the mobile phone industry in developing
countries, unlike the broadcasting, computer and Internet industries that have not been so
aggressive in pursuing low-income consumers. Mobile phone network providers (Chapter
Four), micro-entrepreneurial payphone operators (Chapter Five), and mobile phone users
(Chapter Six) have all contributed to this turn of events within the broader framework of
telecommunications policy and technology design. This study of mobile phone appropriation
illustrates how deliberate but also unintentional collaborations between and within these
groups have shaken up the telecommunication industry in ways that did not occur with other
ICTs.
22
CHAPTER 2: Theoretical Framework
This chapter pulls together literature from three areas of relevance to the use of
information and communication technologies in developing countries – ICTs for
development, sustainable livelihoods, and the appropriation of technology. The first section
surveys research and commentary on the use of information and communication
technologies in development strategies in developing countries. The second section discusses
the sustainable livelihoods perspective, an approach to poverty reduction that highlights the
goal of making poor people’s livelihoods more secure overall. The final section on
technology appropriation situates the issues of ICT for development and livelihood
sustainability within broader conversations about the relationship between technology and
society leading to current interest in technology appropriation, the process in which
consumers adapt technologies to their needs. This sets the framework for the research
questions this study investigates.
2.1 ICTs, Economic Development and Poverty Reduction
2.1.1 Digital Divides, Leapfrogging and Universal Access
The history of development assistance is riddled with “gaps” (the infrastructure gap,
the financing gap, etc.), the “filling” of which was seen as key to solving the
conundrum of sustainable development. (McNamara, 2003, p.31)
Resolving the conundrum of sustainable development requires progress of a
magnitude large enough to bring about a “big push” (Gerschenkron, 1967). This presents
significant challenges because of the degree of deprivation at which the process starts.
Furthermore, the different natural, industrial and institutional conditions in developing
countries lead to different patterns of development compared to the historical patterns in
other economies (Gerschenkron, 1962, Singh, 1999). Nevertheless, development is generally
considered in relation to “catching up” with western economies. The distribution of
23
information and communication technologies is a contemporary gap, the digital divide, that
distinguishes developed from developing countries, and that has become an area for catching
up.
In the development community, the digital divide was initially perceived as a global
phenomenon represented by variations in levels of telecommunications diffusion between
developed and developing nations.
17
Subsequently, scholars and practitioners have identified
international and intranational dimensions to the concept, speaking of differences between
countries within Africa, for example, as well as the existence of a range of domestic digital
divides based mainly on geography (rural/urban), socio-economic status and usage patterns
(e.g., DiMaggio & Hargittai, 2001; ITU, 2006; McNamara, 2003; Onyeiwu, 2002; Roycroft
& Anantho, 2003; Warschauer, 2002; Wilson, 2004), most of which essentially mirror the
global divides. The global divide is not necessarily seen in negative terms – it is tied to the
idea of leapfrogging, the belief that countries can advance through stages of development
through the use of new technologies, without having to implement older technologies. ICTs
are seen as having the potential to enable developing countries leapfrog to developed status
in three ways: by skipping stages of development, by speeding up the pace of development,
and by skipping over technological frontiers (Singh, 1999).
In addition to the quantitative divide measured by location of infrastructure and
possession of physical telecommunications products, a further complication is introduced by
a qualitative divide conceptualized in terms of the ability of potential users to actually use
telecommunications, and their ability to pay for the levels of use they require. Together these
dimensions can be summarized as the issues of availability, accessibility and affordability
(Barrantes, Galperin, Aguero, & Molinari, 2007; Milne, 1998). Another useful and simple
17
See Fink and Kenny (2003) for a review of history and trends in the discussion and measurement of
the digital divide concept.
24
conceptualization is Wilson’s (2004) distinction between formal access (availability of
requisite infrastructure), and effective access (ability to use the technology in useful ways).
18
An additional contributor to the persistence of the global digital divide is the pace of
technological change, a pace that even leapfrogging may be unable to transcend. As fast as
new ICTs emerge in developed countries, new divides emerge in relation to those
technologies, and the target to be leapt to moves a little further away. The digital divide is
indeed a moving target (Hudson, 2006) and is acknowledged as a complex, dynamic, and
multifaceted phenomenon (Chéneau-Loquay, 2007; ITU/UNCTAD, 2007).
Concerns about the ability of developing countries to use ICTs for development are
linked to the state of access to these technologies. The view of ICTs as crucial to national
development is so strong that access to ICTs in themselves is becoming a component or even
indicator of poverty, hence the emergence of the idea of “digital poverty” (Galperin &
Mariscal, 2007), defined for example, as “a lack of the basic capabilities needed to
participate in the information society” (Barja & Gigler, 2007, p.16) or “the lack of goods and
services based on ICT” (Barrantes, 2007). The concept of digital poverty is possibly the first
attempt to develop a strong measure of the digital divide within developing countries.
Although intra-national digital divides have been recognized, hitherto estimations of the
extent of digital divides have been international in nature, measuring the divide between
countries. Under the auspices of the International Telecommunications Union (ITU), a
partnership was formed in 2004 to work towards bridging the global divide. Dubbed the
“Digital Opportunity Platform,” it includes a variety of stakeholders including global
development organizations, research institutions, and government agencies. One of its
primary tasks is to develop a methodology to adequately measure the information society,
18
Wilson breaks this down further into physical, financial, cognitive, design, content, production,
institutional and political access.
25
and monitor progress in closing the digital divide. This measurement is currently represented
by a composite index of ICTs known as the Digital Opportunity Index that comprises eleven
indicators for fixed line, mobile phone, computer and internet coverage, density and usage in
181 economies (World Information Society report, 2007). Other indices have been
developed by the ITU (ICT Opportunity Index), World Economic Forum (Network
Readiness Index), UNCTAD (ICT Diffusion Index), and Research ICT Africa (African e-
Index), all of which use similar reasoning, methodologies and indicators.
The 2006 Digital Opportunity Index showed that digital opportunity was increasing
worldwide with some of the greatest advances being made mainly by mobile telephony in
African countries (ITU/UNCTAD, 2007). Likewise, the 2007 ICT Opportunity Index
showed upward progress in ICT opportunity (that is, a narrowing digital divide overall) but
also revealed an increasing gap between countries with high ICT opportunity and the rest of
the world (ITU, 2007c). Others have come to opposing conclusions; some that the divide is
widening (e.g., Chéneau-Loquay, 2007; Norris, 2000; Wilson, 2004) or closing (e.g., Kenny
& Fink, 2003). However, these national indices tell little about how ICTs are in reality
experienced by poor people at the domestic or community level. The digital poverty
measurement being developed in the South American context (Galperin & Mariscal, 2006) is
yet to produce concrete data. Recommendations that ICT diffusion be measured in terms of
accessibility and social or human development (e.g., Madon, 2000; Musa, Mbarika, & Meso,
2005) imply the need for a high degree of contextualization of ICT measurements, which
only serves to complicate the measurement process. Whatever the measure of the gap, the
undisputed conclusion is that there is both a gap (the digital divide) and an opportunity
(leapfrogging potential), which need to be addressed for development to take place.
A singular characteristic of most ICT for development literature is that even when
sounding warning notes about potential misallocation of resources or widening of economic
26
and other divides, for example, there is a strong thread of inevitability, and even urgency,
that somehow developing countries need to overcome the challenges of deploying and using
ICTs; the sooner, the better, and preferably with the most advanced technology available
(e.g., Mansell, 2001; Moyo, 1996; Nicol & Weber, 1986; Pfister, 1999; Udo & Edoho,
2000). For example, Davison, Vogel, Harris and Jones (2000) state, “if developing countries
choose not to listen to the recommendation that they join the information revolution, then
they do appear to risk further marginalization” (p.7). At the same time they critique the
leapfrog thesis as laden with western technical values, and unrealistic in view of the human
and resource capabilities of developing countries. Similarly Heeks, describing the leapfrog
thesis as “largely fanciful” (2002b, p.8) concludes “and yet… something is going on here.
ICTs are worth a second look and worthy of more than patronizing cynicism and disregard”
(p.9). Forestier, Grace and Kenny (2002) believe that the Internet has the potential to close
development gaps under the right conditions, but explain that with its high requirements for
use, it is likely to follow a similar pattern to telephony which has historically contributed to
increasing inequality with little impact on quality of life variables (also Chéneau-Loquay,
2007; Norris, 2000). Wilson (2004) concludes on the basis of analysis of a basket of ICT
indicators that the digital divide is widening, and that this situation is likely to continue, at
least in the short to medium term.
Some exceptions do exist. For example, Nyamnjoh (2001, p.9) who asserts that the
possibility of most Africans becoming full participants in the global information society is so
remote that attention should be focused on cultivating indigenous forms of communication –
“the footpaths offered by alternative channels of communication as the only way out for the
silent majorities of Africa” – for possible integration into existing and future new ICTs.
Jegede (1995) is also pessimistic about the actual impact of ICTs stating that they are in fact
diverting attention from other development problems (also Wade, 2004). In all likelihood,
27
especially if issues of divide continue to be expressed in terms of the newest technologies,
the disparity in access to and use of new ICTs will persist into the foreseeable future.
Thus, enthusiasm over the potential of ICTs in low-income countries is increasingly
being moderated by notes of caution and the placement of ICTs in an important but less
privileged position in the drive for development. McNamara (2003) determines that ICTs
enable rather than create change and goes as far as to state, “ICT-related indicative goals
(e.g. a telecenter in every village over population X by date Y) are at the best misleading and
at the worst bad policy” (p.31). Schware (2005) notes that the digital divide is part of the
broader development divide and that in all likelihood a certain critical mass would need to be
reached before developing countries can see macro level benefits of ICT adoption and use.
Mir and Mir (2005) looking at an Indian case, conclude that although particular industry
sectors may benefit from ICT deployment, overall, ICTs have a catalytic rather than leapfrog
role in developing countries’ search for entry into the information society. To some extent,
the goal or mindset that scholars seem to be moving towards is that of understanding the
nature of poverty and underdevelopment, and then seeing how ICTs, amongst other strategic
tools, can contribute to addressing the problem. In essence, it is an assessment of the nature
of poverty that should drive development efforts, rather than the nature of the digital divide
(Schware, 2005; McNamara, 2003).
2.1.2 Explaining the Link between ICTs and Development
The often advocated view that information technology will change the world must
stem from the basic premise that computing and information processing equipment
has a visible impact on productivity and income. While there is substantial evidence
that new information technologies are in many ways transforming the operations of
modern economies, the impacts on productivity and economic growth have been
much harder to detect. (Pohjola, 2001, p. 242)
28
With all the expectations and hopes associated with the use of ICTs in developing
countries, a vexing question continues to be that of how to define the precise links between
investment in ICTs and economic development, as well as the precise link between use of
ICTs in a general way, and socio-economic development. The search for these links is
usually addressed either at the macro (policy) meso (industry or firm) or micro (individual
user) level. More broadly, it may also be considered in terms of the supply or demand.
Studies that focus on the supply side examine the state of existing telecommunication
infrastructure, or levels of investment in ICT infrastructure; the state of telecommunications
policy and regulation; the state of the telecommunications industry, especially
competitiveness; or local development of telecommunications hardware, software and
services, especially for global consumption. The demand level largely focuses on how
government, organizations, groups or individual users adopt and use ICTs. Finally, some
analysts examine domestic conditions of ICT deployment and use, while others are
interested in the global level or the nexus of the local and global.
Most of the research that attempts to empirically measure the relationship (usually at
the national or international levels) can be found in the economic literature, as well as in the
work of policy-oriented and global organizations such as the UN or ITU. In both developing
and advanced economies (but mainly in advanced economies), these studies have found
evidence of a correlation between telecommunications infrastructure (especially mainline
telephones) and macro-level economic development. And at the (also macro) level of human
development, a strong correlation has also been found between the UNDP’s Human
Development Index (HDI) and the Networked Economy Index (Lanvin & Qiang, 2004). Yet
the direction of causality remains unclear (Bedi, 1999; Eggleston, Jensen, & Zeckhauser,
2002; Nicol & Webber, 1986; Pohjola, 2001, 2002; Roller & Waverman, 2001, 2005;
Saunders, Warford, & Wellenius’ 1994; Schreyer, 1999). For example, although Neto,
29
Kenny, Janakiram, and Watt (2005) cite several examples of countries that have experienced
a boost in their economy from the use of ICTs, they conclude that in terms of “supra-normal
returns to investment and leapfrogging opportunities” (p.6) and spillover effects, the
evidence is limited. Only in the US, Pohjola (2002) argues, has investment in information
technology demonstrably resulted in improved economic growth and productivity. Pohjola’s
analysis of 42 countries including some of the high-income economies of Europe and Asia
showed no significant positive correlation between ICT investment and economic growth in
these countries. After reviewing econometric analyses of ICT and development
relationships, Bedi (1999) also indicated that the US seemed to have enjoyed the strongest
benefits, even compared to other advanced economies.
Possible reasons tendered for this apparent absence of correlation, especially in
developing countries, are that there has been less investment in ICTs and/or inadequate
investment in sectors that support use of ICTs, as well as delays in the manifestation of
benefits (the productivity paradox). However, according to Pohjola (2002), the most
important possible reason is that the inhibiting factors are demand rather than supply-related,
that is, “the most significant benefits of the New Economy should show up as an
improvement in the welfare of consumers of knowledge products” (p.394). In other words,
impacts will only be seen when there is clear evidence of consumer welfare through actual
use of ICTs. Bedi (1999) identified no predictable link between ICT investment and firm
productivity, nor employment and wage levels. On the other hand, Bedi found incontestable
and significant welfare benefits in terms of consumer surplus, as well as evidence of macro
level growth benefits, but only after a certain level of ICT adoption. This indicates that high
levels of ICT adoption are an important prerequisite to ICT benefits at the national level.
In this respect, history has shown that ICTs such as the telegraph and telephone,
while opening up local and global markets to some extent, tend to exert stronger
30
concentration than dispersion forces on global economic activity, meaning that a limited
number of countries or actors are usually the primary financial beneficiaries of the
information economy (Cohen, Garibaldi & Scarpetta 2004; Venables, 2002). The Internet
has been found to contribute to the same process (Cohen, Garibaldi & Scarpetta 2004). Thus
Venables has concluded that,
new technologies may change the pattern of inequalities in the world economy but
not necessarily reduce them. In this way new information and communication
technology may be like previous rounds of infrastructure development, such as that
for canals, railways, and road networks, which permitted deagglomeration of some
industrial activities but probably reinforced rather than diminished centralizing
tendencies. (2002, p.150)
However on a more pervasive level, a great proportion of populations (even those
with limited access) do tend to benefit from network externalities associated with the
improved flow and availability of content, information and knowledge facilitated by ICTs.
This idea is not completely new. In 1986, Nicol and Weber argued that the most broad-based
benefits of ICTs would be to nations in their capacity as consumers rather than as sites of
production, the latter being likely to occur for a minority of countries. Others have tried to
push this aspect to the forefront (e.g., Obijiofor, 1998; Powell, 2001). Their arguments can
be encapsulated in the following assertion by Powell. Arguing that the potential for
emergence of ICT-based economies in Africa is limited, Powell suggested that,
it will be more important to apply new methods and technologies to the creation of
other business, supported and enabled rather than led by local ICT businesses. The
greatest potential for the development of such business lies in millions of Africa
(sic) using their family, village and peer group connections within countries, across
boarders and inter-continentally to develop exchanges which could evolve into
business opportunities and new political organization. From such mass engagement
with new ways of doing things …. Specific African ways (plural rather than
singular) of exploiting the medium will emerge and be applied either to maximizing
the benefit of African ‘network economies’ or be developed into applications which
can impact on and be marketed to global informational practice. (2001, p.257)
What these results indicate, at least partially, is that it should not be assumed that the road to
economic development requires being involved in the production side of the ICT industry.
31
At the very least, broad-based access would be needed so that infrastructure, industry and
consumer progress in tandem.
Thus while it is important to develop and improve upon econometric measures of the
impact of ICTs on national development indices, it is equally important to pay attention to
access and impacts at the micro level. The challenges this presents, however, is that it is
easier to demonstrate direct links between ICTs and growth/productivity benefits in the area
of industry developments than it is to do the same for human usage outcomes. Distinguishing
between intensive (facilitation of learning, decision making, etc.) and extensive
(development of new processes in the economic sphere) uses of ICTs, Heeks (2002b) argued
that ICT impacts are more clearly identifiable for extensive uses (e.g., job creation, increased
income and skills) than for intensive uses. Nevertheless, outside the economics field, other
researchers and practitioners have generated some data that addresses socio-economic
change at the grassroots of society as well as impacts in non-econometric terms at national
and societal levels. These cover a range of interests such as information systems in the
information and library sciences; poverty reduction and human development in the
development literature; commercial activity in the business literature, policy and regulation
in policy studies; and social structure in science, technology and society studies. These
discussions are often supported with social scientific investigations, although a significant
proportion is more discussion and less research.
One type of research that dominates ICT4D literature is policy research, largely
looking at the political economy of national telecommunications policy reform (e.g., Addy,
Nayo, n.d.; Alhassan, 2003; Bennell, 1996; Fink, Mattoo, & Rathindran, 2002; Frempong, &
Atubra, 2001; Galal & Nauriyal, 1995; Haggarty, Shirley, & Wallsten, 2003; Laffont, &
N’Guessan, 2002; Noll, 2000; Wallsten, 1999, 2001; Wilson & Kong, 2003; Wilson, 2004).
These studies illuminate the factors that econometric analyses cannot capture but invariably
32
ascribe ultimate outcomes to. That is, that there are a variety of contextual factors that
intervene in the application of information and communication technologies in developing
countries, facilitating or inhibiting the achievement of expected goals. The importance of
policy, regulation and political will is usually the ultimate insight provided by these studies.
There is also a vast amount of user-level literature on ICTs in developing countries,
although only a small proportion is based in or on Africa. Most of this comes from
international organizations involved in development projects in low-income countries, and
consists of descriptions and evaluations of their projects. There is thus a tendency for studies
to be based on projects, usually funded pilot projects, examining organized attempts to
introduce new ICTs into communities for the purpose of achieving some specific
developmental goal. Such projects are also attractive to ICT researchers as they provide a
focused area for study. Overall, the research on Africa is often piecemeal, superficial,
heavily reliant on anecdotal data, and lacks methodological and/or theoretical grounding
(Adam & Wood, 1999; Heeks, 2007; Mbarika, Okoli, Byrd, & Datta, 2005). Poverty-related
ICT projects are also often accused of being excessively technology-oriented (e.g., Heeks,
2002b, Pfister, 1999). To this end, one can now see a move towards user-oriented projects
that try to involve communities in design and implementation of projects, the goal being to
ensure that the project is consistent with the values and needs of the target community.
19
Even with participatory methods, though, the underlying objective remains to reach
predetermined goals; as such, the success or failure of the project is seen in relation to those
goals. According to Heeks (2002a), because of the “design-actuality gap” between systems
19
If, as Bar and Riis (2000) have suggested, the uses of technology are ultimately unpredictable, then
even participatory methods cannot fully anticipate uses and outcomes. The implications of this are
discussed in Section 2.3 on technology appropriation.
33
to be implemented and the actual situation on the ground at the implementation sites, a
majority of ICT projects in developing countries end up as partial or total failures.
Also worth noting is the tendency for ICTs to be conceptualized as the Internet.
Only recently, with the obvious fast rate of mobile phone adoption in developing countries
has the telephone come to some prominence in the discourse. Even then, studies that
consider the telephone or other old media ultimately indicate that the ideal situation would
be to enable Internet access via these other vehicles, if possible (e.g., Mbarika, 2002
proposing teledensity as a precursor to Internet diffusion). A few however, express divergent
views. For example, Kenny (2003), while optimistic about the contribution of ICTs to
development efforts, had earlier strongly advocated that the Internet would, for the time
being, be unsuitable for fruitful use by poor people in developing countries (2002).
Obijiofor, (1998) also predicted that the telephone rather than the computer would be the
technology that would be widely adopted in African countries.
The evidence from the majority of ICT for development projects in Africa remains
largely anecdotal, although a few have employed quantitative tools to obtain concrete
measures of impact. So far, there have been limited investigations of everyday use of
communication technologies, that is, non-project-related uses of existing ICTs that, as a
matter of course, may improve a user’s quality of life. A few studies that have made
important inroads in this respect include Bertolini’s (2002) study of users in Ghana;
McKemey, Scott, Souter, Afullo, Kibombo, and Sakyi-Dawson’s (2003) analysis of users in
Ghana, Uganda and Botswana; Donner’s (2004) studies of entrepreneurs in Rwanda; the
initiative by LINK Centre and Research ICT Africa! to measure e-access and usage (e.g.,
Gillwald, 2005); the Vodacom-sponsored studies of the impact of mobile phones in a
number of African countries (2005) and the Information Society Research Group’s (2005)
ethnographic projects in South Africa and Ghana. They have provided a picture of the
34
demographic profiles of telecom users, some usage patterns, and the opportunities and
challenges faced in different countries. These studies show that telecommunications, and in
particular telephony is highly valued by ordinary people across the board, although
challenged by resource limitations (infrastructure and monetary).
All these attempts to understand ICT impacts point to the same potential and some
actual benefits of ICTs in the national development process – enabling participation in global
trade, improving domestic governance and private sector development, improving domestic
trade and market integration, increasing livelihood opportunities, enhancing the development
of social and human capital, facilitating personal and community security, etc. (e.g.,
Cogburn & Adeya, 1999; Eggleston, Jensen & Zeckhauser, 2002; Gerster & Zimmermann,
2003; Hudson, 2006; Madon, 2000; Myers, 1998; Oshikoya & Hussain, 1999; Rodriguez &
Wilson, 2000; Saunders, Warford, & Wellenius, 1994). These benefits derive from the
volume and efficiency of information flow enabled by ICTs, particularly the networking
capability they enforce, giving nations entry into the networked information society
(Castells, 1996).
Likewise, at the grassroots, examinations of the use of ICTs in poverty reduction
programs have recorded a range of benefits that could, and in some cases do, accrue to
individual users of these technologies – e.g., income generation, savings in money and time
through reduced need for traveling, access to market information, access to government
services, access to educational resources and health care, improved flow of remittances,
political and gender empowerment (e.g., Bertolini, 2002; Cechinni & Scott, 2003; Donner,
2004; McKemey, Scott, Souter, Afullo, Kibombo, & Sakyi-Dawson, 2003; Slater & Kwami,
2005; ). In general it can be said that the perceived potential benefits of ICT use for the poor
35
are in the areas of job creation, improved productivity and social equity.
20
Still, the transition
from potential into actuality has been difficult to achieve in Africa. For example, Adams and
Wood found “discouraging” evidence of a large gap between potential and actual impacts of
ICTs in sub-Saharan Africa (1999, p.311). The qualitative evidence is as contradictory as the
quantitative data.
To link the problem of the gap between potential and actual impacts, it is useful to
return to one issue that empirical analyses have pointed to – the significance of universal
service. As already noted, there have been some suggestions that ICT-driven economic
growth may need to be preceded by widespread access to and use of ICTs. It has been found
that positive influences of ICTs on growth in developed countries were experienced only
after a certain minimum threshold of ICT density had been achieved, a level that was close
to universal service (Bedi, 1999; Roller & Waverman, 2005). This highlights the importance
of universal access, or better still, universal service as the basic platform for the achievement
of both macro and micro level economic development. The digital divide within a country,
then becomes an issue of critical importance.
2.1.3 Facilitating ICT Use for Social and Economic Development
Perhaps the single most important issue most ICT researchers and commentators
raise is the need for a holistic approach to the use of ICTs as engines of economic growth,
such as instilling the political will to move in new directions and commit resources to the
process, building appropriate institutions to support e-commerce and other ICT applications;
designing appropriate content and services, availability of adequately trained human
resources; instituting rigorous monitoring and evaluation systems (e.g., Arunachalam, 1999;
20
See Donner (2005) for a concise summary.
36
Gerster & Zimmerman, 2003; Guslain, Qiang, Lanvin, Minges & Swanson, 2006; Jimba,
1998; Mansell, 2001; Moyo, 1986; Mutula, 2005; Pigato, 2001; Schware, 2005; Udo &
Edoho, 2000; Van Der Velden, 2002; Wilson, 1996).
21
While most of these views are based
on qualitative assessments of ICT projects or national ICT strategies, a few statistical
analyses, though preliminary, provide additional support. An example of this is the
regression analyses conducted on a variety of ICT, economic and human development
indicators by Neto, Kenny and Janakian (2005). The results showed that per capita GDP
alone was a large and significant predictor of ICT development, indicating that ICT divides
are indeed a function of the larger development divide (see also similar findings in
Rodriguez & Wilson, 2000 or Wilson, 2004). However, improvements in infrastructure and
policy environments together led to more significant positive relationships between ICTs
and development, than improvement in any one factor alone. In summary, to see the desired
results from ICT application to development problems, it is necessary to address issues in the
infrastructure, human resource, and policy arenas (Gerster & Zimmermann, 2003).
Other researchers call for a reorientation of theoretical and philosophical
underpinnings of ICT for development approaches. For example, Schech (2002) asserts that
pro-ICT stances are usually informed by the view of development as modernization
(focusing on the promise of knowledge), while skeptical stances tend to draw on dependency
and postcolonial discourses (focusing on the danger or constraint of power). In contrast to
both perspectives, Schech proposes an orientation that recognizes that knowledge and power
are “mutually constitutive” (2002, p.21) and not separate influences – this would provide
room for the unexpected uses of ICTs by ostensibly powerless ordinary people, while
21
Note that similar recommendations were made for earlier communication technologies, print and
broadcast. Arguments raised during the 1970s debate on the New World Information Order are
continuing, albeit in revised form, with regards to new ICTs.
37
acknowledging that knowledge does have power dimensions. Nulens and Audenhove (1999)
note that the discourse on ICTs and development tend to adopt simplistic dichotomous
viewpoints including idealism/materialism (in terms of approaches to ICT use in
development), technophilia/technophobia (in terms of attitudes toward technology), and
market/state (in relation to mechanisms for promoting ICT use). From a rights-based
perspective, Pfister (1999) critiques the tendency for ICTs initiatives to unduly focus on
technical rather than human development issues, and notes the importance of distinguishing
quantity and quality of access to information, as well as of the ability to disseminate
information. Assessing optimistic, pessimistic and structuralist views on ICTs for
development, Wilson (2004), concludes that the structuralist view that ICT diffusion will
follow existing patterns of wealth and distribution most closely resembles reality. For this
reason, Wilson (1996) believes that the constraints to the information society in Africa are
not financial or technical, but rather political, institutional and regulatory. To Wilson, “the
bottom line seems to be that ICTs may contribute substantially to growth but that the
contribution is by no means inevitable” (2004, p.326). And Fink and Kenny (2003)
investigating measures of the digital divide conclude that in absolute terms the divide is
growing but that when one looks at relative growth rates, there is clear evidence that the
global digital divide is narrowing significantly. Indeed they see leapfrogging as a real
possibility for developing countries. Consequently they advocate:
a gentle paradigm shift from the notion of a growing digital divide with cataclysmic
consequences. The new paradigm would retain the idea that new ICTs offer
significant opportunities to people in developed and developing countries alike…. It
would retain the idea that policymakers need to grapple with the challenges and
grasp the potential of the Internet. At the same time, there would be a shift away
from the language of a growing gap in access that itself presents a development
challenge. The gap is not cataclysmic and it is closing, not growing. (Fink & Kenny,
2003, p.16-17)
38
The World Bank (2008) has also noted that although technological achievement in
developing countries has progressed faster than in high-income economies, the technology
gap remains because of the locus of technological innovation in high-income countries.
There is thus a variety of views about the real state of the digital divide, and the lack of a
uniform conception of what the divide is, and a uniform methodology for measuring it
means that no single viewpoint can necessarily be accepted over the others.
Despite the conflicting evidence, most scholars and researchers are overall positive
about the role of ICTs in development programs. Kraemer and Dedrick (2001) conclude that
overall there is strong evidence that “investments in information technology do pay off in
greater economic growth and productivity” (p.278) and that this should be an encouragement
to developing countries to pursue such investment along with the development of critical
support sectors. In other words, efforts to bridge the digital divide should continue.
Considering the immense infrastructural and resource limitations faced by developing
countries, even meeting the universal access goal, however defined,
22
is a challenge.
Nevertheless this seems the logical path to take since universal service cannot be achieved
overnight. Notwithstanding this, it is striking to note the extent to which the notion of shared
access (which underlies the universal access concept) has come to be seen as practically the
only form of ICT access viable for developing countries for the foreseeable future. This
22
For example, in South Africa universal access is defined as affordable and convenient access to
telecommunications technology (telephone or Internet) with a 10-15 minute walk (Parkinson, 2005).
In Uganda the definition translates into access to a public telephone within five kilometers (Uganda
Communications Commission, 2005). In Ghana it is defined as broad geographic coverage of
affordable and high quality “community-based” broadband information and communications services
to all citizens of Ghana by 2010 (Republic of Ghana – Ministry of Communication, 2005, p.24).
39
mindset is demonstrated in the dominance of the telecenter
23
approach to delivering ICT
services.
2.1.4 Shared Access to ICTs: The Model for Developing Countries?
Unlike most developed societies where telecommunications is generally acquired
and used on an individual basis, in developing countries, systems of shared access such as
telecenters and cybercafes are being experimented with as alternative methods of expanding
access to telecommunications. The developmental impact of such systems, based on wired
telephony and Internet access, remains unclear, although it appears to have been relatively
limited partly due to infrastructure and sustainability problems (Benjamin, 2001; Etta &
Parvyn-Wamahiu, 2003; Latchem & Walker, 2001; Mayanja, 2001; Parkinson, 2004; Roman
& Colle, 2002). Furthermore, the emergence of a “telecenter movement” (Fuchs, 2005, p.
vii) and the associated attempts to constitute a generic approach (based on identification of
best practices) to ICT implementation in developing countries, turns projects into systems
that often end up being inadequate for local needs. Ted Byfield (2004, last para) asserts that
the success of the telecenter approach to ICT interventions, particularly in the rural
“South,” comes at the expense of less efficient or rational research and projects that
are context-specific and, perhaps, irreproducible. As a model, its current formulation
is becoming more responsive to the needs of funders, development agencies, and,
possibly, investors, and less responsive to the needs of local beneficiaries.
Access to the improved services offered by telecenters has been uneven and methods are still
being sought to bring marginalized communities into the telecommunications network. Thus,
wireless telecommunication systems, being cheaper to set up and maintain are being hailed
as the “missing link” (Kelly, Minges & Gray, 2002) to improved telecommunications access
on the continent. Policy reforms have made possible the growth of a vibrant wireless
23
Defined as “strategically located facilities providing public access to ICT-based services and
applications” (Oestmann & Dymond, 2001, p.3).
40
telephone industry. However, much like the wired system, wireless telephone operators do
not have strong motivation to provide service in poor areas. The same ideas about shared
ownership and public access are therefore emerging around the medium of wireless
telephony. Research in Africa shows that the rapid mobile phone ownership growth rates
have not eroded the importance of public access telephony. Indeed in most countries, the use
of public access payphones remains high and a significant proportion of this usage occurs
with mobile payphones (e.g., Esselaar, 2006; Vodafone, 2005).
2.1.4.1 Mobile Phone-Based Shared Access: Mobile Payphones
Provision of payphone services has typically been a major function of most
telecenters, as well as fixed line network providers based on their universal access
obligations. However, the availability of mobile phone technology has made it possible for
this system to be established and operated in different ways and by different players.
Wireless communication technology (and especially prepaid systems) in this context has
significantly lowered market entry barriers for the payphone service industry by removing
most of the capital investment and overhead requirements associated with setting up a fixed
line service. In consequence, any individual who can find the resources to buy a mobile
phone can operate a payphone service, and a significant number of people seem inclined to
do so.
The era of public access wireless telephony was arguably ushered in by the Grameen
Foundation with the development of the Village Phone Program, which put mobile phones in
the hands of women in poor communities for use as public payphones. This program has
engendered immense global attention and evaluations have indicated significant benefits to
the community in terms of access to telephony, and the mobile phone owner in terms of
41
income generation and a range of other social and economic benefits. A number of program
replications have been set down in some African countries including Uganda and Rwanda,
and some modified versions of the idea have also emerged based on different ownership and
operational models (Castells, Fernandez-Ardevol, Qui, & Sey, 2006). Unlike the telecenter
concept, public access mobile telephone systems are overwhelmingly micro-scale
enterprises, offering only voice calls, and with predominantly private sector involvement.
The observed success of these services has been attributed in large part to their openly
commercial nature.
Private mobile phone network providers have already been recognized as helping to
fill gaps created by fixed line telecom incumbents’ general failure to provide adequate access
to public payphones, thereby contributing to the furtherance of national universal access
goals (e.g., Oestmann, 2003), however this is defined. Mobile payphone operators, as
unintentionally as other profit-oriented private sector telecom service providers are also
contributing to this trend. The development and usage patterns of these micro-
entrepreneurial businesses point to their beginning to take over the functions of public
payphones traditionally designated as part of the universal service obligatory rollout duties
of the major telecom companies (fixed and mobile), and indeed to provide a more valuable
service to patrons. According to Benjamin (2002), this entrepreneurial model works better
than say, community-based telecenters because having a stake in the success or failure of the
enterprise motivates operators to run the business effectively. Whether viewed simply as
business enterprises, mechanisms for sharing access to mobile telephony, or community
service provision, mobile payphones operators perform an important function in urban areas
and this could be doubly so in rural areas. Essentially, they aggregate demand from low-
income, low-volume users such that service provision becomes a viable proposition. But this
is still only possible where the telecom network already has coverage.
42
Knight-John, Zanudeen, and Khan (2006)’s analysis of Grameen Village Phone
shows that from the perspective of a mobile phone company, there is less cost associated
with servicing a VP operator than an individual subscriber, whereas the revenue derived
from a VP operator is twice that of an individual subscriber. They note that,
although each of these connections may serve an entire village and thus cannot be
compared with a regular single-use subscriber, the point to note here is that from the
perspective of GP, if twice the amount of revenue is generated from a smaller base
of costs, this is surely enough to convince another operator to do the same. (Knight-
John, Zanudeen, & Khan, 2006, p.22).
2.1.4.2 Access and Use of Public Payphones in African countries
Researchers have found that “private telephone kiosks” (generally mobile
payphones) are the most prevalent form of public telephone access in several African
countries (Table 2.1). This is the case in both urban and rural areas, but in rural areas (Ghana
and South Africa) the proportions are particularly high in comparison with other forms of
public access.
Table 2.1: Access to and Use of Payphones (approximate % of respondents)
Public Payphones Telecentre Private kiosk
COUNTRY Major
towns
Rural Major
towns
Rural Major
towns
Rural
Ghana (access to public
payphone)
54.5 9.6 30.6 10.7 77.8 44.8
South Africa (use payphone) 24.0 17.0 14.6 18.0 35.0 43.5
Uganda (use in past 3 months) 60.0 25.0 5.0 3.0 65.0 20.0
Source: Gillwald (2005), Towards an African e-Index: Household and individual ICT access and usage across
10 African countries. The LINK Centre, Wits University School for Public and Development Management.
Apart from their obvious use as an income-generating tool for primary or
supplementary income, mobile payphones appear to fit in a particular way into the
43
communication ecology of users. The main reasons for using mobile payphones tend to be
lack of other access options, proximity, and budgetary constraints. Around the African
continent, as reported by the African e-Index studies, “consumers have adopted what can be
described as a ‘multiple communications strategy’ – utilizing whatever medium of
communication is available given two key factors: convenience (or accessibility) and
disposable income at that particular period” (Gillwald & Esselar, 2005, p.18). Mobile
payphones serve as an important temporary tool for mobile phone subscribers, filling in
during times when subscribers cannot use their phones due, for example, to limited funds or
waning battery power. Overall, while accessibility may be the primary driver for people who
do not have their own phones, for subscribers, mobile payphones are used primarily for
convenience, related to their socio-economic condition at particular moments in time.
Although the global rhetoric on mobile phones in developing countries tends to
emphasize their use for explicitly productive business activities, social networking tends to
be the dominant function performed by mobile phones even among the poor. In fact,
Parkinson (2005) observes an apparent lack of demand for information services in the South
African communities she studied. Mobile phones in general as well as mobile payphones in
particular tend to be used more for making than receiving calls and for maintaining links
with family and friends (Bertolini, 2002; ISRG, 2005b; McKemey et al, 2003). There is also
emerging evidence that mobile phone use helps poor people to save rather than to make
money (e.g., Souter, Scott, Garforth, Jain, Mascarenhas & McKemey, 2005). These trends
are closely linked to the role mobile phones are now playing in the flow of remittances from
overseas or city-based relatives (e.g., Bayes, von Braun, & Akhter, 1999; Horst & Miller,
2005; ISRG, 2005b; McKemey et al, 2003, Parkinson, 2005, Skuse & Cousins, 2005; Slater
& Kwami, 2005). Remittances have become a significant element of poverty reduction in
44
developing countries (Rios, 2005; USAID, 2004). Robinson (2000, para 6) notes that,
“remittance economies now drive families subsistence strategies at home in the South.” By
reducing the amount of traveling time and expense needed to reach a phone, mobile
payphones contribute to this economy, and this appears to be their most significant role,
particularly in communities where high proportions of residents have family living or
working in urban or foreign locations. Telecommunications services in generally are an
integral part of poor people’s livelihood, migration and welfare strategies, and act as tools
for “managing distance” in these contexts (Skuse & Cousins, 2005, p.10).
The literature on mobile payphone systems (particularly the Grameen VP) generally
concludes that users are enjoying important benefits such as increased consumer surplus due
to lower communication costs (although rural residents may still have to walk up to one hour
to reach a public access point, e.g., Bayes, von Braun, & Akhter, 1999; Gillwald, Esselaar,
Burton & Stavrou, 2005; Moni & Ansar, 2004; Richardson, Ramirez, & Haq, 2000; Skuse &
Cousins, 2005). Purpose of calls may include communicating with family, business
transactions, checking the prices of agricultural goods, and calling into radio phone-in
programs. The payphones have, in some cases, also become social centers as well as sites of
other enterprises taking advantage of the flow of human traffic.
Service providers are able to generate fairly large streams of income. For example,
in South Africa, phone shop operators in good locations can sell over 100 hours of airtime
per month, are usually able to repay their loans within six months, and make up to $1,190
net revenue. Mobile payphones also provide significant additional income (up to 40% of
household income in Bangladesh) since most operators are involved in other economic
activities. Operators are better able to cater for their families, and additionally gain social
and economic empowerment, especially in gender terms (e.g., Bayes, von Braun, & Akhter,
1999; Moni & Ansar, 2004; Richardson, Ramirez, & Haq, 2000). They may also expand
45
employment generation (for example, most operators in South Africa employ additional staff
to run the shops).
The picture then should look bright for mobile payphones in Africa. However this is
not the case. Reports are beginning to emerge that this industry has peaked and in now in
decline. Even participants in the flagship Grameen Village Phone Program in Bangladesh are
experiencing a significant drop in patronage and in revenue (Shaffer, 2007). The reasons for
this development are varied and complex, and constitute one of the issues this study sought
to investigate. It is by no means clear that the shared access model is the natural choice, for
mobile telephony in particular, in African countries.
An oft overlooked indirect function of shared access ICT systems is their ability to
simultaneously create and uncover demand for ICT services. Yet as Oestmann & Dymond
(2001, p.8) note, telecenters “provide a means to explore rural locations as potential
markets” for public and private institutions. The same can be said, and even more so, about
mobile phone-based payphone systems. On the other hand, the failure of such projects may
be an indication that there is limited (commercial) demand for ICTs in the project area. Such
indications may or may not be accurate – Barrantes (2006) observes that non-use of ICTs
may be related to lack of supply, lack of demand or lack of need or capacity to use ICTs. A
number of studies have showed that adoption as well as extent of use of ICTs in poor
communities is significantly influenced by issues of affordability (e.g., Barrantes, Agüero,
Galperin, & Molinari, 2007; Milne, 2006). This is an element that arguably needs to be
overcome before definitive statements can be made about the demand or lack thereof, of
telecommunications services in poor communities. Assessment of willingness to pay for ICT
services is an emerging line of research into ICTs for development (e.g., Ureta, 2002).
46
2.1.5 Cost: A Major Barrier to ICT Adoption and Use
Mobile phone network connections are less expensive to acquire than fixed lines or
Internet access, hence their rapid adoption around the African continent. This does not
however bring them into the realm of possibility for all poor people. Notwithstanding all the
other contextual variables that may influence mobile phone adoption, and the drop in prices
and calling rates over the years, the cost of acquiring and/or using a mobile phone is still a
significant barrier to adoption in most developing countries. Milne (2007) identifies a
“barrier effect” that prevents people from owning or accessing telephony, and an “inhibitor
effect” that stilts their ability to use the phone as fully as they wish to. In addition to already
being constrained by low incomes, poor people generally pay higher prices than rich people
do to access telephony, and spend a larger proportion of their income for this purpose
(Barrantes, Galperin, Agüero, & Molinari, 2007; Skuse & Cousins, 2005: Souter, 2005). The
ITU/UNCTAD 2007 Digital Opportunity report notes that mobile phone prices are more
than half the average per capita income in low-income countries, and identifies small market
size, and unfavorable regulatory environments and tax regimes as major contributors to
higher mobile phone tariffs in these areas (also GSMA, n.d.). Barrantes, Galperin, Agüero,
and Molinari (2007) consider that overall mobile phone services are unaffordable for most of
the Latin American population, and propose micro-prepay and per second billing as
strategies to lower cost and stimulate demand for low-volume prepaid users. A comparative
analysis of ICT access and use in ten African countries (Gillwald & Esselaar, 2005)
identified cost as the primary issue inhibiting widespread access to and use of ICTs in
African countries. Souter (2005) found not only that low-income telephone users spend
relatively more on phone calls than high income users, but low income groups also perceived
the telephone to have a negative financial value to them, in contrast to high-income earners
47
for whom telephones brought positive value. Gillwald and Esselaar (2003, p.30) conclude
that although advances have been made in most countries with respect to voice telephony,
they are unlikely to see the positive network effects that build the value of
infrastructure networks and are associated with economic growth and development
unless there is a quantum leap in the numbers of people accessing and using ICTs.
This will not happen untill the prices of services and equipment across the continent
is dramatically reduced.
This brings us back to the importance of universal service, or meaningful universal access. It
should however be noted that some research also provides support for sheer lack of demand
for telecommunications. Richardson, Ramirez, and Haq (2000), for example, found that for
80% of the people who did not use phones in their Bangladesh research, the reason for this
was simply that they had no one to call. Samuel, Shah, and Hadingham (2005) also
determined that income was not a significant barrier to accessing mobile telephony in South
Africa, although ownership was higher amongst those with higher incomes.
Still, mobile phones are one of the most accessible two-way ICT tools available to
poor people, compared to earlier technologies. Poor people favor mobile telephony not just
because it is easier to get connected, or because of the ability to control cost. Mobile phones
are also favored because for low-volume users, the average call tariff is lower than that for a
fixed line (although per unit tariffs are higher) when monthly fees and connection charges
are taken into account (Barrantes, Galperin, Agüero, & Molinari, 2007; Hodge, 2005). For
low-volume users, there is a choice between personally owning a mobile phone, and making
only limited use of it, or depending on universal access systems offered by payphone
operators.
2.1.6 The Role of Intermediaries in the ICT Industry
ICTs are often touted as facilitating the elimination of middlemen, thus enabling
traders to obtain better prices for their produce. However, intermediaries are not non-
48
essential links in the supply chain; they can play critical roles in improving market
efficiency. Intermediaries gain undue power when there are too few of them; competition
gives their suppliers more options and forces them to offer more reasonable prices
(Eggleston, Jensen, & Zeckhauser, 2002). This also depends though, on the types of
relationships of trust and friendship that exist between traders and intermediaries, which can
affect the extent to which traders will act on information that can bring them more income
(Eggleston, Jensen, & Zeckhauser, 2002; Molony, 2005)
Conversely, when it comes to the telecommunications industry itself, intermediaries
have become important mediators between network providers and consumers. Shared access
approaches to telecommunication use, such as mobile payphones, are predominantly offered
through intermediaries. The emergence of mobile payphones is one of the more striking
instances of this mediation, and their function in this capacity is an area of interest for this
study. For example, in some African countries it has been observed that payphone users,
especially the poor, prefer to use manned payphone stations and are prepared to pay extra for
this purpose (McKemey et al, 2003; Parkinson, 2005; Tanburn & Kamuhanda, 2005). A
major reason for this is that such users do not feel confident in their ability to use the
technology on their own and like to have an attendant on hand to help. While this may not be
surprising when considering Internet use, it is interesting that this applies to public access
payphones. Users are also concerned about other issues such as potential inability to retrieve
cash or phone cards if a call doesn’t go through, safety and privacy, cost of phone cards and
out-of-service booths. This makes communication centers and mobile payphone services
preferable to public fixed line payphones as sources of public access telephony.
Intermediaries in this respect provide some level of security and confidence for consumers to
use the service.
49
While ICT4D research has drawn extensively from communication as well as
science and technology studies, it has curiously not incorporated ideas from the development
literature (Heeks, 2007). This situation is however changing. Attempts to take a more
holistic approach to the issue of ICTs in development, have moved researchers toward the
use of socio-technical or community informatics approaches to analyze the impacts of ICTs
(e.g., Slater, & Tacchi, 2004; Warschauer, 2003), generally problematizing the issue of ICT
access (e.g., Alzouma, 2005; Mahan, 2003; Wade, 2004; Warschauer, 2002), and more
recently, applying the sustainable livelihoods approach, which has its roots in the
development community. ICT4D researchers are beginning to consider practices and ideas
from this critically relevant community. Additionally, livelihoods approaches are gaining
currency in ICT4D circles because they focus attention on the targets of ICT for
development projects – poor people – and in so doing may avoid the tendency towards
technological determinism that other approaches have been accused of. Section Two
presents an overview of this approach to poverty reduction.
2.2 The Sustainable Livelihoods Approach to Poverty Reduction
2.2.1 The Sustainable Livelihoods Framework
The concept of sustainable livelihoods started circulating in the 1990s with the 1992
United Nations conference on Environment and Development (UNCED) and ideas from
scholars such as Robert Chambers (Chambers, 1987; Chambers & Conway, 1992) as a
means to understand rural communities and the poverty problem. A livelihood is essentially
“a means of gaining a living” (Chambers & Conway, 1992), consisting of capabilities, assets
and activities (Figure 2.1). Livelihood capabilities refers to people’s physical abilities, skills,
knowledge and creativity, which can be likened to human capital. Tangible assets are those
physical stores and resources (e.g., food, jewelry and bank savings), as well as natural and
technological resources (e.g., land, livestock, machinery) that a livelihood unit, such as a
household, has at its disposal. These can be associated with physical, financial and natural
capital. Intangible assets on the other hand are the means and opportunity people have to
actually use tangible resources for their purposes (access) or to call on or make demands of
other individuals or institutions for material, moral or other assistance (claims). These can be
associated with social capital. Claims are usually made in times of need, and draw on
“combinations of right, precedent, social convention, moral obligation and power”
(Chambers & Conway, 1992, p. 11). An important link between claims and access is that
“claims require access if they are to have any value” (Chambers & Conway, 1992, p.9).
Figure 2.1: Components and Flows in a Livelihood
50
Source: R. Chambers and G. R. Conway (1992) Sustainable rural livelihoods: Practical concepts for the 21st
century. DP 296, Institute of Development Studies, p.10.
People
Livelihood
Capabilities
A
Living
Stores and
Resources
Claims and
Access
Tangible Assets Intangible Assets
Although Chambers and Roberts do not expressly state so, the arrows can be said to
represent activities, which are essentially what people do, the processes through which they
utilize assets and capabilities. The elements interact with each other, through people’s
activities to provide them with a living (which may or may not be a sustainable one). These
51
concepts are both overlapping and interdependent. Ideally, livelihood activities would go
beyond addressing peoples’ immediate consumption needs to also contribute to the
enhancement of assets and capabilities (e.g., investing in education).
The sustainable livelihoods (SL) perspective aims to put people and their activities
in the pursuit of a living at the center of the development process and to improve the
efficiency and effectiveness of development interventions, the goal being to achieve more
appropriate outcomes than have been experienced in the development community (DFID,
1999). It recognizes the multiplicity of factors that influence livelihoods and livelihood
strategies (e.g., climate change, political trends, market shifts, and technological
developments). It also seeks to continually improve and clarify understanding of
development, starts at the point of people’s strengths rather than needs, encourages analysis
of macro-micro linkages, and places a premium on sustainability (DFID, 1999). The
usefulness of this framework is that it tries to provide an encompassing picture of where
poor people are at any moment in time, and the conditions that affect their ability to bring
about lasting change in their circumstances. In particular, it can make visible how people use
or do not use accessible resources (including ICTs), either strategically or out of necessity, to
achieve their livelihood goals. Thus it grounds analyses in reality.
Several models of the SL approach have been emerged over time (Cotula, 2002;
IFAD, 2001), the most popular of which appears to be the DFID model (Figure 2.2). The
DFID (1999) sustainable livelihoods framework views poor people as operating within an
environment that is subject to changes over which they have limited control but which can
fundamentally affect their ability to make a living (the vulnerability context). It operates
under the assumption that poor people are more susceptible than wealthy people to stresses
and shocks that diminish their livelihoods. Livelihood assets highlight human, social,
natural, physical and financial capital available to the poor. Institutions, policies and
regulations (transforming structures and processes) influence people’s ability engage in
activities and make choices (livelihood strategies) in order to achieve certain livelihood
outcomes. The framework can function as an approach to development interventions, an
analytical tool or a development objective (Farrington, 2001; Duncombe, 2006).
Figure 2.2: DFID Sustainable Livelihoods Framework
Source: DFID (1999). Sustainable livelihoods guidance sheets, http://www.dfid.gov.uk/.
Because livelihood activities can have externalities, ‘good’ livelihood activities are
distinguished from ‘bad,’ with sustainability being the feature that is seen as characteristic of
good livelihoods. Sustainability is also important as a hoped for characteristic of poverty
reduction itself. A sustainable livelihood is defined as one “which can cope with and recover
from stresses and shocks, maintain or enhance its capabilities and assets, and provide
sustainable livelihood opportunities for the next generation; and which contributes net
benefits to other livelihoods at the local and global levels and in the short and long term”
(Chambers & Conway, 1992, pp.7-8). Sustainability has multiple dimensions including
environmental, social, economic and institutional, and can be considered at macro, meso or
micro levels (Chambers & Conway, 1992, DFID, 1999). Environmental sustainability refers
52
53
to the conservation or enhancement of natural resources, economic sustainability is the
ability to maintain a certain level of expenditure over time, social sustainability covers the
minimization of social exclusion and enhancement of social equity, and institutional
sustainability is the capacity of structures and processes to perform their functions over time
(DFID, 1999).
Livelihood assets, and their maintenance or enhancement, are affected by events in
the environment. They are also affected by the full range of institutions and policies that can
create assets and determine who has access to what resources, as well as rates of asset
accumulation. People’s ability to influence these structures is in turn determined by their
asset endowments. In addition, the more assets people have, the more livelihood options they
have. Finally, in terms of outcomes, people need different assets depending on the desired
livelihood outcome. The question of outcomes is not always clear cut; much depends on the
personal preferences and perceptions of people as to what outcomes are most important to
them. For example, the manner in which people employ their assets may be designed to
make a living (instrumental action), make life meaningful (hermeneutic action), or challenge
prevailing structures (emancipatory action, Bebbington, 1999). Bebbington’s breakdown
extends the idea of a livelihood as “making a living” to account for other quality of life
issues along the lines of development as freedom (Sen, 1999).
2.2.2 Critique of the Sustainable Livelihoods Approach
Despite its strengths, a number of criticisms have been leveled against the SL
approach. Chief amongst these is that this approach overemphasizes the assets or strengths
of poor people and assumes that they are deliberately strategic in their exploitation of assets,
whereas they may be relatively helpless in the choices they make. Related to this is the
critique that this approach neglects or downplays a number of important issues including the
54
influence of power relations and gender, as well as markets and private sector behavior
(Ashley & Carney, 1999; Farrington, Carney, Ashley & Turton, 1999). Additionally, despite
the centrality of sustainability to the approach, sustainability issues get overlooked or their
complexity is not acknowledged (Ashley & Carney, 1999). It has also been suggested that
proponents of the approach assume that poverty reduction will result from its appropriate
implementation, without clearly establishing the link between livelihood sustainability and
poverty reduction (Ashley & Carney, 1999).
At the practical level there are concerns about issues such as the cost of
implementing SL approaches because of the numerous variables that need to be accounted
for; difficulty monitoring and measuring progress especially with regards to non-income
livelihood outcomes; the inability to analyze livelihoods at the national level, especially with
highly heterogeneous populations; and the fact that macro and meso level components are
not as deconstructed as household level components (Ashley & Carney, 1999; Farrington,
Carney, Ashley & Turton, 1999). Furthermore, there is excessive attention to
operationalizing the framework at the expense of addressing and understanding the
environmental issues that are at the root of poverty, thereby causing the model to lose its
power (Toner, 2003).
Notwithstanding these critiques, the entry of livelihood approaches into the ICT4D
community contributes additional alternatives for thinking about ICTs in developing
countries, and is useful because it focuses on what poor people spend most of their time and
resources doing – trying to make ends meet using whatever resources they have genuine
access to. As a research methodology it presents complications of addressing the numerous
elements in the framework. However, as an analytical tool it offers concepts such as the
distinction of livelihood assets and the central issue of sustainability that are useful
55
guideposts to navigate the complexities of ICT use by poor people. It is in this sense that the
sustainable livelihoods approach is relevant for this dissertation.
2.2.3 ICTs and the Sustainable Livelihoods Approach
Currently research on sustainable livelihoods and ICTs is limited, and what exists is
more at the conceptual stage, although a few studies have explicitly applied the approach to
the study of ICTs in poor communities. Chapman, Slaymaker and Young (2003) discuss the
strategic importance of ICTs for the five livelihood assets by showing how access to
information can contribute to enhancing each asset under the right circumstances. For
example, human capital can be improved through access to education and training, natural
capital through access to institutions concerned with natural resources, financial capital
through access to information on financial institutions and services. Social capital can be
enhanced through improved networking, and physical capital through access to market
information. Batchelor, Norrish, Scott and Webb (2003) on the other hand, present a detailed
conceptual framework translating the sustainable livelihoods framework into ICT terms to
assess the sustainability of ICT projects.
24
A gender perspective combining stakeholder
analysis and the sustainable livelihoods approach is provided by Arun, Heeks, and Morgan
(2004).
At the empirical level, Duncombe (2006, p.96) examining micro-enterprise in
Botswana concludes that while information acts as a crosscutting resource whose availability
would increase capital assets, ICTs constitute just one “possibly relatively unimportant”
factor in livelihoods. Parkinson and Ramirez (2006) recommend the sustainable livelihoods
24
This framework speaks directly to the problem of sustainability faced by most ICT for development
projects, rather than the sustainability of livelihoods per se. Yet the two aspects are certainly
connected – for ICT projects to have some influence on livelihood sustainability they must themselves
be sustained.
56
approach as useful for assessing the role of ICTs in development projects. Their study of
users of a telecenter in Colombia revealed that out of four livelihood strategies prevalent in
the area (increasing long term and short term financial capital, reducing dependence on
financial capital, and reducing drawings on financial capital) the livelihood strategy
implicated in users behavior was that of increasing long term financial capital (specifically
improving employment prospects in the formal sector by enhancing their computer skills).
This was not what had been expected for the telecenter project, which had the development
goal of enhancing the economic wellbeing of community members by linking them to
economic opportunities such as trading partners and potential employers. Preliminary
investigations, such as these indicate that the livelihoods approach has some utility in
providing more realistic and meaningful analyses of ICTs in development contexts.
2.2.4 Mobile Phones and Livelihood Sustainability
The livelihood model outlined by Chambers and Conway (1992) provides a useful
starting point for examining the intersection of mobile phones and livelihood sustainability.
Insights from fieldwork in Ghana can shed some light on how mobile phones are employed
in and contribute to the components and flows of livelihoods. Within this framework, mobile
phones have the potential to play important roles in the building up of assets and capabilities,
and in facilitating interactions between livelihood components. For example, the phone may
itself constitute a tangible asset that can be used directly to generate income (e.g., by using it
as a payphone), as a tool in business activities (e.g., calling clients, checking prices or other
information), or can be directly turned into financial capital should the need arise (by selling
the handset). Phones can also enhance intangible assets by facilitating access to resources
and the making of claims (e.g., by giving them the ability to communicate with relevant
authorities or individuals). Overall, access to and use of mobile phones (and other ICTs) can
57
enhance people’s livelihood capabilities by increasing their capacity to make full use of the
livelihood potential of assets available to them. However, this process is by no means
straight-forward. As discussed in Section One, a logical causal link from ICT deployment to
specific ICT impacts is yet to be found. Still the processes surrounding the use of
technologies for developmental purposes have a distinctly deterministic flavor, seeming to
assume that the mere presence of a particular technology will generate specific results. This
makes it all the more disappointing when proponents do not achieved their desired
outcomes. The debate over this complex relationship between technology and society is the
subject of Section 2.3.
2.3 Innovation, Adoption and Technology Appropriation
2.3.1 Approaches to the Role of Technology in Society
The dramatic impact of technologies on human existence is undisputable. Machines
and their programming have immensely extended the capabilities of individuals and societies
throughout history; changing public and private behaviors and upsetting or reinforcing
societal structures. At the same time, there is no denying that the same technological
conditions do not always lead to the same social formations or outcomes. People and
societies make conscious decisions that not only determine the trajectory of technological
development, but also how technologies will be used. The question of which is the stronger
force, which the shaper and which the shaped is represented by three broad schools of
thought – technological determinism, social construction or shaping, and technology
appropriation, of which the idea of technology appropriation is of most relevance to this
discussion.
Technological determinism, “the belief that social progress is driven by
technological innovation, which in turn follows an ‘inevitable’ course” (Smith, 1994, p.38)
58
or as Williams (1994, p.218) puts it simply, the belief that “technology drives history,” is a
viewpoint that is rarely self-proclaimed. It is usually attributed to scholars based on the tone
of their work. Although it pervades speech in the media and popular culture, technological
determinism has a negative connotation in academic circles, critiqued as reductionist,
neglectful of social and political influences, as well as human agency and differences in
history. In its strong form, this stance proposes that technology alone determines society;
while in its weak form, technology is seen as the most important element affecting the shape
of society. Although accusations of technological determinism are frequently targeted at
different authors, careful reading usually indicates weak rather than strong forms of
determinism is the norm. Discussions of the use of ICTs for development are frequently
branded technologically deterministic, because they seem to imply that technology is an
autonomous force that influences society in a predetermined way. According to Bimber
(1994), however, it is actually difficult to find true instances of technological determinism,
where it is defined as a pronouncement that is both technological and deterministic.
25
The social shaping perspective on technology and society provides a
counterargument to technological determinism by shifting attention to “design decisions that
could have been otherwise” (Edge, 1995, p.20).
26
Proponents of the social shaping of
technology argue that a variety of societal forces (cultural, economic, technical,
25
Bimber (1994) argues that the concept of technological determinism has been applied flexibly to
describe different phenomena. This has led to numerous debates about whether the concept is an
accurate description of historical developments. He identifies three interpretations of technological
determinism: The normative account, the nomological account and the unintended consequences
account, and suggests that the nomological account is the only one that can truly be considered
technological determinism. By Bimber’s analysis however, “The standards of the Nomological
account of technological determinism are stringent, and it is hard to imagine a theory of history
meeting this definition that would be plausible” (1994, p.99)
26
It also tries to address critiques of social determinism that have been leveled against similar
approaches such as the Social Construction of Technology. Nevertheless, the social shaping approach
is still considered deterministic in orientation (see for example, Kling, 2000).
59
organizational, and political) together play important roles in determining how technologies
are designed, adopted, and used (Edge, 1995; MacKenzie & Wacjman, 1999). At the same
time, this approach does not discount the effectiveness of technology per se; technology is
not presented as neutral, but as having political characteristics that can make one outcome
more likely than another (MacKenzie & Wacjman, 1999). There is also the possibility of
technological momentum, in which technological systems, though susceptible to socio-
cultural influence may develop an internal momentum over time, making them difficult to
control (Hughes, 1983). Understanding how technologies are shaped is important for any
analysis of their effects (Edge, 1995). Social shaping begins at the research and development
stage, and can continue through to the end-user stage. It also allows for feedback between
various stages of the technology supply chain.
Current approaches to the social shaping of technology focus on the form a
particular technological artifact takes, how societal factors (e.g. gender, professionalism,
politics) affect the initial design process, and how subsequent interactions between the
technology and its users may lead to the success, failure or transformation of the design (e.g.,
MacKenzie & Wacjman, 1999). For example, the social constructionist approach (Pinch &
Bijker, 1984) sees how “relevant social groups” attach different meanings to technologies
and how this feeds into the way these technologies are designed and who uses them, and for
whom the technology “works.” Ultimately, though, these approaches present the social
shaping of technology as being more about technology and technological change, than about
society and societal change.
Since few of the technologies that are expected to bring about development in poor
countries are actually developed in those countries, social shaping perspectives are rarely
applied to ICT for development research. Nevertheless the development community
acknowledges the role of community participation and local influences on the outcomes of
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development efforts, and the general media effects literature has demonstrated how
contextual factors can modify the impact of information and communication technologies on
different populations.
A third approach to the interaction of technology and society is that of technology
appropriation. This approach tries to illuminate what happens after the adoption of new
technologies and as such has strong ties to the literature on diffusion of innovations and user-
driven innovation. The main focus is on how adopters engage with technology and how this
engagement then brings about certain patterns of behavior. Two central themes of
technology appropriation are first, that there is a gap between technology design and
technology use which results in the need for users to adapt technologies once they have been
acquired. Secondly, users are viewed as creative and innovative in making technologies
work for their needs. In addition to highlighting user innovativeness, technology
appropriation models usually distinguish different types and degrees of appropriation.
2.3.2 Diffusion of Innovation
Barnett (1953, p.7) defines innovation as “any thought, behavior, or thing that is new
because it is qualitatively different from existing forms.” Innovation is considered by some
to be destructive and by others to be cumulative and even programmable. Building on these
perspectives, Robertson (1967) classifies innovations into three categories based on their
impact on the status quo: continuous innovation is the least disruptive, usually involving
alteration of an existing product; dynamically continuous innovation is more disruptive but
does not overturn established pattern; and discontinuous innovation is the most disruptive as
it creates a new product and ushers in new patterns. For an innovation to become significant,
though, it usually has to be utilized by a large proportion of the relevant population.
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The classical model of diffusion of innovations represents “(1) the innovation,
defined as an idea, practice or object perceived as new by an individual or other relevant unit
of adoption,
27
(2) which is communicated through certain channels (3) over time (4) among
the members of a social system” (Rogers, 1976b, p.292). The traditional S-curve adoption
process (Rogers 1995) operates at one level (aggregate) and in terms of simple acquisition of
the product or service. Although Rogers (1995) acknowledges that diffusion is a process,
research has still prioritized the moment of acquisition. Much of the innovation research is
found in the business community, and tends to focus on innovativeness as a character trait,
although this approach has been criticized as addressing only observable behavior and for
equating time of adoption with innovativeness.
28
In diffusion of innovation studies,
researchers are generally interested in the success or failure of an innovation from the
perspective of the supplier. The technology is taken as given and the success of an
innovation is judged by the extent to which it was adopted and used in the expected manner.
2.3.3 User-Driven Innovation
Ideas about innovation in terms of product development were initially applied
mainly to manufacturing firms and other such formal institutions. However users of products
27
By this definition, the innovation does not have to be new to the world, just new to the person or
society encountering it. Eglash (2004) makes a similar provision in his model of technology
appropriation.
28
For example, Midgley and Dowling (1978), propose a distinction between “innate innovativeness”
and “actualized innovativeness,” the latter being what diffusion research tends to measure. Summers
(1971, p.316) makes a useful observation regarding the dynamics of innovativeness: “innovativeness
may be a function of both situational variables, such as income and product involvement, and
behavioral considerations. It may be that situational factors are unique to specific products and
product categories and serve to constrain the individual’s innovativeness to particular areas, while his
behavioral (sociological, psychological, etc.) make-up influences his basic tendency to innovate.”
This perspective incorporates internal and external influences on innovativeness and although
Summers implies that situational factors are constraining, it is conceivable that situational variables
could enable, facilitate or even necessitate innovativeness.
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can be just as innovative as manufacturers. In some cases, as Von Hippel (1988) found in the
scientific instrument industry, users may be the primary innovators while manufacturers are
more active in diffusing the innovations and intentionally or unintentionally take credit for
creating the innovation. By 2005 Hippel had come to the conclusion that “innovation is
being democratized … that users of products and services—both firms and individual
consumers—are increasingly able to innovate for themselves” (p.1). Users innovate when
they identify a need that existing products or services do not meet. They are better at
designing or redesigning products to address their individual needs, unlike firms whose
objective is to meet the preferences of a heterogeneous consumer base.
Some consumer innovations end up being picked up by manufacturers or
alternatively users become manufacturers themselves (Lettl & Gemnnden, 2005). Business
firms’ attempts to tap into consumer innovation is evident in the literature on user-driven
innovation, where the focus is on how the business community can take advantage of
consumer innovation as a resource for the development of products with a high chance of
commercial success (Douthwaite, Keating et al, 2001). To some extent, user-driven
innovation addresses the gap between the design and use stages of technology, although non-
adoption, as well as unexpected uses continues to occur, indicating that the gap, though
narrowed, is not closed. The main strategy in this arena is to find ways of involving users in
the firm’s own innovation process. Overall, issues of interest relate to the production,
diffusion, adoption and possible reconfiguration of products or systems from the perspective
of business organizations’ commercial objectives. Though a few studies have looked at the
service industry and political processes overall, the focus is on physical products and on how
business firms can take advantage of user innovation as a resource. User-driven innovation
ultimately is about involving potential end-users in manufacturers’ innovation processes, not
about user innovation outside this context.
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2.3.4 Technology Appropriation
Examinations of the ways consumers could use a product differently than was
planned by the manufacturer, without necessarily making changes to the actual design of the
product, has received less attention in the user-innovation literature. Traces of this can be
found in diffusion of innovation research where such actions are seen as misuse rather than
innovative behavior. More coverage of this topic can be found in studies of science and
technology, where the focus is generally on the influence of social rather than individual
consumerist forces, and on how technology and or/society are changed in the process of
technology use. This is where ideas regarding technological determinism and social shaping
have been most extensively discussed. Having rejected both technological and social
determinism there is a strong move towards perspectives that acknowledge the
interrelatedness of technological and social change.
Current approaches to technological innovation seek to address the problem of the
practical gap between technology development/design and technology use. This gap is
reflected in instances of non-adoption, slow adoption or “misuse” documented extensively in
diffusion research (e.g., Roger, 1995). Researchers and manufacturers have traditionally
placed the explanation for this gap in the characteristics of consumers, branding them
(positively) as innovative depending on how quickly they move through the adoption
process. Observations of technology use have shown though, that consumer innovativeness
involves more than simply adopting an innovation; the manner of use also draws on users’
innovative qualities. A variety of models and frameworks are now emerging to conceptualize
other processes that occur before, during and after the typical adoption scenario.
29
In a sense,
29
Hirschman’s (1980), re-conceptualization of innovativeness in the adoption process is perhaps
closest to the traditional diffusion model, while at the same time expanding the process to encompass
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they take a microscope to the S-curve, to view the dynamics that diffusion and innovation
research have tended to overlook. Thus from the concept of innovation, the creation of
something qualitatively different from existing forms; and that of adoption, the process of
acquiring something; the focus has shifted to appropriation, the process of using something.
The concept of consumer appropriation of technology turns attention back to the
innovativeness of consumers, not in terms of their willingness to acquire innovations, nor
their ability to create innovations, but in terms of their ability to adapt or do unexpected
things with existing innovations. Generally referred to as appropriation of technology, this
strand of research and scholarly thought includes contributions from several fields including
information systems, innovation research, social shaping of technology and technology
design, all of which are beginning to converge on the idea of appropriation, broadly defined
as “to utilize constructively, to build by incorporating” (Ollman, 1977, p. 89). The notion of
appropriation as the process of human interaction with nature can be traced back to Karl
Marx, who proposed that there were gradations of appropriation (high and low levels), and
believed that the process of appropriation should lead to human enrichment (i.e., it should
enable people achieve their potentialities, Ollman, 1977).
what happens before and after adoption. Analyzing user creativity, she makes a useful distinction
between vicarious innovation (obtaining information about a product), adoptive innovation (actually
acquiring the product) and use-innovation (solving new problems with old products). Hirschman is
however more concerned with measuring consumer innovativeness than in innovative behavior itself,
and does not dwell much on the issue of use innovativeness. Vicarious and use innovation draw
attention to the processes that precede and follow acquisition. In the latter case, unintended uses are
considered innovations, but the focus is not on the innovation but on the user who comes up with the
unintended use. Such a person is labeled more innovative than those who use the product or service in
the standard way (e.g., Hartmen, Gehrt & Watchravesringhkan (2004), found that use innovation is
associated with high levels of creative ability, curiosity and risk tolerance). Hirschman also presents
use-innovativeness more as an enhancement of the use of the product in question, than as a failure of
the product to satisfy the consumer. Even so, Hirschman’s comment that, “One may hypothesize that
the more inherent flexibility possessed by a product, the greater the incidence of use innovativeness”
(1980, p.293) is an important observation about the relationship between product characteristics and
use-innovation that foreshadowed current interest in designing malleable technologies.
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No matter what perspective researchers have taken on the issue of technology
appropriation, a central precept is that technology users are active, not passive, even in the
face of constraints:
People are purposive, knowledgeable, adaptive and inventive agents who engage
with technology in a multiplicity of ways to accomplish various and dynamic ends.
When the technology does not help them achieve these ends, they abandon it, or
work around it, or change it, or think about changing their ends” (Orlikowski, 1992,
p.423).
Just as manufacturer innovation differs according to how much it upsets the status quo,
consumer appropriation of technology can also have differential impacts on existing
patterns. These dimensions can be loosely associated with continuous, dynamically
continuous and discontinuous innovation as outlined by Robertson (1967).
2.3.4.1 Definitions and Models of Technology Appropriation
Definitions and models of technology appropriation range from those that see
appropriation as the use of a technology, regardless of whether it deviates from intended use,
to those that limit appropriation to those uses that deviate from intended or expected uses.
Early models and analyses of the concept are located in studies of the sociology of
organizations. They are driven by the problem of how to explain differential outcomes of
implementation of the same technology in similar organizational environments, as well as a
desire to avoid the traps of technological or social determinism. They are also largely
concerned with the interaction between technological and social structures in the
organizational context, where successful accomplishment of organizational goals often
depends on the extent to which employees use technologies in a prescribed manner and
follow prescribed routines. Thus most scholars in this area have turned to structuration
theory as a realistic representation of technology uses and outcomes in organizations. Eight
such models are described below, representing some of the earliest and most recent
conceptualizations of the technology appropriation process, and relating to the appropriation
of information and communication technologies.
2.3.4.1.1 Technology Appropriation in Organizational Context
2.3.4.1.1.1 Structurational Model of Technology
One of the earliest models of technology appropriation is that prescribed by
Orlikowski (1992). In line with Giddens, Orlikowski’s (1992) structurational model of
technology frames the role of technology in organizations as “a mutual interaction between
human agents and technology and hence as both structural and socially constructed” (p.403).
From this perspective, technology is both a product and a medium of human action (Figure
2.3).
Figure 2.3: Structurational Model of Technology
Source: Orlikowski, W. J. (1992). The Duality of Technology: Rethinking the Concept of Technology in
Organizations, Organization Science, 3(3), p. 410.
Technology is created, maintained and constituted through “creative human action”
(Orlikowski, 1992, p.409) but at the same time, technology conditions human behavior
because it facilitates particular ways of performing certain behaviors. Technology
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simultaneously constrains and enables, although one or the other of these influences may
dominate, depending on the actions of designers, institutional contexts, and users’
capabilities. Similarly, institutional properties (i.e., the social and historical contexts within
which organizations are set) affect human action, including how humans use technology, and
have the potential to reinforce or transform the same institutions. Institutional influences can
be far-reaching, as Orlikowski suggests that when technology is transferred between
different contexts, the institutional properties embedded in the technology by the community
that designed it will influence the behaviors and ultimately the institutional properties of the
community that receives and uses the technology.
Orlikowski adopts a broad view of technology appropriation, including uses that
conform to or digress from intended use. She argues that in most cases, organizational users
conform to the rules embedded in a technology during its design, thereby also sustaining the
institutional structures within which the technology is deployed. When users appropriate
technology in contrarian ways they undermine and sometimes even transform the
institutional structures, and modify the behavior of those who designed and implemented the
technology. Orlikowski also acknowledges constraints on technology appropriation, which
are attributable to the material properties of the technology, institutional structures of
signification, legitimation and domination (1992, p.409), and individual characteristics. In
other words, the constraints on technology appropriation are not solely inherent in the
technology itself, but also emanate from interactions between the technology and the context
of use. Orlikowski argues that “the greater the temporal and spatial distance between the
construction of a technology and its application, the greater the likelihood that the
technology will be interpreted and used with little flexibility” (1992, p.421). On the other
hand, technology is more likely to be used flexibly in situations where potential users have
been involved in the design. This assertion implies that when faced with unfamiliar
technology, people will view and use the technology in limited ways, and that flexibility
equates with variety of uses rather than simple digressive use. However, this overlooks
instances where consumers use technology in unexpected ways precisely because they were
not involved in its development and have to find their own ways to make the technology
work for them.
Subsequently, Orlikowski (2000) modifies her characterization of technology
structures as being embedded in the technology. Instead she argues for the notion of
technology structures as emergent and technology use as a process of enactment, rather than
seeing the former as embodied, and the latter as appropriation (Figure 2.4).
Figure 2.4: Enactment of Technologies in Practice
Source: Orlikowski, W. J. (2000). Using Technology and Constituting Structures: A Practice Lens for Studying
Technology in Organizations. Organization Science, 11(4), 410.
This is an important distinction as it opens up the possibility of different structures
and uses emerging from users’ engagement with the same technology. From this perspective,
a technology is of no consequence until people start to engage with some or all of its
properties. It is through regular interactions that particular technological structures are
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produced and reproduced to the extent that they become taken for granted – they are
“technologies-in-practice” such as when computer users utilize only their word processing
software, or only the internet (Orlikowski, 2000, p. 407). It is those properties that are
engaged with that will constitute the emergent technological structure. Unlike some
constructionist views on technology (e.g., Bijker & Pinch, 1984), Orlikowski sees
technologies as perpetually subject to change – they are never stabilized because “users may
always choose to do otherwise” (2000, p.423). Finally, Orlikowski highlights the role of
“technology-use mediators,” such as experts, trainers or champions who intervene in other
people’s structuring of technology, thereby influencing how technologies are employed,
generally with the goal of ensuring that the technology is used in the manner desired by the
designers or institution in which it is being deployed.
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2.3.4.1.1.2 Adaptive Structuration Theory
Adaptive structuration theory proposes that “advanced information technologies
trigger adaptive structuration processes which, over time, can lead to changes in the rules
and resources that organizations use in social interaction” (DeSanctis & Poole, 1994, p.143).
Unlike Orlikowski (2000), however, De Sanctis and Poole present structure as embedded in
the technology. The outcomes of technology are attributable to the interactions between
technology structures and social structures, which iteratively shape each other, and
appropriation is “the process by which group members provide meaning to structures and act
on them” (DeSanctis & Poole, 1991, p.547, Figure 2.5).
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Monahan (2001) also notes that the influence of corporate media and marketing inhibits the
flexibility with which consumers can perceive and interpret technology.
Figure 2.5: Major Constructs and Propositions of Adaptive Structuration Theory
Source: DeSanctis, G., Poole, M. S. (1994). Capturing the Complexity in Advanced Technology Use: Adaptive
Structuration Theory, Organization Science, 5(2), p.132.
Technology embodies two forms of structure – structural features and spirit.
Structural features are “the specific types of rules and resources, or capabilities, offered by
the system,” for example how restrictive, sophisticated or comprehensive it is. The spirit of a
technology is “the general intent with regard to values and goals underlying a given set of
structural features … the ‘official line’” (DeSanctis & Poole, 1994, p.126). Multiple sources
(including designers and users) contribute to the spirit of a technology, hence it is subject to
competing interpretations and may be coherent or incoherent as a whole. Because different
technologies vary in their spirit and structural features, they also encourage different types of
social interaction. DeSanctis & Poole identify four aspects of technology appropriation:
1. appropriation moves – the particular ways in which a group chooses to appropriate a
structural feature, e.g., to use it directly or in relation to other structures.
2. faithfulness/unfaithfulness – this reflects whether the use adheres to or deviates from
the structural features and spirit of the technology.
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3. instrumentality of use – the purpose for which the technology is used, e.g. to manage
communications or to exercise power?
4. attitudes – users’ approach to the technology, e.g., level of confidence (comfort),
perception of its value (respect) and willingness to excel at using it (challenge).
While the type, manner and outcomes of technology appropriation cannot be firmly
predicted, DeSanctis and Poole propose that desired outcomes are more likely to occur under
the following conditions: faithful appropriations, high number of appropriation moves,
task/process-oriented rather than power/exploratory-oriented uses, and positive attitudes
towards appropriation. Appropriation is affected by such factors as user’s knowledge and
experience with the technology’s structure, perception of other group members’ knowledge
and acceptance of the structures (i.e., critical mass), and degree of agreement on which
structures to appropriate. Like Orlikowski’s framework, this model also implies that the
ideal situation is one in which technology is used as originally intended.
2.3.4.1.1.3 Technology Adaptation Process
While the two models described above recognize all types of technology use as
forms of appropriation (i.e., using a technology equals appropriating it), most of the
emerging models associate appropriation with unintended uses. Majchrzak, Rice, Malhotra,
King & Ba (2000) for example, still within the organizational context, equate appropriation
with adaptation, and define appropriation as “changes to structures” (p. 577). To them,
technology appropriation is the result of misalignments that emerge between pre-existing
and new structures as a new technology is deployed in the organization for the achievement
of team objectives. As events occur that highlight the misalignments, users engage in
appropriation moves that bring the structures into closer alignment (Figure 2.6). Based on
their study of virtual interorganizational team, Majchrzak et al (2000) conclude that any or
all structures can be modified if such modifications are allowed (although they do not
indicate what the source of authority to modify is). Nevertheless, some pre-existing
structures may not be malleable in the long-term.
Figure 2.6: Model of Adaptation Process
Source: Majchrzak, A., Rice, R. E., Malhotra, A., King, N., & Ba, S. (2000). Technology Adaptation: The Case of
a Computer-Supported Inter-Organizational Virtual Team, MIS Quarterly, 24(4), p.595.
Two important contributions of this model are first that it highlights the importance
of longitudinal analysis to capture the true nature of the adaptation process.
31
Secondly, and
most significantly, is the authors’ recommendation that the “ideal” technology
implementation should not be seen as one in which misalignments do not occur or in which
users hew faithfully to the technology’s spirit. Instead an ideal implementation would be one
31
See also the discussion of Carroll et al’s (2002a, 2002b) model of appropriation below, in which
they also stress the importance of examining technology use over time.
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in which groups have the ability to appropriate a range of structures and to resolve whatever
misalignments arise. Though Majchrzak et al (2000) do not explicitly say so, this approach
implies designing technology for unpredictability, which is increasingly being recognized as
an unavoidable characteristic of ICT use. Much as technology designers may wish and try to
preempt appropriation (thereby reducing unpredictability of use) such attempts usually
cannot capture all the possible aspects of technology in use.
2.3.4.1.1.4 Technology Appropriation Ladder
A fourth approach sees technology appropriation as having occurred when users
progress from simple uses to more strategic and sophisticated uses. In the context of ICT use
by global civil society organizations, Surman and Reily (2003) define appropriation as
“using networked technologies strategically, politically, and creatively” (p.1, Figure 7).
Figure 2.7: Access, Adoption, Appropriation Ladder
Source: Surman, M., & Reilly, K. (2003). Appropriating the internet for social change: towards the strategic use
of networked technologies by transnational civil society organizations. Version 1.0, Social Science Research
Council. Accessible at http://www.ssrc.org/programs/itic/, p.10.
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In this case, it is not so much whether or not the technology is used as the developers
intended, or that it is adapted to suit organizational contexts. There is a distinct similarity to
the diffusion of innovation model as well as an interest in the extent to which the full
capabilities of the technologies are realized in use for the achievement of organizational
objectives. This model draws attention to the missed potential that characterizes the use of
ICTs in certain contexts, and in this it is most reminiscent of ICT for development rhetoric.
This is entirely consistent with the context of this model, that is, social change organizations.
2.3.4.1.2 Technology Appropriation in Social Context
Organizational models of technology appropriation are inadequate for understanding
appropriation outside the organizational context. The social context is more complex,
dispersed and heterogeneous, and as such difficult to characterize with organizational
models. Other frameworks, mainly in cultural and consumption studies have been developed
to examine technology use in the larger social environment. These include domestication,
resistance, interpretation and consumption approaches (e.g., Silverstone, Hirsch & Morley,
1992; Stewart, 2003). These studies focus on understanding the meaning of technologies to
users, with emphasis on particular social contexts such as the home.
2.3.4.1.2.1 BEAN Framework
One such framework is the BEAN framework developed by Stewart (2003), where
ICT use is analyzed by taking into account users’ background, activities, events that affect
activities, and social networks. Technology appropriation, is defined here as “the active
process through which people adopt and use technologies” (2003, p.8). Of particular interest
is his characterization of adoption and resistance – according to Stewart, when faced with a
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new technology, people may adopt it, actively or passively resist it, or actively or passively
delay their adoption of it. The latter two reactions constitute different types of non-adoption.
However, the setting of his study biases observations to people who can choose whether or
not to adopt a study, hence the characterization of adoption in terms of resistance and delay.
This does not account for the situation in developing or poor communities where non-
adoption is not so much an issue of resistance or delay as of inability. Although some
mention is made of socio-economic barriers to adoption (such as cost), Stewart seems to
assume that non-adoption is not permanent, that people ultimately succumb to technology.
Interestingly, the practice of sharing or borrowing another’s technological item is discussed
by Stewart as a control mechanism used by people who do not trust technology and use
sharing as a means to limit their use of it, whereas in developing countries, for instance,
sharing is a basic access strategy. Nevertheless, the idea of delaying or even resisting
adoption, whether for economic or personal reasons, is an important contribution that is
often overlooked in studies of technology adoption.
2.3.4.1.2.2 Technology Appropriation Model
Focusing on mobile phone use by young people, Carroll, Howard, Peck and Murphy
(2002a, p.2) define appropriation as “the way that users evaluate and adopt, adapt and
integrate a technology into their everyday practices.” Although they identify technology
adaptation as part of the appropriation process, Carroll (2003) and Carroll et al (2002a,
2002b), present technology appropriation as synonymous with levels of adoption, not so
much modification of the technology per se. In their view, the concept of appropriation
enables one to unpack the adoption process and shed light on patterns that occur before,
during and after technology acquisition.
32
They develop a model of technology appropriation
that outlines the activities and influences involved in the transformation of mobile phones
from technology-as-designed into technology-in-use. Certain factors (attractors and filters)
attract people to a technology as offered by suppliers (technology-as-designed) or inhibit
their interest in it. Those who adopt the technology adapt or reinterpret it to meet their needs
(based on appropriation criteria) and over time, their use of it may be affirmed (reinforcers)
or weakened, in which case they cease using (disappropriate ) the technology. Thus the three
possible outcomes of the appropriation process are non-appropriation, appropriation or
disappropriation (Figure 2.8).
Figure 2.8: Technology Appropriation Model
Source: Carroll, J., Howard, S., Peck, J., & Murphy, J. (2002b). A field study of perceptions and use of mobile
telephony by 16 to 22 year olds. JITTA, 4(2), p.53.
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These line up with Hirschman’s (1980) stages of vicarious, adoptive and use innovation.
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Under this model, technology has inherent structures built in during design and
(interestingly) appropriation is considered to have occurred when the technology is
stabilized. Technology also comes with certain capabilities (expressed in the malleability of
the technology), and a spirit or underlying theory of use (Carroll, 2003). Carroll et al (2002)
make important contributions to the idea of technology appropriation in terms of first,
identifying different aspects of the adoption process (appropriation, non-appropriation,
disappropriation); second, drawing attention to specific factors that influence decision-
making during the process (attractors, appropriation and disappropriation criteria, and
reinforcers); third, introducing the element of possible rejection of a technology after a
period of use; and fourth, highlighting the importance of longitudinal analysis when
examining appropriation. For example, a previously appropriated technology may later be
discarded due to the discovery of new technologies or better alternatives (also Rosen, 2004).
2.3.4.1.2.3 Production-Consumption Continuum
Eglash (2004) presents technology appropriation in terms of the relationship
between user behavior and established social patterns or understandings. Eglash identifies
three dimensions of technology appropriation (Figure 2.9) – reinterpretation, which is the
weakest form, involves only a change in semantic association (e.g., graffiti tags); adaptation
involves changes in semantic association and use (e.g., cassette recording of local songs by
Bedouin people); and reinvention, the strongest form, involves structural change (e.g., low-
rider cars).
Figure 2.9: Technology Appropriation in the Consumption-Production Dimensio Figure 2.9: Technology Appropriation in the Consumption-Production Dimension
Source: Eglash, R. (2004). Appropriating Technology: An Introduction. In R. Eglash, J. Crossiant, G. Di Chiro
and R. Fouché, (Eds.) Appropriating Technology: Vernacular Science and Social Power. University of
Minnesota Press.
Notably, Eglash stresses that user appropriation does not have to be set against
technology-as-designed: adaptations of a technology may be considered in terms of
commonly held assumptions or marketing-based angles on the purposes of a technology.
This, for example, enables one to consider as innovative, new developments in one society
that have already occurred in other societies, an important allowance when examining
developing countries where a majority of technologies (and even forms of appropriation) are
imported or copied from other countries.
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Furthermore, although the model seems mainly concerned with users at the margins
of society, Eglash acknowledges the potential for other actors, such as producers, to engage
in technology appropriation – appropriation does not end when a technology is re-invented
by an end-user (as suggested by Carroll et al, 2002). The appropriated product “can reappear
in professional contexts, be mixed with indigenous knowledge, and enter into further
appropriations from either the top or the botton of the scale” (Eglash, 2004, p.ix-x). From
Eglash’s perspective, however, the major significance of technology appropriation is its
potential to empower users socially and politically. At the same time, this framework
acknowledges that centers of power may try to resist technology appropriation from the
margins. Presenting technology appropriation as occurring within a ‘space of flows’
(following Castells), Eglash identifies three dimensions of flows – consumption/production,
social power, and resistance (Figure 2.10). The actual substance of appropriation occurs
along the consumption-production dimension while social power and resistance influence
the ability of users to engage in the different types of appropriation (reinterpretation,
adaptation and reinvention). This model of technology appropriation introduces the
important elements of power and resistance in the appropriation process, as well as the
transformation of users into producers.
Figure 2.10: Technology Appropriation at the Margins of Social Power
Source: Eglash, R. (2004). Appropriating technology: An introduction. R. Eglash, J. Crossiant, G. Di Chiro and
R. Fouché, (Eds.) Appropriating Technology: Vernacular Science and Social Power. University of Minnesota
Press.
2.3.4.1.2.4 Technology Evolution Cycle
The final model to be presented links appropriation to the development of
technological innovations. The technology evolution cycle (Figure 2.11) operationalizes
technology appropriation in terms of the relationship between user behavior and the
preferences or intentions of those who supply the technology (Bar, Pisani & Weber, 2007).
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Drawing on cultural and historical practices in Latin America, Bar, Pisani and Weber (2007)
develop a model of technology use after adoption, and relate it to technology innovations
over time. The model presents technology appropriation essentially as a power struggle over
how technology will be used, and outlines three forms of appropriation in terms of the
degree of hostility towards the goals of technology designers.
Figure 2.11: Technology Evolution Cycle
Source: Bar, F. (2007). Wordsmithing “appropriation.”
http://abaporu.wordpress.com/2007/05/31/wordsmithing-appropriation/.
Defining appropriation as a “creative re-negotiation process” in which “users take something
external … and make it their own” (p.3), and technology appropriation as, “the process of
interacting with technology and modifying both the manner in which the technology is used,
and the social framework within which it is used” (p. 5-6), Bar, Pisani & Weber (2007)
argue that cannibalism, creolization and baroque infiltration as appropriation practices in
Latin America’s cultural history offer useful lenses through which to view the use of mobile
phones in Latin America, Africa and possibly around the globe. Baroque infiltration does not
involve direct confrontation, but makes use of the creative spaces consciously provided by
designers for the benefit of users. Creolization is not necessarily confrontational but has the
outcome of restructuring power relations through unexpected reconfigurations of the
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technology and how it is used. Finally, cannibalization involves the complete transformation
of the technology into something that directly resists the status quo.
When these appropriation behaviors occur, technology designers and suppliers take
note, and depending on the nature of the appropriation, may try to prevent its continued
occurrence, or alternatively, may see it as an opportunity for new streams of revenue. This,
according to Bar, Pisani and Weber, leads to the introduction of new technologies which are
then responded to by consumers, thus sustaining the innovation cycle of actions and
reactions.
The technology evolution cycle, while addressing technology innovation as the
ultimate outcome of the process, is arguably one of the most encompassing and yet simple
models of appropriation developed thus far. It incorporates issues of technology structure,
power, time, and highlights the continual interaction between the technology as designed and
technology in use. This model is slightly modified in Section 2.3.4.3 (Figure 2.12) below as
a framework for this study.
2.3.4.2 Designing for Appropriation
Acknowledgement of the gap between technology designers and users, and the
implications in terms of technology appropriation has led researchers to consider the
possibilities of designing for appropriation. Designing for appropriation can manifest from a
variety of angles – it could mean designing technology with users in mind (user-friendly
design), designing technology with input from users (user-driven innovation), designing
flexible products in the sense of incorporating choices for consumers to select from
(customization), or designing flexible use contexts rather than products (metadesign). Some
of these approaches aim to keep the designer in control of the appropriation process, others
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indicate acceptance of inevitable unexpected uses. In discussions of technology
appropriation in social contexts, premium is placed on the user experience, and, in contrast
to designer-oriented approaches, the issue is to figure out how to facilitate user adaptations
through the development of flexible technologies that lend themselves to user appropriation.
Several researchers of technology appropriation thus direct the implications of their
models at technology designers. For example, Carroll, Howard, Peck and Murphy (2002,
p.58) recommend that designers consider long-term user experiences, psychosocial
dimensions of technology use, and perhaps most importantly, develop “sensitivity to the
situation of use” since it is impossible to anticipate every possible use of their design (also
Garrety & Badham, 2004). Carroll et al (2002) recount an instance where research
participants trialing a WAP phone believed that the limitations on text messaging would not
be a problem. However, it turned out in the process of use that text messaging was too
important to them and they ended up seeking other means of sending text messages, such as
acquiring a second phone. Thus even incorporating users into the design process may not
resolve the design-use gap, as users may not be able to articulate their own needs.
Furthermore, intentions may change when contexts change, or certain limitations become
evident. All this complicates the notion of designing for appropriation. Consequently,
Carroll (2003) offers a view of appropriation as part of the design process; designers can
advance the process by creating flexible technologies to facilitate user adaptation, and then
improve the design based on these adaptations, thereby “completing design in use”. The
challenge is to “construct a technology that is malleable but still embodies and represents a
theory of use that is accessible to users” (Carroll, 2003). In other words, too much flexibility
would be as unhelpful to users as too much rigidity.
33
This was practically demonstrated by
33
In the manner of Alan Perlis’ warning: “Beware of the Turing tar-pit, where everything is possible
but nothing of interest is easy” (1982, electronic resource).
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Jones and Twidale (n.d.) in a study of timeline software in an organization. When the
software tool was implemented as a mechanism for creating a particular timeline, it was
appropriated by users to create other types of timelines as well as to act as an organizer.
However when the design team, upon observing this appropriation, redesigned the software
to be a more general system giving users open choices as to what they wanted to do with it,
users were confused and could not use the software. Ultimately, the system was redesigned
again to simplify it into, in the designers’ opinion, a less elegant and less powerful tool.
In the organizational context, this would require incorporating multiple perspectives,
visibility and control through application rather than through infrastructure (Dourish, 2003),
or in the domestic situation, that the design of technologies for the home factor in several
issues that have a bearing on how the home is organized – e.g., definitions of the home and
its development over time, privacy, family and community (Stewart, 2003).
Considering technology use in education settings, materially, discursively and
symbolically, Monahan (2001) suggests that suppliers can design for appropriation by
preventing circumscription of public imagination with the supplier’s own interpretations of
the technology, thereby encouraging users to see technology in open and flexible ways.
34
The value of universal design, i.e., designing technology to be usable by people in the widest
range of situations and with the widest range of abilities, is raised by Bar and Riis (2000).
They argue that universal access to advanced telecommunications services is an important
driver of innovation because it facilitates a wider range of experimentation, which facilitates
34
Monahan also critiques conceptions of appropriation that adopt an oppositional framework, arguing
that “to categorize creations within a militaristic framework of strategies and tactics de-values them.
More accurately such categorizations choose to value what is aggressive about creation: the
manipulation of territories. An alternative framework would view creative acts through a lens of
symbiosis. Through this lens, creative acts would be evaluated by what they catalyze, not how they
(re)territorialize” (2001, p.14).
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technological innovation and change. Similar to the idea of universal design is the concept of
metadesign which “creates open systems that can be modified by their users and evolve at
the same time, supporting more complex interactions (rather than linear or iterative
processes” (Fischer & Giaccardi. 2006, p.8). Proponents of this concept argue that the
process of appropriation does not depend solely on the flexibility of technological
infrastructure, but also on the cultural setting – it is the interaction between the two that
shapes appropriation (DePaula, n.d.). Meta-design acknowledges the impossibility of
anticipating all possible issues that could affect use of a technology, and tries to address this
by creating technologies that support end-user changes in both content and structure. The
goal is not to adapt technology to a particular social setting, but to create the conditions for
people to individually or collectively enact meaningful interactions and experiences, both
shaping, and being shaped by the processes (DePaula, n.d.).
It is important to note, though, that the motives for appropriating technology differ.
For example, some people may tinker with technology for the pure pleasure of it, others may
do so in order to derive technologies for marginalized communities, yet others may simply
be seeking to test the limits of the technology (Rosen, 2004; also Jones & Twidale, 2005).
Thus designing for appropriation for one population may mean something for another.
Furthermore, social influences can affect appropriation moves, for example, leading people
to conform to existing norms, imitate actions of their peers, or collaborate with peers to truly
explore technology (Jasperson, Sambamurthy, & Zmud, 1999).
Perspectives on technology appropriation and appropriating for design tend to
present appropriation as a positive process. But as Eglash (2004) notes, “appropriated
technologies do not have an inherent ethical advantage” (p. xvii). Some appropriated
technologies may be coping strategies that are not beneficial in the long run, and where an
appropriation is linked to some form of marginalization or social exclusion, it is more
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important to address the underlying problem (Eglash, 2004). Randell (2004) recounts an
example where the desire to show accountability led nurses to persist with technological
problems presented by new medical devices, rather than call in experts to resolve the
problems. Even the idea of designing for appropriation, and certainly user-driven innovation
practices are themselves political processes designed to meet the ends of designers and
suppliers (Garrety & Badham, 2004). Attempts to incorporate flexibility into technology in
order to enable systems adapt to user choices “blur the line between ‘enhancement’ of user
capabilities and serving as a prosthetic for corporate influence” (Eglash, 2004, p.xviii).
Ultimately Eglash (2004) suggests that user independence should not be romanticized but
both dependencies and independencies facilitated by appropriated technologies should be
examined from all perspectives (user and designer). Layers of benefits, deficiencies,
inequities and structural or organizational drivers contribute to the development and
processes of technology appropriation, and these are often overshadowed by the positive
connotations of the ‘innovation’ label.
2.3.4.3 A Technology Appropriation Framework for Mobile Telephony in Ghana
With some modifications, Bar, Pisani and Weber’s (2007) technology evolution
cycle, provides a useful framework to conceptualize this study from the perspective of socio-
economic impact of technology use and technology change. The cycle describes a process
through which technology evolves and changes through the behaviors of designers, suppliers
and users reacting to each other. In the context of this study, however, the question is, apart
from technological change, what are the outcomes of this cycle for participants? The three
stages and their modifications are expanded on below, using insights from the technology
appropriation literature reviewed in this chapter (Figure 2.12).
Figure 2.12: Adapted Technology Evolution Cycle
Original Model (Bar, 2007)
Adapted Model
Suppliers roll-out technology
-software/hardware design
-market research
-marketing communication
Users re-make
-reject/discontinue
-adopt
-appropriate
personalize
creolize
cannibalize
Suppliers re-claim
-resign
-co-opt
-compromise
-block
1. Suppliers Roll-out Technology: Software/hardware design, market research, marketing
communication
Each stage in the cycle is characterized by an action by suppliers or users, followed
by a corresponding reaction by the other party. However, while the “users appropriate” and
“suppliers reclaim” phases are broken down into three mutually exclusive categories of what
the actors in question do in that phase, the “suppliers roll-out technology” phase is not
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87
elaborated in a similar fashion. This stage is associated with users adopting or rejecting the
technology. I would therefore modify this framework to focus attention on the roll-out
process, while moving the issue of adoption or rejection to the users appropriate/re-make
35
phase.
The technology roll-out phase reflects the design and marketing stages of technology
development. This is where designers and manufacturers use their perceptual and actual
knowledge of consumers to develop products and services. It includes all the processes
involved in user-driven innovation where organizations try to involve users directly in the
technology development process at the design stage (essentially attempting to preempt user
appropriation). It also includes the processes involved in drawing lessons from observations
of appropriations at the user level. Here suppliers additionally incorporate hardware and
software elements to define what the technology can and cannot do. In this they are
themselves limited by what the technology really cannot do and by the limits that the
technology can realistically place on users. One would also find here all the marketing and
communication processes employed by organizations to publicize the new rollout, and
especially to communicate their preferred interpretation of the technology and how it should
be used. Marketing messages, and instructions embedded in the software and hardware, are
designed to communicate the ‘spirit’ (DeSanctis & Poole, 1994) of the technology. Finally,
this stage includes the influence of governance structures (e.g., policy and regulation) that
shape the development and deployment of technology – this is another constraint on how far
an organization can go in rolling out technology and defining how it can be used.
35
Bar, Pisani & Weber have subsequently revised some of their terminology, including at one point
replacing “users appropriate” with the category “users re-make.” I maintain the “re-make”
terminology in order to distinguish user appropriation from other types of user behavior (e.g.,
adoption, rejection) at this stage (see www.abaporu.wordpress.com for a discussion thread on this
issue).
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2. Users Re-make: Reject, adopt, appropriate, discontinue
Following Carroll, Howard, Peck & Murphy (2002), once mobile phone users are
introduced to a new technology, they assess it through various filters, and subsequently
reject or adopt it. If users adopt the new technology, they then begin the process of “making
it their own”. They may simply use the artifact or service “faithfully” (DeSanctis & Poole,
1994) as prescribed by the supplier, or they may modify either the technology itself or their
use of it in ways that diverge in varying degrees from the preferences of suppliers. User
appropriation can be characterized on a continuum from largely conforming to suppliers’
provision of opportunities for appropriation; through appropriations that suppliers may not
have anticipated or directly allowed for; to behavior that is directly at odds with suppliers’
intent (Bar, Pisani, & Weber, 2007). Or along the lines suggested by Eglash (2004), may
insert themselves into the production process. Users will not all respond to the same
technology in the same way but some appropriations eventually become common practice.
36
Users also have restrictions on their behavior, imposed by the material properties of the
technology or the state of scientific knowledge; users’ individual skills, knowledge and
creativity; governance structures that shape what users can and cannot do (or should and
should not do) with the technology (Orlikowski, 1992, 2000) as well as social conventions.
Furthermore, conditions may arise that cause users to discontinue usage of a technology
(Carroll, Howard, Peck & Murphy, 2002) or practice.
36
This study focuses on appropriations that have become commonplace.
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3. Suppliers React: Resign, co-opt, compromise, block
Appropriations, especially those that become widely practiced, present technology
suppliers with a choice of responses. Where they see the appropriation as detrimental to the
company, suppliers may try to prevent users from continuing in that behavior. Where this is
not possible, desirable or necessary, the supplier may try to find some middle ground to
reduce the perceived damaging impact of the appropriation. Alternatively the supplier may
see the user appropriation as a business opportunity in which case the supplier learns from
the new development and designs new products to capitalize on the need that the
appropriation has revealed. In some instances none of these three responses may be adequate
or effective, in which case the supplier may just resign to the situation and concentrate on
other activities. Suppliers will also not necessarily all respond in the same way to the same
appropriation, but their responses (with the possible exception of resignation) usually lead to
new roll-outs which not only set another cycle of enactments in motion, but also have the
potential to drastically change relationships between the various actors (designers, suppliers,
intermediaries, end users) in the industry. To the extent that the outputs of each cycle of
innovation and appropriation make useful technologies more available, accessible and
affordable to end users, the cycle influences not just technological change, but also social
change.
2.4 The Research Goals
Having noted the complexities of identifying and measuring the contribution of ICTs
to socio-economic development at macro and micro levels, this study sought to address the
issue at the micro level. This follows from the conclusion that universal access to
telecommunications is an important prerequisite for the type of development push that is
hoped for in Africa. It is important to identify in what capacity people in developing
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countries, on a broad level, are able to derive the most benefit from ICTs – is it in using the
technology, or in participating in the production and deployment of the technology? Is it the
case, as Venables (2002) suggests, that whilst ICTs are important for economic growth, their
impact is not so much in “rewriting the rules of economic geography” (p.167) as in enabling
individuals have greater access to information and service? A useful way of tackling this as a
research project is to consider the role telecommunications (particularly mobile telephony)
plays in the everyday lives of users. This is arguably where the most pervasive uses are
likely to be found, especially in economies where there is a thin line between economic and
social existence. Thus, from the sustainable livelihood approach to poverty reduction the
ideas of routine technology use within the context of a variety of livelihood assets, and the
search for livelihood sustainability are employed. Finally, after reviewing several models of
technology appropriation to investigate the actual process of technology use, Bar, Pisani and
Weber’s (2007) technology evolution model, is “appropriated” as a framework for the
research.
With these issues in mind, this study sought to investigate uses and impacts of
mobile phones and mobile payphones within the general population in Ghana, and to
compare these between rural and urban areas. It was also concerned with the attempts people
make to achieve some level of sustainability in their livelihoods and how mobile phones play
into this scenario. The mobile phone was a logical choice because it is currently the
dominant mode of telecommunication across the African continent and has contributed
significantly to narrowing the digital divide.
The concept of technology appropriation and the dynamics surrounding it were also
understood to affect these everyday uses, making it important to address not only how
people are using mobile phones, but also how these uses influence and are influenced by the
technology itself, and the institutions or modes of service provision. Of particular interest is
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the manifestation of the design-use gap and the relationship between the resulting
appropriations and users’ livelihood goals.
The methodology for investigating mobile phone use in Ghana within this
framework is described in Chapter Three.
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CHAPTER 3: Methodology
3.1 Research Design
In view of the complexities of measuring impacts, the difficulties associated with
conducting communication research in developing countries and the general scarcity of tried
and tested models for ICT research in Africa,
37
this study adopted a highly exploratory
approach. The methodology was largely qualitative, seeking first to get a sense of what the
issues were on the ground by focusing on a relatively narrow population and aiming for a
rich, textured understanding of the research phenomenon. This was supplemented with some
quantitative tools to explore emerging issues within the broader population. To facilitate this,
the research activities were allowed to evolve and change as the study progressed, rather
than being predetermined. The goal was to follow leads that made sense as they presented
themselves, while assessing their potential to shed light on the research questions. Major and
minor modifications were made to the research processes and protocols throughout the study
period. This chapter describes the overall research and data collection structure that emerged
from this process. Therefore I do not outline all the fine details of my day to day decisions
but focus on the cumulative outcomes of those decisions.
Though not an ethnographic study in the true sense of the word, the research was
informed by the ethnographic method. Ethnographic research is characterized by long-term
engagement with the communities under study with the researcher as an active observer and
participant in the community. This method is distinctive in three ways: first, in terms of
gathering data, the researcher seeks not only to observe but also to experience the lives of the
target population. The objective of this activity is “to witness how the studied others
37
Communication research in Africa is significantly hampered by a lack of systematic and reliable
baseline data on ICT facilities, dependence on research theories and methodologies more appropriate
for western societies, lack of adequately trained local researchers, and media and ICT institutions’
lack of interest in research (Adam & Wood, 1999; Ansah, 1994).
93
perceive, feel, and act in order to grasp these seeings, feelings, and actings fully and
intimately” (Lofland & Lofland, 1995, p.3). Secondly, in terms of research focus, qualitative
research of this kind differs from other methods in that decisions about topics, questions to
ask and the specific direction of the inquiry are performed during rather than before data
collection. This enables the researcher to be sensitive to real life conditions and issues as
they emerge in the daily routine of life. Thirdly, data analysis is an open-ended and emergent
process, based on the interaction of the data gathering and focusing processes (Denzin &
Lincoln, 2005; Lofland & Lofland, 1995).
This flexible approach was important to enable examination of multiple actors in the
telecommunication industry, to capture the complexity of user-level activity, and to keep the
research open to new developments over time.
3.2 Finding a Starting Point
The exploratory design of the study presented a principal challenge of finding a
starting point. This was resolved by reference to the literature on telecommunications in
Africa, as well as a visit to Ghana in 2005. While visiting Ghana I was struck by the
proliferation of mobile phone-based payphone operators (popularly known as “Space-to-
Space” operators) lining major streets in the capital city, Accra. Combined with the
dominance in recent commentary of an apparent explosion in mobile phone adoption on the
continent, and the idea of shared access as the likely primary mode of access to
telecommunications in the region, this made shared access to mobile telephony a logical
place to begin my investigation. This led to the decision to start the research by observing
mobile payphone operators as a manifestation of the adaptation of mobile telephony to local
conditions in Ghana. An advantage of observing payphone operators was that I could also
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gain access to their customers. I originally intended to branch out into other forms of
adaptation as I encountered them, but this strategy proved unfeasible for two reasons: first,
the mobile payphone topic turned out to be a demanding subject matter on its own, and
second, I observed few other significant, large scale adaptations during the study period.
38
A second early decision was to proceed in a holistic manner by incorporating the
entire ecology of the mobile payphone system. Research subjects therefore had to include
not only payphone operators, but also payphone users, mobile phone users in general, mobile
phone network providers, vendors of telephone equipment and accessories, as well as policy
makers and regulators.
ICT projects and other such formal development interventions were deliberately
avoided in order to eliminate the influence of project agendas. Although development
projects now emphasize participatory approaches and highlight the goal-seeking behavior of
poor people, they still have at their core the desire by development agencies to achieve
particular outcomes. Conversely, in this research, I examined mobile phone use as an
embedded everyday activity and not in relation to any specific ICT4D project or goal.
3.3 Data collection
This study is based on data collected during two periods of fieldwork – the first and
major phase covered about seven months from June 2006 to January 2007, the second phase
covered five weeks from July to August 2007. Multiple methods and sources were used to
collect data. Such triangulation, especially in a qualitative study such as this, greatly
38
Issues surrounding the emergence of one new development – electronic airtime transfers – were
incorporated into the study, as they had severe implications for the payphone business.
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enhances the validity and reliability of the data (Jick, 1979; Kirk & Miller, 1986).
39
Data
collection consisted of in-depth interviews with policy makers, service providers and mobile
phone users, field observation, analysis of company records and nonrandom surveys. The
primary data collection method consisted of intensive or unstructured interviews – “guided
conversation[s] whose goal is to elicit from the interviewee … rich detailed materials that
can be used in qualitative analysis” (Lofland & Lofland, 1995, p.18). Additional data were
collected using nonrandom surveys, company records, payphone operator records, news
reports, mobile phone commercials, and general field observation. Other types of data
collection were attempted, but ultimately discontinued or pursued only in a limited sense.
These included the use of communication diaries, examination of mobile phone logs and
address books, and GIS mapping of telecommunications access points.
40
The main data
collection methods are outlined below.
3.3.1 Interviews
Policymakers and Regulators: Policymakers and regulators were interviewed for
background data on the development of the telecommunications industry, and on policy and
regulatory initiatives to improve the industry.
39
In the context of ethnographic research, Stewart (1998) translates the concepts of validity and
reliability respectively into the ideas of veracity and objectivity. Whereas the conventional view of
validity in quantitative research is that it refers to whether researchers have measured what they
sought to measure, for the ethnographer, the issue is whether the description of results accurately
reflects the researcher’s observations in the field, that is, “with what verisimilitude does this study
succeed in its depiction?” (Stewart, 1998, p.15). Reliability refers to the replicability of the research
results, which is rarely possible with ethnographic research where contextual and situational
influences are an inherent part of the research process and are usually not controlled for. To replace
reliability, Stewart suggests objectivity, or intersubjectivity, in that the study should transcend the
perspectives of both the researcher and informants. This can be achieved through open-mindedness,
empathy and sensitivity to the views of others (Stewart, 1998, p.16).
40
See Appendix A for details.
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Mobile Phone Network Providers: The goal of these interviews was to obtain
information on the telecommunications environment, the influence of network providers on
the emergence of the mobile payphone system and vice versa. Information sought included
technologies in use; data on subscriber levels; breakdown of prepaid vs. postpaid
subscribers; perceptions of mobile payphone access systems; their relationships, if any, with
mobile payphone operators; plans to resolve interconnection problems; plans to extend
network service across the country; planned changes in their own services; and changes in
pricing systems in response to end-user behaviors. In addition print and broadcast news
coverage of their activities was followed.
Telephone equipment vendors: Interviewees were sought at mobile phone retail
companies to obtain information on the source of mobile phone handsets, sales volumes,
clientele, services provided to mobile phone owners and payphone operators, and
relationships with mobile phone network providers.
Mobile Payphone Operators: These interviews were conducted to obtain detailed
information on mobile payphone operations including where they were located, their
organizational form, set-up costs, revenue, expenditure, billing structures, long-term plans,
challenges, characteristics of clientele, previous occupation, economic and other changes
(positive and negative) attributable to engaging in this business venture.
Mobile Phone Subscribers and Users: Mobile phone subscribers are defined as
people who subscribe to a network; while mobile phone users are people who do not
subscribe to a network, but have access to mobile phones through others. They were
interviewed for information on their use of mobile payphones, their perceptions of the utility
of payphones, personal mobile phone communication habits, development of other methods
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of access to telephony, and any life changes they could attribute to use of mobile phones and
mobile payphones.
3.3.2 Surveys
Mobile payphone operators, mobile phone subscribers and mobile phone users were
surveyed to broaden the scope of analysis. The survey questions were based on issues
emerging from the interviews and observations.
41
They were designed to serve as an
expanded exploration of whether the interview data was consistent with trends in a wider
population.
3.3.3 Field Observation
During the study period, I observed mobile payphone operators, mobile phone
subscribers and mobile phone users in their natural settings, as well as the activities of the
major mobile phone network providers. Observation locations included mobile payphone
stalls on university campuses, in the business districts, market places, and residential areas.
Other observations were based on opportunity rather than location. For example, taxi cabs
turned out to be a rich source of observational data on passengers’ mobile phone practices.
3.3.4 Mobile Payphone Operators’ Business Records
Where available, business records of mobile payphone operators were examined to
assess the level of patronage and income generated by the business, as well as related
41
Research instruments developed by Research ICT Africa (2002) and Hernan Galperin (personal
communication) were especially valuable sources of guidance for the subscriber and user surveys.
98
expenses. This was used to complement the information derived from the surveys and
interviews.
3.4 Selection of Research Sites
For reasons of budget, ease of access, and time limitations, the Greater Accra region
was selected as the primary region for both urban and rural research sites, with the
possibility of later including additional sites in other regions of southern Ghana. Since all the
mobile phone network providers, major mobile phone retail companies and policy and
regulatory agencies were headquartered in Accra, interviews of officials from these
institutions were all conducted in Accra.
While the general research goal was to examine everyday rather than extreme cases I
also considered it desirable to find locations with some concentration of payphone operators
and human traffic. Such locations provided targeted access to large populations of mobile
payphone operators and users in addition to enabling simultaneous observation of the
various populations. Based on initial observations and discussions with informants, business
or market districts emerged as most ideal for this purpose. Driving and walking around
several communities in the city at different times of the day confirmed to me that areas of
concentrated economic activity also had high concentrations of mobile payphone operators.
Mobile payphone operators were not lacking in residential areas, however, they were
significantly fewer and sparsely distributed. The traffic of payphone users in residential areas
also appeared limited. While this raised potentially interesting research questions
42
I opted to
work in the more vibrant environments.
42
Such as why operators would maintain stations in areas where most people are either away at work
all day, or have personal access to both fixed and mobile phones. It is possible that their main source
During this preliminary exercise, I also noted the proliferation of other related
enterprises and activities, all of which were marked down as potential areas of investigation.
These included mobile phone sales and/or repair shops, street side vendors of mobile phones
and accessories, shops that advertised mobile phone sales and/or services in addition to other
activities (e.g., barbershops, gift shops, clothes shops) prepaid card vendors, vendors of
mobile payphone accessories, unit transfer vendors, and communication centers advertising
Space-to-Space payphone services. This process provided me with a broad sense of the
mobile phone and payphone economy and potential areas of enquiry that would inform
subsequent choices of research sites and respondents.
Figure 3.1 and Table 3.1 show the primary research site locations and community
characteristics.
Figure 3.1: Research Sites
^
^
Apemanim
Prampram
ACCRA
KUMASI
Osu
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of business is the purchase of prepaid cards and unit transfers (rather than making of phone calls) by
mobile phone subscribers outside working hours.
100
Table 3.1: Summary of Research Site Characteristics
Characteristics Apemanim Prampram Osu
Type of community Rural Peri-urban Urban
Region Ashanti Greater Accra Greater Accra
District Bosomtwe-Atwima-
Kwanwoma
Dangbe West
district
Accra Metropolitan
Area
Population 329 10.317 44,027
District population density 236 58 5530
Main economic activity Agriculture
(subsistence farming)
Agriculture
(fishing and cash
crop farming)
Commerce
Unemployment 11% 8.9% 13.2%
Regional poverty level* 27.7% 5.2% 5.2%
Mobile phone
ownership**
Low Medium High
Number of mobile
payphone operators**
2 About 20 Over 50
Sources: Ghana Statistical Service (2005). 2000 Population & Housing Census of Ghana. Fieldwork.
* Proportion of population in that locality falling below the national poverty line (¢900,000 per adult per year,
National Census, 2000). ** Researcher’s estimation on the basis of fieldwork.
3.4.1 Urban Sites
To select a specific site in Accra to site the study, I solicited information on the
location of mobile payphone operators from friends and colleagues. I also returned to the
area in Osu, Accra where I had first noticed the activities of Space-to-Space operators in
2005. This location – a business district along Cantonments Road – was frequently
mentioned by my local informants as a good place to observe Space-to-Space operators and
users. I spent several days getting reacquainted with the area. This consisted of walking the
length of the street, taking note of the number and locations of Space-to-Space operators,
their gender, what kind of set-up they had, if they were present each day and time I was there
and what they or the people around them appeared to be doing at different points in time. To
get a sense of the areas surrounding this location, I also looked along side streets as well as
other major roads around the business district, taking note of the presence or absence of
101
Space-to-Space operators in these areas.
43
I made a point to see if any of the Space-to-Space
operators I had interacted with in 2005 were still at their original locations – I found one
young woman who was still where I had first seen her, and reestablished contact with her.
Having decided that the Osu business district was still an interesting place to
observe, and that it constituted an adequate urban site, especially with one prior contact
already in place, I visited another area that had been highlighted by local informants. This
was Kinbu, another business district surrounding the Kwame Nkrumah Circle in the center
of Accra. This area had an even higher concentration of Space-to-Space operators and
human traffic than the Osu area. However, I ultimately deemed the Osu business district
preferable partly because of the existence of a prior contact, but also because the amount of
human and vehicular traffic, and the noise levels in the Kwame Nkrumah Circle area made
observation and interviewing relatively difficult. Apart from being the site for a large
number of furniture and sign makers producing or selling mobile payphone accessories,
there did not appear to be any significantly different activity between the two sites, as far as
mobile payphone operations were concerned. I did, however, conduct informal interviews
with some of the furniture and sign makers and vendors of other payphone accessories in this
area.
Additionally, two low-income communities (Osu Ako Adjei and Labadi) fairly close
to the Osu business district were selected as additional sites for interviews and surveys of
mobile phone users. Respondents were identified with the help of local informants living in
each community. I recruited a multilingual local informant with some research experience to
assist with research activities in these two areas.
44
43
For example, continuing along Cantonments Road from Danquah Circle, through Ghana
International School to the Burma Camp taxi station.
44
Residents of these areas communicate mainly in the Ga or Twi languages.
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3.4.2 Rural Sites
The main criteria for qualifying as a rural site were that the site be located in a rural
area,
45
have at least one mobile payphone operator, and its residents should be able to
communicate in a language the researcher, or research assistant has a working knowledge in.
Two rural sites – Apemanim in the Ashanti region, and Prampram in the Greater Accra
Region – were selected for study after extensive consultation with colleagues at the
University of Ghana and officials of some non-governmental organizations. Both locations
were selected on the basis of some desirable characteristics as well as the availability of
contacts to facilitate entry into the community. Apemanim, a village about 7 kilometers from
the center of Kumasi,
46
has about 300 residents, two mobile payphone operators and a
handful of mobile phone subscribers. It represents a very different condition from that in the
urban sites, making it possible to observe and compare mobile phone usage in two very
different environments, one characterized by plentiful supply and ability to use
telecommunications, the other with limited supply and ability to use. Being personally
acquainted with the chief of the village, it was easy for me to gain access to residents for
interviews. However other characteristics of the community (principally the slow pace of
activity, and its distance from Accra) made it challenging to undertake as much field
observation as was possible in Accra. In total, I visited Apemanim on two different
occasions, the first visit for a day in August 2006, and the second over four days in
December 2006. I also recruited a student from the University of Ghana, who was
45
Defined by the Government of Ghana (2003b) as a clearly identifiable community with 5000 or less
inhabitants.
46
Capital of the Ashanti region, about 300 km from Accra.
103
undertaking her National Service in Apemanim, to administer surveys and also give me
additional information on her observations of mobile phone use in the community.
The second rural site, Prampram, was selected to add some diversity to the sample by
including a community that was more economically active than Apemanim. Prampram is a
fishing village about 50 km from the center of Accra. Two studies conducted in Ghana have
concluded that mobile phones are a critical piece of equipment for fishermen and
fishmongers (Abissath, 2005; Boadi & Shaik, 2006). Because Prampram is closer to Accra, I
was able to visit the area on numerous occasions throughout the study period, sometimes for
a day, other times for about one week.
3.5 Sampling
Sampling was mostly purposive, starting with key informants in the selected sites.
Table 3.2 summarizes the formal interview and survey samples.
Table 3.2: Interviews and Surveys
Respondents Interviews* Surveys
Policy makers 1 -
Regulators 3 -
Mobile phone network providers 4 -
Mobile phone and accessory retailers 5 -
Mobile payphone operators (total)
Apemanim
Prampram
Osu/Accra
Wa/Ko
15
2
3
10
-
96
-
20
65
11
Mobile phone subscribers and users (total)
Apemanim
Prampram
Osu/Accra
Wa/Ko
25
4
4
17
-
197
*These represent the formal interviews only.
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3.5.1 Interview Sample
Interviews were conducted between June 2006 and January 2007 by me and one
research assistant trained for the purpose. Interviewees were selected through personal
contact with local informants and the snowball method.
At least one top management official from each of Ghana’s four mobile phone
network providers was interviewed, as well as two managers at different branches of a large
mobile phone retail company, one independent mobile phone importer, and two micro-
entrepreneurs selling mobile phones and accessories. I also interviewed one top official at
the Ministry of Communications, and one top official at the National Communications
Authority. Two management personnel at the GIFTEL Secretariat (the agency in charge of
the universal access fund) were also interviewed. The specific official interviewed in each
instance depended on whom I was able to make contact with through phone calls and
personal contacts, and who was willing to participate in the study. Some respondents
requested that they not be identified by name in my report.
Mobile payphone operator interviewees consisted of ten operators in Accra, three in
Prampram, and two in Apemanim. Seventeen mobile phone subscribers and users were
interviewed in Accra, four in Prampram and four in Apemanim. Most of these were Space-
to-Space payphones, which have captured the Ghanaian market. Attempts were made to
identify and interview operators of other types of payphones but there were only a few of
them in the research area. In the end only two operators of other systems were included in
the sample.
47
The contact I made in 2005 was the first respondent, after which additional
47
Ultimately focusing on Space-to-Space operators was sufficient to cover payphone operations run
on other networks because some operators, while advertising their services as Space-to-Space, use
multiple phones for calls to different networks.
105
operators were sought by simply asking them if they would be willing to participate in the
study.
Payphone users and mobile phone subscribers were identified during interactions
with payphone operators as well as through other informants. The main sampling goal was to
focus on middle and low-income mobile phone users
48
and to seek balanced representation
of male and female respondents. Some payphone operators introduced me to their customers,
some of whom who were willing to be interviewed. Other subscribers and users were
identified by local informants. In some cases, specific types of people were sought by asking
informants if they knew anyone with certain characteristics, e.g., someone who owns a SIM
card without a handset, or someone who sends text messages using a local Ghanaian
language, etc.
3.5.2 Survey Sample
The surveys were administered during the second research phase in July and August
2007. Six assistants were recruited from the University of Ghana to administer the surveys.
Four of them were teaching assistants in different departments, and two were graduate
students at the School of Communication Studies. Sampling was purposive and
convenience-based, and in all cases, selection of respondents was based on the potential
respondents’ willingness to participate. Only gender balance was explicitly sought. Interview
respondents and local informants were asked to recommend friends or acquaintances for the
surveys. Other survey respondents were recruited cold by approaching them in public places,
such as market places and shopping centers, offices, school campuses and the beach.
48
Selecting participants based on income levels was however difficult because questions about
income could generally not be asked before a relationship had been developed with the respondent.
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Whereas the interviews were concentrated in the three research sites – Osu,
Prampram and Apemanim – the survey areas were not restricted to these three sites. Survey
respondents in the Greater Accra region included people resident all around the city of Accra
in addition to Osu and Prampam, while surveys administered in Ashanti region included
residents of Apemanim and Kumasi. In addition, one of the research assistants happened to
be traveling to the Upper West region in northern Ghana during the research period and so
administered some surveys there as well, mainly in two communities – Wa and Ko.
Over 50% of mobile payphone operators in the sample were from Accra, followed
by Prampram and Wa (Table 3.3). Although this was not a quota sample, the proportions
reflect the concentration of payphone operators in urban and other areas with large
populations. Males dominated the sample (about one-third), most respondents were young
(75% were under 25 years), and most had Junior Secondary School (JSS) or Senior
Secondary School (SSS) education.
49
Table 3.3: Survey Sample Characteristics – Mobile Payphone Operators
Location Percentage (n=96) Gender Percentage (n=96)
Accra 67.7 Male 63.5
Prampram 20.8 Female 36.5
Wa 11.5 Total 100
Total 100
Age Educational Level
18 – 20 years 36.5 No formal education 2.1
21 – 25 years 38.5 Primary 4.2
26 – 30 years 10.4 JSS 35.4
31 – 40 years 7.3 SSS 39.6
Over 40 years 4.2 Technical/Vocational 12
Missing 3.1 University 66.3
Total 100 Total 100
49
JSS and SSS education are equivalent to about 9 and 12 years of basic education respectively.
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A greater proportion of respondents in the subscriber and user sample were from
Accra and Kumasi (Table 3.4). This also reflects the larger population and higher number of
subscribers in the two most densely populated districts in the country. Overall, there were
more male subscribers (55.9%) and more female non-subscribers (53.2%). The sample was
also relatively young – 78% of subscribers and 82.3% of non-subscribers were under 30
years. Subscribers had higher education levels than non-subscribers – almost 60% had
university education compared to about 10% of non-subscribers, most of whom had JSS
(31.6%) or SSS (32.9%) education. The sample covered a wide range of occupations
(including white collar workers, village elders, students, farmers, fishermen, other self-
employed entrepreneurs and some unemployed persons) but had a high percentage of
students in both subscriber (21.1%) and non-subscriber (27.8%) categories. However, while
students comprised the majority of subscribers (21.2%), trading was the primary occupation
of non-subscribers (32.9%). Respondents in the non-subscriber category generally earned
less monthly income than the subscriber sample – 54.4% earned less than ¢500,000, while
only 21.2% of the subscriber sample earned the same amount. Most subscribers (37.3%)
earned between ¢1million and ¢5million per month.
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Table 3.4: Survey Sample Characteristics – Mobile Phone Subscribers and Users
Area Percentage Percentage Age Percentage Percentage
Subscribers
(n = 118)
Non-
subscribers
n = 79)
Subscribers
(n = 118)
Non-
subscribers
(n = 79)
Urban 79.7 70.9 16 - 20 yrs 11.9 40.5
Rural 20.3 29.1 21 - 30 yrs 66.1 41.8
Total 100 100 31 - 35 yrs 10.1 7.6
Gender >40 yrs 6.7 7.6
Male 55.9 46.8 Missing 5.1 2.5
Female 43.8 53.2 Total 100.0 100.0
Missing 0.8 1.3
Total 100.0 100.0
Monthly
Income
Educational
Level
< ¢500,000 21.2 54.4 No formal
education
- 5.1
¢500,000 –
¢1m
17.8 17.7 Primary school 0.8 10.1
¢1m – ¢2m 22.0 10.1 JSS 2.5 31.6
¢2m – ¢5m 15.3 5.1 SSS 22.9 32.9
¢5m – ¢10m 9.3 1.3 Vocational school 11.9 8.9
¢10m – ¢20m 0.8 - College 59.3 10.1
>¢20m 1.7 1.3 Missing 2.5 1.3
Missing 11.9 10.1 Total 100.0 100.0
Total 100.0 100.0
Percentages may not add up to 100 because of rounding.
3.6 Research Process
3.6.1 Interviewing
Interview guides were prepared for use in the field (see Appendix 3.2). The guides
were informed by my personal observations in the research sites, as well as the literature on
mobile phone and payphone services in other countries were consulted. Interviews usually
involved multiple interactions with respondents, ranging in length from a few minutes to
about two hours each time. All interviews were conducted either at the workplace of the
respondents (especially the payphone operators, network providers and public officials) or at
their home. In a few instances the interview took place at some other location, such as at a
restaurant, or church for the respondent’s convenience. Some interviews involved a single
respondent, while others were conducted in more of a group context, with several people
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contributing to the discussion, although there was only one primary respondent.
50
In addition
to formal interviews, several informal interviews and conversations occurring throughout the
research period were a source of data (See Appendix B for a list of the formal interviewees).
3.6.1.1 Equipment Vendors
To start the research process, I simply identified the most prominent mobile phone
sales and repair shops in Accra based on recommendations from local informants as well as
the level of these companies’ advertising activity (TV, radio and print). Ultimately two
interviews were obtained from the same company, the head office and one branch of one of
the oldest mobile phone sales companies in the country.
51
A third interview respondent was
identified by accident – this respondent was a contact helping me to gain access to
management of some mobile phone network providers, when during conversation it emerged
that in addition to his professional occupation, he also imports mobile phones for distribution
in Ghana. A fourth interview was with a street side vendor of mobile phone accessories in
Osu. The original plan was to interview two equipment providers but ultimately the number
came to four. This was partly because the first two interviews were with officials from the
same company and so I tried to get at least one other contribution. Inclusion of the street
vendor was in recognition of the proliferation of such vendors in all the major cities in
Ghana. The details provided by these four respondents, as well as casual conversations with
several vendors of mobile phone accessories in other parts of Accra, largely resonated with
50
In the rural sites, Prampram and Apemanim, all my interviews tended to involve more than one
participant. In Accra, this usually occurred with my interviews of payphone operators but not so much
when interviewing mobile phone users.
51
My first interview was with a branch manager who then facilitated a second interview with a
manager at the head office for information he could not provide.
110
each other, therefore they can be considered an adequate representation of the market in
Ghana.
52
3.6.1.2 Mobile Phone Network Providers
Interviews with mobile phone network officials were conducted as appointments
became available. Only one officer from each of the four mobile phone companies was
formally interviewed, and although top management was preferred, other levels of
management were accepted depending on who was available and authorized to speak on
behalf of the company. Three interviews were conducted with the managing director of
Kasapa, marketing manager of tiGo and general manager of Onetouch. All were willing to
discuss most company operations. However, none could provide me with statistics on
company operations, saying that they need time to compile such information. All attempts to
secure an interview with the fourth company, Areeba proved futile. The company was facing
a significant amount of turbulence in the Ghanaian market, suffering from an oversubscribed
network which had led to general subscriber dissatisfaction. Furthermore the company was
in the process of being taken over by MTN South Africa. It is possible that these events
made management less accessible. During my second field visit in 2007, I was able to secure
an interview with the new Corporate Services Executive (CSE) of Areeba/MTN. The
interview was however dominated by the company’s plans for the future, rather than
52
One particular market sector that I did not explore in depth was the general and black markets in
used mobile phone handsets. Although some of my interviewees were involved in the sale of used
handsets, they were not at the heart of the industry. There is a thriving market in stolen and used
handsets concentrated in certain parts of Accra (such as the area popularly known as Cow Lane).
However gaining access to this population as a researcher would have required significant time and
possibly subterfuge, which I was unable to pursue during the research period.
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operations during the tenure of the Areeba administration.
53
The data on Areeba is therefore
based mainly on interviews with two informants, one a former employee of the company,
and the other a current employee who wished to remain anonymous.
3.6.1.3 Payphone Operators
I began my interaction with payphone operators by re-introducing myself to the
Space-to-Space operator I had identified during my preliminary visit in 2005. The
justification for selecting this respondent was that she had survived more than one year in the
business, at the same location, and had proven to be cooperative when I approached her in
2005. This young woman also introduced me to several of her clients, some of whom agreed
to be contacted for further discussions. She also introduced me to her employer, an older
woman, whom I later interviewed, as well as one of her prepaid card suppliers, and a female
friend of hers who became my first mobile phone subscriber respondent.
I interviewed four female and four male payphone operators in the Osu area. Apart
from my initial contact introducing me to her employer, I selected and secured interviews
with all other payphone operators without any intermediary. Three of the female operators
worked in the Osu business district - they were my prior contact, her employer, and a young
woman whom I approached because her signage was advertising the sale of an Areeba unit
transfer SIM card.
54
The fourth female respondent was located in the Osu Ako Adjei
residential area. The men were all inside or around the Osu business district. Two of the four
53
According to the CSE, she represented MTN rather than Areeba and was therefore not familiar with
details of the company’s activities before the MTN takeover. Although I suggested she could
authorize some other long time employee of the company to provide that information, she preferred to
be the only one I interacted directly with and agreed to source relevant information on my behalf.
Several attempts on my part to follow up on this yielded no results.
54
An item that had become scarce on the Ghanaian market.
112
men were selected because their set-up was in some ways different from that of most other
operators in the area, in that they had larger structures – typically a booth rather than a chair
and umbrella. I approached one man specifically for this reason. The second, I encountered
while searching for One4All
55
operators to interview, who are generally scarce on
Cantonments Road. I finally came across a young woman whose placard said she offered
Onetouch. In trying to find out if she was providing Onetouch phone calls in addition to
Areeba calls she directed me to a booth nearby where her employer worked. He turned out to
be a prepaid card sub-dealer who also owns three payphone operations. The third man was a
One4All operator who also sells mobile phone accessories, and the fourth man dealt
primarily in prepaid airtime. I also interviewed two other payphone operators in other parts
of Accra – one the manager of a series of payphone stations on the University of Ghana
campus, another offering payphone services on the Kasapa network in Kinbu. The Kasapa
payphone operator was the only such operator I noticed in all the areas I passed through in
Accra.
I identified mobile payphone operators to interview in Prampram mainly by walking
the streets and asking operators if they would consent to an interview. In addition I was
introduced to one payphone operator by a local informant, and this payphone operator
connected me to another payphone operator located in a different part of the village. My
interactions with respondents did not consist of single interviews but rather of several
meetings and discussions over about three months, and intermittent visits through out the
research period. After the interview guide had been exhausted, I occasionally visited
respondents in Accra and Prampram to say hello and find out how things were going. Some
of these follow-up visits led to new information.
55
Payphone running on the Onetouch network.
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3.6.1.4 Mobile Phone Subscribers and Users
Respondents were interviewed as and when willing persons were identified.
Typically three or four sessions of 30 minutes or more were needed to exhaust the interview
guide. The first interview was in Accra with a young woman introduced to me by a
payphone operator and with whom I had developed some rapport during my time visiting
with the payphone operator. The other interviews in Accra were derived primarily through
the efforts of my research assistant in Osu Ako Adjei as well as my own contacts made
through payphone operators, family and friends.
In Prampram an official of a non-governmental organization that had worked in the
village introduced me to some knowledgeable residents (principally a hotel proprietress and
the headmistress of a school for homeless children) who then assisted me in finding
information and people to interview. I also visited the office of the traditional council (one of
the local government bodies), and gained audience with the traditional leader of the
community (known as the Mankrado) for preliminary interviews and background
information. The hotel proprietress introduced me to some fishermen, talked with me about
her own mobile phone use, shared her views on mobile phone use in Ghana, and also
encouraged her friends and hotel patrons to engage in discussions with me on their use of
mobile phones. Interviews here also often involved multiple participants. The headmistress
introduced me and my research assistant to teachers and other workers at the school who
later participated in the surveys, and directed us to other potential survey respondents.
In Apemanim I first met with the chief, who introduced me to the queenmother, took
me on a tour of the village, and also introduced me to one mobile payphone operator, as well
as other residents of the village who owned mobile phones. During my first visit which was
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only a day long, I did not conduct any interviews, but learnt a bit about the village, and got
promises from some residents to make themselves available for interviews on my next visit.
Subsequently I interviewed the chief of the village (this interview took place in Accra).
During the second visit, I interviewed the queenmother, one young student, a farmer, and the
village’s two payphone operators. Apart from the student interviewee, all the other
interviews took place in more of a group setting. For example, the queenmother’s husband
participated in the discussion, as did the linguist, and some guests who happened to visit
during the interview. The linguist also accompanied me to most interviews to introduce me
to respondents and act as an interpreter when necessary. I conducted some of the interviews
in English where the respondent was capable, and others in Twi, the vernacular of the
village.
3.6.2 Observation
The field observation aspect of the study consisted primarily of observing the
activities of mobile payphone operators and their customers. This usually occurred during
the interviewing process. For example, at the beginning of the research period, I spent
several days sitting with my first mobile payphone interviewee at different times of the day.
During these times, I observed her at work, noted the flow of customers and what they came
to do, occasionally asking questions about her activities. Some parts of these interactions
were recorded with the permission of the operator. Subsequently I revised the interview
guide and conducted more focused interviews with this operator. Over about two weeks this
led to a significant amount of information, clarifications and insights on the history and
current state of the Space to Space business from an operator’s perspective. I also spent a lot
of time just walking or sitting around the research sites and watching payphone operators as
well as the general public. Anytime I happened to be outdoors I also kept an eye out for
115
anything interesting relating to mobile phone use, whether or not this was inside my research
sites.
3.6.3 Surveys
Separate instruments were developed for subscribers, non-subscribers and mobile
payphone operators (see Appendix C for data collection instruments). The survey
instruments for mobile phone subscribers and users was tested on 125 university students
and revised accordingly. My research assistants were instrumental in providing feedback on
challenges encountered in administering the surveys, and suggestions on improving the
instruments. In order to increase the response rate, the questionnaire for mobile payphone
operators was designed to be very simple and did not require pre-testing. Respondents were
given the choice to self administer the survey or have the research assistant fill in their
responses.
3.7 Data Analysis
In addition to manual perusing of interview transcripts, field notes and other data,
AtlasTi, a qualitative data analysis software was used to organize and analyze the data.
Analysis was designed to identify themes, processes, commonalities, differences, and
linkages related to the research problem. SPSS software was used to code and analyze the
survey data. Survey data entry was performed by an assistant recruited for that purpose and
was cross checked by me.
A major point of comparison was the state of affairs in rural and in urban areas. In
addition, subscribers and non-subscribers were compared. The influence of other variables
such as gender, age, income and occupation was also examined. Basic statistical tests were
116
conducted on the survey data. Most of these were chi-square tests, as the surveys collected
mainly nominal data. Due to the nonrandom nature of the survey samples, the test results are
only applicable to the samples and were not taken to be generalizable to the whole Ghanaian
population.
3.8 Field Challenges
3.8.1 Selection of Research Population
One of the greatest challenges in the field was deciding whether to focus on distinct
populations or to cast a broad net. Ultimately, I opted to explore the general population, but
tried to target some specific populations where appropriate. For example, fishermen and taxi
drivers are easily identifiable populations that are frequently described as using mobile
phones to facilitate business. In Prampram, I was able to take the opportunity to explore
fishermen’s use of mobile phones to some extent, though not as comprehensively as would
have been possible with more time. On the other hand, casual conversations with several taxi
drivers in Accra suggested to me that business uses of mobile phones did not constitute a
very significant practice for them. Nevertheless, I considered administering a survey to taxi
drivers at the Burma Camp taxi station, a central transit point in Accra, but ultimately
postponed this for a future time due to time limitations.
Students (especially college students) were also frequently referred to by local
informants as exhibiting unique patterns of behavior. Furthermore, one of the first mobile
payphone stations established in association with Areeba was set up on the University of
Ghana campus. This provided an opportunity to observe another type of mobile payphone
operation and how it is used by the student population. Without directly targeting members
117
of this group however, their activities were captured because a large proportion of the survey
respondents were students, with the advantage that these included non-college students.
3.8.2 Interviewing Company and Government Officials
Gaining access to officials of large companies and government departments was
particularly difficult, and ate significantly into the research schedule. Attempts were made to
contact managers through official channels, but in general, the most productive strategy was
to get an introduction through a friend or colleague with a contact in the company – this
influenced which officials I was able to interview, as well as the type of information they
could deliver. In addition, mobile phone network providers were highly protective of
company information; most declined to give information on questions such as average
revenue per user, company profitability, network traffic, and quality of service indicators.
The reasons usually given were either that such information was “competitive information”
or that the organization did not itself compile the information. My offer to compile the
information for them if they would give me access to records was rejected by all. Through a
combination of developing friendships with officials, promising to keep some information
confidential, seeking information from anonymous informants, and noting public perceptions
and news coverage, I was able patch together sufficient information to fill in some of the
gaps that company officials were unwilling to address.
3.8.3 Interviewing Mobile Payphone Operators
A challenge with interviewing payphone operators was that a significant number of
them were employees, rather than owners of the business. Therefore, some were wary of
being interviewed, while even those willing to interact with me sometimes did not have
answers to all my questions (for example, questions about how and why the business was
118
established). This also shaped the choice of respondents. In all cases my preference was to
talk to people who owned the payphone they are operating. Where this could not be achieved
but the operator showed willingness to participate, as much information as possible was
derived from the operator, and then he or she was asked to find out if the owner of the
business would consent to an interview as well. Three payphone operators interviewed fell
into this category and in two cases, the business owners (one man and one woman) made
themselves available for interview. The third owner, a woman declined the invitation.
The flexible strategy adopted for this study necessarily involved several changes in
research direction and associated protocols which are not reported in this dissertation. While
all research is to some extent shaped by the researcher’s personal orientation, this process
also heightened the level of my personal influence on the character of the research outputs.
Hence at the same time as this research strategy was designed to reflect and be responsive to
reality, I acknowledge the biases that may have been introduced by the decisions I made
along the way.
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CHAPTER 4: Structure of the Mobile Phone Industry in Ghana
To understand developments in the mobile payphone sector in Ghana, it is important
to understand the evolution of the whole telephony industry. The mobile payphone system
has been one of the most highly celebrated aspects of mobile telephony in developing
countries but it emerged in the midst of a rapidly changing industry in which the parties
involved did not always carefully consider the potential impact of new developments. The
current state of the sector can be directly linked to strategic decisions by network providers
that initially facilitated but are now apparently destroying the market for payphone services.
The first part of this chapter draws on secondary data to present an overview of the
development of telecommunications infrastructure, the most recent ICT policy and research
on mobile phone use in Ghana (Sections 4.1 – 4.4). The second part of the chapter lays out
the basic structure and evolution of the mobile phone industry, highlighting landmark
moments that turned out to be primary drivers of growth in subscriber levels, changes in
subscriber behavior, and, ultimately, the fortunes of the payphone sector – the switch from
analog to digital technology, the shift from postpaid to prepaid billing, organizational
interventions to overcome interconnection problems, and the current tide away from physical
media such as scratch cards and towards direct electronic airtime top-ups. The data for
Sections 4.5 – 4.9 comes from company documents as well as interviews with network
officials, mobile phone retailers, policymakers and regulators. News reports and field
observation also contribute to this chapter.
4.1 A Brief History of Telecommunications Development in Ghana
The history of telecommunications in Ghana dates back to the colonial era when the
system was established by the British administration for one basic purpose – to facilitate
control and exploitation of the colony (Allotey & Akorli, 1999; Noam, 1999). The form of
120
state-run monopoly systems, focused mainly in areas of economic activity, thus established
the basis for the structure of telecommunications after independence. This structure persisted
in Ghana until the early 1990s when it was caught up in a wave of restructurings,
deregulations and privatizations sweeping the continent (Sarbib, 1997). The liberalization
process was motivated by a combination of pressure from international finance agencies,
WTO commitments, inefficiency in the existing system, the government’s need for revenue,
and a desire to promote universal service (Addy-Nayo, 2001; Bennell, 1996; Frempong &
Henten, 2004; Noam, 1999; Noll & Shirley, 2002). Active design and implementation of
telecommunications reform in Ghana begun with the Accelerated Development Programme
1994-2000 (ADP 2000), which sought primarily to promote competition in the
telecommunications industry. The main policy objectives were to:
1. Achieve a telephone density of between 1.5 and 2.5 lines per 100 people
2. Improve access to telephony in rural and urban areas through the provision of
payphone facilities
3. Expand coverage of mobile services
4. Promote Ghanaian ownership and control of telecommunications companies, and
5. Create a regulatory agency to oversee the sector.
It was estimated at the time that the demand for phone lines was about 500,000, which the
policy maker targeted to achieve by 2000 (interview, Ministry of Communication). Although
the policy objectives show a concern for improving telecommunications access in rural
areas, the ADP prioritized improving access for the business community (Haggarty, Shirley
& Wallsten, 2003).
The resultant telecommunications structure consisted of regulated competition for
fixed and mobile telephony, and open competition for other telecom services (e.g., Internet
services). Ghana essentially maintained an incumbent in fixed line telephony by granting
121
exclusivity periods to the companies that took over the fixed line system, including the
second fixed line operator (Westel), which enjoyed the same exclusivity period as the newly
privatized incumbent (Ghana Telecom).
56
The decision to introduce a second fixed line
operator, as well as to provide for a third (fixed wireless) network provider (Capital
Telecom) for rural telephony, was a bold step, giving Ghana one of the most competitive
telecommunications market structures in the region (two national mainline operators, one
fixed wireless rural operator, and five mobile phone companies). Faced with a rapidly
deteriorating system after independence, Ghana had to rush the telecommunications
privatization process, facilitating mobile phone service introduction as early as 1991 and
implementing what has been described as one of the fastest privatizations in the sub-Saharan
region (Alade-Loba, 1997; International Special Reports, 1998).
57
Universal access was not a regulatory requirement for telecom operators, however,
the ADP proposed one payphone for every village of 500 or more people, as a policy target.
In 1998, the universal access target was revised to one payphone for every community of
more than 250 people (Frempong, 2004). Payphones were thus seen as the tool to achieve
universal access but responsibility for this was generally left to the two national fixed line
operators (Ghana Telecom and Westel) and one specially licensed rural operator (Capital
56
Although the government had majority shareholdings in both companies. Resistance to foreign
ownership of privatized firms was particularly high in Ghana where the incumbent
telecommunications operator was seen as a national asset, and symbol of national pride and
sovereignty (Alhassan, 2003; Bennell, 1996). This can be attributed to the enduring influence of the
colonial experience on perceptions of economic reform recommendations in developing countries
(Noll, 2000; Stiglitz, 2000), although Bennell (1996) observed that opposition to foreign ownership of
divested companies has been lower in French sub-Saharan Africa, than in English sub-Saharan Africa.
There has been less sensitivity to foreign ownership of mobile phone network providers, where
investing companies have come from Sweden, US/Hong Kong, Luxemborg/UK and Ghana/Malaysia.
57
Haggarty, Shirley and Wallsten (2003) suggest that one of the reasons for the high rate of buyer
attrition in the auction of Ghana Telecom was that investors did not have enough time to undertake
due diligence.
122
Telecom), with each being required to roll out a particular number of lines within a specified
time period. Westel was to install 100 payphones by the end of 1998.
Mobile phone network providers’ universal access obligations consisted of paying
1% of their net revenue into a universal access fund, ensuring that their subscribers can make
emergency calls, and expanding network coverage to all regions of Ghana in the following
phases:
Phase 1 – presence in six regions within three years
Phase 2 – presence in eight regions within five years
Phase 3 – presence in ten regions within 8 years
The mobile phone license agreement document states that the installation of fixed wireless
payphones are a universal access obligation for network providers, however, this is one
requirement the regulator does not appear to have pursued. The working of the clause
suggests that imposition of this obligation is at the discretion of the regulator, and so far, it
has only been applied to Westel, which, in any case, did not enter the market as a mobile
phone operator.
The government’s definition of universal access changed again in 2004 when the
National Telecommunications Policy identified universal access and universal service as “a
fundamental right of every citizen” (Government of Ghana 2004, p.24), and defined
universal access rather broadly as,
The availability, through broad geographic coverage, of community-based
broadband information and communication services that include voice, data
services, access to the Internet, local relevant content, community radio and
Government services, that are available, affordable, and of high quality, for all
citizens of Ghana. (Government of Ghana, 2004, p.24)
The Policy goal is to achieve universal access by 2010, as well as 10% rural and 25%
national universal service during the same time period.
123
,
f the network provider.
To this end, the Ghana Investment Fund for Telecommunications (GIFTEL) was
established to collect and manage funds paid by telecom network providers, beginning in
January 2005. GIFTEL’s mandate is to address telecom access in “underserved and unserved
communities.” These are invariably rural areas, however, the fund prefers to use the broader
definition while it investigates the issue of how to define an area as rural (interview,
GIFTEL secretariat). Under its Universal Telecommunications Access Programme (UTAP),
the fund selects areas that meet its criteria for underserved or unserved, and telecom network
providers are invited to bid for access to GIFTEL subsidies to build cell sites in these
areas.
58
Although the fund does not delve into issues of technology, wireless has become the
de facto means of implementing the UTAP aspect of its operations. Overall, GIFTEL’s
UTAP is designed to promote expansion of telephone network infrastructure, with the
expectation that once there is signal coverage, other services will follow (interview,
GIFTEL). The benefit of wireless systems in this sense is that all that is required is signal
coverage. The rest is up to the consumer (to buy a cell phone and start using the network)
unlike the situation with fixed lines where direct connections to homes or establishment of
payphone facilities were still the responsibility o
Ghana Telecom is still establishing payphone facilities around the country but these
are concentrated in urban areas (Table 4.1). In any case, patronage of fixed line networks is
declining despite a series of promotions by Ghana Telecom. Westel and Capital Telecom
ultimately have had little impact on the availability of payphones.
58
GIFTEL is also involved in two Internet-based projects: the Community Information Center project,
and the Leland Last Mile Initiative.
Table 4.1: Regional distribution of GT payphones (2002)
Region Number of Payphones
Greater Accra 2171
Ashanti 937
Eastern 485
Western 323
Central 241
Volta 218
Northern 190
Brong Ahafo 166
Upper East 155
Upper West 112
Total 4998
From the lack of mention of payphones in the current definition of universal access, as well
as in the goals of GIFTEL, it would seem that payphones had lost their appeal as a tool for
meeting universal access goals. However, payphones did come to play a significant role in
enhancing accessibility, but not exactly in the way originally envisaged by the policy regime
(See Section 4.4.4 ).
Ghana’s reform process has received mixed and largely negative evaluations (e.g.
UK Trade & Investment, 2001). Budde Communications (2004, para 5) states that, “the
national telecom network is regarded as one of the worst in Africa. The fixed line sector has
not fared particularly well post-privatization, despite some gains in network expansion.
Indeed, rather than opening up genuine competition, the state seemed to gain greater control
over the telecommunications industry through a combination of majority shareholdings in
the fixed line networks and regulatory capture (Frempong, 2004). The other two fixed line
network providers, Westel and Capital Telecom made negligible inroads into the Ghanaian
market, crippled by inadequate infrastructure and resources, as well as interconnection
conflicts with GT. Westel has been able to remain afloat courtesy of its provision of
international gateway services to mobile phone networks; Capital Telecom ceased operations
124
125
within two years of its inception.
59
There has been general dissatisfaction with
telecommunications services in Ghana, attributable to a weak regulatory authority, low
investment by the strategic investor in GT, inadequate infrastructure, and interconnection
problems between the incumbent and other telecom service providers (Ahortor, 2003;
Alhassan, 2003; Frempong & Atubra, 2001; Frempong and Henten (2004); Opoku Mensa,
1997).
While these upheavals were progressing in the fixed line sector, arguably slowing
down the expansion of the network, mobile telephony picked up the slack, slowly at first
with high cost of service, but picking up with the introduction of prepaid billing.
60
But the
rise to prominence of mobile telephony was not simply an accident of chance; the positive
infrastructural and administrative characteristics of mobile telephony gave network providers
an edge over the fixed line system in meeting the demand for telephony.
To counteract the private sector’s tendency to neglect rural areas and facilitate
network expansion, fixed line operators have network expansion targets while all other
telephone network providers are required to pay 1% of their gross income into a universal
59
Capital Telecom’s problems also included its inability to access the universal access fund to which
it was explicitly entitled (Wilson & Kong, 2005), a change in the terms of the network’s establishment
from Build-Operate-Transfer to Build-Operate-Own (Infodev, 2007), and the high per subscriber cost
of servicing rural areas (Falch, 2004).
60
That is not to say the mobile phone industry has not had upheavals of its own. For example, GT has
been accused of using its monopoly power to frustrate upcoming mobile phone rivals, for example, by
limiting connections with its network (Zachary, 2003). In 2001, the government seized $5m of
equipment belonging to one of the foremost cellular operators in the country, Swedish-affiliated
Mobitel, and was engaged in a one-year standoff with the network. The reason for trying to prevent
Mobitel from installing its new equipment was that the government was uncomfortable with the
advanced communication capabilities offered by the new technology. Thus “what seemed like an
excellent example of the power of leapfrog … was frustrated by government opposition” (Zachary,
2003, p.150). There are also on-going concerns about the quality of service provided by most mobile
phone networks. The dominant providers, Areeba/MTN and Onetouch were adjudged the worst in
service quality in October 2007, and were directed by the National Communications Authority to
cease activation of new subscriptions until they had upgraded their network capacity (Okine, October
11, 2007).
126
access fund (GIFTEL). So far, these measures have had mixed results. The two Ghanaian
fixed line operators have incurred fines of $69 million and $71 million for failing to meet
their contractual expansion targets (Soderberg, Jensen, & Ampah Sintim-Misa, 2003),
61
and
have had to negotiate payment terms for the fines. The GIFTEL fund is still in too early a
stage to be evaluated on its output.
As a whole, telecommunications policy has been preoccupied with infrastructure and
industry competitiveness, with less attention going to issue of affordability. In fact, another
possible strategy for reducing the cost of telephony – internet telephony – has been blocked
by the government. The National Communication Authority has in the past shut down at
least three Internet Service Providers for offering internet telephony which, though cheaper
than regular phone service, is currently illegal in Ghana (Bodammer, Pirie, & Addy-Nayo,
2005; Ismail, 2002).
62
When GT declared a loss of ¢120 billion in 2001, the network
attributed the loss to “illegal bypassing of the company’s international gateway by other
operators in the telecommunications industry” (Okine, 2003).
4.2 The ICT for Accelerated Development Policy
Ghana has since the mid-1990s aspired to be “the gateway to Africa.” This, among
other objectives, is driving the nation’s attempts to develop its communication and
technology infrastructure, which is seen as essential for participation in the global economy.
In line with trends across the continent, and promoted by global development agencies, such
as the Economic Commission for Africa (ECA), Ghana developed an Information and
61
Ghana Telecom did exceed its targeted obligation with respect to public payphones by over 200%
(Ahortor, 2003).
62
According to an NCA official, the government is in the process of reviewing its position on Internet
telephony (personal communication, 2007).
127
Communication Technologies for Accelerated Development (ICT4AD) policy in 2003. This
policy buys into the global ICT for development discourse, with its express intent to use
ICTs to propel the country’s development efforts because,
A nation’s capability to accelerate its socio-economic development process and gain
global competitiveness and improve the well being of its people depends very much
on the extent to which it can develop, use, exploit and sell ---- information,
knowledge, and technology in one form or another. (Government of Ghana, 2003a,
p.7, emphasis in original)
Ghana’s socio-economic development program is outlined in its Vision 2020
framework, which seeks ultimately to transform Ghana into a middle-income country by
2020.
63
According to the ICT4AD policy, this will be achieved by accelerating a shift in
Ghana from an agricultural to an information society, and the process will involve pursuing
dual objectives of developing the country’s technology production capacity, as well as
ensuring universal access. The policy states,
In the new information age, although the mere use of information, knowledge, and
technology can improve the socio-economic development fortunes of a given nation.
Evidence shows that those nations, who in addition, are involved in the development
as well as the selling of information (and information products), knowledge (and
knowledge products) and technology (and its products), are moving faster on the
socio-economic development scale compared to others. (Government of Ghana,
2003a, p.14, emphasis in original)
So from the policy perspective, ICTs are to be pillar of Ghana’s socio-economic
development, in particular by engaging in the supply of ICT goods and services. The
National ICT Committee expressed a vision of Ghana as “a high income economy
dominated by the development, production and trading in ICT products and services”
(Dzidonu, 2003, p.114), where an information-based economy was broadly defined as
having the following characteristics: development, production and the trading in ICT, large
commercial and knowledge driven industrial sector, competitive agricultural sector, goods
63
The UNDP (2007/2008) ranks Ghana 135 out of 177 countries (medium human development) in the
Human Development Index.
128
and services delivered by ICTs, advanced ICT infrastructure, high level of computer
literates, cutting-edge R&D for global competitiveness, and majority of population with
access to ICT and somehow involved in ICT related activities. Of these it is the element of a
majority of the population having access to ICTs that is of relevance to this study, especially
as the tone of the ICT4AD policy indicates that it places a higher priority on the
development of national ICT production capacity.
Few studies have attempted to empirically assess Ghana’s realistic capacity to
achieve the policy goal of becoming a regional ICT hub. However, indications are that there
is a long road to reach this end. In 2000, the Technological Achievement Index rated Ghana
as marginalized (UNDP, 2001), and most evaluations of the state of ICTs in the country
support this assessment (e.g. Instiful, Okyere & Osae, 2003, Zachary, 2003). Furthermore,
using Harvard University’s Readiness for the Networked World methodology, Ismail (2002)
concluded that Ghana was not structurally ready to implement a strong ICT policy, certainly
does not have the capacity to handle transnational operations, and was therefore not ready
for the networked society. Mainsah and Ikeji (2004) surveyed potential investors along with
conducting an analysis of Ghana’s investment environment, labor market, regulatory and
general political environment. They concluded that the best hope for Ghana lay in “low-
skilled areas such as transcription services, account activation, surveys and basic customer
care” (Mainsah & Ikeji, 2004, p.1), rather than the type of high end ICT participation
occurring in countries like India. This conclusion is to some extent supported by Dzisah
(2006) who, based on a calculation of Ghana’s Technological Achievement Index,
64
argued
that the country has not developed the capacity for domestic innovation and creation in the
64
The index as computed by Dzisah (2006, pp. 387-388)) measures four broad areas – the rate of
technology creation, diffusion of new innovations, diffusion of old innovations, and level of
technological or human skills.
129
ICT sector. Dzisah concluded that “the low level of diffusion of old innovations and the
absence of any meaningful innovative activity in Ghana is a reason for its lack of economic
competitiveness in the global information-based economy” (2006, p.391).
4.3 Mobile Phone Use in Ghana: Research Evidence
Telephony, both fixed and mobile, has long been considered a luxury for most of the
Ghanaian population. However this is no longer the case with mobile telephones. Statistics
show a rapid uptake of mobile telephony, and various analyses have revealed that this
adoption is not limited to the wealthy sectors of society. There is also a fair amount of
literature about the role of telecommunications policy and regulation in bringing about this
change.
65
These studies conclude that notwithstanding the rise in teledensity, the
telecommunications system in Ghana is retarded by inadequate implementation of otherwise
sound policy and regulatory measures, mainly due to a lack of political will. Ongoing
deficiencies include poor infrastructure, uneven coverage, poor quality of service, and unfair
competition. A few authors have discussed the potential of ICTs in general, including mobile
phones to facilitate economic development in Ghana (e.g., Alemna & Sam, 2006; Salia,
1994).
Empirical documentation of industry practices and exactly how people are using this
new communication tool are areas of research that have only recently began to rise to the
forefront. Studies have looked at the activities of mobile phone service providers (e.g.,
Awortwi & Vondee, 2007; Falch, 2004; Falch & Anyimadu, 2003; Marcelle, 2003; Opoku-
Dapaah, 2002), the adoption of mobile commerce (Boadi, Boateng, Hinson, & Opoku,
2007); the use of mobile phones along with other communications media (Bertolini, 2002;
65
E.g., Addy-Nayo (2005), Ahortor (2003), Bodammer, Pirie & Addy-Nayo (2005), Frempong,
(1996, 2004), Frempong & Henten (2004), Haggarty, Shirley & Wallsten (2003), Zachary (2003).
130
Frempong, Stork, Esselaar, & Anyimadu, 2005; McKemey et al, 2005; Slater & Kwami,
2005); gender implications of ICT use (Scott, McKemey, & Batchelor, 2004), political uses
of mobile telephony (Hercules, 2001, though this is done only in passing).
The results of Awortwi and Vondee’s (2007) survey comparing management
practices in state-owned and private telephone network organizations indicated that the
common view that Ghanaian state-owned companies under-perform because of poor
financial incentive structures did not hold in the case of these network providers. Rather
performance management practices such as participation in decision-making, credible
performance monitoring and sanctions distinguished the performance of private companies
from the state-owned companies. Marcelle (2003) usefully notes that the influence of foreign
sources of technology can contribute to the development of a nation’s technological
capability if strategically approached. She found that, as in many developing countries,
Ghanaian telecommunications firms are not leaders in technological innovation, but need to
use high-end technological products in delivering their services. In their relationships with
technology suppliers, Ghanaian firms were characterized as heavily dependent on a limited
range of suppliers (usually global market leaders). However, this dependence was moderated
by the ability of the firms to exercise “constrained agency” since global suppliers also have
an interest in winning their business essentially making suppliers more responsive to the
domestic needs of their international customers (Marcelle, 2003, p. 243).
At the level of intermediaries, researchers have found that universal access has been
furthered mainly through public payphones installed by fixed line network providers, and
profit-oriented communication centers (as opposed to funded or project-based telecenters)
run by entrepreneurs (Falch, 2004; Falch & Anyimadu, 2003; Opoku-Dapaah, 2002). Both
payphones and communication centers are predominantly located in regional and district
capitals of the country. Communications centers offer a range of services such as phone
131
calls, secretarial services, email access, and sometimes susu
66
and do not have the same
informational goals as funded telecenter projects. Phone calls are, however, the most
important service. They have generated employment for over 24,000 individuals nationwide,
according to Opoku-Dapaah (2002). Excessive competition in urban areas has led to
sustainability problems for most communication centers; and with the rising numbers of
payphones and mobile phone subscriptions, Falch and Anyimadu (2003) have argued that
most centers would not be able to survive unless they found ways to diversify their services
even further. Indeed Anyimadu laments the apparent passing of the communication center
system arguing that communication centers offer value-added services such as secretarial
services and public television access (Ghana News Agency 2007). The shift to wireless
technology is also a source or concern to Anyimadu, who believes that this is occurring at
the expense of V-SAT technology in which the country has already made huge investments.
Falch and Anyimadu (2003) also draw attention to the possibility that although there is
demand for telecommunications in rural areas, the level of demand in some areas may be
inadequate to ensure economic viability of a communication or tele center. Another
operational issue addressed in some studies is that of the relationship between
communication center operators and network providers. As intermediaries reselling airtime,
access to the network and the terms of access (such as tariffs) affect the competitiveness and
profitability of communication center operations – the terms of their access are usually
unfavorable (Falch & Anyimadu, 2003; Frempong, Stork, Esselaar, & Anyimadu, 2005).
66
An informal banking service for small savers.
132
4.4 From Contract Phones to Prepaid Transfers: Evolution of the Mobile Phone
Industry
The inadequacy of Ghana’s telecommunications infrastructure was brought to the
fore when Ghana hosted the tenth ministerial meeting of the Non-Aligned Movement in
1991. Recognizing that the fixed line network was far from being capable of meeting
national needs, the government began to take seriously the idea of mobile telephony as a
viable alternative to address the deficit in telecommunications coverage.
4.4.1 Introduction of Mobile Telephony
The first rollout of mobile phones in Ghana was undertaken by Millicom
International Cellular S.A. in 1992 with its Mobitel brand. Millicom, a Luxembourg-based
company, has operations in 17 countries in Latin America, Africa and Asia. Millicom has
been operating in Africa for 14 years with Ghana being the first country it moved into
(Romero, 2006). It started out using the analog ETACS (Extended Total Access
Communication System) standard and switched to digital under the brand name Buzz in
2000. The brand, and company name, was changed again to tiGo in March 2006 to conform
to a global branding strategy.
67
In terms of subscription levels, tiGo is currently the second
largest network.
Celtel joined the field in 1994. It is currently owned by Hutchison
Telecommunications International Limited, which is based in the Cayman Islands and
operates in nine markets in Africa, the Middle East and Asia. Celtel originally run on an
67
Due to several changes of ownership or strategy over the last ten to twelve years, most mobile
phone network providers in Ghana have undergone a number of name changes. I refer to each
organization by the name by which it was known during whichever time period is under discussion.
Specifically, tiGo will sometimes be referred to as Mobitel; MTN Ghana will be referred to mostly as
Scancom or Areeba, and Kasapa will sometimes be referred to as Celtel.
133
analog AMPS (Advanced Mobile Phone Service) system. It went digital in 2005 and is the
only mobile phone network provider using the CDMA (Code Division Multiple Access)
standard, a feature that was primarily determined by the company’s history with its US
shareholders and the spectrum the company was allotted (this is discussed below in the
section on network technology). Celtel was re-branded Kasapa in 2003 to give it a local
identity, and has since then pursued a distinct strategy aimed at low-income subscribers.
Despite its relatively early entry into the market, Celtel failed to capture a significant market
share due to management problems. Mobitel had so dominated the market that “mobitel”
became the generic name for mobile phones in Ghana.
Capital Telecom was licensed in 1995 to provide rural telephony in southern Ghana
via wireless local loop. This was part of a Rural Telecommunication Project initiated by the
Ministry of Telecommunications and Transport. Capital Telecom faced numerous technical,
managerial and political problems, which eventually led to its collapse. Its equipment had a
capacity of 10,000 lines but Capital Telecom never installed more than 600 lines.
Outside of this attempt at rural telephony, mobile phone ownership was limited to
government officials and wealthy business people. Even within this population, sales efforts
were often met with suspicion, as an official of a phone retail company reports,
the first time I sent a mobile phone to Ministries just to introduce this thing, people
were feeling that … don't you think it's one of the 419
68
...? You see, … they thought
it was something just to confuse them to take their money. It was not common at all.
Policymakers were still mainly interested in improving the fixed line network and making
payphones more accessible in rural areas, unaware of the extent to which they had
underestimated the demand for telephony.
68
419 is a term used to refer to a confidence trick, based on the name of the legislation targeting such
crimes in Nigeria.
134
4.4.2. From Analog to Digital
Mobitel began to lose its hold on the market when Scancom, entered the market in
1996 using GSM (Global System for Mobile Communication) technology, and rapidly
captured the market. Scancom was taken over by Investcom LLC and renamed Areeba in
2005, and then was taken over by the MTN Group in 2006, through its acquisition of
Investcom.
69
MTN, a South African-based mobile phone network provider, is currently
present in 21 countries in Africa and the Middle East. Areeba is currently the largest network
provider in terms of subscriptions although it has been losing market share in the last year
(56% in September 2006, down from 64% in January the same year, Goshen, 2006).
From this point onwards, each company that entered the industry opted for the GSM
digital standard. The next entrant was Onetouch, a subsidiary of Ghana Telecom (GT), the
incumbent national fixed line provider. Technically, Onetouch is supposed to function as an
independent company, however in practice it continues to be a branch of GT. As such it is
state-owned, with a foreign partner providing management services.
70
The mobile phone
service began in 2000 and is currently third place in terms of market share.
Westel started operating as Ghana’s second national telecommunications network
provider in 1996, providing fixed wireless services on a CDMA network. Ownership has
since shifted from full government ownership (via a government-owned entity, the Ghana
National Petroleum Company, GNPC) to part government (one-third), part strategic investor
(Western Wireless of the US) and recently back to full government ownership. Plans are
underway to find a new strategic partner. Management problems as well as interconnection
problems with Ghana Telecom have prevented Westel from fully taking off. Subscriptions
69
The official launch of MTN Ghana did not take place until August 2007.
70
Most recently, the strategic partner was Telenor, a Norwegian company that reportedly came in not
as an investor but as a management consultant. However, the partnership was terminated in 2006.
135
have stagnated at less than 3000 fixed wireless lines since 1999. In November 2006, the
company announced that it is preparing to launch a GSM mobile phone service, which will
make it the fifth mobile phone network provider (Table 4.2).
Table 4.2: Mobile Phone Network Providers
Tigo Kasapa Areeba Onetouch Westel
Major
shareholder
Millicom
International
Cellular S. A.
(100%)
Hutchison
Telecommunica-
tions International
Ltd. (80%)
MTN
Group
(98%)
Government
of Ghana
(100%)*
Government
of Ghana
(100%)*
Start year for
mobile
service
1992 1994 1996 2000 n/a
Technology GSM 900 CDMA 2000 1X GSM 900 GSM 900 GSM
Subscriptions
(2006)
1,546,721 200,104 2,585,467 877,106 0
Market share 28% 5% 54% 13% n/a
* Both companies are in the process of seeking strategic investors.
Interestingly, Kasapa reinvested in analog equipment in 2000, four years after
Scancom had commenced operations with a GSM network and had demonstrated that the
market preferred this technology to the analog system. By this time, the benefits of digital
versus analog were clear to the consuming public – for instance, less bulky handsets, better
signal coverage, texting ability, and caller identification. The strategy of maintaining the
analog network served primarily to give Kasapa a continued presence in the market, but an
insignificant market share, although its subscriber base (which had been in decline) did
begin to grow after 2001.
With three companies in the market (Mobitel, Celtel and Scancom) there was more
choice for consumers, but little else changed. Network providers continued to offer service
in essentially the same way. Telephony was still the preserve of the wealthier population,
until the drive for market expansion and revenue reliability led network providers to the
prepaid system.
136
4.4.3 Introduction of Prepaid Billing
Millicom was the first to offer prepaid billing in 1998 with a product called Starcall.
Scancom followed shortly after. Prior to the prepaid system, use of mobile telephony in
Ghana was fairly static – it was largely a question of adoption or non-adoption. The prepaid
system opened up access to a larger and more heterogeneous population of users with one
limitation that distinguished them from the previous crop of subscribers – income. As Figure
4.1 clearly shows, it was precisely after 1998 that mobile phone subscriptions begin to show
a distinct upward trend, growing about three times faster over the next six years than it had
in the previous six. It was also the moment when Scancom captured the market with its
combination of digital and prepaid systems. Within two years of the introduction of prepaid
billing, mobile subscriptions caught up with fixed line subscriptions, and a year later,
surpassed them.
Figure 4.1: Total Telephone Lines 1993 – 2006
Total Telephone Lines ('000s) 1993 - 2006
0
1,000
2,000
3,000
4,000
5,000
6,000
Year
Number of Lines (000s)
Fixed lines 49 50 63 75 105 133 153 203 244 265 287 308 313 360
Mobile Phones 3 3 4 12 24 40 73 126 216 384 777 1,413 1,696 5,209
Payphones 0.03 0.03 0.03 0.45 0.48 1.8 2 3 4 5 7 10 11 12
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: National Communications Authority, http://www.nca.org.gh
The vast majority of subscriptions for all network providers are now prepaid. Kasapa
offers only prepaid accounts, tiGo’s subscriptions are 99.7 percent prepaid, as are 95 percent
of Onetouch subscriptions. The figure for Areeba is not available but is certain to be over 90
percent. Contract or postpaid subscriptions tend to be associated with government
departments, large businesses and agencies. Even here, sometimes users have at least two
accounts, one postpaid sponsored by their employer, and another prepaid for personal use.
The prepaid system has more flexibility built into it than does the postpaid system,
not only for subscribers, but also for network providers. However, it is not without its own
restrictions. From the perspective of network providers, the prepaid system was a reluctant
concession to the existence of a large untapped market that not only presents numerous
challenges in terms of account management, but also offers lower average revenue than
contract subscribers, as noted by officials of Onetouch and tiGo,
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138
As a way of expanding the market because we needed to … have a business model
that would allow the general public to enjoy the service. Then the issue about, you
know, identity and data and all these things came up. … because in Ghana we have a
real problem of people not paying. You know, our credit worthiness is a real issue.
(Onetouch manager)
I would love the postpaid because … they have higher arpu
71
but my focus is
prepaid because that’s where the volumes are. (tiGo manager)
The features of prepaid billing are therefore designed to help fulfill network
providers’ business goals, by compelling the subscriber into a certain pattern of use –
specifically to spend a minimum amount of money over a certain period of time, and to
maintain that minimum usage level over time. This is achieved by imposing limits on airtime
top-up amounts, airtime expiry dates, and subscriber account expiry dates. Network
providers emphasized, for example, that before a call from a prepaid mobile phone is routed
to the recipient, the system would check to see if the caller has enough funds to pay for a
connection – hence the need for the phone to have an absolute minimum amount of airtime
(now called “flashing units” in Ghana because it is also the amount of airtime required to
generate a missed call).
72
More than one interview respondent described this as “a technical
thing” suggesting that it is a requirement imposed by the technology rather than the
company. However, since a postpaid or contract subscriber is able to make calls without the
system having evidence of ability or intention to pay, it is obviously possible for mobile
phone calls to be made without “flashing units” or a minimum amount of pre-purchased
airtime. It may be a “technical thing”, but it is a human-made technical thing. Still, with all
networks billing by the second, flashing units have become almost insignificant in terms of
the burden they place on subscribers (Table 4.3).
71
Average revenue per subscriber.
72
See Section 6.4.2 on flashing.
139
Table 4.3 Flashing Units
Network Flashing units
TiGo ¢26 ($0.003)
Kasapa ¢14 ($0.002)
Areeba n/a
Onetouch ¢24 ($0.003)
Apart from Kasapa, which has no expiry dates at all, the other network providers
have expiry periods for mobile phone accounts and for purchased airtime. Previously,
expired airtime could not be retrieved but now all providers allow minutes to roll over if the
subscriber recharges before the account expires. Tigo, for example, describes its “subscriber
definition cycle” thus: after units expire, the subscriber has 30 days within which to top up,
during which time calls can be made and received. Thereafter the subscriber has 60 days
during which time calls can be received but not made. After these 60 days, the account is
deactivated but the subscriber has 270 days (nine months) to reload before the account is
completely closed. In total therefore, a tiGo mobile phone account expires after one year
without any reloading. For Onetouch the account would expire after 4 months – the
subscriber has 30 days to make and receive calls, 45 days to receive only, and 50 to lie
dormant. Most network providers did not have data on account status available, but the
Onetouch manager estimates that about 93% of their subscriptions are active.
Kasapa’s unique stance on the issue of expiry periods is driven by management’s
preference for “an incentive rather than a coercion-based arpu support” The managing
director notes that the company has no financial or logical reason to cut a subscriber off for
lack of activity because “We get interconnect fees when you receive calls from other
networks. Even if it’s a call from someone on our network, the fact of your existence
produced a calling opportunity for the other person.” Although their accounts never expire,
Kasapa is considering designating accounts dormant after 6 months of inactivity.
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Notwithstanding the associated limitations on most networks, subscribers prefer the
prepaid billing system because it enables them to manage their usage levels and control
expenditure, and essentially makes it feasible for them to own a mobile phone and SIM card.
This became clear almost immediately, “… it caught on so well. … So within a short time,
the tides changed. … it used to be high postpaid and low prepaid. In less than a year, you
know, most postpaid people even converted to prepaid” (Onetouch manager)
The fact that prepaid calls are more expensive per unit than postpaid calls does not
change people’s preference for prepaid. In fact some people have switched from postpaid to
prepaid accounts. Network providers introduced prepaid to give themselves greater control
over the flow of funds from subscribers, but in the end it has also become a way for
subscribers to control their allocation of funds to network providers.
4.4.4. Introduction of Mobile Payphones: The Space-to-Space Phenomenon
Popular accounts of “phone ladies” (e.g., in Bangladesh), “umbrella people” (e.g., in
Nigeria) or “community phones” (e.g., in South Africa) show that the original goal for
developing these payphone systems was to create income generation avenues for operators
while expanding the accessibility of telephony to the poor. These are usually linked to
development projects and micro-finance institutions. In Ghana, the story is slightly different.
The Space-to-Space phenomenon grew out of the need to overcome a serious network
problem – callers could not get through to Spacefon lines from Ghana Telecom fixed lines.
Interconnectivity has been a significant problem for network providers in Ghana since the
first mobile phone company began operating, mainly emanating from conflicts with Ghana
Telecom. However, the problem intensified with Spacefon in particular, as its market share
ballooned and the need to connect to GT lines became more pressing. This was a particularly
serious problem for communication centers, all of which run on Ghana Telecom fixed lines
141
at the time. After the fact, the C.E. O. of Onetouch, Philip Sowah described the situation as
an issue of not having “adequate interconnection links”, while the MD of Areeba, Ahmed
Farroukh called it “just an expression of differing opinions” (Agyeman, 2006, p.18, p.39).
The precursor to the mobile payphone trend in Ghana was offered by Scancom in
response to these interconnection problems. When the problem was at its peak Scancom held
a series of meetings with communication center owners, the outcome of which was the
decision to give communication centers the opportunity to buy specially fitted GSM desktop
phones which they would use when their patrons wanted to make calls to Spacefon lines,
thereby bypassing Ghana Telecom. The issue at stake was connectivity, not cost. The idea
was marketed to communication centers after a trial period and the goal was to limit access
to the phones to people who owned a well-established communication center. At this point
the system was closely connected to Areeba – their partners imported the handsets, fitted
them with Areeba SIM cards, sold and serviced them. The payphones were also associated
solely with communication centers, not individuals, and did not have a popular identity.
Their identity and organization changed when these desktop phones found their way
into the hands of some individuals who began to offer this service outside the
communication center system – on the roadside, in kiosks, convenience stores, hair salons
and other small business setups.
73
All of these operated on the Spacefon network, hence their
popular designation as “Space-to-Space” to highlight the in-network connectivity benefit.
Although they had initially planned for this to be a communication center-based service,
Scancom was not averse to this unexpected development since it generated more traffic for
the network. Thus, a new industry in telephone service provision was created. Most of these
73
It is not clear exactly how this transition took place.
142
payphone entrepreneurs started during the latter half of 2004 and there were supposedly over
25,000 such operators around the country by the end of 2005.
There is no direct relationship between Space-to-Space operators and Areeba. Any
ties that existed progressively weakened as the number of operators mushroomed and more
sub-dealers became involved in selling the handsets. The ultimate dissociation with Areeba
can be seen in those operators who use regular mobile phone handsets as Space-to-Space
phones (although this yields a lower profit margin than using the GSM desktop phones).
To become a payphone operator, one simply needs to find the funds to purchase the
handset from any shop that sells telephone equipment. However, according to one operator
interviewed in Accra, the phone sets are designed in such a way that only Areeba SIM cards
(and therefore only Areeba prepaid cards) can be used with them.
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The initial outlay for the
enterprise was approximately ¢7million (about US$800), which is the cost of the telephone
set plus 1000 free airtime units, but has now dropped to around ¢1million (about US$120).
Once the free units are depleted, operators top up with 3000-unit prepaid cards, which cost
¢900,000 (about US$100). There may be some minor expense incurred for a table and/or
shed, some chairs, an umbrella and stationery, depending on how ambitious the operator
wants to be. Airtime purchased onto these phones is also subject to expiry if not used within
specified time periods.
Being the dominant network, calls to Areeba subscribers from these roadside service
providers cost less than calls to other networks. Space-to-Space calls cost between ¢1500
and ¢2000 (about US$ 0.17- US$ 0.22) per unit, while Space-to-other-networks calls cost
about ¢2500 (about US$ 0.28). Depending on which network is being accessed one unit may
74
Technically, it should be possible to replace the SIM card with that of any other cell phone
company, thus enabling access to in-network calls for subscribers on all networks. None of the
payphone operators I interviewed had attempted to do this though.
143
provide one to four minutes of talk-time. Space-to-Space is the dominant service but some
operators purchase additional handsets to provide in network calls for the other networks.
Following the success of the Space-to-Space business, other network providers have
joined the sector. Early in 2005, V-Mobile launched two versions of “i-Tel ‘Pop,’” a
payphone service running on the Areeba network. The first is a manned service station
where users can make wireless phone calls from wall-mounted payphones. The second is a
mobile service provided by bicycle riders (apparently designed as an employment
opportunity for physically handicapped persons). The main difference between this and the
Space-to-Space service is that it is institutionally organized. Those manning the stations are
mostly employees of V-Mobile or in some cases own the station outright themselves.
Onetouch also introduced its own mobile payphone system, “One4All” around May
2005. This system also involves limited participation by the network provider itself. The
equipment (handsets, table, chairs and umbrella) is imported and sold by one of Onetouch’s
distributors (Mobile Max) and an independent company (Dialtone); both companies also
handle all maintenance issues, as well as selling airtime to One4All operators.
Network providers are also experimenting with limited mobility or fixed wireless
services. Kasapa has a limited mobility product, “Home-Work” which aims to enable the
company offer lower call charges to subscribers who will accept to use their phone at a
particular location. Commercials for this product identify possible uses as a home, office or
pay phone. TiGo attempted a similar service “Hello-Home” initially meant for use in areas
with underutilized cell sites, but later also employed as a possible tiGo-to-tiGo payphone.
This did not perform very well, and has been discontinued. These, as well as the initiatives
by V-Mobile and Onetouch are purely commercial products with no universal access
underpinning.
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On the other hand, Onetouch has, in collaboration with its mother company, Ghana
Telecom, made a concerted effort to provide sustainable community telecom access targeted
at underserved communities through the eCARE (e-Commerce and Renewable Energy)
project. Ghana Telecom started a pilot project on June 7, 2005 with three rural business
centers (RBCs) in the Greater Accra (Sege), Volta (Sogakope) and Eastern (Nkurakan)
Regions of Ghana. Business centers in the project currently use fixed wireless terminals
(although a migration to fixed lines is under consideration) to provide telephone and
computer services. The project strategy is to provide “multiple services through a single site
to attract a large clientele and enhance financial viability” (eCARE Project Team, 2005, p.ii).
It is explicitly designed to improve access to telecommunications in rural areas, and
identifies the “rural poor” as its target population. These business centers have shown some
potential to become self-sustaining when implemented in the appropriate locations – usually
areas with meaningful levels of economic activity – thus limiting the possibility that they
will be extended to more remote areas.
None of these variations on the payphone concept have been able to overtake the
Space-to-Space version. A flood of entrepreneurs have chosen to operate Space-to-Space
payphones and although they have contributed to increased access to telephone services in
some poor areas, the trend, as with most other private enterprises, favors areas with high
populations and/or high levels of economic activity. Unfortunately it is impossible to
quantify the actual number of operators in the system or where they are located, because
phones are not registered to a location, neither do operators register their businesses.
Nevertheless my observations in Accra, and traveling to Kumasi were that there is a much
higher concentration of mobile payphone operators in major towns and cities than in small
and remote communities, even when there is signal coverage.
Over a period of about three years (2003 – 2006), mobile payphones experienced a
very profitable run but are now in decline, victims of industry developments that are
gradually reducing the need for this level of intermediary activity.
75
In its early days the
streetside Space-to-Space payphone service was seen as laughable, but eventually it proved
to be such a useful service that there was a huge influx of operators all trying to cash in on
this new business opportunity. This has led to a saturation of the market and contributed to
the decline of the business.
Figure 4.2: Weekly Space-to-Space Payphones Sales
0
50
100
150
200
250
Week
Sales ($)
Rural 35 6 6
Urban 212 53 33
Oct 15-21, 2004 Oct 15-21, 2005 July 15-21, 2006
Figure is based on a sample of sales records of one rural and one urban mobile payphone operator. The October
2004 figure for the rural site is derived from the operation of a communication center using a fixed line. The
communication center was replaced with the mobile payphone in 2005.
Although there are a variety of reasons for the downturn, the deathblow was dealt by
the introduction of the electronic airtime transfer system (see Chapter Five for details of the
experiences of mobile payphone operators after the transition to electronic transfers).
145
75
Details of the payphone system are discussed further in Chapter Five.
146
4.4.5. Introduction of Electronic Airtime Transfers
Prepaid subscribers have three options for buying airtime – regular scratch cards,
vouchers, and electronic airtime transfers (generally known as unit or credit transfers).
Scratch cards were the only option available until around 2005 when paper vouchers were
introduced. Vouchers are paper versions of scratch cards, which are printed out at the point
of sale by the airtime vendor. Two major differences between the scratch card and the
voucher are first, that the code is exposed on the voucher unlike scratch cards where it is
concealed until the purchaser uncovers it; and second, vouchers are available in smaller
denominations than scratch cards. The credit transfer system, introduced first by Areeba
around February 2005, is basically an electronic transfer of airtime from one phone to
another. It enables subscribers to buy the smallest amounts of airtime yet (three to five
minutes of talk time depending on the network). All networks now enable direct subscriber-
to-subscriber airtime transfers but currently the dominant delivery method is via
intermediaries – wholesalers and retailers – who have to purchase a special SIM card for the
commercial operation. Airtime on these unit or credit transfer cards, as they are commonly
called, is priced differently from regular subscriber airtime. There is also no fee for
transferring airtime, as is the case with some subscriber-to-subscriber transfers. However
they also cost several times more than regular SIM cards (ranging from ¢200,000 to
¢12million – about $21 to $1280 – whereas regular SIM cards can cost as low as ¢20,000 –
about $2).
Although unit transfers technically enable the transfer of amounts both larger and
smaller than available prepaid cards and vouchers, in practice they address the needs of those
seeking smaller amounts. It may seem that the introduction of the unit transfer system
indicates that network providers have conceded that strategies designed to commit
147
subscribers to large amounts of airtime may lead to higher ARPU, but in the poverty context,
also limit expansion of their market. However this was probably not the reason for starting
electronic transfers – my interviews suggest that the network providers were motivated by a
desire to reduce the cost of printing prepaid cards and vouchers. For example, the Onetouch
manager states,
Along the line we realized, one, the cost of production is growing, but … prices are
dropping, so needed to find a way of reducing our cost of operation. Then the
technology came up where you could transfer credit electronically, over the air,
without a card. So that’s how this whole … product came into being. We wanted to
reduce our cost and so now with that … there’s nothing like printing of cards,
importation, flight… all the shipment cost and related things, all of them, it’s gone.
Because it’s good for us and I think it’s good for the consumers as well.
The impact of credit transfers on the mobile phone market has been significant,
especially for Areeba subscribers who had had to deal with the largest denominations of
airtime top-ups, even though this had come down to about ¢20,000 by then. Still, the ability
to buy just ¢7000 worth of airtime at a time was a boon for Areeba consumers, and their
acceptance of this new method of topping up was felt immediately especially by payphone
operators. In essence, the need to use payphones in between buying phone cards/vouchers
had been eliminated. Despite serious technical problems with Areeba’s credit transfer
system, patronage was high. Indeed, after 2005 mobile phone subscriptions shot up again,
especially for Areeba (see Figure 4.1). It seems logical that more people were willing to
invest in a mobile phone subscription, and possibly even a mobile phone handset, because
the cost of maintaining a mobile phone account had gone down with the availability of
minute airtime top-ups. The initial high cost of the Areeba electronic transfer SIM card has
been a barrier preventing numerous payphone operators from switching to or adding credit
transfers to their payphone operations.
Onetouch, tiGo and Kasapa already had airtime available in units as low as ¢5000,
so the impact was a little less dramatic for them. In fact, tiGo reports that there have been
148
challenges in getting their subscribers to patronize tiGo unit transfers because they already
have access to tiGo vouchers in the same low-priced denominations. The greater proportion
of Onetouch airtime sales is still the scratch card. The fact that tiGo, for example, was taking
pains to get subscribers to switch from cards and paper to electronic top ups buttresses the
idea that network providers are not merely responding to consumers’ need for low-priced
top-ups, but are probably more interested in cutting production costs; it just happens to be a
win-win situation for both parties.
4.4.6 Value-Added Services
Throughout the 15 years of mobile telephony in Ghana, other developments have
occurred that are not discussed in detail here. Most of these relate to the introduction of a
broad range of value-added voice and data services (e.g., voicemail, conference calling,
email and internet access, ring tones and other downloads) targeted at the higher end of the
market. They have generated new employment avenues; for example, for content provider
companies to make local ring tones and create and manage some of the value-added services
such as chat rooms, offered by network providers. The impact of these services on the
industry has not been as striking as those related to basic voice and data, primarily because
of their relatively high cost.
76
But they point to the need for telecommunications service
providers, regulators and governments in developing countries to simultaneously and
adequately cater to two opposed markets, resource rich/high income individuals and
organizations who need high speed connections and high-end services; and resource
poor/middle and low income earners who can only afford basic connectivity and services to
meet their current needs. Telecom providers could decide to ignore one market and focus on
76
Ring tone downloads are fairly popular amongst young people though.
149
the other, and this has indeed tended to be the case in most developing countries where until
recently, mobile telephony was the reserve of the wealthy. However, both markets have
become critically important for individual telecom companies, and for the nation as a whole
– for economic and political reasons. Economically, while the resource rich population is
more lucrative for network service providers, it is small in size relative to the poorer
population. Once saturated, service providers have to seek other streams of revenue, which
means turning to populations with less money to spend. It is almost a question of survival for
these companies – they can only milk the high-end market so much.
Politically, communication and information technologies have also become the
substance of local and global rhetoric on socio-economic development. National
governments in developing countries pride themselves on demonstrating their commitment
to the development of telecommunications infrastructure that caters to the needs of potential
foreign investors, as well as catering to the needs of national citizens, especially those living
in poverty. Telecom companies have to participate in this strategy because of the concurrent
tide toward private sector led socio-economic development in most developing countries.
4.5 Market Characteristics
4.5.1. Network Coverage and Subscriptions
Network coverage for all providers is concentrated in the south, which is the
relatively more developed part of the country (Figure 4.3), but it is expanding. Network
providers have universal access obligations and have extended coverage to some areas that
are not immediately profitable to them. According to a tiGo manager, the company has
achieved coverage of 70% of the population, extensive in southern and eastern Ghana
(Greater Accra, Central, Western, Eastern, Brong Ahafo, Ashanti), and limited in northern
Ghana (Northern, Upper East, Upper West). Kasapa has relatively limited coverage but is
150
expanding rapidly. Areeba reports having 71% of the population under coverage (Areeba,
2007)
Figure 4.3: Network Coverage Maps (2006/2007)
Areeba tiGo
Source: GSM Association (2007)
Onetouch Kasapa
Source: Onetouch Source: Kasapa
151
152
Network providers tend to locate their cell sites in urban areas. Rural communities
on the outskirts of major towns and cities however often benefit from coverage bleeding into
their communities; this for example is the case in my rural site, which is just outside Kumasi,
the capital of the Ashanti region. Recently the extent of coverage has become a marketing
point for network providers and this is contributing to more aggressive efforts to outdo each
other in this area, within the limits of company resources. For example, Kasapa releases an
ad every time it adds a new location to its network, and Onetouch occasionally does the
same. Nevertheless, as the coverage maps indicate, network providers are more or less
following each other to the same cities and towns.
Total subscriptions for all network providers have risen sharply especially since
2005 (Figure 4.4), with Areeba consistently in the lead, and Kasapa trailing. Areeba
subscriptions have grown from 5000 in 1997 to over 2.5million in 2006, and tiGo from
35,000 in 2001 to over 1.5million in 2006. Onetouch had 30,000 subscriptions in 2001 and
almost 880,000 in 2006 while Kasapa had 2575 subscriptions in 1997 and just over 200,000
in 2006. Capital Telecom closed down after only a few years of operation, having failed to
carry out its objective of providing wireless telephony in rural areas.
Figure 4.4: Mobile Phone Subscriptions 1994-2006
Mobile Phone Subscriptions ('000s) 1994 - 2006
0
500
1,0 0 0
1,5 0 0
2,000
2,500
3,000
1 994 1 995 1 996 1 997 1 998 1 999 2000 2001 2002 2003 2004 2005 2006
Year
Number of subscriptions (000s)
tiGo
KASAPA
Areeba
Onetouch
Capital
Telecom
Sources: National Communication Authority, http:www.nca.org.gh; Frempong (2004).
Handset sharing and multiple handset and/or SIM card ownership have implications
for counting subscribers, however. The actual number of people who have mobile phone
subscriptions is likely to be significantly lower than the number of existing subscriptions.
For example, over 60% of subscribers surveyed in this study said they own two or more SIM
cards (Table 4.4). Forty-four percent of subscribers surveyed also indicated that two or more
of these SIM cards are currently active.
Table 4.4: Number of SIM Cards Owned
Subscribers % (n=118) Non-subscribers % (n=79)
Number of
SIM cards
Total number
owned
Active SIM
cards
Total number
owned
Active SIM
cards
0 0 0.8 65.8 79.7
1 38.1 53.4 17.7 11.4
2 39.0 36.4 11.4 7.6
3 13.6 4.2 2.5 1.3
4 9.3 3.4 2.5 0
Missing 0 1.7 0 0
TOTAL 100.0 100.0 100.0 100.0
Source: Survey data.
153
154
At the same time, the number of people with access to mobile phones will be
significantly higher than the number of subscriptions because people allow family and
friends to use their phones, and also because of the mobile payphone system (see Chapters
Five and Six). It is therefore more accurate to refer to mobile phone subscriptions rather than
subscribers when discussing the penetration of mobile telephony in Ghana; there may be
more subscriptions, but not necessarily more subscribers. The full implications of this are
still unclear, but it certainly raises questions how a mobile phone user is defined, what
constitutes effective usage and even individuals’ perceptions of themselves as subscribers or
non-subscribers.
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It is probably in the interest of most network providers to beef up their subscriber
numbers by counting as many subscriptions as possible to be active. In more advanced
economies, the definition of a subscriber may be of limited significance because most people
who buy phones use them actively. In developing countries however, it may make a
difference whether a subscriber is someone who uses their phone once a day, once a week or
once a month. Or has not used their phone in three months, or only flashes. Network
providers indicated that their definition of a subscriber at any time depends on whom they
are reporting to. For example,
So if you are a subscriber who has… I don’t care how many, millions of cedis on his
account, but within the last 60 days has not done any of such activity… we don’t
report him as a subscriber within our reporting to MIC
78
, but technically in Ghana
we count that person as a subscriber. So in giving subscriber figures, you know, it
will vary from which definitions we’re using. (tiGO manager)
77
For example, some people surveyed as non-subscribers indicated that they own an active SIM card.
This raises methodological questions about how to identify subscribers and non-subscribers. For
example, based on whether they have a mobile phone handset, whether or not they have a SIM card,
whether the network provider has designated their account active or inactive etc.
78
Millicom International, tiGo’s parent company.
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The regulator, National Communications Authority (NCA) only counts subscribers
who have used their phone within 30 days (interview). Of course, access to fixed lines is also
underestimated when one considers that people have access to fixed lines at the workplace,
residential lines often have multiple users, and communication centers open up fixed line
access to several people.
4.5.2. ARPU Support Strategies
As the volume of business has shifted from the elite to the popular market, with the
associated fall in average revenue per user, network providers have also shifted from high
connection and rental fees, and expensive services, through high priced prepaid cards, with
account and unit expiry dates, to low priced electronic units and inducements to consume
more airtime. Current marketing strategies of the network providers show that apart from
promoting connection to their network in general, most advertising and marketing
promotions seek to encourage consumers to use more airtime. Consumers are enticed to
purchase new subscriptions and/or use more airtime for the opportunity to win a variety of
prizes, some as extravagant as a new car or as simple as a football cap. Associating with
radio and TV phone-in programs and game shows also generates more traffic for the
networks.
4.5.3. Billing and Pricing
Network providers all use the Calling Party Pays (CPP) billing method. Until
recently, some providers were billing in units while others were billing in cedis (the
Ghanaian currency). All have now migrated to cedi billing for greater transparency, the last
to do so being Areeba early in 2007. The legacy of airtime as “units” however still remains,
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probably because of the dominance of Areeba in the market, although some subscribers now
refer to their airtime as “credit.” All providers have also recently switched from per minute
to per second billing in an effort to provide more competitive pricing. Generally speaking,
Kasapa has the lowest tariffs while tiGo has the highest. It is also notable that the difference
in cost of national and international calls is quite small (Table 4.5).
Table 4.5: Prepaid Tariffs (2006)
Network $/minute* Minutes of talk/$1
tiGo peak
hours
Within network
$0.17
5.8
Other network
$0.22
4.5
Late night in-network (10pm–
4:59am) $0.05
20
Late night off-network (10pm–
4:59am)
$0.08 12.5
International $0.16 -$0.22 6.2 - 4.5
Areeba
peak hours
Within network
$0.15
6.6
Other network
$0.16
6.2
Friends & Family
$0.10
10.0
International
$0.19
5.2
Late night in-network (12:30– 5am) Free -
SMS $0.06 each -
Onetouch Within network
$0.15
6.6
Other network
$0.15
6.6
International $0.16 6.25
Late night in-network (11pm – 6am) Free after 1
st
minute
-
SMS $0.07 (national)
$0.09
(international)
-
Kasapa
peak hours
Within network
$0.10
10.0
Other network
$0.19
5.2
International $0.21
Kasapa
Home-
Work
To Kasapa Home-Work $0.06 16.6
To Kasapa mobile
$0.10
10.0
Other network
$0.12
8.3
International
$0.19
3.1
Source: Company websites and advertisements. * based on exchange rate on May 15, 2007: $1 = 9355 cedis
157
The years 2006 and 2007 marked a period of significant price competition with
several revisions of airtime prices and expiry periods for most network providers. Even with
the depreciation of the cedi between 2003 and 2007, the cost of phone calls has decreased for
all networks (Table 4.6). Some researchers have observed that the promotion of market
competition in Ghana’s mobile phone industry has not resulted in much price competition
(e.g., Frempong, 2004). It appears that the market is now beginning to demonstrate
competition based on price. It is not clear what has precipitated this trend but it is possibly
evidence of another level of market saturation in which the only way to attract more
subscribers was to cut tariffs.
Table 4.6: Change in Prepaid Tariffs 2003 - 2007
2003* 2007**
NETWORK peak off peak
mins/$1
peak peak off peak
mins/$1
peak
tiGo in network $0.21 $0.14 4.83 $0.17 $0.11 5.8
off network $0.30 $0.25 3.31 $0.22 $0.22 4.5
Areeba in network $0.21 $0.14 4.71 $0.15 $0.10 6.6
off network $0.32 $0.32 3.14 $0.16 $0.16 6.25
Onetouch in network $0.20 $0.15 5.07 $0.15 $0.10 6.6
off network $0.25 $0.20 4.06 $0.15 $0.15 6.6
Kasapa in network $0.10 n/a 9.81 $0.10 free 10
off network $0.20 n/a 5.05 $0.19 ¢800 5.26
*exchange rate 2
nd
qtr 2003: $1 = ¢8830
**exchange rate May 2007: $1 = ¢9355
Tables 4.7 to 4.10 show prepaid airtime rates for three network providers.
79
The
tables show that the main economic benefit to buying larger denominations of airtime is the
extended validity periods. There is generally no discount for buying more airtime.
79
Data in these tables is derived from company websites and advertisements. Dollar equivalents are
based on the exchange rate in Ghana on May 15, 2007 - $1 = ¢9355.
158
Table 4.7: Airtime Price and Expiry Periods - Areeba
Voucher
Card
Price (¢) 20,000 30,000
45,000 75,000 116,000 174,000
Price ($)* $2.14 $3.21
$4.81 $8.02 $12.83 $19.20
Expiry (days) 10 15
60 90 120 120
Electronic
Price (¢) 1500 3000 6000 12,000 18,000 24,000 30,000
Price ($)* $0.16 $0.32 $0.64 $1.28 $1.92 $2.57 $3.21
Expiry (days) 1 1 3 6 9 12 15
Table 4.8: Airtime Price and Expiry Periods - Onetouch
Card/voucher
Price (¢)
5000
10,000 20,000 30,000 40,000 50,000
Price ($)*
$0.53
$1.07 $2.14 $3.21 $4.27 $5.34
Expiry (days)
5
5 10 15
20 30
Price (¢)
100,000 200,000
300,000
Price ($)*
$10.69 $21.38
$32.07
Expiry (days)
45 45
45
Electronic
Price (¢) 6000 12,000 18,000 24,000 30,000
36,000
Price ($)* $0.64 $1.28 $1.92 $2.57 $3.21
$3.85
Expiry (days) 3 6 9 12
15 18
Table 4.9: Airtime Price and Expiry Periods - tiGo
Card/voucher
Price (¢) 5000 10,000 15,000 20,000
30,000 50,000 100,000
Price ($)* $0.53 $1.07 $1.60 $2.14
$3.21 $5.34 $10.69
Expiry (days) 3 6 9 12
- - -
Electronic
Price (¢) 2000 5000 10,000
15,000 20,000 25,000 30,000
Price ($)* $0.21 $0.53 $1.07
$1.60 $2.14 $2.67 $3.21
Expiry (days) 2 3 6
9 12 15 18
159
Table 4.10: Electronic (Unit) Transfer Amounts and Expiry Periods – Kasapa
Card/voucher
Price (¢) 10,000 30,000 100,000 500,000
Price ($)* $1.07 $3.21 $10.69 $53.45
Expiry (days) No limit
No limit No limit No limit
Electronic
Price (¢) 1000 2000 3000
4000 5000 6000 7000
Price ($)* $0.11 $0.21 $0.32
$0.43 $0.53 $0.64 $0.75
Expiry (days) No limit
No limit No limit No limit No limit No limit No limit
The prices shown in the above tables are the official values of the airtime. Some
retailers however add a margin to these prices so the actual cost to the consumer is slightly
higher. For example, a ¢116,000 Areeba scratch card retails at ¢120,000 and is usable over
120 days. A user would consume the same amount of airtime at the same cost after 60 days
if he/she were buying 7000 cedis worth of electronic transfers every three days to keep the
account active. This means that subscribers with more resources would have greater
flexibility to use purchased airtime as and when they want over a longer period of time. Only
a small proportion of Ghanaians, however, can afford to part with ¢120,000 at a go for a
scratch card.
4.5.4. Handsets and SIM Cards
For the first few years of mobile telephony in Ghana, network providers sold both
subscriptions and handsets. Most of the major network providers have now chosen to leave
the handset trade to mobile phone retailers. As such, the focus of network providers’ sales
efforts is on SIM cards as opposed to handsets. Various factors contributed to making such a
strategy possible and fruitful, especially the relatively low cost of SIM cards and
subscribers’ fondness for the ability to switch SIM cards on the same handset. Added to this
was the poor state of interconnectivity between networks, which made it practical for people
to subscribe to multiple networks. Thus, handset sharing is not only sharing handsets
between people, but also sharing handsets between networks. The exact volume of sharing is
difficult to estimate but there is clearly enough of such activity to justify marketing tactics
that concentrate on selling SIM cards.
80
Thus, unlike in the US, for example, where handsets
are mostly locked by default and consumers are either not made aware or are discouraged
from unlocking them, around the African continent (also in Europe and Asia), the openness
of handsets is often taken for granted. For example, the Areeba promotion below assumes
that consumers will acquire handsets from some other source (Figure 4.5).
Figure 4.5: Areeba Prepaid Card Promotion
Prepaid is a prepaid product that has been introduced by Areeba in October 1998.
By choosing Prepaid - 'The Areeba Prepaid Card', you can use your card immediately
with any GSM 900 compatible cellular phone, benefit from an initial communication
credit, and immediately make national and international calls.
Source: SpacefonAreeba http://www.spacefon.com. Accessed May 2006.
Not only do network providers in Ghana focus on selling SIM cards but also, thanks
to the prepaid factor, they have found ways to help users spread the cost of the SIM card –
new subscribers can make a small down payment on the SIM card, and have the balance
deducted over time directly from their phone each time they recharge their account.
80
Studies such as the LINK Center’s e-usage index (Gillwald, 2005) are beginning to include
variables that should ultimately begin to provide concrete indications of how much sharing goes on.
160
161
to
e
e very
rare.
82
d
Kasapa has gained a reputation as the only network provider that makes low-cost handsets
available to subscribers. The company’s occasional ¢99,000
81
handset promotions are
always a complete sell-out – the last such promotion in September 2006 generated massive
crowds at its outlets, the end result being the sale of 8000 handsets in about six hours.
Kasapa has a unique advantage in this respect. Unlike the other mobile phone network
providers who have shied away from handset sales because of the ability of subscribers
migrate to other networks with the subsidized handsets, Kasapa can afford to use this
strategy since its CDMA handsets cannot be used on any other network in the country. Th
other network providers occasionally have handset-related promotions but these ar
Medium and small-scale business enterprises provide additional opportunities for
users to access mobile phones mainly through the reselling of new, used, refurbished and
possibly stolen mobile phone handsets, often acquired from Europe or Asia. Previously, the
large mobile phone companies imported new and relatively expensive handsets mainly from
Europe. More recently there has been influx of inexpensive models (including ‘clones’, use
and refurbished handsets) especially from China and Dubai. Because of their (sometimes)
questionable origins, some of these handsets may offer limited capability, although this may
be all that the user requires. People in Europe or elsewhere also frequently purchase handsets
as gifts for family and friends in Ghana, some hand down their handsets when they upgrade
to newer models, and there are several instances where people sell their handsets when they
81
Approximately $12 at the exchange rate of 9355 cedis to the dollar.
82
During the research period, Onetouch had just completed a handset promotion and was reviewing
churn data over the next three months to determine whether such promotions are a worthwhile
strategy. This was based on the assumption that the greater proportion of the churn would be related
to subscribers migrating to another network with their new handset, rather than that they had just
stopped using the phone.
162
to
use they are considered reasonably priced, durable and
suited to
eration
.
one company or repair shop highlights this aspect of their
perations (Figure 4.6).
Figure 4.6: Unlocking Services
are in need of cash. In the general market, Nokia phones, especially the Nokia 1100 tend
be the most popular phones beca
the Ghanaian climate.
A large proportion of the inexpensive handsets coming into the country tend to be
locked to some foreign telecom network. The local response to this has been the prolif
of unlocking and decoding services to enable use of such handsets on local networks
Virtually every mobile ph
o
Source: Fieldwork.
e mobile phone company recounts the company’s first
encount
he said nothing,
nowhere can provide the service. Then my brother started bringing the software, so I
could say we were the first people to start unlocking.
83
The general manager of a larg
er with this practice:
[a] group of tourists came and when they came they bought … Areeba chip. So they
slotted it in and then it was not… so all of us were confused. Then my brother said,
no, there were code on it. Then we asked what can they do? Then
83
“A group of tourists came and they bought an Areeba SIM card. So they slotted it into the handse
and it was not worki
t
ng, so we were all confused. Then my brother said, ‘no, there’s a code on it.’ So
e asked, ‘what can they do?’ And he said, ‘nothing, no one can provide the unlocking service (in w
163
4.6
der
d
s a
overtak
til 2002. The company applied for the
GSM li
’96, and I think tiGo, Millicom was doing well
around that time … and I think [in] ’99 we did a research and realized that no, the
ayed.
Network Technology
Two technological standards prevail in the Ghanaian mobile phone industry – GSM
and CDMA. CDMA is technically a superior digital technology compared to GSM 900 – the
ITU defines it as 3G, it is cheaper to build the network, it has the capacity to provide broa
signal coverage and carry more subscribers with fewer cell sites. However, it has almost
certainly lost out to GSM in Ghana. The greatest shortcoming of CDMA as currently offere
in Ghana, is the inability to freely switch between networks by changing SIM cards on the
same handset. As Table 1 shows, the GSM standard has a strong foothold in Ghana. This i
result of decisions by individual network providers to use this standard when they started
operations (Scancom and Onetouch) or when they were switching from analog to digital
technology (Mobitel). These three companies were associated with European ownership or
management when they entered the Ghanaian market, which may also have influenced the
choice of GSM, as this is the standard across Europe. Scancom’s phenomenal success in
ing Mobitel within three years of operation is credited to its use of GSM technology.
Mobitel did not switch to digital technology un
cense in 1999 intending to go digital by 2000.
We went GSM because then we started competing on an equal ground. With analog
it was difficult to compete with GSM because irrespective of what you, you did,
people just don’t want the service, they don’t want the technology, they want GSM
… Areeba came with GSM around
future was GSM. (tiGo manager)
However, there was a change of government following presidential and parliamentary
elections in 2000 and in the midst of the elections and changeover, the license was del
Ghana).’ Then my brother started bringing in the software. So I could say that we were the first to
start unlocking.”
164
icense,
or took
s”
re Mobitel could not stake a claim to the spectrum due to inefficient use
(intervie
ss
by Scancom as the first GSM operator led Mobitel and Onetouch
84
to view it as
the logi
logical d
spectrum
to upgrade to CDMA. CDMA was designed for 800s…. it’s
ankly better for us to be CDMA than GSM ‘cos the issue here is not what
chnology you use, if you give people something they can afford to buy and afford
we really knew we’d be going CDMA, there weren’t too many other options. We
Managing Director)
Unfortunately for Mobitel, its slow response to the potential of digital telephony was
exacerbated by this additional delay, and by the time the company received the GSM l
its subscribers had started migrating to Scancom. Ironically, when Mobitel applied to operate
in Ghana, it requested and was allocated the full spread of the GSM 900 spectrum, although
the company chose to run an analog system. When Scancom came in with the digital
product, the regulator had to negotiate with Mobitel to release part of the spectrum for other
network providers. Naturally, the negotiation was difficult and ultimately the regulat
the path of hiring a consultant to evaluate the efficiency of using an analog system in the
GSM bands. The consultant established that “analog systems were wasting the frequencie
and therefo
w, Mr Yahaya, Ministry of Communication). Based on this finding, the regulator
was able to convince Mobitel to give up part of the spectrum for incoming GSM license
holders.
Apart from the possible influence of European ownership, the tremendous succe
experienced
cal choice when going digital. Kasapa, on the other hand, found CDMA to be the
choice when the company was going digital in 2005 for two reasons – cost an
,
We chose CDMA because of the cost…. We had 800 megahertz spectrum. So like
the US it was logical
fr
te
to use they don’t really care if it’s CDMA, GSM…. two years before we changed,
started selling phones that originated, that were designed to the US market. (Kasapa,
84
Onetouch started out with the GSM standard, but apparently had planned to employ CDMA at some
point. Ultimately, this plan was not pursued.
165
product
e its
of
port brand
new han
85
ion
w-
ll linked to the availability
of techn aged.
Whethe
do not d ve in place. Responding to a
question about rolling minutes over, the Onetouch manager said,
Ultimately Kasapa’s choice has given it competitive advantage in some areas (e.g.,
differentiation, ability to subsidize handset sales because subscribers cannot migrate to other
networks) but probably slowed its growth in others (the population is used to GSM).
Technological difference continues to define Kasapa as it enables the company to pursu
low-cost strategy without regard to the strategies of its competitors. For Ghanaian
subscribers this inability to interchange SIM cards in the same handset, as well as problems
with handset quality and limited network coverage, have been the main disadvantages
being on the Kasapa network, significant enough to override the company’s low price
strategy and slow the growth of its subscriber base. In 2007, Kasapa started to im
dsets that employ Re-Useable Identification Modules (R-UIM, the CDMA vers
of a SIM card, which has been available in China since 2002). The company has also
embarked on an aggressive network expansion program. The SIM card interchangeability
issue is however likely to persist as a factor limiting market growth for Kasapa.
The development of other trends in the market is also not without technological
influence. Kasapa pursues a marketing strategy made possible by it’s use of CDMA. Its lo
priced products and services are feasible because of the efficiency of the CDMA standard.
The development of the payphone industry, the electronic transfer system, and even the
decision by network providers to enable minutes to roll over are a
ology that makes it possible for such activities to be implemented and man
r accurate or not, from the perspective of network providers, a lot of what they do or
is related to what type of technological system they ha o
85
Previously, the company provided mainly refurbished handsets, which presented so many problems
that 40% of traffic at Kasapa offices was related to handset issues.
166
everything. But these are all technology related. So, as I said, as we keep expanding,
allows you to get back the credits, no matter how long.
On the other hand, when asked about the possibility of transferring airtime across networks,
the manager of Kasapa said this was probably technically possible, but would be complex
because of differing technological standards and organizational policies. Besides, he noted,
there is no reason why a network provider would want to facilitate such an activity since it
amounts to giving business to the competition. The tiGo respondent gave a similar response,
noting that even using mobile phones for direct micro payments or money transfers would
require the sender and receiver to be on the same network. However services already exist
(outside Ghana) that allow transfer of finances across networks, with the involvement of an
intermediary organization (e.g., GSMA’s micro money transfer service).
4.7 Market Fragmentation
An outcome of the introduction the prepaid billing system, and one that seems
unique to developing countries is the emergence of a highly fragmented distribution
(especially of airtime) system. Each stage of fragmentation has made telephony accessible to
a greater proportion of the population.
For the first two years, mobile phone service was highly concentrated, with the
network provider directly selling the network, handsets and support services. Fragmentation
began with the incorporation of mobile phone retailers, initially somewhat affiliated with
network providers but now mostly independent (except those dealing in Kasapa equipment
where the handsets come with the network). In 1994, Mobitel sought and commissioned an
independent company, Mobile Phone People (MPP), to take over the importation and sale of
handsets, so that Mobitel could concentrate on providing the network platform. MPP thus
Initially, of course we all started where if you don’t consume … you lose
we keep improving the system we operate with so that we have a system now that
167
claims t
deal in m et
ia.
ist
to an
work of smaller sub-dealers and distributors ranging from small but formal
enterpri
nge
whether
y
purchase requirements; others would simply buy small quantities from the
o be the first mobile phone retailer in Ghana, created by an entrepreneur in 1994 to
meet the need expressed by Mobitel. Subsequently numerous other mobile phone retailers
would spring up to serve the growing market for handsets.
Several large and small mobile phone companies, as well as micro-entrepreneurs
obile phones, payphone equipment and accessories. This includes a thriving mark
in local and imported used and/or stolen handsets and parts. Most mobile phone retailers also
provide repair services as well as the unlocking of handsets imported from Europe and As
The next phase of fragmentation followed the introduction of prepaid billing. As
with the handset retail, network providers appointed a number of authorized dealers to ass
in the distribution of the products associated with the prepaid service – subscriber starter
packs and prepaid phone cards. By 1999, however, the distribution system had diffused
extensive net
ses to individual micro-entrepreneurs, forming additional layers in the distribution
chain. Their revenue comes from commission on sales as well as discounts from bulk
purchasing.
My interviews suggest that apart from the general tendency in Ghana for all products
to be broken down to the smallest possible units for piecemeal resale, the deeply fragmented
structure developed out of the desire of numerous entrepreneurial individuals to cash in on
what had become an obviously lucrative industry. Those with contacts abroad could arra
to import mobile phone handsets and accessories and set up their retail enterprises,
in a shop or on the roadside. Others saw the phone card business as more interesting, mainl
because the product sold faster and was more readily accessible. Most people could not
however meet the high collateral requirements for becoming an authorized dealer.
Undeterred by this limitation, some would join forces, pooling their resources to meet the
minimum bulk
168
authoriz
f
process was the deployment of payphones based on mobile
phone t
ment is the on-going adaptation of the market to electronic airtime
transfer
ne
he
troduction of electronic transfers seems to mark a turning point, highlighting the potential
create opportunities for
income
ana
ing of
ing the adaptation of imported mobile phone technologies
ed distributors for onward retail, thus developing a customer base for the
distributors. Each network has established a revenue-sharing model for the different layers o
distributors.
A third phase in this
echnology. Because the payphone system is more subscriber-based than institution-
based, this turn of events moved decentralization from the realm of airtime distribution only
into that of airtime sharing.
The last develop
s. Depending on the extent to which subscriber-to-subscriber airtime transfers catch
on, it may soon be accurate to say that subscribers themselves are participating in the
distribution of airtime.
From this account it can be seen that each major development in the mobile pho
industry has had implications for intermediaries, particularly micro-entrepreneurial
intermediaries. Up until about 2005, changes in the industry have resulted in opportunities
for intermediaries to play more and more important roles in the distribution chain. T
in
for developments in information and communication technologies to
generation, but also to destroy the very structures that they helped create.
4.8 Innovativeness in the Ghanaian Mobile Phone Industry
There is a global dimension to the evolution of the mobile phone industry in Gh
from a centralized postpaid system to a decentralized prepaid system. This derives from the
significant level of foreign ownership of network providers, and the unavoidable sourc
most technological hardware and software from other, usually more technologically
advanced, countries. Notwithstand
169
to the lo
g for
y and
f foreign telecommunications operators for the
privatiz es
h
cal environment, the influence of external sources should not be ignored, nor
questions about the type or extent of involvement of importing countries in the shaping of
the technology at different levels.
Foreign investment was crucial to the privatization of the fixed line operator and the
general liberalization of the sector in Ghana.
86
For example, over 85% of the fundin
Ghana’s second telecommunications project came from foreign sources, with the largest
amounts coming from Japan (Frempong & Henten, 2004.). Ghana also depended heavil
almost exclusively on the interest o
ation process to go forward.
87
This high involvement of foreign investors continu
to this day, and has contributed to the flow of particular innovations, technologies and
service strategies into the country.
Over time, network providers in Ghana have become more involved in decision-
making about technological features appropriate to their environments (in particular throug
86
Major contributors (financial and advisory) to the development of telecommunications in Ghana
have been the World Bank, the African Development Bank, Japan, France, the Netherlands, Canada,
and Ireland. Current financial support for telecommunications projects in the country is coming
mainly from the World Bank, Japan, France and the Netherlands (Frempong & Henten, 2004) and the
government is depending heavily on foreign loans to enhance the capacity of GT, including a recent
facility from China and another from a consortium of local and international banks (Accra Daily Mail,
2003; Frempong & Henten, 2004; Trade Finance, 2003). Private telephone network providers, of
course, do not benefit directly from these state-led funding missions.
87
Ghana Telecom was handed over to the G-Com consortium, dominated by Telekom Malaysia, a
relatively small organization in global terms, with little history of operating telecommunications in
West Africa. According to Wilson (2004), Ghana selected Telekom Malaysia in part because of the
perception that coming from a developing country itself, the company would be more responsive to
local conditions and challenges. This relationship did not work out as expected and following a
change of government in 2000, the management contract with Telekom Malaysia was terminated and
the board reconstituted from a three/four membership in favor of Telekom Malaysia to a three/six
membership in favor of the Ghana government.
87
Subsequently, control of GT was transferred to
Telenor, a Norwegian company, under a management contract (Ghanaweb, January, 2003; Feb,
2003). Telenor has operations in Europe and Asia, but only started operating in an African country
(Morocco) in 2000. Telenor also exited the Ghanaian telecom landscape at the end of 2006 amidst
accusations of excessive remuneration to expatriate personnel (Ogbarmey, 2006a, 2006b). The Ghana
government recently rejected the offers of the three companies (including France Telecom) bidding to
take over 66% of GT (Coomson, February 2008).
170
to
n
e
t of time pondering the question of whether there was anything
particul ately every
ould
acknow
emergen touch manager said,
the market and consumer behavior. The typical one is the One4All. It’s one, because
can’t afford the handset. You know, and so the idea came up why not do a mobile
for the community?
The tiG se
with
, from the perspective of network providers, replication and/or
slight adaptation is the norm. For example, the managing director of Kasapa states that,
the GSM Association, according to a Onetouch manager) but remain largely peripheral
the design stage of mobile phone technology, and possibly even the design of services. An
official with one network provider commented incredulously, “and you expect to find that
here?” referring to my search for technological innovation in Ghana. A mobile phone
retailer stated, “you know the third world countries, we are not up to that yet. You can't just
go in and say design this to suit our environment” in addition to observing that the Ghanaia
market does not have the expertise to manipulate mobile phone software. Interviews with
network providers and phone retail companies showed that as far as they can see, most of th
services they offer derive largely from observations in the western economies and/or other
countries where their parent companies are based. In almost every discussion, respondents
spent a considerable amoun
arly innovative or new emerging from within the Ghanaian market. Ultim
management respondent concluded either that there was nothing really new, or they c
think of none at that time.
Nevertheless, some ideas are generated from within. Although he later
ledged that the One4All payphone product was developed in response to the
ce of Space-to-Space, a One
Most of the strategies we, we develop and implement are informed by the trends in
we realized people needed to talk, people need to make calls and things, but they
phone
o manager also mentioned that the development of short codes came about becau
customers “want to participate in phone-in contributions and stuff, so we try to come up
short codes.”
Overall however
171
“Ghana
manage
,
we look at what other operators are doing in the advanced countries and then try and
strategy
r the
deas
to
evelopment. This is an important consideration for how the mobile phone
industry
he
’s mostly, like, adapting things that have been done elsewhere.” And the tiGo
r explains that,
Most of the new services that we introduce are more of, like, things in vogue, erm
replicate it here, and a bit customized to fit the local market. (tiGo manager).
TiGo’s current marketing strategy (based on the goals of affordability, accessibility and
availability) was essentially ‘transported’ from its Latin American operations, where this
strategy had proven successful (Beuls, 2006). In fact, a company document describes the
as “copy & paste from Latin America” (tiGo, 2006, p.11). This is not to say the
strategy is not innovative, just that the notion of innovation should be considered in context.
None of this is particularly surprising – all the major network providers have or have
had significant foreign ownership for most of their existence, an important resource fo
inflow of marketing and product ideas. Even the national incumbent, which continues to be
at least partially government-owned, always has or seeks a ‘strategic investor’ that is
invariably a foreign company. This means that network providers have a steady flow of i
that have been tried and tested in other countries. There is thus, perhaps, a little less need
experiment internally with new things, especially in the context of limited resources for
research and d
is organized in Ghana, and subsequently for the usage patterns that emerge from its
deployment.
These technological and industrial developments are not unique to Ghana, but they
contribute to an environment of innovative behavior built on innovations imported from
other countries. What is emerging appears to be a congregation of innovations selectively
adopted or transported from both advanced and other developing regions. For example, t
Space-to-Space phenomenon became possible because Spacefon decided to solve a problem
by importing GSM desktop phones (which were already being used in a similar fashion
172
r
ons
haring via payphones, electronic phone-to-phone airtime
ansfers, flashing, and multiple SIM card ownership) are not much different from what
.
s
pand
y in Ghana (mobile and fixed) to over
20% by
elsewhere in the world). Taken individually, it is difficult to single out any one product o
practice as originating in Ghana but in totality they create a system of practice unique to
countries experiencing similar socio-economic conditions. Informal conversations with
acquaintances from Nigeria, Tanzania and Kenya for example, indicate that my observati
in Ghana (e.g., subscription s
tr
pertains in these countries
4.9 Conclusion
Mobile phone network services were initially characterized by the sale of fully
connected handsets and monthly billing. This model brought connectivity and mobility first
to the political and social elite, and gradually to the business community. However, once the
cream of society had been reached, it became clear that other strategies would be needed to
market mobile telephony to the general public, and especially to people with limited budget
for communication. While the state-owned network providers had little incentive to ex
their network, private mobile phone network providers needed to attract new customers in
order to survive. This meant finding ways to lower the risks of servicing low-income
earners, and the cost of the service to this population. The networks’ success in doing this
has contributed in no small way to raising teledensit
June 2006, and over 27% in 2007, a 2000% increase over year 2000 levels (Abayie,
2007; Ghana News Agency, 2006; Klutse, 2007).
88
88
This teledensity figure is not altogether reliable though, since it includes business lines and multiple
mobile phone subscriptions by individuals (see Chapter Six for research results on the possible extent
of multiple subscriptions).
173
f
ng
-
isparity in network expansion in rural and urban
commu
tial to
ch the
ed
ustry contexts within which mobile telephony is available to
the Ghanaian population, as a prelude to discussing how the population has engaged with the
Despite the achievements made in the industry, a majority of the nation’s population
is still un-served by mobile telephony, much less the Internet. At present, major ICT
developments continue to be concentrated in the capital city, Accra (which has over 55% o
all telephones in the country), increasing its potential to become a global node, but wideni
the national digital divide (Frempong, 2004; Soderberg, Jensen & Ampah Sintim-Misa,
2003; Zachary, 2003). Where services are available they are often priced too high for low
income residents. While the mobile phone adoption statistics (see Chapter Four) seem to
justify the government’s objective of energizing the telecommunications market through
liberalization of the telecommunications industry, the primacy given to the commercial
sector has to some extent maintained the d
nities. Alhassan (2004, p.22) goes as far as to say that “the African media scene is
going through a transition from an era of authoritarian political control to the hammer and
anvil that is the violence of economics.”
Much is often made of consumers’ ability to appropriate technology for their own
ends. It is important, however, to recognize that despite its unpredictability, the poten
appropriate is dependent on the extent to which such potential is consciously or
unconsciously enabled by the technological and socio-economic structures within whi
technology is offered and used. Calls for technology to be designed to facilitate user
appropriation are based on the assumption that the manner in which technology is organiz
has an influence on the variety of ways it can be adapted by a variety of users. Fixed
telephone line technology could not be appropriated to the extent mobile phones have been
precisely because the nature and organization of the technology was not as flexible. This
chapter sought to outline the ind
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technolo try
Chapter Five begins the discussion of user appropriations of mobile telephony,
specifically the practice of offering mobile payphone services will be discussed in detail.
gy, and particularly to begin examining how the fortunes of the payphone indus
are linked to this engagement.
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CHAPTER 5: Intermediary Services – Mobile Payphone Operators
Chapter Four described features of the mobile phone industry in Ghana and the
evolution of the industry into one in which small-scale intermediaries play an important role.
This chapter continues to discuss the role of intermediaries in the context of mobile phone
access constraints and consumers’ usage patterns. It begins with a brief discussion of the
major dimensions of access, and then presents the findings of interviews, surveys and
observations of mobile payphone intermediaries in the research sites.
5.1. Intermediary Services in the Mobile Phone Access/Use Gap
Fixed line network providers have long been criticized for failing to address the
telecommunications needs of rural and poor communities. They are, however, increasingly
finding some sort of relief in as far as the prohibitive cost of building out fixed line networks
is recognized, and the development of mobile phone technology has almost erased concerns
about access to telecommunications in developing countries. If mobile telephony is to solve
the problems faced by fixed line providers, one would expect to see a different pattern of
network expansion. However, there is every reason to believe that mobile phone network
providers are following trends similar to those of fixed line providers. As illustrated in
Chapter Four, network reach has certainly expanded as a result of mobile phone
technologies, but accessibility is still uneven along rural-urban lines. If anything, it is small-
scale intermediaries who have done the most to bring telephony close to the masses.
5.1.1. Signal Coverage
The first stage in making mobile telephony available to any population is to give that
population access to the network signal. Based on the government’s current definition of
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universal access in terms of access within recognized communities rather than in terms of
distance from access points, one can consider access to network signals in relation to the
locating of a cell site within or close to a community such that the quality of the signal is not
compromised by distance. Since mobile phone signals have different ranges and
directionality, the ideal way to determine whether a community has access would be to map
cell sites along with their strength and direction of antennas, onto a map of the country,
taking into consideration geographic conditions that could affect signal reach.
89
Even with
something as ostensibly straight forward as signal coverage, there are some complexities,
most of which relate to signal quality – e.g., the number of cell sites in an area, network
capacity, the direction and strength of the signal, the proportion of the population actually
covered by the signal, and the number of different networks with cell sites in the area.
Virtually all of these should ideally be addressed at the policy and network provider levels.
The state of network signal coverage will directly influence the ways in which mobile
phones are appropriated. For example, if the network signal on the ground were adequate,
people would not need to climb poles or trees, or spend time searching for good locations to
get a signal. Some of these practices, as quaint and innovative as they may seem are
evidence of inadequate access. To the extent that populated areas in communities are
covered by uniformly adequate signal strength, preferably by multiple network providers,
these communities could be seen as having been successfully served with access to the first
layer of mobile telephony.
The signal coverage maps in Chapter Four show that in general most network
providers are extending their signals to the same areas. They however do not indicate the
extent to which populated areas are covered; therefore empirical conclusions cannot be
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The availability of adequate Geographic Information System data would enable this exercise to be
conducted. At this time, such data is either unavailable or unaccesible.
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drawn on the adequacy of network signal access. In some countries it is reported that
intermediaries do play a role in enhancing access to network signals, some in relatively
crude ways (such as building poles to climb up), others by providing equipment that enables
users to boost weak signals.
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I observed no such practices in my research areas in Ghana.
5.1.2. Physical Presence of Network Providers and Points of Sale
There is a general assumption that once network signals reach an area, other phone
related services will follow. In order to make use of the signal, community members will
need access to mobile phone handsets, network connection tools, airtime, and customer
service for example. This would ideally require the physical presence of the network
provider or their representatives. In a prepaid market, however, there is also opportunity for
independent actors with no necessary link to network providers. Other than providing the
cell site infrastructure, therefore, there is generally little perceived need for a network
provider to open an office in a community, even for customer service purposes. The fact that
they do can be taken as an indication of the value they place on clientele in that area. To the
extent that network providers and/or distributors and other intermediaries choose to set up
shop in communities, the community can be said to have been provided more or less access
to mobile phone equipment and airtime.
It is immediately clear that network providers in Ghana depend heavily on
intermediaries to do the groundwork for them when it comes to facilitating actual usage of
the network signal. As noted in Chapter Four, apart from Kasapa, network providers have
almost no interest in how potential subscribers get access to mobile phone handsets, leaving
that solely in the hands of intermediaries, while the networks concentrate on selling SIM
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In particular, programs such as the Grameen village phone in Uganda sometimes include this type
of equipment.
178
cards. With respect to account activations and airtime purchases, there is the first layer of
authorized distributors, after which the system disperses into a multitude of small and micro-
scale intermediaries who take on the job of filling the gap between network provider and
consumer. Network providers are well aware of the importance of these entrepreneurs.
We cannot exist without them… [they are a] vital link between you and the
consumer ... useful source of market information ... their behavior reflects trends in
the market. (Onetouch manager)
All the network managers I interviewed stated emphatically that intermediaries are
critical to their operations and they could not envision a time when they would no longer be
needed. However this was more in relation to their authorized distributors and wholesalers
than to the retail community. Only the Onetouch manager mentioned payphone operators as
a source of inspiration for the company to develop new strategies. The tiGo manager gave an
example of market intelligence they retrieved from intermediaries as information on
promotions being planned by other networks.
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There is thus a fairly strong relationship between network providers, authorized
dealers and their sub-dealerships. These intermediaries receive discounts on purchases and
commission on sales of airtime and equipment, and often get first stab at accessing new
products (such as the credit transfer SIM card). The commission structure generally
recognizes three layers of intermediaries – dealers, sub-dealers and retailers. Network
providers are vested in maintaining this relationship and except perhaps for the recent move
by Areeba to make online airtime top ups available, do not attempt to take over this market.
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This is usually instigated by the dealer rather than being a deliberate attempt by the network to gain
intelligence and tends to be motivated by the dealer’s desire to benefit from multiple promotions.
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5.1.3. Affordability
Once communities are covered by network signals and network providers and/or
their representatives and intermediaries are present providing avenues to purchase handsets
and airtime, the affordability barrier to usage becomes evident.
92
Relative to income levels,
telephone infrastructure and services may be available but too expensive for people in a
community to use. This issue often comes into play even before the signal coverage issue is
addressed, because the decision to extend coverage to an area is based on network providers’
assessment of the population’s ability to use the service.
Mobile phone retailers and airtime distributors also tend to send their services to
areas where first, telephony can be accessed, and second where demand can be translated
into significant revenue at the current price levels. In this context, it is not surprising that the
mobile payphone trend did not emerge earlier and that when it did, it was in response to a
connectivity rather than an affordability problem However, it must be acknowledged that the
target of Scancom’s in-network payphone strategy was the communication center market.
Thus, although Scancom was trying to solve the problems faced by its existing customers,
not trying to make its phone service available to the poor, it was ultimately also easing
access to the network for people who could only afford to use communication centers.
The results of this study indicate that it is at this affordability level that micro-
entrepreneurial intermediaries have the most important function. Other intermediaries help
resolve network providers’ distribution challenges but not consumers’ financial limitations.
With its decidedly grassroots origins, Space-to-Space was arguably the first real attempt in
the mobile phone industry to address the universal access problem from the perspective of
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Usability, in terms of knowledge of how to use the phone is not considered a significant barrier here
because the evidence so far is that even poor and uneducated people easily figure out and become
comfortable using a mobile phone.
180
affordability through sharing (of airtime).
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As with the emergence of communication
centers in Ghana, individual and usually micro entrepreneurs have been the ones to come up
with solutions to the challenges of making telecommunications affordable.
Although there is a link between network providers and micro-entrepreneurial
intermediaries (such as payphone operators) through dealers and sub-dealers, micro-
entrepreneurs hold a rather disadvantaged and even undervalued position in the distribution
network. This is also not unnatural – individually they are small, relatively insignificant
participants in a huge industry. They are not organized in any way, despite their large
numbers and a sense of being unfairly treated by network providers. One interview
respondent, a sub-dealer did reveal that he and some other colleagues were in the (difficult)
process of trying to organize themselves into some sort of association to lobby (I gathered
mainly Areeba) for better conditions.
5.2. Mobile Payphone Operators: Characteristics and Experiences
The important role performed by these small players has been discussed in several
reports and journalistic accounts, however not much is known about trends in their
deployments, their characteristics, experiences and future outlook on a more general level.
Of course, payphone operators are no more altruistic than network providers or distributors.
Their objective in bringing accessibility down to the level of the poorest is to earn income
and profits. Their business strategies are therefore also likely to have an impact on the type
and level of telecommunications access they facilitate. Because of the general celebration of
mobile payphones in the context of poverty reduction, it is important to consider them from
two different angles – as a means of enabling access to telephony, through sharing; and as an
93
There is some evidence of attempts to do this on the fixed line payphone network by renting out
airtime from prepaid payphone cards. However, this seems to have died an early death.
181
income-generating livelihood for operators. The former addresses digital poverty, the latter
addresses income poverty.
This section outlines the results of the survey of 96 mobile phone intermediaries in
Accra, Prampram and Wa,
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giving overview of the characteristics and experiences of a
relatively large number of intermediaries before zoning in for more specificity through the
in-depth interviews and analysis of survey results from each community.
5.2.1. Overview of Survey Responses
5.2.1.1. Operators
A majority of survey respondents (67.7%) are employed to run the business, mostly
by a relative (33.3%) A high proportion (32.3%) were students while most of the other
respondents were previously engaged in some form of retail business (14.6%), practicing
some trade (31.2%) or were unemployed (21.9%) before starting in the phone business.
Personal funds were the main source of start-up capital, and with such a large number of
employed operators, most had no financial stake in the business. Most of those who had put
their own money into the operation indicated that they spend more than ¢8 million (21.4%).
The main reasons given for starting this work were either to earn some income or simply to
have something to do instead of idling away at home.
Consistent with the emergence of the payphone phenomenon in 2004, most
respondents started during and after 2005 (64%, Table 5.1). The trend in start year, even
with this small sample, is indicative of the barriers to entry that were lowered in successive
94
No payphone operator surveys were administered in Apemanim, since there were only two
operators there, both of whom I interviewed. One of my research assistants happened to be traveling
to the Northern Region during the research period, and we decided to sample payphone operators in
that area instead.
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years as the introduction of new products facilitated the participation of micro-entrepreneurs.
The few who started earlier than 2005 are likely the veterans in the sector, who were already
in the prepaid card distribution business when payphones were introduced. It is also possible,
however, that some of the payphones have been in existence for longer than the current
operators indicated.
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Table 5.1: Year Business Started
Year Percent (n=96)
1998 2.1
2000 1.0
2002 1.0
2003 4.2
2005 11.5
2006 25.0
2007 30.2
Missing 25.0
Total 100.0
Before the Space-to-Space product became available, intermediaries were mainly
selling prepaid cards, and to do so profitably, one needed to be a dealer or sub-dealer. This
entailed showing access to significant collateral – for example, Areeba distributors needed
about ¢9million (about $1000) to qualify as an authorized distributor. This amount was
manageable enough for some micro-entrepreneurs to start working as distributors. However,
Areeba later increased the qualification amount, first to ¢75million and then to ¢150million,
at which point several small dealers had to drop out. Some did however collaborate to merge
their resources to put together the minimum amount and have one person represent them
before Areeba – this apparently led to the establishment of some of the currently existing
distribution companies (interview, former Areeba distributor). The payphone business
95
The survey asked respondents when they started working in the business, and since so many are
employees rather than owners, they may not know the full history of the operation.
183
peaked in 2005; by 2006 most operators were beginning to experience declining patronage
and profits. Nevertheless, as Table 5.1 suggests, there continues to be an influx of people
into the trade. This is most likely because new entrants are in the business to sell credit
transfers, although most also sell prepaid cards, and provide payphone access for the
occasional user (Table 5.2).
Table 5.2: Type of Business
Business Activity Percent (n=96)
Payphone 78.1
Credit transfer 77.1
Prepaid card 68.8
Most of the payphones are on the Areeba network (41.7%), although quite a few are using
personal handsets rather than the traditional Space-to-Space desktop sets (Table 5.3).
Table 5.3: Type of Payphone
Type of Payphone Number
Space-to-Space 40
Personal handset 29
Kasapa Home-Work 13
One4All 8
iTel 1
Other 3
Total 94
Note: total number adds up to more than 75 payphone operators because some operators have multiple
payphones.
Few deal in transfers for all four networks – most of the operators have credit transfers for
one (43.3%) or two (43.2%) networks, mainly Areeba (71 respondents) and tiGo (40
respondents). On the other hand, those who sell prepaid cards carry cards for all the four
networks.
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5.2.1.2. Patronage
All interview respondents observed that payphone use and the associated revenue
have gone down, while that of credit transfers is on the ascendancy. The survey data also
shows that credit transfers and prepaid cards are more heavily patronized than payphones
(Table 5.4).
Table 5.4: Number of Customers Per Day – All Intermediaries
No. of Customers Payphone (n=75) Credit transfer (n=74) Prepaid Cards (n=67)
Less than 10 22.7 10.8 16.4
10 – 20 48.0 23.0 43.3
20 – 30 13.3 12.2 13.4
30 – 40 6.7 6.8 7.5
40 – 50 4.0 17.6 3.0
More than 50 5.3 29.7 14.9
Missing - - 1.5
Total 100.0 100.0 100.0
Sale of phone cards is not as high as for credit transfers but remains higher than use
of payphones. Most payphone operators have fewer than 20 customers a day (70.7%), while
the majority of credit transfer operators have more than 50 customers a day (29.7%). Most
operators also report selling 20 or less prepaid card per day (59.7%). This is a strong
indication of an overall preference for individual rather than shared mobile phone use –
conversations with subscribers suggest that people would often prefer to purchase an
electronic transfer onto a colleague’s phone and use it to make a call, as against going to
make their call at a payphone.
Based on vendors’ survey responses, the most frequently purchased categories of
both prepaid cards and credit transfers are the lowest available denominations (Table 5.5)
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Table 5.5: Most Frequently Purchased Prepaid Cards
Prepaid Cards Percent (of respondents)
Areeba ¢20,000 57.6
Onetouch ¢10,000 73.7
TiGo ¢10,000 78.8
Kasapa ¢10,000 80.6
5.2.1.3. Benefits and Challenges
A high proportion (21.9%) of respondents had no idea how much profit the business
generates. This is not surprising considering the large number of operators working as
employees rather than owners of the business. In general though, respondents reported less
than ¢200,000 profit per month (18.8%). The typical monthly salary earned was between
¢200,000 and ¢300,000. About one-third of respondents (67.7%) said that they are earning
more now than they did before starting this business, while more than one-quarter said that
they are not (28.1%). Most also consider that their lives have changed, overwhelming in a
positive direction (86.5%).
Negative impacts mentioned by respondents included insufficient income, and
health problems from sitting in the sun. Few respondents considered slow business a major
problem; only 10 respondents (10.4%) mentioned this as their main challenge. The same
number mentioned arguments with customers as their major problem. Poor network quality
was the most frequently identified problem (33.3%). This is probably related to the Areeba
network, which has been declining in quality over the years – interview respondents
consistently highlighted problems with the Areeba network in association with both
payphone calls and credit transfers.
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Overall, however, the mere ability to earn some income is the major benefit of being
in the mobile phone intermediary business (52.1% of respondents). Still, more than half of
respondents did not intend to stay in this line of work: 47.5% of these have plans to continue
their education (reflecting the high student population) and 27.5% plan to go into some other
business. In fact, less than half of all respondents (43.8%) considered the mobile phone
business to be their primary occupation.
The rather high number of people who are in this business as a supplementary or
short-term source of income suggests that they have caught on to the apparent transience of
their intermediary role and although there may be a net inflow of people into the business, a
lot of new entrants consider it a temporary occupation. Most of the trends emerging from the
survey data are reflective of the situations and conditions described by interview
respondents. The following sections present a more detailed picture through the experiences
of individual intermediaries in specific communities.
5.2.2. Mobile Payphones in Community Context
Each of the following sections begins with a description of the three research sites,
and a profile of some or all of the intermediaries interviewed, and then discusses the mobile
phone intermediary experience in that community.
5.2.2.1 Rural Research Site: Apemanim
Apemanim is a small rural community in the Bosomtwe-Atwima-Kwanwoma
district in the Ashanti region (Figure 5.1). The Bosomtwe-Atwima-Kwanwoma district is
95% rural (in Ghana a rural area is defined as any community with a population of 5000 or
less). The district has a population density of 236, the fourth highest in the region, but still
relatively low compared to the Kumasi Metropolitan district with the highest population
density of 5319. The majority of the population (69.6%) is of local origin, while 30-40% are
migrants, mainly from some other district in the Ashanti region. Most of the district’s
population has had some basic education – however, 34.9% have never attended school.
Within the rural population, 37.9% are not literate in English or any other local language.
Eleven percent of the population is unemployed. Agriculture/Fishing or Forestry is the major
occupation (54.6%), followed by trading (13.7%) and manufacturing (10.3%). The majority
of workers are self-employed (72.6%). Access to communication infrastructure is relatively
low – most localities are more than 10 kilometers from the nearest post office (69.1%), and
the nearest telephone facility (66.1%).
Figure 5.1: Apemanim, Central Street
Source: Fieldwork
Apemanim is situated approximately 20 kilometers northwest of Kumasi, the
regional capital, and 6 kilometers from the nearest major road. It has a population of 329
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188
residents: 171 females and 158 males.
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The community has 74 households, 40 houses and
the average household size is 4.4 people. Historically, residents hail from Denkyira in the
adjacent Brong Ahafo region, and members of this community are scattered in about 18
settlements in the Brong Ahafo and Ashanti regions. There is, however little migration and a
low level of financial remittances between them.
According to the chief, Nana Fobi Kropa III, although the village is physically close
to Kumasi, it is incredibly far away in terms of standard of living. The 6 kilometer stretch of
road from Apemanim to the major highway (Brofoyedur) is un-tarred and in poor
condition.
97
Public transportation in and out of the community is limited – one can travel
from Kumasi (Kejetia) to Apemanim by taxi, but other than those using hired taxis, travelers
may sometimes have to walk part of the way. The community has a primary school with
kindergarten and most children of school-going age do attend school. Electricity is
accessible although not all homes have access, and because of slow response from the
Electricity Corporation, some people simply tap energy from the homes of those who are
already connected. The community’s main source of water is a borehole. The chief’s
priorities for community development are education and job creation (GNA, March 30,
2006).
Subsistence farming is the major occupation in Apemanim (mainly vegetables such
as tomatoes, garden eggs and pepper). It is a small community without much land mass
therefore those who want to engage in larger scale production, such as cash crops, have to
move away to other locations where they can have access to more land. Residents spend
96
Statistics on community and district characteristics are based on the 2000 census.
97
Casual conversations with the village leaders indicate that one of the major concerns of the
community is to have this road improved in some way to make movement easier and to encourage
public transportation operators to ply the route between Apemanim and the city center.
189
most of their time on their farms during the farming season and are generally only readily
available on one day of the week (Tuesdays). Economic activity within the community is
limited – apart from farming there is a sand quarry nearby where some of the residents work,
and a poultry farm, which is staffed mainly by people living outside Apemanim. There is no
local market and not much petty trading either. Some residents make and sell small pastries,
the queenmother sells fabric for a colleague, and the unit committee chairman has a small
convenience store attached to his home. I also noticed a tiny hairdressing salon outside one
dwelling.
5.2.2.1.1. Access to Media and Telecommunications
According to Nana Fobi Kropa, word-of-mouth is the predominant mode of
communicating information in Apemanim. There is no post office in the village - residents
have to go either to Kumasi or the district head office for postal services. There is no print
media presence in the village. Most residents have radio sets - this is by far the most widely
used telecommunications device. Few homes own a TV set. Apart from the queenmother,
only one other resident appears to have a TV set and she said the set was out of order. The
chief does not have a TV set in his village residence by choice.
98
There are no fixed telephone lines in the community, residential or payphone. A
communication center that provided fixed line payphone services closed down in January
2005. None of the four mobile phone companies have located cell sites in the village.
However, because of its proximity to Kumasi, Apemanim enjoys signal coverage for
Spacefon, One Touch and Kasapa, and sometimes tiGo. However residents commented on
patchy signal coverage: “The network, sometimes you struggle all day, you cannot get
98
He has access to most telecommunications media in his urban residence or office.
190
through…I can only just wait. Sometimes I will walk and walk around until I find a signal.”
(Mr Afrifa). Proximity to Kumasi also means that Apemanim residents are not too far away
from points of sale for mobile phone equipment and airtime. Handsets are generally acquired
as gifts from family or via personal contact with individuals who want to sell their handsets.
No network providers are physically present in the community, neither are any of their
distributors. In order to buy airtime, subscribers usually go to Kumasi.
In any case, mobile phone ownership is limited. An estimated 15 to 20 people own
mobile phones. However only about ten of these can be described as stable owners. Local
informants described a tendency for some young men in the village to purchase mobile
phones during visits to Accra and either using them only for display purposes, or selling
them off when faced with the inability to maintain the account with airtime. Stable users
include the chief, queen mother, unit committee chairman, unit committee chairman’s
daughter, the chief's nephew, a pastor, a young farmer and two or three other residents (at
least one other man and woman).
Overall, although Apemanim has access to basic telephony infrastructure, this is
more by accident than by any deliberate attempt by network providers to serve this area
(although the previous existence of a communication center using a fixed line means that
Ghana Telecom did put at least one line in the community). Furthermore, while access to the
nearest sources of mobile phone equipment and related accessories is just about 6 kilometers
away, this is 6 kilometers on a dusty, bumpy road with infrequent public transportation
(Figure 5.2).
Figure 5.2: Road to Apemanim
Source: Fieldwork
5.2.2.1.2. Payphone Services in Apemanim
With a mobile phone teledensity of approximately 3%-6%, one would expect public
access mechanisms to be important in Apemanim. Two micro-scale intermediaries make
telephone services available to non-subscribers and other mobile phone users in the village.
Both offer only payphone services on the Areeba mobile phone network (Table 5.6).
Table 5.6: Apemanim Payphone Services
Afrifa Fati/Mohammed
Ownership Self Employed
Charges:
Areeba to Areeba calls
Areeba to other network calls
Areeba to Ghana Telecom calls
Receiving calls
Taking messages
¢2000
¢2500
¢3000
Free
Free
¢2500
¢3000
¢3000
¢1000
Free
Monthly income ¢80,000 - ¢120,000 ¢50,000 - ¢100,000
5.2.2.1.2.1 Operators
Apemanim originally had one fixed line public access facility established by the
management of a nearby farming company (Rakthia Farms) in 2004. This was effectively
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the first community access to payphone services, initiated by someone who wanted to assist
in the provision of communication facilities in the village. The day-to-day operations of the
communication center were entrusted to a number of young men in the village, who
unfortunately ran the business aground, leaving an accumulated phone bill of about ¢4
million (approximately $428). The center was closed down at the beginning of 2005 and the
owner, along with the community’s unit committee chairman (who had been involved in the
hiring of the young men to run the center) took out a bank loan to pay off the debt to Ghana
Telecom. Later in the year (October 2005), Afrifa, the unit committee chairman (also a
farmer) decided to restart the payphone service using an Areeba mobile phone, this time
managed by himself and his wife. His immediate purpose for doing this was to generate
funds to for the loan repayment. All the proceeds of the business are therefore devoted to this
and in the one year that the business has been in operation, he has repaid over ¢3million, and
has about ¢900,000 outstanding before he can begin to personally enjoy the profits.
The other payphone service in the village is run by two teenage students, Fati and
Mohammed, who are employed by a technician in Kumasi (Figure 5.3). Interestingly, as in
the case of the erstwhile communication center, their employer previously gave the phone to
another young girl in the village to operate as a payphone. She also misappropriated the
funds from the business, leading to her being essentially fired, and the phone being
transferred to Fati and Mohammed. They have been in charge of the phone since mid- 2004.
Their employer supplied them with airtime, they send him the revenue from the business,
and he pays them a portion of that income. Apart from managing the payphone and going to
school (both are in SSS 3
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) the two youth help their parents on the farm.
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The equivalent of the last year of high school.
Figure 5.3: Fati and Mohammed’s Payphone Sign
Source: Fieldwork
Payphone usage in Apemanim is very low, and both service providers indicated that
while the payphone is a useful source of revenue for them, their farming activities generate
more income overall (although farm income is also subject to seasonal trends). For Afrifa, in
a good month, farm produce brings in about ¢500,000 in contrast to about ¢120,000 from the
payphone. In the case of Fati and Mohammed, revenue from farming goes into the family
coffers. The income they earn from their employer is therefore important as a source of
personal income, which usually goes into buying items for school as well as meeting some
of their personal needs.
The two operators do not see each other as competitors in the business, even though
they have different pricing levels. Indeed they often refer their customers to each other when
they are having problems connecting to the network. Both operators indicate that residents
just go to the payphone nearest to wherever they are at a particular moment in time. Their
services are available whenever they are home, no matter the time.
According to Fati and Mohammed, it sometimes takes several months before they
have accumulated enough funds to send to their employer. They generally remit to him when
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he makes a request for them to send whatever they have, or when they have generated about
¢500,000. For example, during the day prior to the interview, they had three customers in all,
who made a total of ¢15,000 worth of calls. Sometimes, however, it only takes a single client
to bring in a significant amount of money. The wealthier village residents (such as a local
herbalist) and visitors from outside Apemanim can run up a tab of ¢40,000 at a time, either
making several calls or one long call. The best times for the payphone business in this
locality are during funerals or other events that bring increased human traffic through the
village. In a good week, Fati and Mohammed estimate that they may obtain about ¢50,000
revenue. On the other hand, based on his observations in Kumasi, Afrifa believes that ideally
an operator should be able to make at least ¢200,000 a week from ¢75,000 worth of airtime.
5.2.2.1.2.2. Payphone Usage Patterns
Fati and Mohammed do not keep business records. However Afrifa does keep
records, and analysis of his clientele and revenue (Figures 5.4 & 5.5) shows a steep
reduction when comparing use of the communication center in 2004 with use of the mobile
payphone in 2005 and 2006. Between August and December 2004, number of calls ranged
from 222 to 309, generating revenues of between ¢722,500 and ¢1,125,500 per month.
During the same time period in 2006, number of calls ranged from 84 to 80, and revenues
from ¢239,000 to ¢396,500. Even assuming that use of payphone services is now shared
between two operators does not account for the reduced patronage, especially since Fati and
Mohammed appear to have much fewer customers and lower revenues than Afrifa. Notably
though, use and revenue in 2006 is roughly the same or higher than that for 2005, suggesting
that the business is actually on an upward or level trend.
Figure 5.4: Number of Payphone Calls – Afrifa
Number of Calls - Afrifa Payphone
0
50
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No. of calls
Figure 5.5: Mobile Payphone Revenue - Afrifa
M onthly Payphone Revenue - Afrifa
0
200,000
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Revenue (cedis)
Most payphone calls (over 50% every month) are one minute or less (Figure 5.6).
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Figure 5.6: Length of Payphone Calls – Afrifa
Length of Payphone C alls
0.0%
10.0%
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30.0%
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Oct-
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>3mins
Neither Fati and Mohamed nor Afrifa sell prepaid card, electronic airtime transfers
or any other mobile phone related equipment or accessories. Although they expressed some
interest in bringing additional services into the community they were all skeptical about the
business prospects. For example, Mohammed observed in response to a question about
possible sale of prepaid cards and credit transfers,
We want to do it but in this place… when you do it, even you won’t get money from
it. ... Because the population is very small. And also, they won't buy it. Yah. And the
peoples, those who are using phones, they are not many.
Notwithstanding the low revenue generation, Fati, Mohammed and Afrifa are optimistic
about staying in the payphone business. Afrifa expects that once the bank loan has been paid
off, all the revenue from the payphone will be his to appropriate,
It has helped me to pay off a large amount of the debt I mentioned earlier. So it
helps. Because when you buy the units, initially I used to buy the two-fifty unit;
every time it brings the debt down. So if I had been putting all that in a bank
account, I would have really gone forward by now.
He even plans to get additional machines for the occasional instances when he gets several
customers at a time.
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Fati and Mohammed appreciate the personal revenue they get, no matter how small.
However, they envisage managing a fixed line payphone center, which they believe will
enable them charge lower prices, thereby attracting more callers. Mohammed worked briefly
at the communication center when it was operational, and noticed that the low cost of calls
(e.g., ¢1,500 for a three minute call, compared to ¢2000-¢3000 for a one minute mobile
payphone call) attracted patrons not only from Apemanim but also from neighboring
localities. This patronage from outside Apemanim probably explains the reduction in
patronage evident in Figures 5.5 and 5.6.
5.2.2.1.2.3. Clientele
Payphone users in Apemanim are mainly workers (farmers and quarry employees) in
or near Apemanim, as well as visitors to the community. There are regular callers (Afrifa
estimated he has about 4 regular callers) as well as some who may make a call only once in a
long while. Fati and Mohammed described calls as being mainly to employers and family
members, while Afrifa found that his customer’s calls are usually for the purpose of
exchanging information with relatives. For example callers may be discussing,
How they are or maybe they have some information to give them. Maybe something
has happened and they're calling to inform them. Or they need someone and they're
calling to ask them to come over…. Sometimes someone may be talking to his wife,
someone may be leaving a message to tell someone to meet me tomorrow or maybe
that the person should come here. (Afrifa)
Some people have a poultry farm here. When they need something from even their
managers or other people, they came here and make a calls. (Mohammed)
When he want to call his, let’s say, his son or daughter, he can call here. (Fati)
Considering conversations that they overhear during phone calls, it appeared to the payphone
operators that their clients did not make many business-related calls.
None of the operators had noticed any obvious gender difference in the use of their
services. However they did note that the village youth are not particularly heavy users of
payphones or of phones in general.
5.2.2.2. Peri-Urban Research Site: Prampram
Prampram (Figure 5.7) is located in the Dangbe West district in the Greater Accra
region, about 30 minutes drive from Tema, and approximately 30 kilometers from Accra. It
has a total population of 10,317; 4809 male and 5508 female. There are 918 houses occupied
by 2,219 households with 4.8 being the average household size.
Figure 5.7: Prampram
Source: Fieldwork
The district has the lowest population density in the region (58); it is home to just
3.3% of the regions population. Dangbe West is also one of the least urbanized districts in
Greater Accra with 76.4% of localities being rural. The majority of the population (70.3%)
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originates from the district, with most migrants (11%) coming from some other district in the
same region.
The literacy rate in the district is 48.1, the second lowest in the region and 42.3% of
the population aged 6 years and above has never attended school. Unemployment is
relatively low in Dangbe West – only 8.9% of the adult population is unemployed. The
occupation is farming or fishing – 50.2% of the economically active population is engaged in
this, followed by production (16.6%) and sales (16.4%). Self-employed persons constitute
82.7% of the economically active population. Only 2.7% of communities in this district have
a post office within the community: for most the nearest post office is 3 kilometers away.
With telephones, 4% of communities have access to a telephone facility within the
community, and for the others the nearest facility is about 3 kilometers away.
Prampram residents have community access to a health post, an elementary and
secondary school. The community also accommodates a vocational institute for woman and
a small home for destitute children. The community also has a police station, and both the
Electricity Corporation of Ghana and the Ghana Water Company have offices in the town
center. Electricity and water supply is fairly regular, although the community elder I
interviewed noted the absence of street lighting.
There is a lot of movement in and out of the community for economic purposes,
especially to and from Tema, a major port city. Taxis, mass transit buses and small local
vans ply the routes between Prampram and its environs. However it usually requires a long
wait (up to two hours on non-market days) to get a vehicle for the journey (Ghana
Districts.com, 2006). The main economic activities are fishing (about 50% of the population)
and cash crop farming (about 50% of the population). There is no local market; some
residents set up small stalls in front of their homes to sell some of their produce but the bulk
of farming and fishing products go to Tema and other major economic centers for sale. Petty
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trading, small retail shops, chop bars and dressmaking stalls are among the main business
activities in the town center. Prampram is a sparsely populated community but because of its
pleasant seaside location it is attracting a lot of attention from expatriates resulting in several
housing projects by Ghanaians living abroad as well as expatriates working in Ghana. Thus
construction work is also very noticeable although its intensity shifts with the seasons
(building activity slows down during the rainy seasons).
5.2.2.2.1 Access to Media and Telecommunications
The community has access to a post office and fixed line telephony. Some
residences have fixed lines, however data on the actual extent is not available. Two
payphones were installed by Ghana Telecom, but both are currently out of order. The
community is covered by signals for all the four mobile phone companies. Onetouch, tiGo
and Areeba have build cell sites in Prampram, while Kasapa signals bleed over from nearby
communities. One of the community elders I spoke with said that there are two Internet
cafes, although I only saw one, which seemed to be perpetually closed. Some young men in
the area later informed me that the café had been closed down by the owner a few months
ago. Another informant, a hotel proprietress confirmed that slow business had led to the
closure.
Prampram is characterized by areas of concentrated population and stretches that are
sparsely populated. Thus depending on where one resides, the distance to a point of sale for
mobile phone equipment or airtime may require a short walk or a drive. The Abia area is
now developing and has few settlements. Transportation in and out of this part of Prampram
is irregular and it takes about 30 minutes to walk from there to Prampram Lower town, the
center of the community. In the town center several outlets can be found selling prepaid
cards and electronic transfers. Most of these are located along the main street. Network
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providers have no offices set up in Prampram, and no mobile phone retailers were observed
in the area. Only one mobile phone repairer was identified, a 22-year old youth, who,
according to his mother, was not taking this profession too seriously. It appears most
subscribers get their handsets from Tema or Accra, and also access repair and maintenance
services in the same way.
In terms of mobile phone ownership and subscriptions the picture is unclear,
although it appears that there are equally high numbers of subscribers and non-subscribers.
For example, the following exchange ensued when I tried to find out the level of mobile
phone ownership from one payphone operator and local resident:
Interviewer: Do you know if many people have mobile phones?
Agnes: Many have. And many don’t have.
Interviewer: Is it like half-half or is it less?
Agnes: Many don’t have, and many have.
Interviewer: Do you know what kind of people have?
Agnes: Those who don’t have is many.
Interviewer: Is many than those who have?
Agnes: Than those who have.
Interviewer: Ok.
Agnes: Those who don’t have is many.
Interviewer: Which people have?
Agnes: Hmm, everybody have oh!
I had several such conversations with different people in and around Accra, in which
respondents swayed between a belief that “everyone” has a mobile phone, and the
knowledge there are also a lot of people who do not have mobile phones. It certainly
demonstrates that mobile phones have become a pervasive technology.
Overall, Prampram has fairly good access to telephone service infrastructure, with
signals from all network providers covering about 90% of the Dangbe West district. Access
to equipment and services, on the other hand, is available mainly through independent and
small-scale intermediaries.
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5.2.2.2.2. Payphone Services in Prampram
In contrast to Apemanim, there are numerous individuals providing payphone
services and prepaid airtime in the Prampram area. I counted at least 38 such outlets, most of
them clustered along the main street. I interviewed three payphone operators (all female),
one in the Prampram Abia area, the second in Prampram town, and the third at the taxi
station in Prampram town. In addition 20 payphone and credit transfer operators were
surveyed representing about 53% of operators in the community.
5.2.2.2.2.1. Operators
The mobile payphone system in Prampram is a fairly recent development. All three
interviewees started the business in 2005 or 2006. Most of the surveyed operators (55%)
started the business in 2007 (Table 5.7).
Table 5.7: Start Year
Year Percent of Operators
1998 5
2005 10
2006 30
2007 55
Total 100
Agnes, a seamstress in her 40s, was already a Space-to-Space operator before she
moved to Prampram early in 2006. The mobile payphone was however not her first
experience with payphones. She had established a communication center at her previous
place of residence (Madina , also in the Greater Accra region) in 2004 using a grant from a
non-governmental organization. She employed someone to manage day-to-day operations
whilst she focused on her main dressmaking vocation. Due to inconsistent billing and
frequent disconnection by Ghana Telecom, she eventually discontinued the fixed line
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service, rented out the communication center premises, and switched to a mobile payphone
service which she handled herself, using a personal handset. In all she spent ¢700,000 for the
handset and Areeba SIM card, because she could not afford the official Space to Space
machine (which cost about ¢6 million at the time). She offers the services from her
dressmaking store in the Prampram Lower Town area.
Richka, a 33-year old woman, was also a relatively early entrant. She resides in the
Abia vicinity of Prampram, where she has a cement shop in front of her home. Richka
started the payphone at the beginning of 2005 to supplement her income from the cement
business; she had heard from a friend that the payphone business was lucrative. It cost her
about ¢800,000 to start-up using the Kasapa network, which was provided by her husband.
She later switched to a Space-to-Space phone, which she used along with her personal
handset and SIM cards for Areeba, tiGo and Onetouch. She now uses only her personal
handset after her shop was burgled and the Space-to-Space phone stolen.
Baby (28 years) is a very late entrant. She started a Space-to-Space operation at the
Prampram taxi station around August 2006 (about 3 months before our interview). Her
reason was simply to have something to do other than sitting at home. She had worked as a
dressmaker before, but had been unemployed since she moved to Prampram about a year
earlier. She uses her personal handset, bought for her by her husband about three years
before. Her husband also provided the start-up capital for the business (less than ¢200,000).
The survey data reveal some variation in the demographic characteristics of mobile
phone intermediaries in Prampram. The majority were male (55%), students (50%) and
running the business on behalf of a relative (45%). Most were also relatively young (Tables
5.8 to 5.10).
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Table 5.8: Main occupation – Prampram Intermediaries
Occupation Percent (n=20)
Carpenter 5
Draughtsman 5
Fisherman 10
Mobile phone intermediary 5
Seamstress 10
Student 5
Trader 10
Unemployed 5
Total 100
Table 5.9: Ownership of Business – Prampram Intermediaries
Ownership Percent (n=20)
Self 35
Relative 45
Friend 10
Other 10
Total 100
Table 5.10: Age - Prampram Intermediaries
Age Percent (n=20)
16 – 20 years 25
21 – 25 years 35
26 – 30 years 15
31 – 40 years 15
40 – 50 years 10
Total 100
5.2.2.2.2.2 Services and Usage Patterns
Mobile phone intermediaries in Prampram generally provide a mix of services, as
demonstrated in the survey data. Out of the 20 survey respondents, 13 (65%) sell prepaid
cards. Less than half sell payphone services (45%) or credit transfers (45%). Eleven
respondents offer two products, seven offer only one, and two offer all three (Table 5.11)
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Table 5.11: Type of business – Prampram Intermediaries
Type of Business Percent (n=20)
Payphone only 20
Credit transfer only 5
Prepaid cards only 30
Payphone + Credit transfer 10
Payphone + Prepaid cards 5
Credit transfer + Prepaid cards 20
Payphone + Credit transfer + Prepaid cards 10
Total 100
Practically all (eight out of 9) payphone operators use the Areeba network; the ninth
operator uses the Onetouch network. Most credit transfer operators sell transfers for Areeba
and tiGo (seven operators), while two sell transfers for Areeba only. Most of those selling
prepaid cards provide cards for all four networks (46.1%). Just under one-third (30.7%) sell
cards for both Areeba and tiGo, 15.4% sell cards for Areeba, tiGo and Onetouch, and one
operator sells only Areeba cards.
Operators get the least traffic for their payphone service – more than half of the
payphone operators indicated that they get less than 10 customers per day (Table 5.12). On
the other hand, more than half of credit transfer and prepaid card dealers said that they get
more than 10 customers per day.
Table 5.12: Number of Customers per Day – Prampram Intermediaries
No. of Customers Payphone (n=9) Credit Transfer (n=9) Prepaid Card (n=13)
Less than 10 55.6 11.1 30.8
10 – 20 33.3 44.4 53.8
20 – 30 11.1 - -
30 – 40 - 11.1 -
More than 40 - 33.3 15.4
Total 100.0 100.0 100.0
This is consistent with observations by my interview respondents that patronage of
their payphones is low. Due to financial constraints, neither Agnes, Ricka nor Baby sell
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prepaid cards or unit transfers (Table 5.13), although Agnes and Baby expressed the desire
to start selling electronic credit transfers if they could afford the initial investment.
Table 5.13: Services – Interview Respondents
Agnes Baby Richka
Ownership Self Self Self
Charges
Areeba to Areeba calls
Areeba to other networks
Receiving calls
Flashing
¢2000
¢2500
Free
Free
¢2000
¢2000
Free
Free (if customer also
made a paid call)
¢1000 (if flashing only)
¢3000
¢2000
Free
Free
Number of customers in
previous week
10 25 5
Monthly revenue Unknown Unknown Unknown
The relatively limited use of payphones in this area is partly because of the sparse
population and the fact that residents spend a lot of time outside the community, but also
reflects the general preference for the use of personal rather than payphones. There are
differences, though in the level of patronage and turnover these women experience, and this
seems to be related to the location of the business. Agnes and Baby are situated within
Prampram Lower Town, the economic and administrative center of Prampram; while
Richka’s shop is in the middle of the sparsely populated Abia area, along a rather lonely
stretch of road. The impact of this is particularly evident in the estimated number of
customers they receive per week (Table 5.13).
Baby is in a more ideal location at the local taxi station where she has access to a
fair amount of human traffic and consequently she gets more customers; Agnes is situated
along the main street, about 10 minutes walk from the taxi station and also is able to attract
residents and passersby, though not as many as Baby. Business is better for Agnes and Baby
when there is some event such as a funeral or festival in the vicinity. Richka’s clientele, on
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the other hand, depends on the amount of building construction going on in the area. When
the construction workers are around (usually during the Christmas season), she may get four
or five callers a day; the rest of the time, she is lucky if she gets one or two callers. Thus,
whereas it takes about four weeks for Richka to exhaust ¢75000 worth of airtime, Baby and
Agnes need just four or five days to sell out the same amount. Nonetheless, all three believe
that business could be better. Commenting on the state of the business Richka notes that, “if
only people are coming diee it's ok. But here, people don't come.” And Agnes compares her
experiences in Accra and in Prampram “You know this place is not moving like Accra so
from the beginning it wasn’t coming. But later, people come, one, one.”
These operators do not track their sales or keep business records. Additionally they
all use the phone for their personal communication needs and did not distinguish their
personal calls from calls made by customers. However, Richka estimated that when she does
manage to sell all her airtime, she makes 100% profit, while Agnes estimated that she only
makes about ¢20,000 profit on ¢75,000. The survey bears out this tendency for operators to
be unaware of the accounting side of the business. Almost half of the respondents (9 people)
did not know how much profit the business makes. The remaining eleven respondents
indicated that they make less than ¢600,000 profit per month (Table 5.14).
Table 5.14: Profit Generation: Prampram Intermediaries
Amount (cedis) Percent
Less than ¢200,000 35
¢200,000 - ¢400,000 15
¢400,000 - ¢600,000 5
Don’t know 45
Total 100
Low usage rates have not discouraged Agnes and Baby who still foresee gains in the
business. Agnes notes that although income is not as good as in Accra, “I take it like that.
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Because that’s not only the work. I’m sewing and I’m selling too, so I didn’t mind.” In fact,
she hopes to build up the business as she explains,
For the mobile-to-mobile I plan not to stop it. I want to function it rather, by adding
more to it, as I told you from the beginning I wish to have other phones, other lines.
So if I can get … the big machine I can buy it. Or different small, small mobile
phones so that I get other lines too, the tiGo, Onetouch. Especially the tiGo and
Onetouch addition to this one. And that will help to bring more profit than this one
here. And then the unit transfer too, the unit transfer, and then the unit, the units
itself – the cards. I’m planning…
She has had enough people coming by to ask for prepaid cards credit transfers that she is
confident she would be in good shape if she could go into that aspect of the business.
Likewise, Baby hopes that she can one day accumulate enough funds to start selling
Areeba credit transfers. She appreciates the business even as it is because “when I was sitting
at home I did not like it. So if it’s even 2000 I will get on it, I like it.” In other words, it is
better than doing nothing. At the very least, she is able to finance her personal calls (of
which she said she makes a lot) with whatever profit comes from the payphone. Compared
to the dressmaking she used to do before, income from the payphone is smaller but more
readily available. This view is echoed by Agnes,
As for the seamstress, you know, the work come occasionally. When the occasion
come, oh, I gain more from the seamstress than the phone. But when it fit like this,
like this time, I enjoy the, the call, because at least the small, small, it keeps man
going.
Thus for both Baby and Agnes, the major benefit of continuing in the payphone
business is that, as Agnes puts it, “I always get my daily bread out of it. As for that it’s true. I
always get my daily bread out of it.” Nevertheless, Agnes is contemplating looking for a
teaching appointment at a local school to further supplement her income. Richka, on the
other hand, has practically given up on pursuing the payphone business because,
As the business is not functioning here,... because if today nobody come, about three
days nobody come, you see. So me I decide, even I decided to stop. But at times if
I'm there noor then one person come so I say’ oh anyway, I will keep my phone
using, if you come I will do it for you.’ … like this place, if the business, if the
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people are coming to make it, it will be a profit, it will be very, very good business.
But here is the case nobody come so I don't see any interest in it.
Essentially, she keeps the sign up in front of the cement shop and is ready to make calls for
the occasional customer, but no longer considers the payphone a viable proposition in her
current location.
The majority of intermediaries surveyed also do not intend to continue in this line of
business in the long term (65%). This is probably because of the high proportion of operators
(50%) who happen to be students planning to go back to school.
5.2.2.2.2.3. Clientele
Operators’ clientele depends on where they work. For Richka, it’s mainly
construction workers who come to make calls or to flash. Baby’s customers are mainly taxi
drivers and traders in and around the taxi station. Agnes’ customers are primarily people
who live or work around her home. Calls are both personal and work-related. For example
Agnes said that most of the fishermen who use her payphone are usually calling to exchange
information with their customers (such as to let a customer know that a promised catch has
arrived) or to inform family of their whereabouts, especially in the event of a change in their
movements. Even when they are out at sea they can call her phone and ask her to deliver a
message to their family,
I don’t know who gave them, you know, people take my number. I receive calls,
they said there’s fish over some place so they went. So I should give message to
their brothers. Some people too went to Lome, they also called to this place to give
message.
Richka’s customers tend to be liaising with property owners or family, “At times they ask
money from people. At times they ask their relatives how are they, they see them for long,
that kind of thing.”
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Some taxi drivers who joined my conversation with Baby declared with amusement
that their main reason for using a payphone is to call their girlfriends. Although some of
them own mobile phones, they explained that they did not want to ‘waste’ their airtime on
these friends, preferring rather to pay ¢2000 for a short payphone conversation.
5.2.2.3. Urban Research Site: Osu
Osu is a major commercial center in the Accra Metropolitan Area (AMA) in the
Greater Accra region. Population is 44,027 consisting of 21,168 males and 22,859 females.
There are 5056 houses, 11,101 households and an average of 4 persons per house.
AMA is densely populated (5530) and contains 57.1% of the region’s population.
13.2% of the economically active population in the Accra Metropolitan Area is unemployed.
The major occupation is sales (34.3%), followed by production (24.5%) and service workers
(12.9%). The majority of workers (66%) are self-employed. All communities in the Accra
Metropolitan Area have access to post office and telephone facilities within the community.
5.2.2.3.1. Access to Media and Telecommunications
There is no arguing that the population in Osu, and the Accra metropolis in general,
is well served by network providers and media institutions. The Greater Accra region has the
highest concentration of Ghana Telecom’s private fixed lines and payphones. All network
signals are readily available – there is a preponderance of cell sites in and around Accra. The
four networks have their head offices and main customer service centers in AMA. Areeba
has one of its major customer service offices on Cantonments Road, and at least two of its
authorized dealers (V-Mobile and Allo Concepts) have their offices in the general area. TiGo
started building a customer service office in Osu during the research period. The head offices
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of Kasapa and Onetouch are quite easily accessible from Osu, although they are located in
different parts of the city. Several mobile phone retailers can be found here, as well as a
large number of micro-entrepreneurs dealing in mobile phone accessories (mainly prepaid
airtime, payphones, and phone covers). Mobile phone subscription is high, although there
are still people who are not subscribers.
While signal coverage is not a problem in this area, because of the high population
density and large number of subscribers, network quality is as much an issue as it is in rural
areas. Other challenges such as network interconnection and customer service also plague
the market simply because there are so many more people demanding access.
5.2.2.3.2. Payphone Services in Accra
5.2.2.3.2.1. Operators
There is a high concentration of payphones and other mobile phone intermediaries
along the Cantonments Road in Osu, a major shopping area. On the approximately one
kilometer stretch of road alone, I counted at least 20 operators in 2006 and about 50 in 2007.
This is typical of most market and commercial areas in Accra. Most of my interview
respondents own the business themselves, however the survey results (which covers Osu as
well as three other localities) suggest that self-ownership may not be the norm. A large
proportion (64.6%) of survey respondents in this area are employed by family or some other
person (Table 5.15), and for most, this is their major occupation (58.5%). Males dominate
(66.2%) as do young people aged 20 and below (41.5%, Table 5.16).
212
Table 5.15: Ownership of Business – Accra Intermediaries
Ownership Number (n=65)
Self 35.4
Relative 26.2
Friend 9.2
Other 29.2
Total 100.0
Table 5.16: Age - Accra Intermediaries
Age Percent (n=65)
14 – 20 years 41.5
21 – 25 years 36.9
26 – 30 years 7.7
31 – 40 years 6.2
Over 40 years 3.1
Missing 4.6
Total 100.0
Accra was the central point for the emergence of the Space-to-Space payphone
phenomenon; it is also the field for most of the turbulence in the industry. It was here that
the original Space-to-Space idea was tested out in communication centers – Ike, one of my
interview respondents in Osu was in fact amongst the dealers who had to market the product
to communication centers in 2004.
5.2.2.3.2.2. Services and Usage Patterns
To a large extent has become rather difficult to distinguish a person as a payphone
operator in Accra. This is not only because most intermediaries now perform multiple
functions, but also because the payphone element has become an almost invisible part of the
operation. The payphone service is certainly available (Table 5.17) but is overshadowed by
the credit transfer and prepaid card products. Although 57 out of the 65 operators have
payphones, the majority (58 operators) also does credit transfers, and a high proportion (46
213
operators) sell prepaid cards as well. More than half (58.5%) offer all three products, and
only two operators are solely payphone operators.
Table 5.17: Type of business – Accra Intermediaries
Type of Business Number
Payphone only 3.1
Credit transfer only 7.7
Prepaid cards only -
Payphone + Credit transfer 18.5
Payphone + Prepaid cards 7.7
Credit transfer + Prepaid cards 4.6
Payphone + Credit transfer + Prepaid cards 58.5
Total 100.0
During my preliminary field visit in January 2005, payphone operators were
dominant and prominent, clearly distinguishable from people selling top-up minutes. By
mid-2006, the picture had changed drastically with credit transfers being the dominant
feature. I noticed that people who wanted to make calls would sometimes have to ask
operators whether they could make a phone call there, this being the only way they could
ascertain that there was a payphone at some locations. Previously the phone set would have
been prominently displayed. Interview respondents were almost all engaged in more than
one activity, as illustrated in the following four short profiles (also Table 5.18).
214
Table 5.18: Snapshot of Some Interview Respondents
Ike Ayisha Christian
Ownership Self Self/employed Self
Services Prepaid cards
Payphones (3
locations)
Credit transfers
(wholesale)
Prepaid cards
Payphone
Credit transfers
(retail)
Prepaid cards
Payphone
Credit transfers
(retail)
Payphone Charges
Areeba to Areeba calls
Areeba to other
networks
Receiving
calls/Flashing
¢2000
¢2500
Free
¢2000
¢2500
¢1000/ Free (if
customer also made
a paid call)
¢ 2000
¢ 2000
Free
Monthly income from
business
About ¢5million Unknown About ¢900,000
Ike (32 years) started in the mobile phone airtime business in 1999, buying ten
phone cards for his wife to sell. At this time his main occupation was auto repairs. As the
mobile phone industry picked up he realized that there was more money to be made in the
phone card business than in auto repairs. So he left the fitting shop in the care of his
apprentices and slowly moved full scale into the phone card business by becoming an
Areeba distributor. It took a while for him to get established because Areeba requires certain
credentials from potential distributors before they will provide cards on credit. Eventually,
after an uncle vouched for him, he was able to get a leg in as a motorbike distributor,
responding to dealers’ requests for prepaid cards. Around 2004 he struck out on his own as a
retailer of prepaid cards for all networks, taking over the business from his wife. He also
started selling Space-to-Space phone sets in 2004, rather reluctantly because it was an
unknown product at the time and expensive (¢3.5million). Again, he noticed the profit-
making capacity of the payphones after a while and acquired eight machines, which he
employed people to operate for him. Due to the decline in demand he has scaled down to
three payphones, two of them in Osu. Ike also wholesales credit transfers. His primary
location is at the corner of a side street on Cantonments Road.
215
Ayisha, (30plus years) on the other hand, set up her Space-to-Space phones in 2003
at the suggestion of her boyfriend who felt her trading business was too dangerous (because
it entailed a lot of cross-border travel). It cost her about ¢6million to set up, which she put
together using funds from her trading. She used to have a total of four phones in different
parts of Accra, but she now has just the one at Osu, which is adjacent to a popular
department store. To this she has added the sale of prepaid phone cards and Areeba credit
transfers. She travels to work from Dome to run the night shift, and has employed the sister
of a friend to run the day shift.
Christian (26 years) started his payphone in 2005, using ¢1.4million he had
accumulated over about three months from his former job as a driver’s mate.
100
He is trained
as an auto sprayer but did not have sufficient funds to establish himself in that profession. He
began with a Space-to-Space phone purchased from a friend, and acquired additional regular
handsets for each of the other networks over time. In addition to the payphones, he also deals
in prepaid cards for all networks as well as tiGo and Onetouch credit transfers. His payphone
stall is located behind a bus stop and across a row of shops and offices close to the Danquah
Circle. He commutes to work from Labadi.
Juliana (26 years) is a more recent entrant having been offered the job to sell prepaid
cards by a neighbor in 2006, just a few months before our interview. Before this, she had
been unemployed for about two months. It was not a new set-up though – she was taking
over from another employee. She works from a stall located opposite a busy food court. In
response to requests from some of her customers she convinced her employer to add a
payphone to the establishment. She has also had numerous requests from customers to start
100
The common name for the driver’s assistant in minibuses, usually charged with letting passengers
in and out of the vehicle and collecting the fare.
216
offering credit transfers and has broached the topic with her employer. However, the high
initial investment has proven an insurmountable barrier.
The low number of payphone-only operators, high number of multiple product
operators, as well as the high number of survey respondents who started working in 2007
(almost 50%), when the payphone business was in obvious decline, suggests either that most
payphone operators made a successful transition into provision of credit transfers, or that
payphone operators who could not afford the transition have dropped out of the market.
Mobile payphone operators in Accra have experienced the highs and lows of the
business. Business is still brisk overall, but has fallen drastically for the payphone aspect.
Credit transfers are the most frequently used service – half of the respondents reported
having more than 40 customers a day, in contrast to a mode of 10 – 20 customers per day for
both payphones and prepaid cards (Table 5.19). As with the rural call data, most payphone
calls are less than one minute long as illustrated in Figure 5.8, where 66% of calls were less
than a minute long, and 91% two minutes or less.
Table 5.19: Number of Customers per Day – Accra Intermediaries
No. of Customers Payphone (n=57) Credit Transfer (n=58) Prepaid Card (n=46)
Less than 10 15.8 8.6 12.8
10 – 20 52.6 22.4 40.4
20 – 30 12.3 13.8 10.6
30 – 40 8.8 5.2 10.6
More than 40 10.6 50 19.2
Missing - - 2.1
Total 100.0 100.0 100.0
Figure 5.8: Length of Calls – Christian
93
35
66
0
10
20
30
40
50
60
70
80
90
100
0-1min 1-2mins 2-3mins >3mins
Length of calls (August 14 - 20, 2006)
Number
This pattern is fairly consistent with the picture presented by interview respondents.
Ayisha says she is lucky to make ¢20,000 in sales from phone calls in a day, and this was
confirmed in a separate interview with her day-shift employee. On the other hand, her
Areeba credit transfers bring in over ¢1 million revenue per day. Juliana also explains that
although her customers requested the payphone, low call volumes is a major challenge,
The cards move faster than the calls… Sometimes people will [come] and make
calls alright, and you will get some money. Your units will get finished and you will
get another. Sometimes too when you put, like, 400 units on it, it will be on it aah
about two weeks or three weeks before it will get finished. So that one too is a big
problem for us.
On a typical day, she makes sales of about ¢35,000 from the payphone, ¢65,000 -¢80,000 on
a good day, and ¢20,000 or less on a bad day. In contrast, her typical daily sales for prepaid
cards is ¢1.8million. On a good day this can go up to about ¢2.5million and on a bad day, is
less than ¢1million.
This is not necessarily the case for all operators though. Records obtained from
Christian illustrate the differential potentials of the ICT business and the need to consider
situational factors in the workings of this business. Christian consistently had more
217
customers and more revenue from the payphone than from credit transfers during the four
weeks for which he could provide records (Figures 5.9 and 5.10).
Figure 5.9: Payphone and Credit Transfer Revenue – Christian
Payphone and Credit Transfer Revenue
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Aug 14 - 19,
2006
Aug 21 - 27,
2006
Aug 28 - Sept
3, 2006
Sept 4 - 10,
2006
Period
Revenue (cedis)
Credit transfer revenue
Payphone revenue
Figure 5.10: Payphone and Credit Transfer Transactions – Christian
Payphone and Credit Transfer Transactions
0
50
100
150
200
250
Aug 14 - 19,
2006
Aug 21 - 27,
2006
Aug 28 - Sept
3, 2006
Sept 4 - 10,
2006
Period
Number of transactions
No. of transfers
Number of calls
218
219
It takes about two days for Christian to clear ¢150,000 worth of Areeba payphone units.
TiGo airtime on the other hand take longer to sell out (about four days for a similar quantity)
because there is not as huge a market for tiGo credit.
Survey responses indicated that almost one-quarter of operators made more than
¢1million profits from the business, while a little over one-quarter made less than ¢400,000
profit in a month. A majority however indicated that their own monthly income (not
necessarily from the business) was less than ¢500,000 (40%).
As far as their future in this line of work is concerned, responses from interview
respondents are as split as those from survey respondents – about half of the survey
respondents do not intend to stay in the business (52.3%), while 44.6% plan to continue. A
certain amount of disillusionment has clearly set in with regards to the future potential of the
payphone business in particular but also the mobile phone business as a whole, especially as
a result of the negative impact of the credit transfer business. Some interview respondents
also commented on the over-saturation of the market, first with the payphones, and
increasingly with credit transfer operators as well.
101
Everybody is now having transfer, all the networks, they are having transfer now so
they don’t make the calls again, once in a while maybe you can sell twenty, thirty
calls, phone calls … but the unit transfer you can get sometimes, … Now we are
plenty, first we used to get a lot of one million, two million, but now we don’t sell
up to one million because we are now plenty, they’ve cut the chip plenty out there, a
lot of people have buy it, you can see that I’m doing some, somebody is doing some
(pointing at other operators a few feet away) … plenty people are doing it all
around. Everything … we are just working by God’s grace, if God says that you will
sell, you will sell. (Yinka)
101
Godfred Frempong, a prominent telecommunications researcher in Ghana, describes this tendency
for Ghanaian entrepreneurs to flock into the same new business activity as a “sheep mentality”
(interview).
220
When I asked Yinka whether she would consider relocating her place of work to another
area with fewer operators, she declared that she did not think that would make a difference.
She was already contemplating a new course of action,
The payment is not good so I want to stop…. I want to change the environment, I
want to change this kind of business, I want to do another thing. I don't want to be
doing this kind business. I've tried, I've do it for over one year now. (Yinka)
I noticed that a lot of operators did not necessarily want to quit the business, but also
did not want this to be their primary or only source of livelihood. For example, Ayisha and
Ike anticipate scaling up their operations (if they can find the resources) to become prepaid
card distributors or sub-dealers:
My future plans is like to get some maybe a container doing this same business, not
this small but big time, yeah. Like er, er Areeba people will just give you more of
their cards and you will be selling, distributing it, ehee…. But, by all means I will do
the calls, it will be there. Even I’m planning for that. Maybe if I get a help…
(Ayisha)
I will not do this business forever. Yes, I won’t do this business forever. I have
dream that if I’m able to set up my office for the business, it’s all about money,
yeah. If I get the money I can switch to another thing…. So I thought of it long,
long, long, long ago, that I believe that not only this phone card business that I will
do, yah, not only this…. That is if I’m able to get the office, my everything, I mean,
…it’s not my dream that I will stay here at where I am now. I’m thinking ahead, I’m
thinking that you know, if God willing, yah, I will move ahead. (Ike)
I was struck however by comments some of my interview respondents made regarding their
personal professional aspirations, an issue that is often overlooked when considering ICT-
related employment opportunities for people with low-incomes. For example Juliana’s
dream is to have her own design or catering company:
Well, I cannot do this till the end of my life. It's not making my life better, but whilst
I don't have anything to do now, I've taken it like that. … Well, I will not do the
same kind of business. I will try to learn something, I mean something which will,
which is better than this, but if I get money I will try to do, I will try to add some…
I'm going to enter a certain business, which I will learn with my own hands.
(Juliana)
221
Likewise Christian expressed his desire to return to the auto-spraying field, while
keeping the payphone business going
102
:
I'm plan early of this year, I have to stop. Then I, me self I will stop the work, but
still the shop will be working, I will find somebody to come and work.... Me self I
want work in the auto spraying shop.
103
(Christian)
When I asked Christian for the benefits of the business to him, he repeated several times that
he perceived little net change. At one point, he gestured at the wooden stall in which we
were seated:
Eeh, this is the shop I used the money to build. Or the one I use it to feed myself,
that's all.... I fit share the money too, because the one I send my brother he used the
money for the master side or … that's all the things I get. … something like two
years now I’m the one seem like I’m struggling looking myself, … there is no more
money in the pocket.
104
Regardless he is happy to have this job because it gives him daily income:
Because I'm not have any work e can give me money everyday…. since I come here
self, I don’t have anything but fortunately I come dey a place, make small shop and
make it, that’s all. That’s why I thank God.
105
Although Ike seems to have settled into what seems to be a fairly successful
occupation as a prepaid card dealer, he also stated rather wistfully during one of our
conversations that maybe one day he would return to his initial goal of becoming an
architect.
102
He has indeed executed this desire and returned to complete his auto spraying apprenticeship. He
could however not find a suitable person to take charge of the payphone business and so has closed
shop.
103
“I plan to quit this year. Then I will stop the work and find somebody to come and work…. I
myself, I want to work in the auto spraying shop.”
104
“I used the money to build this shop. I also use the money to feed myself, that’s all. I can share the
money too, because the money I sent to my brother, he used it to pay my release fee to my former
master… that’s all I’ve gained…. For about two years no, it seems to me that I’m struggling to look
after myself…. there’s no more money in my pocket.”
105
“Because I don’t have any other job that can bring me some money everyday. When I came here, I
had nothing, but fortunately I was able to find a place, make a small shop and succeed, that’s it. That’s
why I thank God.”
222
5.2.2.3.2.3. Clientele
Payphone users in the Osu and surrounding areas are extremely varied because of
the diversity in human traffic (workers, shoppers and tourists) passing throughout the day
and night. For example, Christian’s customers are mainly international students living at a
nearby hostel, office workers, and visitors to a travel agency in his vicinity. Juliana on the
other hand said most of her regular customers are “white men” who come over from the food
court across the street. Ayisha encounters mainly people coming out to enjoy the nightlife.
Reasons for making calls are equally varied. For example Juliana states,
Somebody will come and make the call and maybe say that “I’m standing here,
bring me my money.” … Somebody too will come and make it “please today I’m
not well so I cannot come to work.” Yes, so many, lot of things.
Or Ayisha:
Oh, you know here at night it’s all, all love matters…. maybe “you said we should
meet,” eeh, like “you said we should meet here and I’m here waiting for you, where
are you,” like that kind of thing. For me in the night, because I take over in the night
so that’s what is happening then.
Christian’s clients may be students calling friends and family or people visiting the travel
agency who need to make a quick call for information related to their travel plans.
5.3. Rural and Urban Variations in Revenue Generation
The most striking difference between rural and urban areas is of course the level of
patronage. The urban operators have much higher levels of patronage and revenue than the
rural operator (Figures 5.11 and 5.12).
Figure 5.11: Average Weekly Payphone Calls
Oct
04
Nov
04
Oct
05
Nov
05
Dec
05
Jan
06
Feb
06
Mar
06
Apr
06
May
06
Jun
06
Jul
06
Aug
06
Sep
06
Afrifa - Rural 77 73 16 16 15 15 20 20 21 20 23 27 29 26
Ike - Urban 314 435 217 202 151 160 153 126 113 137 107 112 58
Christian - Urban 172 152
0
50
100
150
200
250
300
350
400
450
500
number of calls
month
Average Weekly Payphone Calls
Note: Data for Ike in October 2004 covers only 3 weeks – Oct. 11-30; for November 2004 covers only 3 weeks –
Nov. 1-25; and for August 2006 covers only 2 weeks – Aug. 1-16. Data for Christian in August 2006 covers only
3 weeks – Aug. 9-21; and for September 2006 covers only one-and-a-half weeks – Sept. 1-10.
Figure 5.12: Average Weekly Revenue
Average Weekly Payphone Revenue
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Oct
04
Nov
04
Oct
05
Nov
05
Dec
05
Jan
06
Feb
06
Mar
06
Apr
06
May
06
Jun
06
Jul
06
Aug
06
Sep
06
month
Revenue (cedis)
Afrifa - Rural
Ike - Urban
Christian - Urban
223
224
However, comparing Afrifa and Ike’s data shows that the rural-urban gap was
narrowing over time, with a steady decline in patronage of the urban payphone. For example,
in October 2005, Ike had almost 14 times more callers and more than nine times more
revenue than Afrifa did. In March 2006, this was down to six times more callers and revenue
than Afrifa, and in July 2006 Ike had just four times more callers and about three times more
revenue than Afrifa did. In fact, looking at the monthly trend in revenue generation, it is
clear that while revenue for the rural operator remained fairly consistent after falling from
2004 levels, revenue for the urban operators is still in a steep fall. This speaks to the higher
and rising levels of mobile phone subscriptions in urban areas leading to reduced need for
payphones, in contrast to the relatively stable (for now) levels of subscribers in the rural
area. While urban areas may be able to support a large number of individual payphone
operators, my observations indicate that rural areas probably have room for only a handful of
such operators, depending on the characteristics of the population. For example in
Apemanim it was obvious that two payphone operators were more than enough for the
population of about 300 people, most of whom make calls infrequently.
5.4 Impact of Electronic Transfer System
One of the major reasons service operators in Accra mention for the decline in
payphone use is the electronic transfer system. Because Areeba is the largest network, and
also the network on which most payphones run, this is primarily a problem for Space-to-
Space operators. Take for example Ayisha and Christian, who are stationed around the area
of Osu. Ayisha only has a Space-to-Space payphone, and she sells only Areeba credit
transfers, while Christian has a separate payphone for each network and sells only tiGo
credit transfers. A comparison of their credit transfer operations shows that overall Ayisha
sells much more than Christian (Figure 5.13).
Figure 5.13: Average Weekly Credit Transfer Revenue – Ayisha and Christian
Average Weekly Credit Transfer Revenue
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Revenue (cedis)
Revenue 3,360,000 363,000
Ayisha (Areeba) Christian (tiGo)
Note: Average weekly revenue for Ayisha is based on sales during a three-week period – Aug. 26 – Sept. 17,
2006. Average weekly revenue for Christian is based on sales during a four-week period – August 14 –
September 10, 2006. These are the periods for which both respondents had some overlapping data.
This is only to be expected – nationwide, the demand for Areeba airtime is
significantly higher than for all other networks. However, while Ayisha (and Yinka, her
assistant) complained bitterly about the negative impact the credit transfer system has had on
the payphone business, Christian considered both his payphone and credit transfer services
to be doing well.
Christian was the only operator interviewed who had some corresponding records
for his payphone and credit transfer operations. These data confirm that for him, the
payphone service is still the major source of revenue (Figure 5.14). For example, he made
¢1,298,000 from 413 phone calls between August 14 and August 31. Credit transfers during
the same period brought in less than ¢800,000 (from 100 transactions).
225
Figure 5.14: Number of Payphone and Credit Transfer Transactions – Christian
Payphone and Credit Transfer Transactions
0
50
100
150
200
250
300
350
400
450
Aug 14 - 31, 2006
Period
Number of transactions
No. of Calls
No of Credit Transfers
Although Ayisha does not keep payphone records, my observations during time
spent at her workplace confirmed that patronage of this service is very limited and certainly
a lot less than that for credit transfers. Conversely, I noticed while sitting with Christian, that
there was a fairly even stream of both people making phone calls and others buying credit
transfers. The data for Christian could be attributed to several different factors – demand for
tiGo airtime in general is low compared to that for Areeba, hence his making lower sales
than Ayisha overall; his use of multiple networks for his payphone service, meaning that he
is able to offer slightly lower rates to his payphone users (because regardless of which
network the caller wants to reach, all calls will be in-network). However, it is more likely
that the main reason is his close proximity to a hostel for international students, many of
whom patronize his payphone.
Consumers’ initial embracing of mobile payphones signified an unmet need for
small quantities of airtime for short focused calls. The rapid shift away from payphones
when credit transfers came in to fill this need, confirms the need for flexibility in acquisition
226
227
of airtime for low-income subscribers. A look at credit transfer transactions for Christian and
Ayisha only goes to provide more support – in both instances, over 50% of transfers are of
the lowest available denomination (Tables 5.20 and 5.21).
Table 5.20: Christian Credit Transfers (tiGo) – August 14 – September 10, 2006
Transfer amount (cedis) Number of Transactions
(n=175)
¢6000 71.4
¢12,000 25.7
¢18,000 2.3
¢24,000 1.1
¢48,000 0.6
Total 100.0
Table 5.21: Ayisha Credit Transfers (Areeba) – August 28 – September 17
Transfer Amount (units) Number of Transactions
(n=858)
20 53.3
40 26.1
60 16.1
80 1.2
100 1.7
120 0.1
Unknown 1.5
Total 100.0
These developments in the delivery of mobile phone airtime have progressively
eaten into the clientele of payphone operators. The unit transfer system has also had the
unintended effect of crippling the mobile payphone business because subscribers have less
need to use payphones while saving up for the cost of a phone card. Initially they had
captured both non-subscribers who had no other options and subscribers when they could not
use their phones. Now their market only consists of non-subscribers who have no other
access to any other means of telephony, and the occasional subscriber in an emergency
situation. In urban areas, both markets are fairly small. Ironically, when Areeba began the
228
unit transfer service it offered its dealers (and their clients) the opportunity to be the first to
buy in, but dealers were partly skeptical about the potential of the product and partly fearful
about its effect on the payphone sector so most of them did not take up the offer. At this time
the Areeba unit transfer SIM card cost ¢1million (about $107), which though expensive for a
lot of operators, was still small compared with the ¢12 – ¢18million (about $1283 - $1924) it
was going for in 2006. Unit transfer SIM cards for the other network providers are much less
expensive (around ¢800,000, about $85) but are not in as high demand as those of Areeba
due to Areeba’s dominance of the market. The impact of the unit transfer system has
therefore been most felt by actors associated with the Areeba network. One prepaid card
distributor explained,
Before the transfer came we held a meeting…. we knew that the transfer will take
over the Space ... I condemn it, so even I, most of my customers I didn't advice them
to buy it. And now, some of them are blaming me. Because there's a money and they
cannot get it. And I told them yes, even myself, it has affect, it has affected me.
Because the Space-to-Space business went down. Later when Ghanaians knew about
aiee, if I have 7000 I can easily make a unit and just make call.
106
(Ike,)
A second reason for the downward trend is that the number of mobile phone owners
and subscribers has increased. Consumers are more willing to get a subscription because
they know they can purchase airtime without the need for a large monetary outlay. Overall
the popularity of credit transfers attests to the long-term primacy of personal over shared use
of mobile telephony, as long as access is made more and more affordable.
106
Before the unit transfer was introduced, we had a meeting with the network provider … we knew
the unit transfer service would take over the Space to Space payphone service. … I condemned it and
did not encourage my customers to buy the unit transfer SIM card. And now some of my customers
blame me because the unit transfer service is profitable but now they cannot get the SIM card. And I
told them, yes, it has also affected me. Because the Space to Space payphone business went down
once Ghanaians realized that with 7000 cedis they can easily buy units and make a call from their own
phone, rather than a payphone.
229
5.5 Conclusion
From a commercial standpoint, profit-making organizations and individuals cannot
be expected to willingly provide service in areas where they will not make a profit. This fact
is already known but is worth emphasizing for an assessment of the deployment of mobile
payphone services in Ghana. One of the arguments for the viability of mobile telephony in
rural areas is that payphone operators could aggregate low levels of usage, adding up to
significant revenue even for large companies (e.g., Knight-John, Zainudeen & Khan, 2006).
However, looking at the pattern of network expansion and location of mobile phone retail
shops and even payphone operators, this aggregation is apparently not enough to attract large
and medium-scale organizations to poorer areas. For them, the cost-benefit ratio of sending
the full range of their services to these areas is still unattractive. But it is attractive enough
for micro-entrepreneurs for whom participation in this market may be primarily a livelihood
diversification strategy – yet even they, when they have the option are likely to seek out
economically active areas in which to provide service. Hence the concentration of mobile
payphones in busy urban and market areas.
Still, mobile payphone operators have contributed to the development of the mobile
phone industry in at least three ways – extending practical access to telephony, providing
employment for several individuals, and revealing latent demand for miniscule amounts of
airtime.
Micro-entrepreneurs make affordable telephony accessible in poor communities.
They are also driven by the search for profit, but have lower thresholds for success, and are
sometimes influenced by necessity, to the extent that they are sometimes not as free to
choose their location (especially those in more remote locations) as larger intermediaries are.
Hence people like Richka in Prampram, and Afrifa, Fati and Mohammed in Apemanim
could chose to relocate their operations to areas that would generate more profits, but are
230
limited by virtue of the need to remain close to their home. Their loss, in this sense, is the
gain of their communities whose residents get to use their services at the slow pace at which
they currently need it.
Either way, operating a mobile payphone has enabled operators to generate income
that would otherwise be unavailable to them. This was especially so for the early entrants
some of whom have been able to put up modest homes, buy cars, and assist family members
with their educational and other needs.
Mobile phone network providers have also benefited from micro-entrepreneurial
activity in the payphone sector. They have seen from the patronage of mobile payphones that
the low-income population is worth targeting and that this can be done profitably with
creative business models. This has not led them to blanket the country with their network
signal, but there is evidence that thanks to the observed success of payphones, network
providers have been driven to rethink their perception of viable target populations and to
develop relevant products to meet demand within these populations.
The provision of payphone services is an important function performed by
intermediaries. However, in the long term the usefulness of mobile payphones as means of
providing access is more sustainable than their function as income generators, even in
developing countries. This is a lesson that several operators are learning the hard way.
However, this outcome could probably have been foreseen by examining the history of the
traditional fixed line payphone. It is ironic that one of the most touted benefits of ICTs in the
economy of developing countries is that they eliminate the need for intermediaries or
middlemen. Unfortunately, mobile payphone operators are also intermediaries of sorts. And
yet, the industry also has the potential to create high value for intermediaries who identify
sustainable value-adding niches to serve. Payphone operators’ overwhelming focus on basic
231
telephony, combined with the hyper competitiveness of the sector
107
has not served the
payphone industry well. The downturn of the industry may seem to have tragic implications
for operators, but it is too early to draw judgment on this matter. What this dissertation has
captured is the turbulence in the industry as it is occurring.
Chapter Six presents the findings on uses of mobile phones by the general public.
107
This is typical of most micro-scale retail businesses in the country.
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CHAPTER 6: Consumer Appropriation of Mobile Telephony – Owning, Sharing, Using
Having observed the dynamics of mobile phone service delivery from some aspects
of the macro (network provider/policy) and meso (intermediary) levels, this chapter turns to
the target population of all this activity – the mobile phone user. Studies of mobile phone use
amongst the general population suggest that Ghanaians use mobile phones primarily for
social interactions, but also for activity coordination (especially funerals) and for the
arrangement of financial remittances. However, as has been observed by other researchers in
Africa (e.g., Donner, 2006), the line between social and economic uses is blurred. Research
shows that voice calls dominate, and text messaging is used to a limited extent mainly in
urban areas (Bertolini, 2002; Frempong, Stork, Esselaar, & Anyimadu, 2005; McKemey et
al, 2003). Hercules (2001) reporting as part of a foreign election monitoring team in Ghana,
noted the significant role that mobile phones played in ensuring a corruption-free
presidential run-off election in 2000, largely through the efforts of radio and citizen
journalists. An interesting finding by Slater and Kwami (2005) was that research subjects
approached the Internet as a tool for escape from the hardships of poverty, whereas they
approached the mobile phone as a tool for managing their real life conditions. If and when
the Internet becomes effectively accessible via mobile phones in Ghana, this could make for
some interesting new dynamics.
Despite the apparent dominance of social uses, some significant business uses also
occur. Focusing on commercial uses amongst fishermen and farmers, Boadi et al (2007)
found that the use of mobile phones brought benefits in terms of cost, convenience and
communication, which in turn fostered efficient business operations and the building of
relationships of trust. However, these benefits were constrained by some limitations of
physical transportation infrastructure. Overå (2006) came to similar conclusions with respect
to traders in Ghana, noting however that while large scale traders have a greater incentive to
233
invest their resources in mobile phone use, financial constraints lead small scale traders to
prefer to use communication centers and payphones, and to limit their mobile phone use to
receiving calls.
This chapter outlines strategies consumers are using to gain access to and use mobile
phones within their peculiar circumstances. This discussion is based on in-depth interviews
with 22 mobile phone subscribers and users; casual conversations with several informants
and acquaintances, field observations, as well as surveys of subscribers and non-subscribers.
It covers appropriation in terms of how subscribers access mobile telephony and how they
negotiate their use of mobile telephony to make it affordable. Within this discussion, the
position of payphones in users’ communication ecology is highlighted. Following this is an
elaboration of the socio-economic uses and outcomes of mobile phone use, exploring
particular aspects of mobile phone use (calling, text messaging and flashing) as well as
livelihood and lifestyle related patterns of engagement with the technology. The chapter ends
with a brief discussion of some pitfalls of mobile phone ownership and use. Overall, this
chapter aims to achieve a variegated picture of mobile phone access and use in Ghana that
recognizes telephony as an important communication tool for both personal and livelihood
development.
6.1 Accessing Mobile Telephony
6.1.1 Paths to Ownership and Subscription
I accepted it because I wanted to get connected… to my relatives and friends … that
was the main reason of getting them. And then also I want to be abreast with time …
I want to know more. (Sylvia, a student explaining why she was happy to be given a
mobile phone as a gift)
More than half of my interview respondents received their first phone as a gift,
generally given with the objective of facilitating contact between the giver and the recipient.
234
Nevertheless, depending on the situation of the person at the time, the specific reason for
getting the phone varies. While Osei Kwadwo, a farmer bought a phone for himself to
improve communication with his sister living in the city, Esther, a dressmaker, convinced
her brother to give her his mobile phone and get another for himself because she wanted to
be connected to her friends. Conversely, Joshua, a taxi driver, was motivated to get a phone
by work-related considerations,
I was driving a taxi and so at times I’ll pick someone and they’ll put it to me that if I
have a phone, ‘give me your number so when I am ready to go out I’ll call you’ or
something like that. So it gave me the idea that I will go buy a phone so I too can use
it. (Joshua)
The survey showed a similar trend – and in particular indicated a high tendency for
subscribers to get their first phone as a gift, but later to replace it with one they acquired
themselves. More than half (56.8%) of subscribers received their first phone as a gift, mainly
from a relative (43.2%). However, with respect to their current phone, most bought it
themselves (53.3%) as against 46.7% who got their current phone as a gift.
The top two Number One reasons for getting a mobile phone were “So other people
can contact me” (74.6%) and “So I can contact other people” (20.3%). The top two Number
Two reasons were “So I can contact other people” (50%) and “For emergency situations”
(36.4%). Taken together they suggest that the three main reasons for getting a mobile phone
are 1) to be contactable by others, 2) to be able to contact others, and 3) for emergency
situations. These three reasons are very closely linked and most probably encompass the
desire to be able to contact or be contacted by others for a variety of purposes such as during
emergencies, for business, work or social interaction, for example. The main indication,
however, is that overall people choose to become mobile phone owners and subscribers with
a higher interest in receiving rather than making calls.
235
This finding is consistent with conclusions presented in the World Dialogue on
Regulation’s 2007 report on network development (Mahan & Melody, 2007), in which
issues of affordability are highlighted. As will be demonstrated in this chapter, it is not
enough for people to acquire a handset; they have to be able to make meaningful use of it.
From the research results it can be said that the inhibitor effect (Milne, 2007) is significant
enough that it factors into decision-making even before the barrier effect is overcome –
potential subscribers know that they will be inhibited in their ability to make calls, hence
they subscribe to a network with the understanding that phone will be primarily a receiving
device. Here, the technological feature of Calling Party Pays pricing is an important
facilitator of people’s ability to become subscribers for the purpose of receiving calls.
Over half of subscribers said they own just one mobile phone handset (69.5%) and
almost one-quarter (23.7%) own two handsets. The remaining 6.7% own between three and
ten handsets. Only seven subscribers said they had never owned an additional phone since
their first. The majority of subscribers (67%) got their first mobile phone after the year 2001
(Table 6.1). Before 2000, only about 9% had ever owned a phone, the earliest being in 1992
(one respondent), the year mobile telephony was introduced into Ghana. Notwithstanding the
small sample size, the distribution of first year of ownership reflects expanding access to
mobile phones over the years (generally more respondents per year after 1999).
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Table 6.1: Year of Acquiring Mobile Phone
First Phone Current Phone
Year Subscribers (n=118) Subscribers (n=118)
1992 0.8 -
1994 1.7 0.8
1996 0.8 -
1998 0.8 -
1999 4.2 -
2000 15.3 -
2001 5.9 1.7
2002 11.9 0.8
2003 13.6 2.5
2004 12.7 8.5
2005 13.6 6.8
2006 12.7 33.9
2007 2.5 41.5
Missing 3.3 3.4
TOTAL 100 100
While only 18 respondents said they got their first phone in 2006 or 2007, 89 said
they got their current phone in 2006 or 2007. Although a direct link cannot necessarily be
made this seems consistent with comments by interview respondents regarding three aspects
of the handset economy – high incidence of phone theft, high incidence of phones
(especially used handsets) breaking down, and consumers’ desire for the newest handset
models. In essence this suggests that there is a high turnover rate for mobile phone handsets
amongst the survey sample due to some or all of these reasons.
The fashion-consciousness of some consumers is an indication that cost is not
always a barrier to mobile phone ownership, even amongst some low-income earners.
However, it is usually those with higher income levels who bear the cost of these desires –
either by having to purchase new phones for family and friends, or by having their new
phones stolen. One female respondent dropped numerous hints during our interview that she
would like me to compensate her with a new mobile phone. When the informant who had
introduced us offered to give her his phone, she exclaimed she did not want it because it was
237
an old model. Another respondent, a university professor, observed that young women
especially were prone to request the latest phone model:
The type of phones, maybe I will say yes because I, I know the young women want
to carry sophisticated phones. I think it's become a status symbol. And rather than
functional this thing which I'm interested in, if the thing is working well …. But for
the younger, because when they say “buy the phone for me,” they want the two point
something million phone. And then I will tell them, “look, you just want the thing to
work, so,” but no, they want it to flip and whatever. So I think to them it's important,
the more sophisticated it is.
6.1.2 Multiple Subscriptions
As noted in Chapter Four, mobile phone subscription figures for Ghana are probably
inflated by the tendency for individuals to hold multiple subscriptions. The normal
conception of mobile telephony is one subscription per person, and although there are
instances worldwide of individual holding more than one subscription,
108
this tends to be the
exception rather than the rule in western countries. In Africa on the other hand, the incidence
of multiple subscription is not uncommon (James, 2007) and certainly seemed to be
widespread from my observations and experience in Ghana.
109
About one-fifth of my interview respondents had more than one SIM card, and if the
survey results are anything to go by, the number of subscribers could actually be only about
half the official figure, even when dormant accounts are included.
110
This would still be no
mean figure; however, it does give pause for thought. The 118 subscribers surveyed
108
E.g., some people may have different accounts in order to maintain romantic relationships with
several partners, or to keep work and social communications separate.
109
I personally acquired three SIM cards each for a different network, during the course of my
fieldwork.
110
Most of these are, unsurprisingly, prepaid accounts with just two survey respondents indicating
they have contract accounts in addition to prepaid. All interview respondents had prepaid accounts
and one informant had one prepaid and one contract account.
238
represent 229 subscriptions, almost twice the number of subscribers.
111
Of these, 180
accounts were described as active.
112
To examine this further, I compared subscribers’ area
of residence and income levels to find out if there was any relationship with number of SIM
cards owned. All the people I had discussions with in rural areas had only one SIM card, and
the survey results showed that the mean number of SIM cards for urban subscribers (2) was
slightly higher than that for rural subscribers (1.71). An independent samples t-test
conducted to evaluate this result showed that the result was not statistically significant. This
indicates that urban subscribers in the sample were not different from rural subscribers in
terms of the number of subscriptions they have.
An ANOVA test (with number of SIM cards owned as the dependent variable, and
monthly income as the independent variable) showed that respondents earning more than
¢5million had a higher average number of overall and active SIM cards than those earning
less than ¢5million (Table 6.2). The difference was not statistically significant, therefore the
hypothesis that subscribers with higher incomes would have more SIM cards was rejected –
there appears to be no relationship between income and number of SIM cards owned by
respondents in the survey sample.
111
Amongst the 79 non-subscribers, 29 (36.7%) said they had owned a mobile phone in the past. This
is consistent with 34.2% of the same population also indicating that they currently own at least one
SIM card. In essence they are former subscribers and those with active SIM cards are actually still
subscribers. Collectively, these people own 46 SIM cards of which 24 were described as still active.
Here also, about half (13 respondents) of the non-subscribers who have a SIM card indicated that they
have more than one SIM card. Thus even amongst the non-mobile phone owning population, the
pattern appears similar to that amongst those with mobile phones.
112
That is, the account is still within its validity period with or without airtime. See Chapter Four for
network definitions of account status.
239
Table 6.2: Income and Number of SIM cards
Income No. of SIM cards No. of Active SIM cards
Number Mean Number Mean
Less than ¢1m 46 1.87 46 1.41
¢1m – ¢5m 44 1.86 43 1.60
More than ¢5m 14 2.36 13 1.85
Total 104 102
This is not surprising considering the relatively low cost of SIM cards for all networks, and
the additional facility offered by some networks for subscribers to pay for the SIM card in
installments. Thus people who can afford to become subscribers can probably also afford to
purchase more than one SIM card.
Subscribers choose to own multiple SIM cards for two main reasons – to be able to
make in-network calls and to reduce the cost of local and international calls. Interconnection
problems were the initial motivation for this practice, in particular the same interconnectivity
problems between Scancom and Ghana Telecom that led to the development of the Space-to-
Space payphone system. Subscribers realized that the best way to get through to subscribers
on a different network was to make in-network calls and subscribing to an additional
network was not prohibitive, other than the need to keep all accounts active. However, the
cost of calls is now the most influential factor.
113
Most of my friends, including my wife, by then we were courting, she was using
Space, most of my friends where using Space so when you call Buzz or when you
call Space using Buzz it becomes quite expensive So …I had to buy the Space. But
why I also bought the Onetouch was that in fact, it was, it was very…it was cost
effective or less expensive to use Onetouch to call a, to make a foreign call. So I
113
See chapter 4 for data on calls charges. The in-network calling advantage is gradually being
eliminated as most networks are moving towards uniform pricing for calls regardless of the
terminating network. Onetouch and tiGo are already charging the same tariff for all local calls. If there
is a corresponding improvement in network interconnectivity, subscribers may soon have no need to
subscribe to multiple networks.
240
bought it, normally those times when I wanted to make foreign calls I’ll, I’ll buy,
you know, credit on the Onetouch and I’ll use it for foreign calls (Charles)
114
I use one for texting, that is, the Space one, I use it for texting. Most of the time.
And erm, but then you know most people in Ghana, about 60 percent in Ghana have
got Spacefon. So when I’m you know calling Spacefon I use that one. And then for
all my calls, international calls, you know, all my calls, all calls that I make, I make
them with Kasapa. Yeah, because of the cheaper rates. (Robert)
I do swap my SIM cards…. my reasons are, you know the tariff they charge for each
call that you make … So I use a specific, erm, service provider for their numbers. In
case if I want to call … a friend using an Areeba number… I use my Areeba SIM
card…. So if I want to call a different number too – tiGo or something, tiGo, I use
that one too. (Patrick)
Others choose just one network based on their existing or potential network of
contacts. For example, Osei Kwadwo choose the tiGo network for the simple reason that he
intended to communicate primarily with his sister who happened to be a tiGo subscriber.
115
This was a familiar theme from all interview respondents: “I chose Areeba because all my
people are using Areeba. You see, if you want to call a different network it’s more expensive.
That is why I decided that I want to use Areeba” (Esther).
A few interviewees also had business-related reasons for choosing or changing
networks, such as Joshua, a taxi driver,
While I was using Buzz I wasn’t often getting real customers … when I was using
tiGo, when maybe someone holding Areeba, when they’ll call me, then its hard for
them, and my customers too, more had Areeba, Yes that’s why I also went to
Areeba.
114
Curiously, this respondent also prefers the former system of billing in units rather than the national
currency, describing the cedi billing system as “too colloquial, too outmoded” He initially switched
from tiGo to an Areeba subscription for this reason.
115
I personally made a slightly similar decision when deciding which network to subscribe to during
my fieldwork period – my sister living in East Africa informed me that for some reason she could
only receive text messages from the Areeba network. Since text messaging was going to be our main
form of interaction, my decision was easily made.
241
Yet others were influenced by the cost of airtime in general. Paul, for instance
started out using Areeba, but quickly realized that he could not afford to buy the highly
denominated prepaid cards. As a result, he stopped using a mobile phone for several years,
until tiGo introduced airtime in low denominations, which were more manageable for him:
Because I used to buy the tiGo er chip. So that one diee I can fit buy 10 thousand, 35
thousand, 15 thousand, five thousand, I used to buy if I want make some call. So …
I haven’t find difficult on this one, like first one.
116
6.1.3 Access for Non-Subscribers
It is significant that about one-third (36.7%) of the surveyed non-subscribers said
they had been subscribers in the past. This indicates that becoming a subscriber is not a
stable situation – subscribers sometimes cease to use their phones, usually due to loss of the
phone or because they can no longer afford to buy airtime. The major obstacle to becoming a
subscriber or reactivating dormant accounts was cost, especially of airtime (62% of non-
subscribers).
Non-subscribers have less access to telephony overall. More than half of the sample
never uses a fixed line to make (58.2%) or receive (57%) calls, and about one-quarter does
not make (26.6%) or receive (24.1%) calls using a mobile phone. And those who do have
access to fixed or mobile phones use them less regularly than subscribers do – for example,
most of them make a fixed call line on a monthly basis (15.2%), and a mobile phone on a
weekly basis (31.6%).
One may surmise that there is a fair amount of movement in and out of subscriber
status, and that as telephony becomes affordable, this may reduce. At present subscribers
represent a population that can afford to maintain their mobile phone accounts or consider
116
“Because I bought the tiGo SIM card. With that one I can buy 10 thousand, 35 thousand, 15
thousand, five thousand cedis airtime, I can buy whenever I want to make a call. So it’s not so
difficult with this one as it was with the first one.”
242
them important enough to make whatever sacrifices are necessary to acquire and keep their
accounts active. With this in mind, I tested for the statistical significance of any difference in
income levels for subscribers and non-subscribers in the survey sample. Although more than
half of all respondents earned less than 1 million, a greater proportion of non-subscribers
were in this group (80.3% as against 44.2% of subscribers). Only 16.4% of non-subscribers
earn between ¢1million and ¢5million compared to 42.3% of subscribers; and 2.8% of non-
subscribers earn more than ¢5million as against 13.5% of subscribers (Table 6.3). The
difference in income levels of subscribers and non-subscribers was statistically significant,
indicating that subscribers do tend to have higher incomes than non-subscribers.
Table 6.3: Monthly Income (%)
Income Subscriber (n=104) Non Subscriber (n=71)
less than ¢1m 44.2 80.3
¢1m - ¢5m 42.3 16.9
more than ¢5m 13.5 2.8
100 100
Pearson Chi-Square = 23.058, df 2, N 175, p = .00. Cramer’s V = .36
6.1.4 Sharing Access
For the purpose of this study, sharing refers simply to allowing another person to use
your mobile phone for any communication purpose. Rural areas have relatively less access
to mobile phone infrastructure than urban areas, and where network signals are accessible
few people can afford to buy handsets and airtime. Shared access to telephony is therefore
seen as the prevalent model of access in developing countries to the extent that it is now
being considered something to be incorporated into the design of mobile phone handsets
243
targeted at these countries.
117
Yet mobile phones are so intuitively individualistic that it is
worth considering to what extent mobile phone sharing prevails in Ghana, in what contexts it
occurs, and what role it plays in the expansion of the ability to communicate.
118
Sharing may
occur through joint ownership of handsets and or SIM cards, sharing of handsets only, as
well as noncommercial (interpersonal) or commercial (payphones) sharing of handsets and
airtime. By far the most common methods appear to be interpersonal sharing and use of
payphones.
6.1.4.1 Non-Commercial Sharing between Subscribers and Non-Subscribers
For most Ghanaians the ideal situation is captured simply by a survey respondent
who does not have a phone: “I need my own mobile phone” (anonymous). And indeed in
Ghana sharing is less ubiquitous than one would expect. Both survey and interview
responses suggest that there is relatively limited sharing of mobile phone handsets and
airtime.
119
For some, the very idea of sharing their phone with anyone else is rather strange:
Cee, a young woman in Accra, commented when asked if anyone else uses her phone: “My
personal phone? … Why should someone use it with me?” For others, it is to be expected, as
the chief of Apemanim, Nana Fobi Kropa III, observed, “Nkye ono dze by all means.”
120
117
For example, Nokia, having won a GSM Association contract to produce low-cost handsets for
developing countries, is developing models with facilities designed to account for handset sharing,
such as multiple address books.
118
Sharing of mobile phones in this context is distinguished from the type of sharing that has been
observed especially amongst young people in developed countries, where sharing falls more into the
category of sharing content, rather than sharing basic access.
119
A similar observation was made by McKemey et al (2003) when they studied use of mobile phones
and other communication technologies in Botswana, Ghana, and Uganda. Their surveys indicated that
“although it was regarded as culturally acceptable to ask individuals owning private mobile handsets
to make calls, this was strictly regarded as a gesture of good will, and not a commercial service”
(Scott, 2003, p. 3).
120
“As for that, by all means [people will ask to use your phone to make calls]”
244
r
This is not to say that sharing is a negligible aspect of mobile phone use in Ghana,
only that it tends to be more occasional than regular, and takes place under conditions that
the parties involved often consider less than ideal. Interpersonal sharing does occur, with
slight variations in rural and urban areas. Interview respondents in Apemanim, indicated that
they frequently have other people in the community using their phone: for example, the
chief's nephew (before he got his own mobile phone) had in the past used the unit committee
chairman's phone to communicate with the chief. Even the chief and queen mother may have
people asking to use their phones to make or receive calls, although according to the chief,
“it hardly ever happens.”
121
In fact the queenmother, Nana Konsua Birago II estimated that
it had been over a month since she last had someone else borrow her phone.
122
On the othe
hand, two other mobile phone owners in the village indicated that they have several people
borrow their phone on a regular basis. Respondents in Accra and Prampram however,
seemed to have fewer instances of non-subscribers using their phones.
As Table 6.4 shows, overall, mobile phone subscribers share their phones
“occasionally,” especially with family and friends (over 60% of respondents in each case).
Friends are more likely than any other group to share their phones on a daily basis (19.5%),
while family are more occasional sharers (65.3). Non-subscribers confirm this trend,
indicating that they also use friends’ or family members’ phones “occasionally” (44.3% and
55.7% respectively).
121
It is likely that people ask to use his phone more often outside of the village, when he is in Accra
or some other part of the country in his capacity as a civilian.
122
For the chief and queenmother, this is probably a factor of their status as leaders of the village –
most people would not ask to use the personal property of a traditional leader.
245
Table 6.4: How often do the Following People Use Your Mobile Phone?
Frequency Family
(n=118)
Friends
(n=118)
Neighbors
(n=118)
Work Colleagues
(n=118)
Daily 15.3 19.5 3.4 11.0
Occasionally 65.3 60.2 28.0 39.0
Never 19.5 20.3 68.6 50.0
Total 100 100 100 100
A possible reason for this trend is that most subscribers move in circles with other
subscribers, and therefore encounter fewer occasions to share use of their phone. One would
then expect that subscribers in urban areas, where there is a higher density of subscribers,
will share less often than subscribers in rural areas. Statistical analyses indicate that this is
indeed the case within the survey samples (Tables 6.5 – 6.8). Overall, both rural and urban
subscribers share their phones occasionally rather than frequently and mostly with friends.
However, rural subscribers share on a more regular basis with family, friends and neighbors.
A greater proportion of rural subscribers share their phones with family members
daily (25%) as compared to 12.8% of urban subscribers (Table 6.5).
Table 6.5: How often do Family Members use your mobile phone? (%)
Frequency Urban (n=94) Rural (n=24) Total (n=118)
Daily 12.8 25 15.3
Occasionally 66 62.5 65.3
Never 21.3 12.5 19.5
Total 100 100 100
Differences not statistically significant
Almost 40% of rural subscribers give friends daily access to their phones, while only
15% of urban subscribers do the same (Table 6.6).
246
Table 6.6: How often do Friends use your mobile phone? (%)
Frequency Urban (n=94) Rural (n=24) Total (n=118)
Daily 14.9 37.5 19.5
Occasionally 64.9 41.7 60.2
Never 20.2 20.8 20.3
Total 100 100 100
Pearson’s chi square = 6.73; p = .03, df = 2, Cramer’s V = .24
Sharing with neighbors is low in both rural and urban settings but again, rural subscribers are
several times more likely to share access with a neighbor on a daily basis – 13% vs. 1.1% for
urban subscribers (Table 6.7). A similar trend emerges for sharing with work colleagues
(Table 6.8).
Table 6.7: How often do Neighbors use your mobile phone? (%)
Frequency Urban (n=94) Rural (n=24) Total (n=118)
Daily 1.1 12.5 3.4
Occasionally 26.6 33.3 28
Never 72.3 54.2 68.6
Total 100 100 100
Pearson chi-square (2, N = 118) = 8.61; p = .01, Cramer’s V = .27
Table 6.8: How often do Work colleagues use your mobile phone? (%)
Frequency Urban (n=94) Rural (n=24) Total (n=118)
Daily 8.5 20.8 11
Occasionally 39.4 37.5 39
Never 52.1 41.7 50
Total 100 100 100
Differences not statistically significant
The results were statistically significant for sharing with friends and neighbors but
not for sharing with family and work colleagues. This indicates that both rural and urban
subscribers probably share their phones to a similar extent with family members and work
colleagues. However rural subscribers in the sample do share their phones with friends and
neighbors more frequently than urban subscribers.
247
In the case of non-subscribers, the results indicate that there is no significant
difference in the frequency with which rural and urban non-subscribers use a friend or
neighbor’s phone or a payphone (Tables 6.9 – 6.11). The only statistically significant result
was the difference in the frequency with which rural and urban non-subscribers use a family
member’s phone (Table 6.9) – the test supports the hypothesis that rural non-subscribers in
the sample use a family member’s phone more frequently than urban non-subscribers. The
same result also shows that most rural non-subscribers never use a family member’s phone
(56% vs. 19% for urban subscribers). The data for both subscribers and non-subscribers is
consistent with rural residents having less access to mobile telephony simply because there
are fewer subscribers in the area, and the few who do have relatives or friends with phones
will borrow from them as often or, in some cases, more often than urban residents.
Conversely, urban non-subscribers have more options for sharing because they are likely to
have more friends and family around with mobile phone subscriptions.
Table 6.9: Frequency of using a Family Member's Phone (%)
Frequency Urban (n=56) Rural (n=23) Total (n=79)
Frequently 10.7 21.7 13.9
Occasionally 69.6 21.7 55.7
Never 19.6 56.5 30.4
Total 100 100 100
Pearson Chi-Square (2, N = 79) = 15.440, p = .00, Cramer's V = .44
Table 6.10: Frequency of using Friend or Neighbor's Phone (%)
Frequency Urban (n=56) Rural (n=23) Total (n=79)
Frequently 8.9 8.7 8.9
Occasionally 51.8 26.1 44.3
Never 39.3 65.2 46.8
Total 100 100 100
Differences not statistically significant.
248
Table 6.11: Frequency of using a payphone (%)
Frequency Urban (n=56) Rural (n=23) Total (n=79)
Frequently 25 47.8 31.6
Occasionally 41.1 34.8 39.2
Never 33.9 17.4 29.1
Total 100 100 100
Differences not statistically significant.
A likely reason for the generally low levels of sharing and the large number of
respondents who said they never share their mobile phone lies in the way sharing is done,
specifically the fact that sharing is usually free of charge, that is, users do not compensate
owners for airtime used. Thus financial considerations are always in play and may serve to
inhibit sharing to some extent.
Because sharing is free or of the non-commercial variety, it cannot be taken for
granted; it has to be negotiated. Users have the option to transfer credit onto a subscriber’s
phone and then make their call, or to swap their own SIM card, thereby sharing only the
handset and battery power. However, only a couple of respondents reported ever doing this,
and even they said this happens only once in a while.
123
Sharing a subscriber’s airtime is a trickier proposition and there are both spoken and
unspoken expectations that “free” calls will be kept within certain boundaries, especially
when the subscriber is himself or herself low on airtime. For example, two rural subscribers
describe in very similar ways, the terms under which they allow others to use their phone:
Oh, no, they don't pay. After all I'm not using it for Space…. if only I have units on
it, then I do it for you. If I don't have units, then I tell the person, maybe the person
can go and buy some to put on. Then they can use it to make a call…. if it's my own
units on it and it's not a lot, I can tell them that maybe, maybe there are six [units] on
it. Maybe if you talk about four or three, we should be able to cut it otherwise it will
123
Some informants indicated that they knew some ‘young, young boys’ who own only a SIM card
and use them in other people’s handsets but they were unable to track any of them down for me. Only
one subscriber mentioned ever having shared her SIM card with someone else and another said he
occasionally uses his SIM card in another person’s phone when his handset battery runs down.
249
finish. If there's a lot of units on it, then when you talk to them, you can talk maybe
one minute. Then they will be done. (Osei Kwadwo)
I will tell the person that I have credit, let’s say I have hundred units, ‘you are going
to use five units, and the five units will cost you one minute, let’s say one minute. So
when it is one minute just stop. If the units exceed you will pay for it.’ So you see
the person will be in a hurry aah, even less than one minute the person will finish
talking, aha. (Maafia)
Akua, an Accra-based trader also set ground rules for her grandmother’s caregiver:
She receives most of her calls on it. She buys credit and then use it. … We didn't
come at any agreement. But it's like when she came here and she saw that I have the
phone, then she thought she had access to it. So at times she will tell me, ‘can you
give me your phone to make a call?’ And I will tell her ‘ok, you have to buy your
own unit.’ Ehee, as for that diee you have access to it, but I will not allow you to use
my units [laughing]…. She tells me the amount she is going to buy and I know the
units that is on my, ehee. So, as for that one, when she overuses it she will just go
and buy me... (Akua)
It is easier, though, to enforce these types of rules with acquaintances than with family. Most
interview respondents could not readily estimate how many people they regularly share their
phone with, but close family members and friends were mentioned most often. These people
tend to be the ones who get the most benefit of free calls, in a sort of double-edged situation
in which the subscriber accepts and even believes that their phone is a family rather than
personal asset, but at the same time sometimes feels the burden. As Maafia observed
regarding the use of her phone by her parents, siblings and cousins:
Whenever I have credit and they say, ‘oh, just give it to me’ for even a flash, I will
give him or her for a call. Aha, because we all owes it, it’s only that I always carry
along, aha, it’s yours but, to them, I can say we all owes it because if the phone were
theirs, I could use it.
Indeed that very day, she had given her phone to one of her brothers to take along with him
to Kumasi so that she could communicate with him (using a payphone in the village) while
he was there. Yet she also observes that her generosity is sometimes abused:
Two of them worry me always … How I am nu, people used to collect my phone.
And because they know that I won’t say, ‘oh I won’t give you,’ aha, people, at times
even when I’m holding it, you will see that someone will snatch it and make a call
250
with it. But I will say nothing. So those who use my phone, they are many, but I can
say my brother and my sister [are the most frequent users].
Likewise, Paul a carpenter in Labadi, Accra gives his wife and children unlimited
access to his phone, although technically whenever he leaves the phone at home it is
supposed to be for his wife’s use. He explains that his son probably uses the phone in his
absence but he has no way of knowing for sure, and in any case, that is not a concern for
him:
If they will make a call, I can’t tell. Maybe he will call his brother at Nungua, but I
can’t know [laughs]. Me, I just give it, any person that want to use it, you can use it.
When I come, if there’s no unit, I have to buy another one.
Paul has himself benefited from similar generosity – when he did not have a phone of his
own, he would occasionally use his younger brother’s phone free of charge.
Yinka, on the other hand, describes her displeasure when an attempt to keep a cap on
the use of her phone by a family member proves unsuccessful:
It was my junior brother. He was talking to his girlfriend. And just using my units….
Talk like three minutes, three to four minutes…. I was annoyed. So all he's saying is
“sorry, sorry, sorry” … I told him that, oh, he used all my units, I was not happy.
Borrowing a subscriber’s phone to receive calls, on the other hand, seems to be fairly
common, a lot more so than making calls, probably because there is no cost involved for the
subscriber. Even here, both subscribers and the people they share with identify (with mixed
feelings) some amount of inconvenience associated with this practice.
For a non-subscriber, the ability to receive calls or messages in a timely fashion
could be problematic; while for the subscriber receiving a call on another person’s behalf
inconveniences may involve having to “run”
124
to the location of the recipient to give them
124
Several respondents used the word “run” when talking about how they receive or have others
receive calls for them, implying the exertion required to facilitate the process.
251
the phone, and their own inability to make or receive their own calls during this time. Akua,
recounted the process involved in getting calls via her brother’s phone before she acquired
her own mobile phone: “At times my brother will not be in the house and a call will come.
He has to come home, a whole lot. So it's like, maybe he will just take, receive the message
and then let me know it later.” She also noted that not all messages can be transmitted via a
third person – such as some messages that her fiancé would rather give directly to her.
Another respondent described himself as being “free” now that his mother had obtained her
own phone and no longer needed to borrow his:
She has a phone of her own now…. So I’m, I’m free…. Maybe I’ll be expecting
some calls and then hers too comes in and then, you know …and she’ll also keep
long on the phone… I can’t tell Mama I want to have a phone, I want to receive a
call… (Patrick).
Other subscribers, like Osei Kwadwo are less bothered by such situations. He never
turns his phone off for fear of missing a call, even if it’s not a call for him. For him, this is
not a problem, he sees himself as helping out the less fortunate:
It doesn't bother me. Because, because it's not everyone who has some of the phone,
so if they get my number and give to someone, then the person will call, they are
looking for this person, As long as the person is there, then you tell them that the
person is there, so maybe in three minutes time call, ehee. Then you can talk to
them. If they are not in too, then I tell them that maybe the person is not in. Ehee….
Even sometimes when I'm sleeping, I can get a call. Maybe it's not my own call, it
may be for someone.
Nevertheless the general practice of sharing with non-subscribers (especially relatives), such
as it is, is quite tolerable for most subscribers, and as one respondent explains, family
members often “help(s) me out” (Patrick) every now and then with funds for airtime.
6.1.4.2 Non-Commercial Sharing between Subscribers
Non-subscribers are not the only ones who sometimes need to use another person’s
phone. Subscribers also share access with other subscribers, for example when they are
252
temporarily out of credit,
125
facing connectivity problems, or have low battery power for
their handsets.
126
This is also based on pre-existing relationships, usually between friends
and colleagues at work. Some may insist on using their own SIM card when credit shortage
is not the problem. Nevertheless, when asked what they do when out of phone credit, only
4.2% of subscribers in the survey said that they use a friend’s phone “always” or
“frequently.”
Subscribers may also choose not to use their own phone in order to avoid caller
identification when trying to establish contact with an evasive recipient. This is most often
associated with a customer or client with an outstanding bill, or someone trying to escape
performing some task for the caller:
127
Maybe someone doesn’t want to pick up the phone, and you use someone else phone
to call and really find out what’s going on … someone was owing me money. And
when I call, he doesn’t pick up, … he picks up and pretends … not to hear what I’m
saying. So then I used another person’s phone and he picks up and I was like, ‘you
know what, it’s me…’ (Robert)
Other interesting forms of sharing may be encountered but these appear to be more
the exception than the rule.
128
For example, one of my survey administrators described an
instance of two gentlemen who take turns in stewardship of a mobile phone subscription.
They rotate the handset between them every three days. Depending on who is holding the
phone at any particular time, people calling that number for the other party will be told that
125
See Table 6.18 (Section 6.2.3) for survey results on actions taken by consumers when they run out
of credit.
126
This generally came up in interviews with urban subscribers. With the low penetration of mobile
phones in rural areas, it is to be expected that subscribers here would be more likely to be sharing
access with non-subscribers, while urban subscribers may be sharing with both subscribers and non-
subscribers.
127
It is also one of the reasons why subscribers sometimes use payphones.
128
I did not personally observe the practices described here. They were described to me by my
research assistants who came across these examples while administering the surveys.
253
that person is not available. Another group of friends, all of whom have phones, have created
a pattern of sharing airtime with each other in which one person buys a prepaid card and
transfers airtime to the others as and when they need it. There is no formal system as such
but at any point in time at least one of them is in a position to share airtime with the others.
As a result, these friends never have to buy credit using the commercial electronic transfers,
which are more expensive per unit than scratch card airtime.
6.1.4.3 Commercial Sharing: Payphones
Most often… I do this payphone when I don’t have credits on my phone. Because
having, using your own phone is more economical as compared to the payphone.
(Sylvia, subscriber)
I have to go to Space-to-Space. (Charipearl, non-subscriber)
If the transformation of mobile phone subscribers into “communication centers” is a
natural outgrowth of mobile phone subscription in underserved communities, it is not
automatic occurrence in my research areas – subscribers do not naturally gravitate towards
this activity. Thus although some subscribers may go into the payphone business using their
personal subscription, it is more often the result of a deliberate decision based on any
number of considerations including time and energy, as per Osei Kwadwo quoted below, or
availability of alternative employment avenues. Osei Kwadwo, one of the few subscribers in
his village, explains that although his phone is available for others to use, his is not a
payphone service (Space), implying that he does not have the energy to play that role, “if I
got it like that I would like it, to use it as Space here. Maybe if someone wants to make a
call, then they can come and do it. But the energy is small.” The supply side of sharing
mobile phones through provision of payphone services has been dealt with in Chapter Five.
This section is concerned with how consumers use payphones.
254
Access to payphones is fairly high, with more than half of respondents indicating
they are within 10 minutes’ walk of a payphone (Table 6.12)
Table 6.12: Distance from Home to Nearest Payphone
Distance Percent (n=118)
0 – 5 mins 30.5
6 – 10 mins 21.2
11 – 30 mins 26.3
> 30 mins 5.9
Missing 16.1
Total 100
Both subscribers and non-subscribers use payphones strategically by to meet their
respective communication needs. The survey results show that 31.4% of subscribers and
17.9% of non-subscribers do not use payphones at all. Those who do are more likely to use a
Space-to-Space payphone than any other type of payphones (Tables 6.13 and 6.14). Even
here over a third of respondents said they never use these payphone to make (34%) or
receive (65%) calls. This is essentially related to the degree of availability of payphones. GT
phones are often out of order and require purchase of a prepaid card (costing between
¢20,000 and ¢100,000) Westel payphones are very few in number, and One4All and iTel
payphones are not as widely available as Space-to-Space payphones. Most respondents
rarely use payphones to receive calls, and again when they do, it is most likely to be a Space-
to-Space payphone. For all types of payphones, the proportion of respondents who never use
them for receiving calls ranged from 66.9% for Space-to-Space to 81.4% for iTel payphones.
255
Table 6.13: Frequency of Payphone Use for Making Calls (%)
At least: Ghana Telecom
(n=197)
Westel
(n=197)
One4All
(n=197)
Space-to-Space
(n=197)
iTel
(n=197)
Once a day 4.6 - 4.6 18.8 0.5
Once a week 8.1 2.0 10.2 23.9 3.6
Once a month 17.3 1.0 11.2 15.7 3.0
Once a year 16.2 3.6 5.6 7.6 7.1
Never 53.8 93.4 68.5 34.0 85.8
Total 100 100 100 100 100
Table 6.14: Frequency of Payphone Use for Receiving Calls (%)
At least: Ghana Telecom
(n=197)
Westel
(n=197)
One4All
(n=197)
Space-to-Space
(n=197)
iTel
(n=197)
Once a day 4.1 - 4.6 14.7 0.5
Once a week 4.6 1.0 7.6 12.2 1.0
Once a month 5.6 2.5 3.0 5.1 1.5
Once a year 4.6 1.0 2.5 3.0 1.5
Never 81.2 95.4 82.2 65.0 95.4
Total 100 100 100 100 100
One would expect that non-subscribers would be the primary users of Space-to-
Space and other public payphones, especially those who have no family or friends who are
subscribers through whom they can access mobile phones privately. Conversations with non-
subscribers indicate that payphones are indeed their main access point for making telephone
calls. The trend is that they make calls at a payphone but receive calls wherever possible on
a friend or family member’s phone. Even so, non-subscribers do not appear to be particularly
avid users of payphones – even in Apemanim, where the options for payphones inside the
village are limited to just two operators, both operators indicated that they have just a
handful of regular customers (four or five) out of a population of about 300 people. In Accra,
Charipearl, a non-subscriber, uses a payphone about five times a week, mainly to make
work-related calls to her employer and sometimes to call her friends (she receives calls on
her sister’s mobile phone).
256
Mobile phone subscribers find payphones useful, but only when they have run out of
units and cannot or are not ready to top up, or for other emergency situations such as when
their phone’s battery runs down, or when they want to avoid caller identification. Frequency
of payphone use by subscribers interviewed varies greatly though most respondents said they
are not regular users. At one extreme are those who never use payphones, such as the banker
who said he has only ever used a mobile payphone twice in his life. At the other end are
some fairly frequent users such as the trader who had used a mobile payphone about 15
times during the previous week.
The primary utility is when a subscriber has run out of airtime and needs to make an
urgent call: “It’s only a time when I didn’t have credit on my phone. And sometimes too,
when I also want to save some units” (Charles). This function of payphones was particularly
valued when network providers sold airtime only via highly denominated scratch cards. In
that environment subscribers were more likely to have need of a payphone at certain times of
the week or month – generally towards the end of the pay period. There was already a
tendency for people to make short calls, meaning that on average a payphone user would
probably spend around ¢5000 to ¢10,000 on a 2-3 minute payphone call. Money-conscious
callers would often have arguments with payphone operators over the actual length and
therefore cost of their calls, especially when the call was just a few seconds over the
minute.
129
I occasionally observed callers who would ask to see the phone log to confirm the
length of their call before agreeing to pay the fee being charged. As one female subscriber
put it:
129
Since operators charge by the minute, the arguments would usually be over whether the call had
really gone into the next minute, and even if it had, whether it was fair to charge for a full minute.
According to one payphone operator (Ike) one of his employees had been involved in one such
argument that had resulted in a fist fight and the police had to be called in to break it up. Some
operators told me they now use judgment calls to determine how many seconds over the minute
constitutes and additional minute for individual calls just to avoid such arguments.
257
Most of them are thieves. ... You call, you know you have used like one minute, two
minutes they will tell you you have used four, five, and they have to charge you for
that. So if you are not familiar with the, the units diee-a, they will cheat you. So it
depends on who you get, the person being a good person. ... that is why it doesn't
encourage me to use it at times.
130
(Akua)
The availability of electronic airtime transfers has effectively eliminated the need for
subscribers to have to put themselves in such situations since with roughly the same amount
of money that they would spend on a 2-3 minute payphone call, they could now purchase
airtime directly onto their payphone. Not only did they no longer need to do business with
payphone operators, but because network providers bill by the second, the subscriber also
gets more talk time than they would on a payphone. Thus a recurrent theme from subscribers
was that if their use of a payphone is because they’ve run out of airtime, they would first
have eliminated the possibility of getting a credit transfer: “I wasn’t having units on my
phone. And I was outside too, where I was there was no, the transfer was not available”
(Akua). Similarly, Eric, an accounting technician, explains,
Maybe once a month or something… That’s when I run out of units and I need to
call someone urgently…. The one under the umbrella… Oh I normally use my
phone for making calls, I normally use my phone whenever I want to make calls.
That’s when I have units and I only use the Space-to-Space if I want to make an
urgent call… That’s when it is that I have maybe two-five… and I’ve run out of
units. I can just go there, make maybe an urgent call…. Because I cannot buy units
with the two thousand five hundred. I cannot even transfer units with the two-but I
can make a call. (Eric)
Several subscribers also appreciate the availability of payphones when their phone
battery runs down:
The way it helps us is that even I have a phone, maybe my phone has gone off,
maybe my battery is low. So if some wasn’t here I would suffer, maybe the person I
want to call I won't be able to call them. (Osei Kwadwo)
130
“Most of them are thieves. You know you have spoken for one or two minutes but they will tell
you that you have used four or five minutes and they have to charge you for that. So if you are not
familiar with how airtime used is calculated, they will cheat you. It depends on whether you get a
payphone operator who is a good person. … that is why I am not encouraged to use mobile payphones
often.”
258
Subscribers on one network sometimes use a payphone to call a contact who subscribes to a
different network in order to benefit from the lower cost of in-network calls. This was one of
the original objectives of the Space-to-Space payphone and the other variations that
followed, but it seems to be a secondary function now. Phone logs and records from
payphone operators showed that calls tend to be to Areeba lines regardless of the network on
which the payphone operates.
131
Another strategic function of payphones for subscribers is to evade caller
identification,
I go and make calls sometimes when you are calling somebody and he knows your
number, he or she knows your number …Especially maybe he’s owing you or you
need the persons… He or she never picks the phone so you have to move to a
different place …So he or she will not pick your phone so you have to use another
number to call in order to get the fellow….yeah, then he was trying to dodge your
number. (Cee)
… at times, when you, the person knows your number, he might not pick. So you
just change and then, for him not to be able to see that it's you or…. When I, you
pick it I will tell you because you know my number you don't want to receive my
call…. Most of my customers, customers like when they know you number they
don't want to receive your call. Because they know by all means when you call them
it's because of money. (Akua)
Apart from the billing problems payphone users sometimes face, there is also the
issue of the conditions under which payphone calls are usually made – either because of
environmental noise or the lack of privacy to have confidential or personal conversations.
Most payphones are located along major roads or market areas where there is a lot of
vehicular and human noise. Christian, a payphone operator in Accra, is one of the few who
131
One of the reasons the payphones introduced by other networks have been relatively unsuccessful
is that most patrons want to call Areeba subscribers, which results in more expensive call charges.
One operator reported that she sometimes prefers to lose business by pretending to have run out of
airtime rather than make an off-network call for a customer because she makes little or no profit on
off-network calls.
259
eventually build a small booth for his business largely in response to his customers’
complaints about being exposed to the elements when trying to make calls. When they are
allowed to, some callers in an effort to gain some privacy or reduce background noise will
walk a short distance away with the payphone to have their conversation. This is more likely
to be helpful in areas like Apemanim, where there is generally less noise anyway, and users
have more options for moving to a quiet place to make a call in privacy. However, some
operators, especially those using regular rather than desktop handsets expressed fears that
someone may abscond with their phone, so they generally reserve this privilege for
customers they know well.
Yet others consider use of public payphones to be a humiliating experience. One
interview respondent, while stating that the Space-to-Space payphone system is “essential”
especially for low income earners, noted that on the few occasions in 2005 when he had to
use a public payphone because he had lost his phone, he “felt cheap” because,
It’s like, you know, why won’t you buy units on your phone, use it, you know? And
erm, in you know, like a professional of, you know, your sort, using …. why would
you be using that instead of your phone? … you know there are people around. And
then you don’t have your privacy. There’s someone erm you know waiting, you
know, to bill you. So erm you will be feeling like you can’t have your privacy … I
wanted to keep it [the call] short. … (Robert)
Not only is use limited, expenditure is also low – On average payphone users in the
sample use less than ¢20,000 per week (¢19,238.53), and the majority (45%) spend ¢10,000
(about $0.93) or less (Table 6.15).
260
Table 6.15: Weekly Expenditure on Payphone Calls (%)
Amount Percent (n=148)
¢1000 - ¢10,000 44.6
¢10,000 - ¢20,000 17.6
¢20,000 - ¢50,000 16.9
>¢50,000 6.1
Missing 14.9
Total 100.0
Based on these observations about interpersonal and commercial sharing of mobile
phones I expected to find the following trends amongst users in the survey sample:
1. Non-subscribers will use payphones more frequently than subscribers
2. Respondents in rural areas will use payphones more frequently than respondents in
urban areas
3. Non-subscribers will spend more on payphone calls than subscribers
4. Respondents in rural areas will spend less on payphone calls than respondents in
urban areas.
To evaluate frequency of payphone use, I compared usage of Space-to-Space phones
because they are the most widely used payphones. All but the third hypothesis were
supported, although not all were statistically significant. Non-subscribers in the sample do
use Space-to-Space payphones more frequently than subscribers do – about 49% do so daily
or weekly compared to 38% of subscribers (Table 6.16).
261
Table 6.16: Frequency of using a Space-to-Space Payphone to Make Calls
Type of Respondent Area of Residence* Total
Frequency Subscriber
(n=118)
Non Subscriber
(n=79)
Urban
(n=150)
Rural
(n=47)
(n=197)
At least once a day 16.1 22.8 22 8.5 18.8
At least once a week 22.0 26.6 19.3 38.3 23.9
At least once a mth 20.3 8.9 17.3 10.6 15.7
At least once a year 8.5 6.3 8 6.4 7.6
Never 33.1 35.4 33.3 36.2 34
Total 100 100 100 100 100
*Pearson Chi-Square (4, N= 197) = 10.089, p = .04, Cramer’s V = .226
Rural respondents use Space-to-Space more frequently than urban respondents –
almost 47% do so daily or weekly compared to about 41% of urban respondents. The
difference between subscribers and non-subscribers was not statistically significant,
indicating that both categories use the payphone to a similar extent. Urban and rural
differences were statistically significant indicating a real difference between urban and rural
users of payphones. On the other hand, slightly higher proportions of both non-subscribers
and rural residents also said they never use Space-to-Space phones.
In total, then, while those rural residents who use payphones do so more frequently
than their urban counterparts, a larger proportion of rural residents overall do not use
payphones at all (36% compared to 33% of urban residents). This could be linked to the
availability and affordability of payphone use, as well as a relative lack of need to use a
mobile phone amongst rural respondents. The results for rural vs. urban users further
supports the conclusion that overall access to telephony (private and public) is lower in rural
areas leading to both high levels of non-use and high intensity of use.
As Table 6.17 shows, the majority (over 50%) of both subscribers and non-
subscribers spend ¢10,000 or less on payphone calls. However, on average, non-subscribers
spend slightly more than subscribers do (¢19156.64 vs. ¢19315.38). The difference in their
262
mean expenditure is less than ¢200. Almost 60% of rural respondents spend ¢10,000 or less
on payphone calls, compared to 50% of urban respondents. Urban respondents’ average
expenditure is about ¢5000 more than that of rural respondents (¢20,753.28 vs. ¢14,969.70).
Table 6.17: Weekly Expenditure on Payphone Calls
Type of Respondent Area of Residence Total
Amount Subscriber
(n=61)
Non Subscriber
(n=65)
Urban
(n=93)
Rural
(n=33)
(n=126)
¢1000 - ¢10,000 52.5 52.3 50.5 57.6 52.4
¢10,000 - ¢20,000 21.3 20 20.4 21.2 20.6
¢20,000 - ¢50,000 16.4 23.1 21.5 15.2 19.8
> ¢50,000 9.8 4.6 7.5 6.1 7.1
Total 100 100 100 100 100
(Differences not statistically significant). Missing responses not included in calculations.
Indications then are that while non-subscribers and rural residents use payphones
more frequently, they do not spend much more than subscribers and urban residents. It is
possible that once non-subscribers reach the point when they need to spend a lot of money
frequently on payphones it makes sense for them to just become subscribers. I noticed that
current subscribers recalling the time prior to their acquisition of a mobile phone would
often make reference to spending too much money on payphone calls. “I used to waste a lot
of money on these ones” Yinka explained, for example, indicating the payphone where she
now works, “but now that I have a phone now, … I don’t waste money.” Paul was also
pleased to get a phone for the same reason,
By then I didn’t have a phone. The reason why I’m happy about this, the phone that
the man, the pastor gave it to me, er, I spent a lot of money there [at payphones], for
calling my brothers at the town here. By then I was there and I find difficult about it.
So normally I’m happy about using it, eeh, I’m happy about using it…. I used to
call… it’s maybe twice, maybe twice… a week. … By then even the fact is that, by
then I haven’t, erm I haven’t make this thing, a lot of money. So if I spend about
seven thousand, it disturb me. Maybe two thousand, three thousand, seven thousand
and over, I used to spend. … Yes. Any moment that I use, maybe ten thousand,
fifteen thousand, seven thousand. The lowest is maybe three thousand.
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In fact Paul preferred to make calls at the traditional communication centers because
calls were cheaper than the Space-to-Space. During this time, he was not making much
income so having to spend between ¢7000 and ¢15,000 0 on a payphone call twice a week
was difficult for him. He later became a subscriber when his need to communicate grew
even more. However due to a combination of factors – mainly low income and high cost of
airtime – he sold his phone and remained phone-less for about five years before becoming a
subscriber again when it became necessary to coordinate activities with his pastor.
The point is that at present the cost of becoming a subscriber is such that anyone
who really wants to become a subscriber can probably do so if the extent to which they need
to make calls makes it cost-effective to get a phone. This may be linked to the amount of
economic activity a person is engaged in (particularly for those who buy their own
subscriptions as against getting it as a gift). To some extent, payphone use may reveal
demand not just to network providers, but also to users themselves. In areas of high
economic activity, consumers may start out using payphones frequently, on the assumption
that they cannot afford to own and maintain a mobile phone subscription. However, as they
realize how much they are spending on payphone calls (and as mobile phone equipment and
airtime prices fall), it begins to make more sense to put together the funds to buy a phone
and a subscription. Thus in Apemanim, subscriber levels are low, there are few subscribers
to share with, and yet payphone use is also low. This could be because economic activity is
limited and residents not only cannot afford to own and use a mobile phone, but may not
even have a pressing need to do so. In Prampram and Accra, subscriber levels are fairly high
and payphone use is relatively low, probably because most of those who need to make a lot
of calls have obtained subscriptions. In Accra in particular, payphone use is still higher than
in places like Prampram and Apemanim because of Accra’s large population and the way
payphones fit into the mix of subscribers’ communication tools.
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6.2 Mobile Phone Usage Patterns
Considering the limited availability of fixed lines, it was not surprising to find that a
majority of surveyed mobile phone subscribers saying they never use a fixed line to make
(34.7%) or receive calls (39.8%). A fairly large number do however, make regular use of
fixed lines – 16.1% use one to make calls at least once a day, and 15.3% do so at least once a
week. Mobile phone use dominates – 88.1% of subscribers use a mobile phone to make calls
and 93.2% to receive calls at least once a day. Clearly, mobile phones have surpassed fixed
lines, but have not rendered them obsolete. A significant proportion of fixed line calls are
probably made from the workplace. There is no benefit to receiving a call on a fixed vs.
mobile line since mobile phone subscribers do not pay to receive calls. Use of other
communication media is dominated by radio and TV, which are used at least once a day by
73.7% and 72% of subscribers respectively. The Internet is used daily by only 22% of
subscribers, usually at an internet café.
6.2.1 Calling Patterns to Manage Cost
When the units get finished, it keeps long before I’m able to buy some more. (Nana
Konsua Birago II)
Relative to global prices, the cost of making a phone call in Ghana is quite
reasonable. However, with a minimum daily wage of roughly two dollars, and about 40
percent of the population living below the poverty line, charges of 10 to 22 cents per minute
are still high. The fact that a person is able to become a subscriber does not mean that the
cost barrier has been overcome, although mobile phone subscribers are generally not
amongst the poorest of the poor. Once low-income earners are able to acquire a mobile
phone and a SIM card, maintaining an active account becomes the next problem they have to
265
deal with. They have acquired the means to communicate, but the amount of communication
they can engage in is limited, as one farmer notes, “If I could, I would make more calls. But
it's like, money matters, and buying of the units”
132
(Osei Kwadwo). Consequently, most of
the practices evolving around mobile phones are linked to users’ need to manage the cost of
communication.
133
Working within the limits of their personal knowledge and skills, as well as
limitations imposed by the technology itself or the entities providing services, subscribers
are developing patterns of use that enable them to keep down the cost of mobile phone
communication. This section outlines some of these practices.
6.2.2 Conserving airtime
Amongst the general population there is a high level of consciousness about their
use of whatever airtime they have. Mobile phone conversations are frequently punctuated
with references to credit running out, whether truthfully or not. A common excuse to cut
calls short is that one has run out of credit, and though this is not always accurate, it is
always at least a sincere expression of a desire to conserve airtime: “I will tell you to call me.
I don’t have enough units so you should rather call me…. At times you want to keep your
units, so you tell them ‘oh, I don’t have units, so please call me’” (Akua). The caller is not
always the one thinking about conserving their units – sometimes, (even frequently) it is the
call recipient who either initiates the end of the conversation or offers to call back, with
words such as “your units will finish oh!” or “I don’t want to waste your units.” Such
132
“If I could, I would make more calls. But money matters and buying of units [make it difficult].”
133
A study commissioned by tiGo reflects this prioritization of the cost factor. The top three
considerations for selecting a network provider were “inexpensive cost per minute,” “wide geographic
coverage,” and “easy to manage how much I spend” (Beuls, 2006).
266
behavior is not restricted to people with low incomes, I experienced and observed this
amongst different types of people.
The idea of “wasting units” is an outcome of trying to conserve units. A young
payphone operator explaining why she does not call her family members during the day
exclaims, “Aiee, because I don’t want to waste my units. They like talking too much”
(Yinka). For her, as with several other respondents, free late night calls (offered by two
network providers) provide the perfect avenue to communicate with others without wasting
your units. For taxi drivers in Prampram, a peri-urban village, mobile payphones enable
them to contact their girlfriends without wasting the units on their personal phones. Units
may be “wasted” on someone who talks too much or someone perceived to be in a better
position to bear the cost of the call, as Akua, a trader notes,
At times you think that person, you don’t have to use, waste your units. It depends.
You see that person as a mature person, someone who can afford it. … At times I
want, I have credit on my phone, I have units but I don’t want to call. I want that
fellow to call.
The balancing act that characterizes mobile phone use in Ghana is captured by this
student,
So the little credit that I will have on the card, I will try to manage them aah. So 20
units will do for the night calls. So I manage it aah, in a way the units will not … go
below the 20 units.... let's say till there is a serious call, let's say when I'm in school
and I need my father, even at times when I flash my father once, my father will call
me but when I flash aah and my father is not around, nobody will call back. So I just
buy let's say transfer unit, 7000, but even not often. Even month, I can buy only one
transfer unit, that will cost me 7000.
134
(Maa Afia, student)
134
“So the little credit I have left on my phone, I will try to economize with it for as long as possible.
Twenty units are enough for free late night calling so I will economize in such a way that my units do
not go below 20 units. Let’s say until there is a serious call, such as if I’m in school and I need my
father. Usually when I flash my father once, he will give me a call, but if he is not available, I can
flash continually but no one else will call back. So then I just buy, let’s say, a unit transfer worth 7000
cedis, but I don’t do that often. In a whole month I probably buy only one transfer unit that will cost
me 7000 cedis.”
267
This conservation sensibility colors all levels of use – those who spend small amounts make
a conscious effort to do so, and those who spend a lot of money are very conscious of the
fact that they spend a lot on phone calls. Yet, at the same time as people describe how
carefully they try to limit their airtime use, they also appeared to be less consistent in
keeping track of their actual expenditure on phone calls. Interview respondents could
roughly estimate how much they spend on average, but survey administrators commented on
the frequency with which survey respondents expressed surprise at how much they spend on
airtime when they took the time to think about it. Clearly, mobile phone adoption represents
the overcoming of the access barrier by individual subscribers, but there are other barriers
that can still compromise ability to use and/or quality of use.
6.2.3 Buying Airtime
Most survey respondents are personally responsible for keeping their accounts active
– 88.1% usually buy top-up credits themselves. Eight respondents also indicated that some
portion of their phone expenses is covered by their employer – interviews suggest that these
are likely to be people who either have a separate phone for work purposes or are given an
official budget for work-related calls on their own handsets.
Prepaid cards and electronic transfers appear to be equally popular amongst
subscribers (Table 6.18) – 56.7% and 58.5% respectively use these methods “always” or
“frequently” when they run out of credit. However, in the absence of funds to buy the
needed credit, most subscribers “occasionally” use other approaches to communicate with
others –using a friend’s phone (57.6%), flashing (40.7%), or using a payphone (30.5%). The
low preference for payphones is particularly notable – very few respondents indicated that
they use a payphone always or frequently. Looking at the total of respondents who use any
of these methods always, frequently or occasionally suggests the following order of
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preferences for actions to take when out of credit: 1. Buy prepaid card (89%), 2. Buy credit
transfer (85%) 3. Flash (69.5%) 4. Borrow friend’s phone (61.9%) 5. Use payphone (37.3%).
Table 6.18: What do you do when you run out of credits? (%)
Frequency Prepaid cards
(n=118)
Credit transfers
(n=118)
Flash
(n=118)
Friend’s phone
(n=118)
Payphone
(n=118)
Always 36.4 35.6 10.2 0.8 2.5
Frequently 20.3 22.9 18.6 3.4 4.2
Occasionally 32.2 27.1 40.7 57.6 30.5
Never 11 14.4 30.5 38.2 62.7
Total 100 100 100 100 100
There are inconsistencies in this data because some respondents indicated they use some avenues “always” but
still also selected additional methods of topping up credit.
Credit transfers technically enable the transfer of amounts both larger and smaller
than available prepaid cards and vouchers, but in practice they address the needs of those
seeking smaller amounts. The credit transfer system helps subscribers manage cost by
buying units only as and when needed. It also makes it easier for people to send small
amounts of airtime directly to other subscribers, either from their own phone or via a credit
transfer agent. They may do this at the request of the recipient or because they want to use
the recipient’s phone without eating into their credits. The availability of credit transfers also
facilitates noncommercial sharing of mobile phones, as described in earlier section – it
would probably be more difficult to make such sharing arrangements if the parties involved
had to exchange physical cash.
In addition to the commercial credit transfer system, subscribers also do peer-to-peer
credit transfers (Table 6.19). For example, when he has credits to spare, Patrick, a student
269
sometimes sends units to his friends to “show love.”
135
Cee, a young mother says she often
receives surprise unit transfers from family and friends and rarely has to buy units herself.
Table 6.19: Frequency of Transferring Units to Family/Friends (peer to peer)
Frequency Percent (n=118)
At least once a day 1.5
At least once a week 10.2
At least once a month 24.9
At least once a year 2.0
Never 21.3
Total 100
However, a rather dubious trend has developed alongside, which can only be
described as “stealing” of units from their rightful recipients. This occurs when units are
accidentally transferred to the wrong phone, for example if the operator did not get the
phone number right. Several respondents, such as Osei quoted below, note that this is a
source of a windfall for them, in that they do not return the units they have unexpectedly
received, even when the sender is able to contact them to explain the problem.
But if I had my way, that one, sometimes someone can makes a mistake and sends
units and it comes to your phone… It's like by that time, then you are overjoyed. ...
when they use the wrong number they call to tell you that they were sending the
units to someone else and they make a mistake and it came to your phone. But if I
have money I can help you, but if I don't have money, then I will tell you that I don't
have money so you diee, when I get money… But I've simply had good fortune ... it
happens a lot
136
(Osei Kwadwo)
135
Onetouch’s peer-to-peer credit transfer allows subscribers to send airtime from their phone to that
of another Onetouch subscriber for a transaction fee of ¢500. Airtime thus transferred is valid for use
for between 1 and 10 days depending on the amount purchased. The Onetouch website urges
subscribers to “show some love to friends and family” by sending them credit.
136
“If I had my way, someone would make a mistake and send units to my phone… when that
happens you are overjoyed… when they use the wrong number they usually call to tell you they were
sending the units to someone else and sent it to your phone by mistake. If I have money I can return
the units to you, but if I don’t have money I will tell you that I don’t have money so you wait, when I
get money I will return the units… But actually I won’t because I’ve simply had good fortune… it
happens a lot.”
270
A prepaid card dealer who has decided not to sell unit transfers at the retail level for
this very reason also notes that, “the chances are 50-50. It’s up to the recipient, if he decide
whether to transfer it back to you or not”
137
(Ike). One subscriber described an instance
where she purchased 50 credits but had 250 credits transferred to her phone. The operator
called to try to reverse the transaction, and while she genuinely wanted to return the credits,
she did not know how especially since peer to peer transfers were not yet available from her
network provider. Neither did she have the funds to pay for the additional credit.
Network providers are generally happy with the performance of the unit transfer
system because, “it’s good for us and I think it’s good for the consumers as well” (Onetouch
manager). Nevertheless, at least one company, tiGo, has encountered some challenges
getting its subscribers to take up credit transfers, mainly because the company introduced
low-priced airtime vouchers (slips of paper instead of cards) before the electronic transfers
became available. Therefore there is less incentive for subscribers to switch. As far as
dealing with the problems associated with failures of the credit transfer system – e.g., delays
in receiving credits already transmitted and delivery of credits to the wrong phone – the
responses are mixed. Some networks have fine-tuned the delivery system to eliminate
delays,
138
and at the wholesale level Areeba reportedly has a mechanism to penalize
operators who do not return electronic credits they received in error.
139
Retailers and
individual subscribers however, still seem to have little recourse other than appealing to the
goodness of recipients to return units to them.
137
“The chances are 50-50. It’s up to the recipient to decide whether they will return the units to you
or not.”
138
Onetouch has a fairly good reputation in this respect.
139
However they will only use this if large amounts are involved (¢9million and above) according to
an informant.
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Along with the apparent low levels of sharing, this supports the conclusion that for
most people, use of personal handsets is the ideal mode of mobile phone use, although using
a shared phone in a private context (friend or family) is also acceptable. Use of public access
phones tends to be the method of last resort, sometimes even for non-subscribers. Akua,
recalling a one-year period when she had no phone states,
I was not comfortable at all because when you have to call someone you have to go
to a payphone and then, it's like at times you will be feeling lazy to go out, walking
and a whole lot. So I wasn't comfortable at all. It's like I was pressuring him to get
me a new phone.
6.2.4 Major Mobile Phone Uses
Overall, three practices dominate mobile phone use in Ghana – voice calls, flashing
and text messaging.
6.2.4.1. Call Frequency and Duration
If it's a mobile phone, again, I don't want to keep people on too long. I'm always
trying to say, well I think I've gotten the message, and I will call you back or
whatever it is. And I always try as quickly as possibly to end mobile phone calls.
140
(Nana Fobi Kropa III)
Mobile phone users in Ghana manage cost by making as few voice calls as possible
while trying to receive as many as they require. Most low-income interview respondents
indicated that they receive more calls than they make, while higher income respondents
indicate the opposite, or an even balance. Furthermore mobile phone users keep outgoing
calls short (generally under 3 minutes) but will keep incoming calls going for as long as the
140
For him, battery life is also a concern that leads him to try to limit both incoming and outgoing
calls on his mobile phone.
272
calling party will allow.
141
Paul, who tries to keep calls he originates under 5 minutes,
explains what happens when he receives a call:
For that one diee it will keep long. At times if you were talking and you haven’t
understand or what you are, you want to know you haven’t completed it, you have to
go inside to all to hear what, or to understand what you want to know …. And that
will take even 10 minutes or 15 minutes. But if, if I rather make the call then I won’t
take that long. I, my self will go inside.
142
By “my self will go inside” he means his money will be consumed, and he laughs as he
makes this comment. Other respondents confirm that incoming calls are longer than
outgoing calls, suggesting either a deliberate effort by them to get the most out of incoming
calls, or that the caller feels able to finance a long call.
Amongst survey respondents, calls to friends are most frequent – almost 50%% of
respondents call friends at least once a day as against 34% who call family at least once a
day (Table 6.20).
Table 6.20: Frequency of Calling
At least: Family (n=197) Friends (n=197) Business/Work (n=197)
Once a day 33.5 49.2 21.8
Once a week 46.7 33.0 21.8
Once a month 11.7 9.6 14.2
Once a year 3.0 1.0 2.5
Never 5.1 7.1 39.6
Total 100.0 100.0 100.0
On the other hand (Table 6.21), a majority has never called into a radio or TV show
(64.4%), called government offices (81.4%), public or social services (61%), or corporate
bodies (51.7%). This probably speaks to the possibility that these people either have no
141
The same logic operates for both subscribers and non-subscribers when using payphones to make
calls. The goal is to conserve funds.
142
“As for that, it will be a long call. If you are talking and you have not fully understood the other
person, you will keep talking until you have fully understood. And that can take 10 or 15 minutes. But
if I originate the call, I will not talk for that long, because my units will be consumed.”
273
business with these institutions, or that it is generally more productive to deal with official
bodies in person rather than over the phone.
Table 6.21: Frequency of Calling
Frequency Radio/TV
(n=197)
Government
(n=197)
Public Services
(n=197)
Corporate Bodies
(n=197)
At least once a day 1.0 - 0.5 0.5
At least once a wk 5.1 0.5 1.5 4.1
At least once a month 13.7 3.0 10.7 15.2
At least once a yr 6.6 2.0 9.6 6.1
Never 73.6 94.4 77.7 74.1
Total 100.0 100.0 100.0 100.0
Most respondents estimate they spend less than 30 minutes per day doing some
activity on the phone – the majority spends 1-10minutes (24.6%), followed closely by those
who spend 11-30minutes (22.%) and those who spend 30 – 60 minutes (17.8%).
Additionally, most believe that they make as many calls as they receive (39%). The
greater proportion of outgoing (44.1%) and incoming (40.7%) daytime calls are between 3
and 10 minutes, but a higher proportion of outgoing calls are less than 3 minutes (22%) than
incoming calls of the same length (15.3%). Similarly long calls over 10 minutes are more
likely to be incoming (41.5%) than outgoing (30.5%). During free late night calling hours,
calls are longer, generally over 30 minutes (63.6%). Most respondents however use their
phone primarily in the daytime (65.3%) probably because of the late hour at which free calls
start (11pm for Onetouch and Kasapa, and 12:30am for MTN and tiGo).
More than half (61.9%) of the subscribers failed to indicate how much they spend
monthly on their phone. Of the 45 respondents who answered this question, an equal
proportion said they spend either ¢10,000 – ¢50,000, or ¢100,000 – ¢200,000 (20% each).
Seven respondents said they spend more than ¢500,000 (15.5%).
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6.2.4.2 Free Late Night Calls
Now that we have the free night calls diee, we don’t do normal calls during the
daytime. So if you want to call your friend, you just do it at dawn. (Akua)
This product is referred to as free late night calls although it probably would be
better named free early morning calls. Subscribers also need flashing units to take advantage
of this service. Areeba and Onetouch offer free in-network calls at night from 12:30am to
5:00am and 11pm to 6:00am respectively. Although the times (especially for Areeba) are
considered ludicrous by most subscribers, a significant number (particularly young people)
have incorporated late night calls into their communication routine. For those who cannot
afford daytime chatting and are inclined to stay up or wake up that late to make or receive
calls, this is the perfect time to have long conversations with family and friends while
reserving units for short and important daytime calls. Maa Afia makes late night calls almost
every night except when she is unable to wake up: “At times I don’t even make calls, I do
flashes aah so in the night then I do the night calls.”
143
Not surprisingly, such calls are
reserved for certain types of acquaintances – generally friends. Although there are no rules
as such, subscribers seem to have instinctively concluded that older relatives including
parents, teachers, and pastors for instance, should not be disturbed at that time of the night.
Esther, herself an adult, states that she rarely makes free late night calls because “you will be
disturbing the person, and yourself too, you will not have a good sleep.” Nana Fobi Kropa II
also notes that although he is aware of the late night call product, “I’m always asleep by then
(laughing), I’m an old man.”
143
Sometimes I don’t even make calls, I just do flashes throughout the day so in the night then I do
the free night calls.
275
Free late night calls are popular, but understandably used more on a weekly (32.2%)
than daily (22%) basis (Table 6.22).
Table 6.22: Frequency of Making Free Late Night Calls
Frequency Percent (n=197)
At least once a day 14.7
At least once a week 28.9
At least once a month 14.2
At least once a year 5.6
Never 36.5
Total 100.0
Unofficial sources suggest that Areeba and Onetouch are trying to figure out how to
back out of this product, assuming that it represents lost revenue from potential daytime
calls. Considering the daytime calling patterns, however, it is unlikely that nighttime call
volumes would be transferred to the daytime in the absence of free late night calls.
6.2.4.3 Flashing
Flashing (generating missed calls) is now widely recognized as more than empty
communication and its important socio-economic and socio-cultural functions acknowledged
(Castells, Fernandez-Ardevol, Qui & Sey, 2006). In Ghana it constitutes a multi-facetted
cost-management strategy that has evolved from the original function of trying to get a
return call from the recipient. Flashing still has economic underpinnings, in that a flash
enables users to communicate free of charge. However, the specific goals of flashing are
diverse – they include flashing to get a return call, to greet, to tease, or to deliver a
prearranged message. Table 6.23 shows that flashing is a daily occurrence for most survey
respondents. There is a high degree of flashing amongst family and friends. Survey
276
respondents flash friends (52.5% daily) more than they do family (32.2% daily), whereas
flashing of business or work contacts is relatively low, generally done weekly or monthly.
Table 6.23: Frequency of Flashing (%)
At least: Family (n=197) Friends (n=197) Business/Work (n=197)
Once a day 31.0 45.2 5.6
Once a week 23.4 22.8 8.6
Once a month 13.2 6.1 10.2
Once a year 2.0 1.0 2.5
Never 30.5 24.9 73.1
Total 100.0 100.0 100.0
6.2.4.3.1 Flashing to get a Return Call
People use flashing to keep connected without having to actually make any calls.
The primary objective is to get the recipient to call back, often because the person flashing
has insufficient airtime to complete a call (subscribers) or insufficient funds to make a call
(non-subscribers). This function of flashing is pretty straightforward and has been
documented in several developing countries. Although there is a connection between
flashing when out of credit and flashing in order to get a return call, interviewees made it
clear that they often flash people to get a return calls even when they have sufficient credit to
make the call. This could be because they feel the recipient is in a better financial position to
make the call, or because they do not want to “waste” their credit on a particular person (for
example, if they received a flash from an unknown person or someone who flashes too often,
or if the recipient is considered to be the one who will benefit from the call). Often, people
like Sylvia, who are keeping an eye on their credit, will use a flash whenever it can substitute
for a call. “I flash a lot because I sometimes try to keep my units … I don’t want my credit
book to get empty” (Sylvia). To Yinka, although some people do flash her because they have
277
financial challenges, the idea that flashing is associated with some kind of economic
constraint is a myth,
Sometime maybe they've missed me so they just want to flash me to hear of my
voice or, or to know whether my phone is on or that kind of thing. Not that they're
poor, you know, I also flash people; they don't think I'm poor.
If the objective of a flash is to generate a return call, a period of negotiation
sometimes takes place in which parties continually flash and re-flash each other if the
original recipient is not immediately willing to call back. If the original recipient sticks to
their guns and refuses to make the call, the sender has to decide how important the call is to
them,
When I flash them like this, they too used to flash me, flash back. … If I need the
person very urgently, I used to call. Because … maybe he didn’t have enough unit to
use to call. So I used to call because I need him, or her, to talk to.
144
(Paul,
carpenter).
6.2.4.3.2 Flashing to Greet or Tease
Several subscribers also state that they often flash people for fun or just to tease.
Furthermore, because flashes are free of charge, there is no excuse not to communicate,
Anytime the person want to greet me and he doesn’t have credit, the flash will make
you feel better, even than the call. Aha, so at times, if even you run to your friend
and the person is not flashing you, you even become angry with them, “oh common
flash, you won’t flash.” So the flash also serve as greeting
145
(Maa Afia, student)
144
“When I flash some people, they also flash me back… and if I need the person urgently then I
follow up with a call. Because maybe the person doesn’t have enough airtime to call me back. So I
call because I need to talk to him or her.”
145
“Anytime someone wants to greet me but does not have airtime to call, he can flash, and the flash
can make me feel even better than if he had called me. Sometimes when you run into a friend who has
not been flashing you, you accuse them of not even making a common flash. So the flash also serves
as a greeting.”
278
And sometimes too I have some friends, it’s like if I flash you then I’m greeting you,
just flash, flash. … we don’t have to talk. If I flash, you flash then it means you have
greeted me.
146
(Esther, dressmaker)
Flashing is also a way that people show consideration for the economic situation of
others – it is not always instigated by the sender; sometimes people ask others to flash them
so that they will call back.
Survey respondents, and especially non-subscribers, flash mainly to get a return call
(Table 6.24). Being the owner of a mobile phone enables the user to engage in more of the
“fun” types of flashing. On the other hand, respondents felt that most of the flashes they
received were greetings (21.2%), to get a return call (16.9%), or to show affection (9.3%).
Table 6.24: Main Reasons for Flashing (%)
Reason Subscribers
(n=106)
Non Subscribers
(n=43)
Total
(n=149)
To get them to call back 37.7 74.4 48.3
To greet/keep in touch 20.8 4.7 16.8
When out of credit 18.9 11.6 12.7
To show affection 9.4 2.3 7.4
To announce my presence 3.8 2.3 3.4
Emergencies 2.8 2.3 2.7
For fun/to tease 0.7 - 0.7
To conserve airtime credit 0.7 - 0.7
To communicate a message - 2.3 0.7
As a reminder 0.9 - 0.7
Other 3.8 - 2.7
Total 100.0 100.0 100.0
Flashing is common amongst low-income subscribers, strategic amongst those who
have relatively good jobs, but is intensely disliked by others, such as Charles and Robert.
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“I do call when I have enough credit. So if I flash then you must know I’m in need. I don’t have
money… And sometimes I have some friends with whom flashing serves as a greeting, just flash,
flash … we don’t have to talk. If I flash you and you flash me back then it means you have greeted
me.”
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I hate flashing seriously so I hardly flash… you know, anytime you flash me, one,
you put me in a state of suspense. Now, two, my assumption is that … if you need
me, I don’t need you. If you need me and you have units to flash, why wouldn’t you
use that unit, that flashing units
147
to call me to tell me whatever it is or for me to
call you back. For immediately you flash me you put me in a state of panic and
suspense. I don’t know what is happening.
148
(Charles, development planner)
Right now like, you know, you’re working, you have steady income… Kasapa is
also very cheap so why would you want to flash in the first place? And you know
very well that if you flash I won’t pick up. I won’t call you back… you know, from
the nature of my work, you don’t even flash me, you will call…. I’m controlling
your funds. You wouldn’t want to flash me, flash me if I’m controlling your funds.
(Robert, banker)
But even people who do not like this practice sometimes find occasion to flash as Robert
continues, “Normally if I know I’m going to call a client, and the client is going to talk and
talk and talk, I will flash him. And then he will call me so if he talks all the time…”
There is a general negative perception of people whose mobile phone use consists
primarily of flashing. They may be seen as stingy or inconsiderate in the sense that they
always want others to bear the cost of phone calls. Some are tolerated – for example, Robert
says of his cousin,
My junior cousin, who every now and then wants money, you know and then
flashing me to let me know the pocket is empty.… he wouldn’t call me for anything,
you know, he wouldn’t call me for anything. So when he flashes me there’s trouble.
In this case Robert always responds to the flashes. Others, like Esther, would be recognized
by recipients as having legitimate reasons for flashing because “I do call when I have enough
147
Before networks started per second billing, flashing units could cover at least a minute or two of
talk time.
148
“I hate flashing seriously so I hardly ever flash… you know, anytime you flash me, first, you put
me in a state of suspense. And secondly, my assumption is that you are the one who needs me, I don’t
need you. So if you need me and you have enough units to flash, why don’t you use those flashing
units to call me to tell me whatever it is, or to ask me to call you back. Because immediately you flash
me up put me in a state of panic and suspense because I don’t know what is happening.”
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credit. So if I flash, then you must know I’m in need. I don’t have it.” Thus, while flashing is
an accepted practice, some level of correctness is expected.
Flashes do not benefit network providers unless they lead to an actual call being
made, which does not always happen. However, there is a requirement for subscribers to
have what has now come to be termed “flashing units” (usually a minimum of 20 units
which can provide three to five minutes of talk time if the person completes the call) before
they can generate a flash. Thus all subscribers endeavor to have flashing units at all times.
One manager (Kasapa) describes flashing as activity that is “not communication, that
contributes nothing to economic growth in the country or social improvement.”
To illustrate the dynamics of flashing as a component of communication strategies I
outline one respondent’s use of this method of communication. Akua flashes other people
frequently. She places flashes in two main categories – flashes for a return call and flashes
for fun or “to disturb the person a little” as she puts it. She makes and receives both types of
flashes. If a person flashes her repeatedly it means the person wants her to call back, and the
same applies when she flashes someone,
Normally when I don’t have enough units and I want someone to call me, as for that
one I will flash you until you call back. If I need you seriously and I don’t have
enough credit on my phone I have to flash you till you call.
However, it is not always a lack of credit that causes her to flash in order to get return call. It
sometimes depends on her perception of the recipient’s capability:
At times you think that person- you don’t have to use, waste your units. It depends.
You see that person as a mature person, someone who can afford it. So that person
should rather call you than you using your units. So you’ll flash the person until he
or she calls you. Something of that sort… Somebody will be matured enough to let
you know that you don’t have to waste your units and somebody too will not
consider that thing at all…. somebody will tell you “ok don’t waste your units, you
just flash me I will call back. When you need me just flash me and I’ll call.” And
somebody too will let you use your, waste your units….
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Not only does she assess whether the person is “mature” enough to bear the cost of the call,
but she expects people who are in a better financial position to be “mature” enough to offer
to bear the cost of the call.
The second type of flashing, flashing for fun, Akua reserves mainly for her friends.
It is particularly important that you have that kind of relationship for this practice to be
acceptable.
At times, me like this when you flash me and I don't know your number, and you
continue flashing, I will call you and ask you why I don't know you and I will tell
you to stop. Because maybe at that time you will be disturbing me. But if we have
that links diee, I wouldn't mind.
6.2.4.3.3 Flashing as “Women’s Work”
As one young female subscriber put it, flashing is “women’s work” (Cynthia,
student).
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A university professor who never flashes himself noted that females in particular
flash him incessantly:
Aiee! That’s what they do … small, small girls.… I have a feeling these young
people own mobile phones not because they want to call people, but they want to be
called. I could be right or wrong. Actually it's more of receiving calls than making
calls. So they just want to make sure they have enough units for flashing.
It is generally considered inappropriate for males to flash females, as illustrated in
this exchange with Cynthia:
Interviewer: So when you flash the person like that, what will that person do?
Respondent: Sometimes they normally call. In terms of, if you have anything to say ...
they will call. But if they don't have anything to say, they will just flash you
back
Interviewer: and it’s women who do that?
Cynthia: Yes oh!
Interviewer: Why don't the men do it?
Cynthia: It's because women, to buy units it's now very difficult. And even they
manage, they know how to manage a lot. But for men, they doesn't care …
they buy some more.
Interviewer: Why is it more difficult for women to buy units?
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Donner (2005) has documented the gendered dimension of flashing in Rwanda.
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Cynthia: Because of budget, oh. We normally buy clothes, so we manage.
Interviewer: And do men sometimes flash, though?
Cynthia: It's the stingy people …
Interviewer: And so if a man flashes you what will you do, or a boy?
Cynthia: I will be saying that oh you're not serious, how can man flash a lady? And
sometimes too you have to know that, maybe he's not having credit, that's
why he's flashing. So you will flash back or you will call back, if you're
having credit…. If you call back you will tell him that you too you're not
having credit so he should go to this thing, phone booth and call you back.
This gender expectation is, however, sometimes mediated by personal relationships.
For example another respondent stated that it was acceptable for her boyfriend to flash her
for a call back because she would understand that he was unable to call. On the other hand,
she added, “But if you're my friend, I won't call you (laughing). It will take long for me.”
6.2.5 Text Messaging
It’s cheaper but if I want myself and the person, I tend to feel that I want to talk to
the person directly, aha, for them to hear my voice. That's why I usually make phone
calls. (Osei Kwadwo)
The explanation given by Osei Kwadwo, a literate farmer in Apemanim, for
preferring voice calls over text messaging is typical of many Ghanaians. Text messaging as
an everyday practice is relatively limited in use amongst the general population. It is used a
lot by subscribers who can write in English and mainly for social interaction. It is also
especially useful for communicating with people outside Ghana as it cuts down the cost of
international communication. Nevertheless, a significant proportion of people, even those
who are literate in English, seem to prefer phone calls to text messaging. Respondents tend
to text friends (41.5% daily) more than they do family (15.3%). Texting of business or work
contacts is more often a weekly or monthly affair (Table 6.25).
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Table 6.25: Frequency of Text Messaging (%)
Frequency Family
(n=197)
Friend
(n=197)
Business
(n=197)
Radio/TV
(n=197)
At least once a day 11.2 27.9 4.6 1.5
At least once a week 31.5 27.9 7.6 5.1
At least once a month 11.7 11.7 11.2 11.7
At least once a year 5.6 0.5 5.1 9.1
Never 40.1 32.0 71.6 72.6
Total 100.0 100.0 100.0 100.0
Depending on the type of information to be communicated, subscribers make
decisions about whether to text or call. For example Esther and Akua noted that if they need
to simply deliver a message, they would send a text, but would rather call if feedback is
required:
Most of the time when I’m conversing, I converse with him to reply and if I text,
send a text, at times the person will not reply promptly…. Then I have to call again,
double expenses, so I prefer calling. (Esther)
The texting, at times the fellow phone might be off, and it's an emergency call or
something of that sort. So you might not know whether the phone is off or on. You
send it, it will tell you it's gone. But maybe that phone is off. Until that, the time the
person will switch the phone on… at times I prefer the call. (Akua)
On the other hand, Maafia, a student in Apemanim is an avid texter, who will only
make a call if she is “in dire need of the person.” Yinka, a payphone operator in Osu noted
that she sends text messages “everyday, every second,” mainly to keep a running
commentary with her boyfriend: “I’m sitting down, I’m listening here, those kind of things…
Please, everyday, every second!”
Although few people had actually done any calculations on the cost of calling versus
sending a text message, one respondent who works in a bank stated that he considers phone
calls more cost efficient than text messages because you can often exchange information in a
one-minute phone call that would require several SMS exchanges to accomplish, potentially
resulting in spending more than the cost of the one-minute call. Others, like a college
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professor who said that text messaging has taken the place of doodling for him, do not pay
much attention to the cumulative cost of text messaging.
6.2.6 Beyond Calling, Flashing and Texting: Use of Other Phone Features
There does not appear to be much unique usage of mobile phone features. Most
respondents make regular use of basic features such as address books, calendars, date/time,
and alarm (Tables 6.26& 6.27). A few respondents indicated that they use other features
such as music and ring tones (17.8%), calculator (10.2%), bluetooth (7.6%), voice recorder
(5.1%), and flashlight (1.7%).
Table 6.26: Most Frequently Used Phone Features (%)
At least: Date/time
(n=118)
Address book
(n=118)
Calendar
(n=118)
Alarm
(n=118)
Once a day 88.1 73.7 36.4 53.4
Once a week 5.1 6.8 26.3 17.8
Once a month 0.8 3.4 13.6 9.3
Once a year 1.7 0.8 0.8 2.5
Never 0.8 2.5 6.8 8.5
Not available on my phone - 6.8 10.2 2.5
Missing 3.4 5.9 5.9 5.9
Total 100.0 100.0 100.0 100.0
Table 6.27: Less Frequently Used Phone Features (%)
At least: Games
(n=118)
Radio
(n=118)
Camera
(n=118)
Email/Internet
(n=118)
Once a day 24.6 20.3 18.6 4.2
Once a week 21.2 11.0 24.6 4.2
Once a month 21.2 3.4 14.4 3.4
Once a year 4.2 3.4 0.8 3.4
Never 14.4 6.8 1.7 20.3
Not available on my phone 6.8 45.8 33.1 52.5
Missing 7.6 9.3 6.8 11.9
Total 100.0 100.0 100.0 100.0
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6.3 Mobile Phones and Livelihoods
The study results suggest that mobile phones play an important role in helping
people gain some economic and social sustainability in their livelihoods, largely that of
connectivity and accessibility to others, which provides users with a sense of well being, the
ability to take advantage of opportunities when they arise, and a lifeline to help in times of
special need. In other words, it helps them deal with ever-present, short and long term
pressures on their livelihoods. Perhaps the most significant observation is that mobile phone
use in Ghana is essentially not that different from its use around the world. As one
respondent, Wofa, put it, “We use it [the mobile phone] different, different,” meaning “we
use it in many different ways.” Amongst those different ways he included the following:
sending real time alerts to fellow fishermen about good and bad fishing areas, getting help in
case of an emergency on or off shore, letting family members know your movements, and
contacting customers and suppliers.
6.3.1 Business vs. Personal Use
Regardless of location (rural or urban) and occupation, however, the majority of
interview respondents indicated that social interaction with family and friends dominates
their mobile phone use. Most respondents who are engaged in some business said their
mobile phones are useful in their work activities and a few, such as Wofa, indicate that
work-related uses exceed social uses: “The most frequent is the one we use to work. If I have
a contract with someone and the contract goes through, I can call to say the contract has
gone through or it has not…" (Wofa). However, when asked which type of interaction
occurs more often, and which is more precious, most respondents chose social interaction, or
rated them equally. Thus when asked to compare the value of work-related and family
connectivity, Wofa also pointed out that “they are all important.”
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Similarly, Paul, a carpenter bought his phone in November 2000 with the intention
of using it to keep in touch with his customers but sold it after a few months because he
could not afford to use it. Five years later his pastor gave him a phone to facilitate
communication while they were establishing their church. By this time his business was also
picking up, putting him in a better position to finance usage of the phone. In addition, he had
switched to a network that sold units in smaller denominations, meaning he could buy units
as and when he needed them. Although the mobile phone has been immensely helpful in his
business (especially enabling him to take advantage of opportunities for work as they arise),
he primarily uses it for coordinating church-related activities.
According to Esther, a dressmaker, the size of her personal and business networks
has not increased significantly since getting a phone, but she has improved connectivity with
the existing network and communicates better with her clients. But above all, “It makes me
get to my friends and relatives … get to them often. Unlike first, you have to take car and go
or walk …[it] saves time.” Similarly, Akua, a trader, noted that when she actually originates
a call, it is often for business purposes, but the bulk of her activities on the phone – flashing,
text messaging and voice calls at night – are with family and friends.
Unexpectedly, in Apemanim, a small farming village in the Ashanti region, none of
the few residents who own a mobile phone (apart from two payphone operators) use it
explicitly for business or work-related purposes. Out of a population of about 300, some 20
or so people (mostly young men) have mobile phones. Comments by some residents point to
a perception that the phone acts as a status symbol for most of the young owners, who are
rarely able to buy airtime. Other mature owners use their phones mainly to stay in touch with
family. Regarding the use of his phone to facilitate his farming activities one respondent
said, “I don't use it for business…. I don't discuss the farming with anyone in that way” (Osei
Kwadwo). It was only while he was working as a taxi driver that Osei Kwadwo actively used
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the phone in his work either to have discussions with his driving instructor, or to inform the
owner of the car when the car broke down. The majority of his calls (and the calls fellow
villagers make on his phone) are to family and friends. Other people in the village, including
the queenmother and the linguist, confirmed this tendency. This is in direct contrast to the
situation amongst mobile phone-owning fishermen in Prampram, also a rural area, and
suggests that use of mobile phones to facilitate work activities could be related more to the
nature of the market economy in each area, and the particular livelihood activity (e.g.,
farming vs. fishing) than to rural or urban status.
The reasons for appreciating contact with family and friends seem to be related to
the need to be socially connected, and to have access to help when needed. With respect to
the latter, a student recalls, “I called my sister to tell her I don’t have money and she said I
should come over, she’s at home” (Patrick). Another respondent explained, “…all my
brothers and sisters …They used to call me, and I used to call them, about our situation…
Even my mother too, I used to call her … If I need something or I want to talk to [her]”
(Paul). Thus, calling family dominates reasons for making phone calls (45.6%) followed by
business related calls and calls to friends (Table 6.28). A noticeably higher proportion of
rural subscribers do call family for financial purposes (about 35% compared to 19% of urban
subscribers), illustrating the importance of connectivity to financial resources for rural
people.
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Table 6.28: Main Reason for Making Phone Calls
Reason Urban (n=91) Rural (n=23) Total (n=114)
Business or job-related purposes 29.7 13.0 26.3
Family – non-financial issues 24.2 21.7 23.7
Family - financial issues/remittances 18.7 34.8 21.9
To chat with friends 15.4 21.7 16.7
Emergency situations 6.6 8.7 7.0
Education or academic purposes 4.4 - 3.5
To discuss social functions 1.1 - 0.9
Total 100.0 100.0 100.0
Note: Missing responses are not included in the calculations.
Most subscribers in both rural and urban locations mentioned advantages such as
ability to contact business partners and customers, more regular contact with friends and
family, being able to check a person’s whereabouts before going to visit them, being
reachable to people who need them, and being able to reach people they need, as major
benefits of having a mobile phone (Table 6.29).
Table 6.29: Major Benefits of Owning a Mobile Phone
Benefit Urban
(n=90)
Rural
(n=23)
Total
(n=113)
Easier and faster communication with family and friends 36.7 43.5 38.1
Mobility 26.7 21.7 25.7
Communication for business/work purposes 12.2 - 9.7
Communication in emergency situations 11.1 4.3 9.7
Easier and faster sending and accessing information 6.7 17.4 8.8
Other 6.6 12.9 8.1
Total 100.0 100.0 100.0
Note: Missing responses are not included in the calculations.
This suggests that although rural dwellers have less access to mobile telephony than
urban dwellers do, people in both areas are quite similar in how they actually use phones.
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6.3.2 Perceived Value of Mobile Phone Ownership and Use
The merits about using a mobile phone you get connected let’s say everywhere.
Supposing my network is all over the country, all over the world you’ll get
connected everywhere and you’ll receive messages in time. (Sylvia, student)
As Sylvia’s statement illustrates, the value users place on ownership and use of the
mobile phone is predominantly that of connectivity. This includes links to business and
personal networks, although connections to personal networks seem to be prioritized.
Significantly, connectivity with political, media and other such formal institutions are less
evident. To most subscribers and users, use of the mobile phone is a way of nurturing
kinship, friendship and business ties, all of which have the potential to generate resources as
and when needed.
Most respondents mentioned things like ability to contact business partners and
customers, more regular contact with friends and family, being able to check a person’s
whereabouts before going to visit them, being reachable to people who need them, and being
able to reach people they need as major benefits of having a mobile phone. Explaining one
of the major impacts having a mobile phone has had on her life, one respondent stated,
At first I was not having easy access to my friends. But of late… when I see you,
“oh, then give me your number so we can talk.” Like we are, we are very close
now.... Let me say, we don't meet them, it's not easy. But you can hear … but you
cannot see them. And so one month, two months, but you just communicate. (Akua)
A young payphone operator echoes Sylvia’s desire to stay abreast with the times,
It makes us to know what is going on in the world. Maybe somebody is in America,
something is happening there… the person will tell me something like this has
happened over there so you guys should also be preparing for it because they say its
coming to Ghana. So if I just see the thing I will not be surprised. (Yinka)
In addition to these generally non-economic gains, respondents highlight one
valuable capability provided by access to mobile telephony – openness to opportunities as
and when they arise. It is in this that the directly economic benefits of mobile telephony
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seem to lie. For example, Paul the carpenter not only gets business he could otherwise have
lost, but is also able to pass work opportunities on to others in his social network:
The difference is big. Because normally at times, maybe I was here, working and I
want to buy something at home…. And if I went out like this … they used to come
here, then they go. Maybe somebody has to pay me or somebody get some work for
me to do it, they used to go because they didn’t meet me. But since I got this phone,
I used to pick them all to catch them every time that they need me. And if there is
any work that they want, somebody want to give me, he used to call me…. So I
think it’s very better than the previous days. (Paul)
Paul continued, “one of my friends
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, he’s at the cemetery … he’s the leader, the boss there.
… I used to call him, then give him job that some [potential customers] are coming there”. A
taxi driver who had been out of employment for a while and had been considering selling his
mobile phone because he could no longer maintain it, described how being connected to
others helped him to overcome his problem,
My phone, this week it has helped me get work… Because I was home without a car
to do my work with… [On] Monday I called a boss of mine and told him that
currently I don’t have work… Immediately I spoke with him, he said ok, I should
give him my number so he’ll call me and find me a job. So that very Tuesday he
called me and said he found a job so I should come and start so I went to start it ...
So even when I am home, they can call me and say come take us there then I go ...
Then I go pick them up. So as for this week it has helped me ... It has really helped
me a lot. (Joshua)
Talking to former subscribers is also instructive as having experienced life with and
then without a mobile phone, they can really appreciate the loss of this tool. For them the
biggest blow seems to be their loss of contact with friends, as Charipearl explained, “Now
I’ve lost touch with my friends… Oh talking of my friends, I feel bad but I just want to know
how they are faring.” Similarly Akua comments on how the loss of her phone would affect
her. “I will lose … the way I will be communicating with my friends, now. Like, it will fall a
bit. It’s like something great, some part of you will be away.” Overall, subscribers
acknowledge the variety of ways in which use of mobile phones contributes to the quality of
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A freelance gravedigger.
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life, but all linked to connectivity: “You have the world in your pocket. Because … basically
you keep in constant touch with friends and family, business partners and new prospects”
(Robert, banker).
6.3.4 The Downside of Mobile Phone Use
While subscribers enjoy the benefits of access to mobile phones, the associated
dangers and disadvantages are not lost on them. The proportion of their income they spend
on maintaining their accounts is a particular area of concern (Table 6:30). Thus, cost of
airtime was the primary disadvantage of mobile phone ownership. The cost of airtime was
also the main obstacle to increased phone use (mentioned by 54.2% of subscribers).
Table 6.30: Major Disadvantages of Mobile Phone Ownership
Disadvantage Percent (n=118)
Cost of airtime 36.4
Attracts phone thieves 21.2
Inconvenient calls 8.5
Network problems 4.2
Health concerns 4.2
Losing data saved on phone 4.2
No disadvantage 3.4
Other 8.3
Missing 9.3
Total 100
Paradoxically, the same tool that is perceived to bring a measure of security or sense
of safety to owners is also associated with a high sense of danger or insecurity. Several
respondents (21.2%) mentioned the danger of being attacked by phone thieves as being a
major disadvantage of owning a mobile phone. These cost and fear of loss concerns further
reinforce the primacy of financial considerations in consumers’ adoption of mobile phones.
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6.4 Conclusion
This chapter has woven through several dimensions of mobile phone user behavior
in Ghana – modes of access, sharing practices, cost-management usage practices, use of
particular mobile phone features and the spheres of life in which people use the phone.
These behaviors have evolved through two stages – first when people have no phone, they
access telecommunications through shared and public access mechanisms, such as other
subscribers and payphones. Secondly, when they acquire a phone, either with personal funds
or as a gift, they shift away from public access systems to some extent, although they
occasionally have reason to use public access. They also join the pool of those who can share
their access to telephony with non-subscribers, further reducing the general need for public
access.
Subscribers and users also develop patterns of use based, for the moment, mainly on
cost, but still with multiple dimensions. Goals of mobile phone use could be for simple
connectivity, for efficiency, or for play. As one interview respondent explained, “Some are
also using it to conduct the business that’s important to them … But some are also using it
[to] have fun or enjoy life” (Joshua). Users have practical reasons for what they do and do
not do with mobile telephony, and the gains thereof are not always directly economic.
Access to mobile telephony delivers a latent capacity for connectivity that users can draw
upon as and when needed for a variety of purposes, economic, social and personal.
While affordability of use is a strong factor limiting usage levels, mobile phone
users have appropriated the services offered by network providers (e.g., late night calls,
calling party pays pricing) and the technical capabilities of mobile phones (e.g., caller ID) to
benefit from telephony at the lowest possible cost within their individual capabilities. Apart
from lower levels of infrastructure and handset access overall, leading to higher levels of
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sharing amongst rural populations, there is not much difference in the behavior of rural and
urban users, at this stage.
The next chapter will examine the interaction of mobile phone users’ practices,
network providers’ actions, and mobile payphone operations.
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CHAPTER 7: Interactions: Network Providers, Intermediaries and Users
Chapter Six discussed mobile phone users’ access and usage strategies. The
objectives underlying these behaviors were outlined and cost was identified as the primary
motivation. Consumers constitute the final peg in the scenario being investigated in this
study. Together with network providers (Chapter Four) and intermediaries (Chapter Five) a
picture begins to emerge of how and why mobile phones are being appropriated in particular
ways in Ghana and what this could mean for the role of mobile telephony in the socio-
economic development of the country. Studies of technology appropriation often present
appropriation as an end-user phenomenon, arising out of the gap between the design and use
stages of technology. However, the process of appropriation does not occur in isolation: it is
influenced by the state of existing technology; the types of services offered by technology
suppliers; the knowledge, skills and needs of users; as well as the governance regime within
which the technology is offered and used. Drawing on perspectives from technology
appropriation literature, this chapter argues that mobile phone appropriation in Ghana can
best be understood as a cycle of interactions amongst the technology itself, network
providers, intermediaries, and end-users, rather than as a process involving end-users only.
The changing trends in the industry, the variety of end-user behaviors, and the emergence
and decline of particular industry sectors are all contributors to and outcomes of the
appropriation process. Implications for the use of mobile phones as a livelihood resource and
as a source of livelihood are discussed.
Taking the introduction of products and services by network providers as the starting
point in the appropriation of mobile phones in Ghana, this process can be said to have begun
when the first mobile phone network started operating. There have been at least three cycles
of interaction, each precipitated by all or some network providers’ actions based on
observation of consumer behavior (see Chapter Four for details). The first cycle is the
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introduction of mobile telephony and associated practices from 1992 to 1998; a second cycle
started with the introduction of prepaid billing in 1998, to respond to what was essentially a
rejection of mobile phones by low-income earners. A third cycle begun in 2005 with
electronic airtime transfers. This analysis concentrates on developments between 1998 and
2007, not outlining the cycles as such, but discussing particular end-user practices and how
network service providers have responded to them. It follows the framework in Chapter Six
with regards to users owning, sharing and using mobile phones.
7.1 Owning
7.1.1 Prepaid Billing
Network providers had, until 2004, marketed and serviced their mobile phones as
individually owned units. This strategy was fruitful as long as the target market was the
high-income population. The model of deploying fully connected mobile phone handsets
with monthly billing brought connectivity and mobility first to the social and political elite,
and gradually to the business community. These early years were characterized largely by
conformity with intended usage patterns. Users had the financial resources to consume this
expensive technology, and generally lacked the time, interest or need to tinker with the
technology.
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Most of the population, however, simply rejected this technology because it was out
of their reach financially. Thus, once the cream of society had been reached, network
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It is likely that innovative usage patterns and social practices (appropriations) did begin to emerge
amongst users even at this early stage, though there is limited documentation of this. For example, the
technology was associated with outdoor telephone communication – the mobile phone came to be
known and advertised as “me gyina abonten” (I’m standing outside) because in an effort to enhance
their status as mobile phone owners, subscribers’ first statement once a call went through, was usually
to announce that they were standing outside (in other words, to make it known that they were using a
mobile phone).
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providers realized that other strategies would be needed to market mobile telephony to the
general public, and especially to people with limited budgets for communication. Prepaid
billing was the compromise solution, which continued to frame mobile phones as an
individual resource while allowing more users to subscribe. More consumers responded to
prepaid billing (especially in combination with GSM) and it is from this time onward that
more obvious and widespread end-user appropriation behaviors began to appear. These
include subscribing to multiple networks; sharing access either interpersonally or
commercially (mobile payphones); flashing; making short calls; and strategically combining
voice, data and flashing to keep the cost of communication down.
7.1.2 Multiple Network Subscriptions
As noted in Chapter Six, people subscribe to multiple mobile phone networks
because of interconnection and billing challenges. Subscribers are able to pursue this
strategy because of the technological feature that allows different SIM cards to be used in
one handset, as long as the networks involved are using the same standard. It is also
facilitated by network providers’ choice to sell subscriptions in the form of SIM cards rather
than fully connected handsets. Notably, 70% of subscribers surveyed had just one mobile
phone handset, whereas 62% said they had more than one SIM card (47% active), suggesting
that most of those with multiple subscriptions are using them with a single handset rather
than having a dedicated handset for each SIM card. This is not surprising considering that
most people cannot afford or do not even want to have several handsets. Those who go in for
the latter option are likely to be government or business professionals who need to have all
their lines accessible at any point in time. Furthermore, several respondents complained
about the inconvenience of carrying several handsets, indicating that subscribers would be
happier if they could subscribe to a single network that could economically handle all their
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communication needs. The logical choice would then be the Kasapa network, which has the
least expensive handsets and call charges. To the contrary, Kasapa is the least subscribed
network because other factors have been involved – limited network coverage, old-fashioned
handsets, and the cross-network pricing differences, and preference for interchangeable SIM
cards.
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Thus those who can afford more than one handset are beginning to choose a Kasapa
phone in order to benefit from cheap calls, but still maintain their other network accounts.
Kasapa’s response to this trend has been to replace its traditionally refurbished handsets with
brand new models while continuing to stress the network’s superiority in terms of quality
and cost. The network also now allows subscribers to bring in their own CDMA compatible
phones for connection to the network. Ultimately, the incompatibility of GSM and CDMA
standards is likely to be the greatest barrier to Kasapa becoming a major industry player.
Should a time arrive when users no longer need or desire multiple network subscriptions,
Kasapa may be able to claim the market.
In this context, one would expect the dual SIM card
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product to be more widely
adopted than has been the case in Ghana because it eliminates both the need for a separate
handset and physical removal and changing of SIM cards. Somehow this has also not been
the case, possibly because of the technological manipulations required – e.g., a mobile phone
technician has to mold existing SIM cards onto the dual SIM framework, and if improperly
done could destroy the SIM cards; and use of a particular SIM card requires maneuvering
through a menu. Subscribers find it simpler to just remove the back of the phone, lift the
battery and change the SIM card, without having to spend ¢50,000 for what turns out to be
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One survey respondent suggested that Kasapa start selling SIM cards instead of fully connected
phones. Another interview respondent described how his teenage daughter was embarrassed because
he bought her a Kasapa phone.
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A device that enables subscribers to have two SIM cards in a handset at the same time.
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only a slim convenience. These two examples of possible “solutions” to multiple network
subscription illustrate that mobile phone appropriation is influenced by a variety of factors,
some of which make seemingly logical choices unattractive.
Network providers’ reaction to the dual SIM card also reveals something about their
attitude to the multiple-network subscription trend. While one manager dismissed the dual
SIM card as irrelevant and unlikely to be successful, two others indicated that it could be
beneficial not only to users but also to the network itself:
… at least I can use two SIMs in my phone. And I have the opportunity of testing
two, which one network is better… It’s a good thing. Most people don’t like holding
two handsets so at least if I have a phone that will take dual SIM then at least I can
use one and switch it between two networks depending on which one I want to use.
(tiGo manager)
Some networks therefore see multiple network subscriptions as an opportunity to at least
gain some market share. From the perspective of networks, the ease of subscribing to
different network via prepaid subscriptions is an acceptable situation in so far as it makes it
more likely that a user will at least test-run alternative networks.
However, subsequently it would be better to have subscribers pick and stick one
network, therefore networks are trying to capture subscribers by rolling out features such as
free in-network calls at night, and more recently, uniform pricing across networks. The latter
development is an important response – differential billing for cross-network calls is one of
the two main reasons why people subscribe to multiple networks. Notably, this strategy has
been adopted by Onetouch and tiGo, but not Areeba nor Kasapa. This currently makes sense
since Onetouch and tiGo are the networks that most need to charge uniform rates for local
calls in order to encourage their subscribers to make calls (because most calls are to Areeba
lines). As the market leader, Areeba has no incentive to charge uniformly, and Kasapa
already has the lowest call charges. Nevertheless with uniform rates for all calls (and
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especially if interconnectivity problems are also resolved), the need for mobile phone users
to subscribe to multiple networks is likely to diminish.
Mobile payphone operators have also exploited the ability to subscribe to different
networks by incorporating multiple subscriptions into their operations as a strategy to
improve the efficiency and profitability of their work. The same cost and interconnectivity
problems that lead individual subscribers to have several subscriptions also makes it more
practical for payphone operators to serve their patrons with different network lines – the
operator incurs less cost making in-network calls and the caller incurs less cost paying for
the call. Being such a fragmented and loose structure, mobile payphone operations are
generally out of the control of network providers and are therefore under no obligation to
offer calls on only one network. The set-up of GT/Onetouch’s e-CARE business center
program and V-Mobile’s iTel pop payphone stations (see Chapter Four), however, shows
that given the opportunity, network providers would try to restrict use of rival networks for
payphone operations. The e-CARE business center program is tightly monitored by
Onetouch, and business center owners cannot sell the products of any other networks
(including not using rival networks for payphone services or selling prepaid cards for
networks other than Onetouch). Likewise, iTel pop stations operate only on the Areeba
network. The informal structure then works to the advantage of micro-entrepreneurial
payphone operators.
7.2 Sharing: Mobile Payphones
The issues of owning and sharing are linked because the two are negatively related.
Both network providers and consumers would prefer individual rather than shared access to
mobile phones. Payphone operators, on the other hand, would prefer that more people adopt
the shared access model using their service. Although mobile phone network providers had
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universal access obligations this did not include the provision of payphones, thus mobile
telephony was not associated with shared access. And despite the fact that privately owned
communication centers were already important industry intermediaries (essentially acting as
resellers of Ghana Telecom airtime), it was not until six years after the introduction of
prepaid billing that network providers began to see shared access as a model of service
provision that they could adopt. Public access service providers – communication centers
and mobile payphone operators – can be credited with bringing about this change in
orientation. Their actions and appropriations of mobile telephones revealed the existence of a
hidden market for airtime amongst low-income populations. Communication centers were
the first movers in this process, followed by Space-to-Space operators, then other micro-
entrepreneurs providing service on different networks, and then finally network providers
got involved by producing payphone products.
Significantly, although individual Spacefon subscribers were experiencing
interconnection problems, it was at the urging of communication centers that Scancom
eventually developed the solution that brought mobile telephony into the shared access
arena. This was actually an easier solution than trying to solve the interconnectivity
problems being experienced by individual subscribers – which could be done either by
getting all consumers to subscribe to Spacefon, or by resolving the interconnection dispute
with Ghana Telecom. Neither solution was possible or feasible at the time.
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Consequently
12 years after mobile phones entered Ghana, they were still too expensive for most of the
population, such that the fixed line shared access model was still a major means of
communication. The appropriation of wireless phones as a commercial shared means of
communication was initiated by network providers, not consumers, the decision to do this
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See for example Frempong (2004), Alhassan (2003), and Haggarty, Shirley, & Wallsten (2003) for
discussions of the turbulent relationships between Ghana Telecom and other network providers.
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being directly influenced by deficiencies in service provision that threatened to damage
Scancom’s market share. On the other hand, the extension of shared mobile phone access
from the confines of the communication center onto the streets was largely an initiative by
consumers, who saw a livelihood opportunity worth exploring. In fact, the development of
Space-to-Space was more of an unconscious or semi-conscious collaboration between
Scancom and the payphone operators, the goal of which was to resolve the connectivity
problem that was inconveniencing both the network and its subscribers, while
simultaneously opening up a new intermediary role akin to that the communication centers
were performing for Ghana Telecom (but now with a lower entry barrier). Scancom quickly
abandoned its original plan of deploying fixed wireless solely through communication
centers and embraced the new development as it took off.
Ironically, this process also led to reduced patronage of communication centers,
which, as one interview respondent observed, have effectively become “secretarial centers”
(Peter) because mobile payphones were cheaper and more accessible.
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This is an important
aspect of the appropriation process – if a consumer appropriation is successfully co-opted or
built upon by network providers, there is likely to be a corresponding discontinuation of the
earlier product or behavior. This has potentially damaging implications for micro-
entrepreneurs and their clients.
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For example, with reference to communication centers,
Amos Anyimadu of the Technology Assessment Project notes that in rural areas these
establishments provide certain services that mobile payphone operators do not – e.g.,
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Marcus Koll conducting a follow-up to Bertolini’s (2002) study of telecommunications use found
that for the same reason, all communication centers in the Akatsi district in the Volta region of Ghana
had been turned into textile shops or drinking bars (personal communication, 2006).
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Medium and large-scale establishments may be better able to weather such changes, but micro-
entrepreneurs are particularly vulnerable.
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secretarial services, telephone directories, and access to television broadcasting (Ministry of
Communication, 2007).
All the four network providers eventually attempted to co-opt the payphone system
by deploying some shared access product of their own (Chapter Four). These attempts have
been less successful than the original Space-to-Space for two reasons, first, network
providers misread the role Space-to-Space operators were performing (basically enabling
callers to reach Areeba subscribers),
We did a tiGo to tiGo thing, … we also did it because we realized that … the pricing
strategy was not favoring us. You pay 15 hundred to Areeba, you pay, if you’re
going to make a tiGo call you pay 25 hundred, so it look as if tiGo is expensive …
So in a way it became more expensive to call a tiGo or a buzz subscriber, so we also
thought that ok, get something for them so that calls within, from that your network
will be cheaper. Unfortunately it didn’t work very well…. because although people
were using their chips, because they were making more 024 calls they were charging
them lower than charging 027 calls. (tiGo manager)
Because there are so many more Areeba subscribers than for any other network,
demand for Space-to-Space services was high, but there was relatively little market demand
for payphone services on the other networks. Network providers failed to realize this,
assuming that the demand was for payphone services per se.
Secondly, by the time networks caught onto the promise of payphones it was too
late; payphone use was already fading, as a result of the electronic credit transfer system and
increased levels of individual handset ownership. Indeed even as the network was
publicizing a promotion in which winners would get a One4All payphone starter package,
one of their managers said,
I think it started off very, very, very profitable. Now the profit, the business is dying,
and it’s dying rather fast…. and the reason it’s dying so fast is the increase of mobile
handsets…. Those days when handsets were more expensive and not many people
could afford, then the community phone was, was the best alternative. But now a lot
of people have their own handsets, and the price difference between calling from
your handset and that, is not much…. What has even made it worse is the credit
transfer, which is now, for us, the lowest denomination is 5000, with 5000 you can
buy credit. In those days when the minimum credit you can buy from Areeba, I think
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was 75,000 cedis, you know, so not many people could afford 75,000. So even
though you might have this [personal handset], you will be forced to be using this
[payphone], because you can’t afford. But now 5 thousand, you have your privacy,
you have your convenience, you know…. It hasn’t got a very bright future. Because
ultimately, what is going to happen is individuals are going to have their own
handsets and when that happens, the value of the community handset, which is
One4All would just fade, would, would vanish.
This being less than two years after One4All was launched. The manager continues,
reflecting on the position of mobile payphone operators, “…it’s unfortunate but it looks like
if you’re there and it’s not doing well, you have to look for another opportunity, another
venture to, to go into.” Thus network providers were very much aware of the impact
electronic airtime transfers had on the payphone system. It should be noted though, that in all
likelihood they came to this realization in retrospect – none of the network officials I
interviewed identified payphones as their source of inspiration for introducing electronic
transfers. Instead it was a drive to reduce the cost of delivering airtime that motivated their
adoption of this new method. Therefore, although mobile payphone operators served as
revealers of demand for small amounts of airtime, they did not do so in any kind of direct
way.
Nevertheless, network providers are trying to take advantage of the willingness of
individual entrepreneurs to go into payphone service provision, while at the same time doing
what they can to increase individual subscriptions. Clearly it is the individuals buying the
payphone starter packages from network providers who stand to loose the most from
venturing into the declining industry, whereas the situation is a win-win for network
providers who have no financial stake in the mobile payphone business. Kasapa for example,
promotes its Home-Work fixed wireless phone as an economical alternative to the Space-to-
Space payphone because the total investment is lower, and purchased airtime never expires.
While trying to co-opt the Space-to-Space model has failed, other strategic responses by
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network providers have been highly effective, particularly those that have facilitated
individual access – per second billing and electronic credit transfers, for example. These
strategies were not wholly informed by the payphone phenomenon but also by other
consumer behaviors that revealed that cost of airtime was the strongest barrier to mobile
phone adoption and use. The fact that these new services have rendered payphones almost
redundant leads to the conclusion that shared access models for mobile telephony are
temporary solutions to telecom access.
The fate of mobile payphone operators is thus intertwined with the behavior of
mobile phone users, whether they are subscribers or not, and the behavior of network
providers. As innovative as the mobile payphone industry has been, it provides a very
specific service that is difficult to adapt to changing conditions. This is because amongst
other things, its primary tool is a device (the mobile phone) that has a high potential to be
individually owned by the very population the industry serves. Furthermore because of the
mobile phone’s portability and anytime/anywhere capabilities, it relegates use of any type of
payphone to situations of emergency when the caller either does not have or cannot use the
phone that they carry on them perpetually. As this study has shown, the critical influences on
the use of payphones in Ghana are network subscription, handset ownership, and the
affordability of airtime. Thus if handset vendors and mobile network providers make it
possible to individually own and use mobile phones at affordable rates, payphones revert to
their welfare role. This is good for resolving the access problem, but puts the payphone
operator out of work. This is the process that has taken and is still taking place in the
Ghanaian mobile phone market.
In this respect, it can be seen that notwithstanding the design-use gap, sometimes the
vision of technology designers is fairly accurate – in this case, designers’ conceptualization
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of the mobile phone as a tool for individual use was close to reality; it will just take time to
get there. The public access mobile payphone as a divergence from intended use is not the
result of a design problem but of local institutional and affordability problems. Just as
universal access is a watered down version of universal service, shared mobile phone access
falls short of the ideal situation of individual access. Payphones as a broad-based solution to
universal telephone access are an effective but transitory stage in the move from privileged
access through universal access to universal service in most localities. In Ghana mobile
payphones have been filling two kinds of need gaps, one for non-subscribers, and the other
for low-income subscribers. However, as network providers tune in to the behaviors of these
two groups, they have taken actions to improve their services, in the process making
payphones redundant. It also turns out that in the areas where payphone operators were most
successful, subscribers were a substantial proportion of their clientele Assuming that non-
subscribers exist at even lower levels of income than low-income subscribers, or have
different priorities for their resources, it follows that they are not likely to be making a lot of
phone calls. Thus as they become the primary market for payphone micro-entrepreneurs in
an environment where mobile phone subscription is rising, such operators should expect
limited cash flow from this source.
Due to low economic attractiveness, some localities will require universal access
mechanisms for the foreseeable future. Thus there will still be the need for policy-makers to
develop strategies to identify these areas and ensure at least payphone access for them.
Unlike fixed line deployment, the only real investment the network provider has to make is
to extend the signal.
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Furthermore, network providers can secure resources from the
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Besides, network providers can benefit from calls made by people traveling into these low volume
use areas, so the income level/population of a particular area is not the only factor determining usage
levels.
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universal access fund (GIFTEL), which facilitates the building of cell sites to extend signal
coverage. Although micro-entrepreneurs have shown themselves ready to take the rest of the
risk with respect to the availability of a viable market for mobile phone service, it remains to
be seen whether focusing only on signal coverage will be enough to resolve the access
gap.
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On the other hand, intermediary activities that service individual subscribers hold
more promise, particularly those involving the sale of prepaid airtime. A taxi driver selling
tiGo credit transfers in his car noted that he was not interested in the payphone business
because it was no longer profitable. However, he said, “as for credit, people will always
buy,” so no matter the state of the market, he could always be assured of patronage.
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Not
surprisingly, when network providers acknowledged the indispensability of intermediaries, it
was invariably in reference to prepaid card dealers and not payphone operators. Even so,
they are already providing avenues for direct transfer of credit from the network to
subscribers via the Internet, which could ultimately affect the patronage of micro-
entrepreneurial airtime dealers.
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A contact in Ghana recently observed that a cell site planted by in a rural village by one network
provider had fallen into disrepair. His investigations revealed that the network provider was
uninterested in that market and so had effectively abandoned the cell site.
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He was selling the transfers from his car, serving mainly his passengers and friends because tiGo
transfers move slowly. His goal is to accumulate enough funds to buy an Areeba transfer SIM card
and then leave the credit transfer business for his wife to operate from their home, while he
concentrates on taxi driving.
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Areeba introduced online wholesale, retail, corporate and personal airtime top-ups in 2007
(www.easyunits.com). This is, however, targeted at people with bank accounts and is therefore
unlikely to be widely adopted for some time.
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7.3 Using Airtime
7.3.1 ARPU Support
Perhaps the biggest problem existing subscribers present to networks is their
relentless pursuit of low cost communication through practices such as flashing and limiting
call length. The result is falling ARPU, which for Ghanaian networks averaged around $13
in 2006, just below the continental average of $14.50 (Table 7.1).
Table 7.1: Average Revenue Per User
Year Areeba Onetouch Kasapa tiGo
2004 $17.7 N/a $6.2* N/a
2006 $17 $14 $9.8 N/a
2007 $16 $13 $8.4 N/a
Source: Company financial reports
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and personal interviews. *Figure is for Ghana + Sri Lanka
Low ARPU is globally associated with prepaid subscribers. Falling mobile phone
call charges have also contributed to falling ARPU. Apart from the use of account and credit
expiry dates to guarantee a monthly minimum, two strategies are evident in network
provider’s approaches to this situation. One is to cut operational costs, as Onetouch’s
manager said, “It is affecting the way we do things … You either grow your customer base or
say ‘I want a niche market.’” To him, the option of the company limiting itself to the
wealthy segment of the market is not feasible.
The other strategy is to increase or at least maintain ARPU levels by motivating
people to make more calls or use new and existing data services. This may take the form of
extravagant promotions (e.g., Areeba gave away 11 new Peugeot 407 cars at the beginning
of 2007), or bonus credit for making more calls (e.g. Onetouch and Kasapa give subscribers
extra credits either monthly or whenever they reach a certain usage target). Kasapa has taken
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Areeba: http://www.mtn.com/mtn.group.web/investor/profile/ghana.asp; Kasapa:
http://www.htil.com.
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the most liberal path relying on its low-cost strategy with low-priced airtime and no expiry
periods to. According to the managing director, their strategy is to “configure your company
to live with lower ARPU…. We don’t have the mindset of pushing people to spend more but
rather enticing them to spend more, we need to make sure that it’s easy for them.” Other
providers are slowing moving in this direction, but are still reluctant to go all the way. For
example, after the re-branding of Areeba into MTN in August 2005, the network released
several new subscriber packages, including adoption that allows subscribers to keep their
mobile phone account for life, “if they make one revenue generating action at least once
every three months” (www.areeba.com). This effectively sets an account’s active status to 90
days, plus 90 days grace period when calls and messages can only be received (the active
period was previously 45 days*). The complete elimination of all expiry periods would be a
significant development for subscribers in an environment where mobile phone users are
generally more prone to receive rather than make calls.
Promotion of data services (e.g., Internet access, email, chat rooms, music
downloads) is another avenue being pursued by networks to increase ARPU. However, other
than some of the standard mobile phone features such as address books, calendar, and radio,
the data capabilities of mobile phones remain largely untapped by the general population.
Text messaging is the most prevalent data application in use, and even this is limited relative
to voice, because of literacy barriers.
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This may be attributable to the primacy of cost in
consumer behavior. A subscriber describing her first and only attempt at mobile email said,
“I regretted using it. Because… the units that went off nu, na aye me ya kakra”
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(Akua).
There is no guarantee that subscribers would use their phone’s additional capabilities if they
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Onetouch recently introduced voice text messaging probably as a way to break this barrier.
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“I regretted using it, because it pained me to realize the amount of credit that was consumed.”
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were affordable, but what is certain is that at current pricing levels, data capabilities are
likely to remain dormant. This is an example of how, in Orlikowski’s (2000) terms,
technologies offer users a range of possibilities of which they usually appropriate only a
portion, depending on their particular desires and resources.
7.3.2 Flashing
The last thing Ghana needs is coverage everywhere that nobody can afford to use -
it would be ridiculous to put in all this effort only to create a nation of “flashers.”
(Kasapa Managing Director).
Flashing is arguably the most “hostile” subscriber behavior because it represents
their decision to use network capacity without paying for it. Network providers and
regulators interviewed all stated that flashing is not a harmless activity because it takes up
network capacity, sometimes making it difficult for people trying to make ‘legitimate’ calls.
One manager (Kasapa) described flashing as an activity that is “not communication, that
contributes nothing to economic growth in the country or social improvement.” As
demonstrated in Chapter Six, oftentimes flashes are used to communicate information
without the need for a return call.
In general, service providers are battling the formation of “a nation of flashers” by
trying to make it as inexpensive as possible for people to make calls. As a direct result of
observing users’ flashing behavior, Onetouch introduced the “Call me back” service, which
essentially replaces a flash with a free text message asking the recipient to call the sender.
The company believes that people flash either because they have no credit or they don't want
to spend their units. It can be seen that “Call me back” is intended to ensure that flashing
brings some monetary benefit to Onetouch, since the goal is to have one party make a call
from a Onetouch line. Reducing call charges, per-second billing and low denomination top-
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ups are all part of this effort to make flashing unattractive or unnecessary. Flashing is
however no longer just about getting a call back; it is developing into a language all its own,
one that does not require subscribers to spend any money other than that required for
flashing units and for keeping the phone in working condition. Thus tiGo has resigned itself
to the emergence of flashing as a staple of mobile phone use in Ghana. At best, subscribers
will maintain flashing units at all times: “We just think Ghanaians have learnt to flash, they
will keep their flashing units anyway” (tiGo manager).
It would seem that with the switch to per second billing the monetary value of
flashing units would become insignificant (down from ¢7000 to about ¢24 for the most
expensive network). Even so Kasapa subscribers have apparently found a way to
communicate with even less than the required flashing units by using the network’s
electronic airtime transfer system (dubbed Kasapa Bounce) as a flashing mechanism.
Whereas flashing units for Kasapa amount to ¢14 (about $0.02) subscribers can ‘bounce’ as
little as one cedi to another Kasapa subscriber. Hence some subscribers when their credit
falls below ¢14 ‘bounce’ one cedi to another subscriber as a signal that they are out of credit.
This product has also given Kasapa payphone operators a tool to manage the falling
rates of payphone use. Rather than tie up airtime on their Home-Work payphone, they leave
the phone empty until a client wants to make a call. Then they electronically transfer some
airtime from their personal Kasapa phone to the payphone and when the call is completed,
transfer any remaining credit back to their personal handset. Because payphone calls are
billed in minutes, and regular calls in seconds, this sometimes leads to additional gains for
the operator.
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7.3.4 Free Late Night Calls
The Onetouch general manager described free in-network calls at night as "one of
the most exciting services that consumers want". Rumors that the company was considering
canceling this service were unfounded, he said. Between the launch of the service October
2005 and the end of December the same year (three months) subscriptions almost doubled
from about 278,000 to 495,000, which he attributes largely to the introduction of free late
night calling. Late night traffic is often higher than for calls throughout the day. This creates
some customer satisfaction issues as a result of network congestion during this time.
Between 11pm and midnight in particular the Onetouch network is choked with people
trying to get through. To control usage, the system is configured to allow callers to talk for a
30 minutes at a time. Callers are billed for the first minute,
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the next 29 minutes are free,
and after 30 minutes the call is automatically terminated. Subscribers can make multiple
calls but each can only last a maximum of 30 minutes. This is designed to enable new callers
to make connections, so that the first callers to get through do not stay on indefinitely, thus
preventing other people from getting through.
Kasapa subscribers were the first to benefit from free in-network calls in 2004.
However the free weekend calls were so popular that call volumes were exceeding paid
calls, and burdening network capacity. Meanwhile people trying to make paid calls could not
get through. Additionally there were complaints of harassment or stalking-like behavior, as
some subscribers took to calling up strangers just because the call was free.
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Eventually
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Onetouch did not make subscribers aware of this in the initial stages. Subscriber outrage did not
lead to removal of the charge as some had hoped, but Onetouch’s advertising did become more
transparent.
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The manger at Onetouch also mentioned this.
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Kasapa was compelled to drop free weekend calling, and replaced it with free calls every
night from 11pm-6am, as well as half price calls and SMS over the weekend.
Before 2007, tiGo did not have free calling periods for subscribers. However around
November 2007 the network started free night calls between 12:30 and 5am but only for
subscribers who have at least ¢5000 credit on their phone (enough for a regular one-minute
call). Knowing subscribers’ predilection for free communication, network providers are
using late night calls to attract and keep subscribers, but at the same time are trying to guard
against subscribers making all their calls during free calling periods – hence the late start
times (especially for tiGo and Areeba), and arrangements by Onetouch, tiGo and Areeba to
restrict get some minimum revenue from night calls.
7.4.4 Electronic Credit Transfers
Of all network providers’ strategic moves to invigorate mobile phone adoption and
use, electronic airtime transfers are the most significant since prepaid billing, enabling
another spurt in subscriptions, although ARPU has not increased. Electronic transfers make
it easier for subscribers to top-up with minimal amounts, but as explained in chapter Four,
this was only one reason for their introduction. They are also designed to profitably
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tap
into consumers’ desire for the ability to buy and use small amounts of credit at a time.
Before electronic transfers were introduced, three networks had already started selling
airtime in small denominations. The problem was that the medium (paper vouchers and
cards) was expensive – electronic transfers made it possible for networks to sell low
denominations more economically.
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Engvall and Hesselmark (2004) have recommended electronic transfers as the most efficient way
to provide low-cost airtime.
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Despite its popularity, all networks, but especially Areeba, have encountered
problems with the electronic transfer system – e.g., double transfers, failed transfers,
transfers to the wrong account. Additionally, they have what a manager described as a
“major problem” with their intermediaries – across the board, retailers have taken to adding
an extra margin onto the face value of electronic transfers, although they already get a
discount or commission from the network. This development is associated with Areeba
because the cost of its electronic transfer equipment was so high that vendors felt they
needed an additional margin to try and recoup their investment (interviews). Vendors for the
other networks just followed suit because the trend had already been set, although the
equipment for the other networks were less expensive than that for Areeba. This practice was
not evident when credit was sold in units rather than cedis, and even then it was not until
Areeba started billing in cedis that it became noticeable (Areeba was the last network to
change to cedi billing). Subscribers all knew that 20 units of Areeba airtime, for example,
cost ¢7000, and this did not cause any incongruity because there was no direct association
with a cash equivalent. The hidden mark-up was revealed when Areeba (the first to start
electronic transfers) also started billing in cedis and printing the cedi value of airtime on
cards and vouchers, with the result that intermediaries also had to either reduce the price to
the face value, or publish their margins. Figure 7.1 shows the typical price list in 2006, when
airtime was categorized in units and Figure 7.2 shows a price list in 2007, which clearly
indicates that the subscriber is paying more than the face value.
Figure 7.1: Transfer Price List (2006) Figure 7.2: Transfer Price List (2007)
Source: Fieldwork Source: Fieldwork
According to credit transfer operators, the discount they get form the networks is
inadequate. For example Onetouch dealers have to share 15% discount. Areeba airtime
vendors also put a margin on scratch cards and paper vouchers. Airtime vendors for the other
networks do not do this. In fact tiGo indicated that although the network was taking no
action on the markups on electronic transfers, it would not accept the same on cards and
vouchers. In general vendors add 20% to the face value of tiGo and Onetouch transfers, and
10-20% on Areeba transfers. Areeba pricing is more flexible “because of the market” as one
vendor put it, explaining that he puts only 10% on Areeba transfers in order to be
competitive, but 20% on the others because they do not move fast. Thus he does not think a
reduction in price would make any difference.
One would expect subscribers to have objected to the inflated airtime prices once
they became transparent. Network managers expressed the hope that the problem would be
solved if consumers would insist on paying the face value, but one manager doubted this
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would happen because of “the Ghanaian mentality” (referring to a perceived tendency
towards fatalism amongst Ghanaians). Customers did question why they were being charged
more for airtime, but generally accepted the explanation (which is usually to inform them
that the value is lower than the cost). I witnessed one such incidence when a gentleman came
to buy Areeba credit from a vendor (Osei). Osei said he had ¢48,000 and ¢75,000
denominations. The man decided to purchase ¢48,000 and asked Osei to load the credit for
him,
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which he did and returned the phone to the customer. The man read the SMS
confirmation message and asked why it said he had loaded ¢45,000 instead of 48,000. Osei
simply showed him the voucher, which had ¢45,000 printed on it. I expected the man to
protest but all he said was “ok, it's 45,000 and you are selling it for 48,000.” Osei concurred
and that was the end of the matter. To some extent, subscribers’ acceptance of the mark-up
on airtime can be attributed to the lack of alternative avenues to buy airtime – network
providers (other than Kasapa) do not generally sell airtime directly to subscribers.
As far as the networks are concerned, credits should be sold at the face value. They
have tried to convince operators not to increase the price but to no avail, and they are
reluctant to impose any kind of penalty for fear of alienating their dealers (one manager
suggested that operators might decide to stop selling the network’s airtime). To address this,
the networks are adopting different strategies. Onetouch is focusing more on the sale of
scratch cards than the electronic transfers. At the moment he estimates that airtime sales are
about 70% cards and 30% electronic.
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Areeba deployed dealers with branded stalls to sell
airtime at the authorized price, although these also have a 10% markup. One such dealer said
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He later explained that he wanted Osei to load the credit for him because he had had problems
trying to load some credit earlier.
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He also figured the ratio is reversed for Areeba whom he estimates may be doing about 60%
electronic sales and 40% cards or vouchers.
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her employer (a relative) originally had her own setup where she was selling Areeba credit
transfers at 20% above the face value. Then Areeba “gave” them the new booth where for a
time they sold at the recommended price but eventually returned to the higher price. In her
view, they were under no obligation to sell at the recommended price.
TiGo has mainly left the situation as it is. The situation is less critical for this
network (as well as Onetouch) because their subscribers have been slow to adopt electronic
transfers. In fact the network had to launch a program (in 2006) to try to encourage
subscribers to embrace the system. Kasapa’s electronic transfer system does not involve
intermediaries – it operates on a peer-to-peer basis only, although the network is working out
modalities to enable intermediaries to sell Kasapa Bounce.
Thus, as with mobile payphones, there is more to the apparent success of electronic
transfers than meets the eye. Subscribers would actually prefer the physical media because
they are less prone to mistakes (though not immune) and are also less expensive. This
preference can be seen in the continued dominance of paper and card-based airtime for the
networks with low-cost physical media but high volume of electronic airtime sales for the
network with relatively higher cost physical media. Another aspect of this is that poorer
people end up paying more for airtime because they are the ones who most need electronic
transfers.
Based on interviews, surveys and observations during the study period, Table 7.2
characterizes the perspective of network providers, payphone operators, and mobile phone
users, according to what they would like to experience in the industry, while Table 7.3
summarizes the appropriation trends discussed in this chapter.
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Table 7.2: Preferences for Mobile Phone Behaviors
Network Providers Payphone Operators Consumers
Owning and
Sharing
Individual ownership Sharing Individual ownership
Owning Single subscription Multiple subscriptions Multiple subscriptions
Using High ARPU High ARPU for
payphones
Low calling levels
Using Completed calls Completed calls Missed calls (flashing)
Table 7.3: Summary of Mobile Phone Appropriations
Appropriation Purpose of adoption Solution to:
Suppliers Consumers Suppliers Consumers
Prepaid
billing
Reach low-income
market
Access to network
subscription
Barrier effect
SIM card
sales
Reach low-income
market
Improve organizational
efficiency
Access to network
subscription
Barrier effect
Multiple
network
subscriptions
Improve quality of
network connections
Reduce cost of calls
Inhibitor effect
Mobile
payphones
Mobile
payphones
Improve network
connectivity
Reach low-income
market
Increase network traffic
Earn income
Improve network
interconnectivity
Access to affordable
telephony
Access to emergency
telephony
Barrier effect
Inhibitor effect
ARPU
support
strategies
Calling
practices to
limit cost
Increase network traffic Save money
Win prizes
Inhibitor effect
Call me
back
services
Flashing Generate network
traffic
Attract new subscribers
Free communication
Fun
Inhibitor effect
Free late
night calls
Attract new subscribers
Maintain existing
subscribers
Free communication Inhibitor effect
Electronic
airtime
transfers
Improve organizational
efficiency
Serve low-income
market
Access to affordable
airtime
Barrier effect
Inhibitor effect
Barrier effect refers to obstacles to mobile phone ownership and network subscription. Inhibitor effect refers to
obstacles to use of mobile phones by subscribers (Milne, 2007).
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7.5 Policy and Regulation
As far as direct participation in the technology appropriation process is concerned,
policymakers and regulators have more of a facilitatory role. Policy and regulatory agencies
in Ghana have by their action (or inaction as some would argue) also contributed to and been
affected by the process of mobile phone appropriation. Since its inception, the telecom
regulatory authority, NCA for example, has been accused of being ineffective and a victim
of regulatory capture by the national government. Policymakers and regulators justify their
limited presence in the affairs of the industry by pointing to the desirability of a hands-off
approach to regulation.
One issue of significance, though, is the link between interconnection problems and
the emergence of mobile payphones in Ghana. This is an area where network providers
always end up having to resort to the regulator for conflict resolution. Networks are expected
to negotiate interconnection terms amongst themselves and only call on NCA in case of
unresolved disputes. Invariably each round of negotiation requires the intervention of NCA,
and the emergence of Space-to-Space as a result of interconnection problems suggests that
the solutions imposed by the agency were for the most part unsatisfactory. The decision not
to include payphone provision requirements in the license obligations of mobile phone
network providers is also a choice that has influenced the shape of telephone access – it
effectively left a gap in service provision that was filled by micro-entrepreneurs.
While the NCA generally stays out of issues relating to network technology choices,
it has taken some actions that may be construed by some as slowing down the industry, and
by others as proactively promoting network quality. For example, the agency has barred
networks from rolling out 3G services which, according to an informant, the networks were
“creeping into.” In view of the rather poor quality of service provided by networks, this
directive is intended to compel the networks to attain adequate levels of efficiency at their
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current level of operation, before allowing them to offer more advanced services. Another
interesting example is that while the agency was pushing GT and Westel to meet fixed line
expansion targets, it also prevented Onetouch from expanding its mobile service. Because
most parties had underestimated the demand for mobile phones, the equipment Onetouch
installed to initiate its service in 2000 soon run out of capacity. While other networks were
allowed to oversubscribe their networks, with the associated congestion problems, Onetouch
was not allowed to do the same. The network was required to stop selling SIM cards until it
had increased network capacity. This was a critical factor that enabled Areeba to take a
lengthy lead in the industry, and it is significant that the regulator took this action to put the
state-owned mobile phone network at such a disadvantage.
More recently the regulatory agency has also been commended for its yearly ranking
of network providers according to quality of service indicators. In previous years the agency
has imposed fines on both state-owned fixed line networks for failing to meet network
expansion targets, and in October 2007, the NCA identified Areeba/MTN and Onetouch as
the worst performing networks and asked them to put a moratorium on new subscriptions
until they improve the quality of their infrastructure (Koranteng, 2007; Klutse, 2007). Some
reports indicate that the networks are not heeding this directive, highlighting one of the
major problems the agency faces – lack of authority to enforce its directives. A bill is due to
be discussed in parliament to give the NCA legal authority as an enforcer.
7.6 Mobile Phones as a Livelihood Resource and as a Source of Livelihood
The relevance of the issues raised in this chapter to ICT for development discussions
is that as cycles of appropriation progress, mobile phones are more effective as a livelihood
resource (communication tool) than as a source of livelihood (income generation) for the
poor. This is because micro-entrepreneurs (such as mobile payphone operators) are
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particularly susceptible to industry shocks. Although they have a lot of flexibility to change
occupations, they also have limited resources to invest. In an industry that changes as rapidly
as the telecommunications industry does, the vulnerability of poor entrepreneurs is
heightened; this is contrary to the goal of securing livelihood sustainability. The involvement
of the poor in the mobile phone industry may best be approached as part of a livelihood
diversification strategy, than as a primary means of livelihood.
On the other hand, as a resource that people use to facilitate communication in the
normal course of whatever livelihood activity they are engaged in, changes in the
deployment of mobile phones bring significant long-term benefits to end-users, especially
those changes that make the tool cheaper to acquire and use. So far, mobile phone
appropriations have been driven by cost considerations; it will be interesting to see if and
how things change as cost becomes less of an issue.
7.7 Conclusion
In summary, mobile phone network providers deploy their products with specific
profit-oriented goals in mind. Faced with limited incomes, and limited technical knowledge,
consumers have responded by selecting aspects of the technology that are most useful to
them, and combining them to create affordable access and usage patterns either to make or to
save money. The evidence so far is that as a whole, mobile phone users in Ghana tend to
accept the technology as it is – adaptations occur with respect to usage patterns rather than
manipulation of technical features.
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Network providers see some of these trends as
acceptable (e.g., Space-to-Space payphones), unavoidable (e.g., flashing), undesirable (e.g.,
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The World Bank (2008) concludes that although technological achievement in developing
countries has advanced greatly (in terms of technology adoption and adaptation), there is a distinct
lack of domestic innovation capacity.
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low ARPU, multiple subscriptions), or unacceptable (e.g., intermediaries adding markups to
the cost of prepaid airtime). Their attempts to benefit from or curtail user behaviors have
resulted in the introduction of new access and usage products designed to improve
affordability (e.g., payphones, per second billing, electronic credit transfers, equal pricing
across networks, call-me-back service). Mobile phone users in turn have accepted or rejected
these new developments and modified their behaviors accordingly. From fixed line accounts
to postpaid mobile phone accounts to prepaid mobile phone accounts, there has been an
increasing amount of flexibility incorporated into technology, management systems and
services that have translated into more flexibility for users to manage their
telecommunication practices within whatever limits exist. As network providers respond
more or less effectively to user appropriations, mobile telephony is becoming more
affordable, hence individual subscriptions are growing and the need for shared access is
declining. For users and network providers, this means expansion of individual access to
mobile phones, but for payphone operators, this means a loss of livelihood.
The mobile phone appropriations observed in this study can be distinguished by
their source – demand (subscribers and users) or supply (network providers and
intermediaries); by their objective (e.g., to make money, save money, increase subscriptions,
improve quality of network connectivity, stay connected), and also by their degree of
deviation from suppliers’ preferences or when coming from the supply side, their degree of
opposition to consumer behavior (as per Bar, Pisani & Weber, 2007). However these
categories are not all straightforward – for example, mobile payphone operators straddle
both supply and demand. The cyclical nature of the appropriation process complicates things
further because one appropriation may be a response to another appropriation, and the same
appropriation serves different and/or multiple purposes for the parties involved. As noted in
Chapter Six, however, at this point in the development of mobile telephony in Ghana, the
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affordability of communicating is the factor driving most end-user behaviors. Users do not
necessarily make conscious calculations of the cost vs. benefit of making a particular call or
sending a particular message. They do however operate with a general mindset in which the
cost of airtime is paramount. As such, leaving aside the provision of high-end services, most
network providers’ reactions are also targeted at encouraging mobile phone adoption and use
by reducing cost, moving the entire process towards the provision of universal service, with
implications for those who have made it their livelihood to provide universal access.
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CHAPTER 8: Conclusion
This study was motivated by the paradox of the rapid global spread of mobile
telephony alongside the persistence of digital divides based on this and older ICTs. Stubborn
problems have inhibited the diffusion of ICTs in developing countries over the ages –
infrastructure, usability, cost, culture, for example. Mobile phone technology has, however,
gone the furthest since radio in breaking through these barriers, effectively keeping alive and
opening up new possibilities for the achievement of ICT-led socio-economic development.
Public access telecommunications in particular has in theory and practice become more
sustainable as an option, because of the low implementation costs associated with wireless
ICTs. At the same time, there is still a huge gulf between the potential and reality of ICT
impacts for the majority of poor people, including those who already have some degree of
access. This prompted the question of exactly how people are using communications
technologies, and with mobile telephony having made such significant inroads, what
obstacles still stand in the way of the economic take-off that is sought from the use of ICTs.
Considering access as a critical barrier to experiencing the benefits of ICTs, the aim
of this study was to empirically explore the dynamics of mobile phone adoption and use in
the context of poverty reduction, with particular emphasis on mobile payphone services,
which have become the main public access method in most African countries. The research
questions were designed to conduct an in-depth analysis of how the mobile payphone system
has developed in Ghana, how it fits into the general telecommunications environment, its
contribution to poverty reduction, and future prospects in this role. In assessing mobile
payphones as part of the general telecommunications environment, the study conceptualized
mobile phone use as a process of technology appropriation involving interactions between
network providers, industry intermediaries and end-users. This conceptualization served as a
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framework for analyzing the uses and impacts of mobile phones in general and mobile
payphones in particular.
This conclusion first details study findings as they relate to each of the three groups
that were the primary research populations – network service providers, mobile payphone
operators, and mobile phone service consumers. This is followed by discussions of the
process of mobile phone appropriation and the role of mobile phones in poverty reduction as
observed in Ghana. The chapter ends with some theoretical and policy implications of the
findings, as well as directions for future research.
8.1 Network Providers: Technology, Business Models and Profit at the Bottom of
the Pyramid
Without network providers, there is of course no industry to speak of. One of the
major conclusions arrived at in this study is that network providers are both empowered and
challenged by the choice of technologies, business models and target markets. Their
decisions on these issues have punctuated important points in the history of telephone
service delivery in Ghana – the introduction of mobile telephony based on Calling Party
Pays pricing, prepaid billing, use of GSM vs. CDMA technological standards, provision of
low cost, refurbished or used handsets, focus on SIM card sales as distinct from handset
sales, the development of payphone-type services and the enabling of micro electronic
airtime purchases. Some decisions are locally made, but others are linked to associations
with foreign technology suppliers and business partners. By these deliberate, and in some
cases constrained, choices mobile phone network providers have contributed to the
expansion of access to telephone service in ways that could not be captured by universal
access policies and that are certainly not captured by their formal universal access fund
contributions.
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Nevertheless, being subordinate to the profit motive, network providers are still far
from providing universal service to the public. Notwithstanding their demonstrated
willingness (even if reluctant) to direct themselves to the needs of low income consumers,
even within this bottom rung, there are layers that are more attractive than others. To reach
the poorest of the poor, network providers would have to dig down deeper to take their
infrastructure to even poorer communities and even more sparsely populated areas. In
addition, they would have to accept even lower levels of average revenue per user. As long
as network providers have not yet come up with business models that would take them to
this stage, public access telephony remains a strong model. Here network providers have a
pool of little helpers – once they roll out the network signal, there are several individuals
who are happy to insert themselves as intermediaries to deliver shared access to their
community.
8.2 Mobile Payphone Operators: Shared Access to Mobile Telephony
The mobile payphone phenomenon in Ghana was generated by a combination of
interactions between network providers, communication center operators and end-users,
based on existing conditions in the industry and the economy. This enactment took
advantage of certain features and characteristics of mobile phone technology (e.g., lack of
wires, ease of subscription, installation and use, prepaid billing, high cost of handsets), as
well as the state of network provider relations (interconnection disputes), high levels of
unemployment, and entrepreneurs’ search for livelihood diversity. Overall, while there
continues to be an imbalance in mobile payphone deployment, payphone operators have
successfully increased access to telephony in both rural and urban areas, and earned some
income in the process. Through their very existence, these micro-entrepreneurs have also
uncovered a level of demand for minute quantities of airtime that was hitherto hidden.
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Nonetheless, the results of this study suggest that mobile payphones are a transitory solution
to the problem of telecommunications access.
Just as mobile payphones cut into patronage of communication centers, a parallel
process has led to the decline of mobile payphones as, based partly on observations of
payphone use, network providers have upstaged payphones with micro electronic airtime
transfers that are slowly eliminating consumers’ need for payphones. Thus, after a short
period of high performance, most payphone operators have began to suffer from falling
patronage and revenue, especially in urban areas. This is largely because consumers aspire to
own personal mobile phones and use payphones as interim access points until they can
afford to become subscribers. Mobile phone network providers have responded to market
demand by offering cheaper and cheaper avenues to mobile phone subscription. As a result,
mobile phone adoption has grown to the extent that both subscribers and non-subscribers
only use payphones in strategic ways and often as a last resort, most times preferring to
borrow a friend or family members’ phone. In essence, payphone use has become a
necessary but occasional practice for most people, and use of a personal phone is generally
preferable. This leads to the conclusion that mobile payphones are becoming less and less
useful as a means of generating income for poor people, although they continue to perform
an invaluable connectivity role for users who do not own mobile phones as well as
occasionally for mobile phone subscribers. For micro-entrepreneurs, entering the mobile
phone industry as providers of shared access to basic telephony has been a risky business
because of the fragility of their existence. There may still be life for mobile payphones in
peri-urban and rural areas where access to telephony is low compared to urban areas. Even
here, payphone income may be low and uneven as demonstrated in Chapter Five, and
payphone operators are ultimately likely to face the same fate as payphones in urban
locations.
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These findings on mobile payphones do not negate the importance of mobile
telephony and mobile payphones in developing countries. What they indicate is that the
long-term value of mobile telephony can be found in some area other than a direct income-
generating role. The contention of this study is that this value is that of facilitating
connectivity between individuals and the people or resources they want to remain connected
to.
8.3 Mobile Phone Users: Access, Affordability and Communication
The main conclusion with respect to mobile phone users is that cost of access and
use is paramount in their engagement with the technology. To this end they employ a variety
of strategies designed to overcome the limitations of the existing telecommunication
infrastructure and/or to deliver access to the network at a reduced cost. Access strategies
include sharing of handsets, and multiple SIM card ownership. Shared access to
subscriptions is also important at formal (payphones) and informal (unpaid sharing amongst
family and friends) levels, but as the universal access agenda moves forward the need for
shared access is falling. As noted in the discussion of mobile payphone operators, personal
ownership of a mobile phone is the goal of most consumers.
Mobile phone users have developed calling practices that combine voice calls,
flashing, free late night calls, prepaid cards, unit transfers, payphones and strategic
management of call length to use airtime as efficiently as possible within budgetary
constraints. Working within the limits of their personal knowledge and skills (e.g., level of
ability to manipulate handset software), as well as limitations imposed by the technology
itself (e.g., inability to use a GSM phone on a CDMA network) or the entities providing
services (e.g., imposition of airtime and account expiry periods), subscribers are developing
patterns of use that enable them to keep down the cost of mobile phone communication.
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These strategies involve varying levels of deviation from traditional expectations of mobile
phone use, especially from the perspective of network providers, whose goal after all, is to
make as much profit as possible by having subscribers consume as much airtime as possible.
For example, flashing is negatively perceived because it represents unpaid use of network
capacity. At the same time, the deviations are made possible by the very nature of the
technology and the services offered by the network providers. Regardless of what network
providers, governments, development agencies and other interested parties do, consumers
either reject mobile phones, or find ways to make the technology work for them. While these
behaviors may not make a huge dent in the fight against poverty, they do enable users to
address some of the struggles they face on a daily basis and send a signal to network
providers and other industry actors that they are not fully meeting the needs of low-income
subscribers.
It is interesting to note the absence of significant differences in the use of mobile
phones by rural and urban dwellers. This could be because at this stage in the development
of the industry, affordability is still the foremost constraint for most users, leading them to
similar patterns of behavior. For those who can afford it then, mobile phones have become
an integral (even addictive) part of their lives. There is no doubt that this technology is
beneficial to users. However, the nature of these benefits and the route to their attainment is
complex, especially when considered in the context of poverty reduction. Exploring routine
uses of mobile phones by subscribers in Ghana indicates that the prime function of
communication is to facilitate livelihoods, that is, to maintain or enhance means and
conditions of living, where livelihoods are defined to encompass all aspects of people’s
lives, not just the work they do. This is not necessarily a conscious activity. To most
subscribers and users, the mobile phone is not overtly a means of poverty reduction in the
sense of contributing income (except when used successfully as a payphone); it is a way of
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nurturing kinship, friendship and business ties, all of which have the potential to generate
resources as and when needed.
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Once consumers can afford to own and use a mobile phone
to meet their connectivity needs, they incorporate the phone into any activities in which the
phone is useful to them.
As noted above, emerging practices in mobile phone use amongst Ghanaians are
driven by cost considerations; cost being the most significant barrier to widespread adoption
of mobile telephones. Overcoming this inhibitor is likely to be the single most critical
advancement that would make universal telephone service a reality. This would then make it
possible to meaningfully consider the provision of value-added services such as the wireless
Internet (also at affordable costs) to subscribers. Although the idea of leapfrog development
via ICTs is an attractive prospect, there are still certain processes of technology diffusion,
adoption and adaptation that must proceed before potential can be turned into reality. These
processes are necessary to make ICT use feasible for a large enough proportion of the
population to be able to engage in collective leaps. Even then, the particular path traveled
down will depend in no small way, on the appropriation practices that service providers and
users choose to engage in.
8.4 Mobile Phone Use as Technology Appropriation
The research findings confirm that multiple actors are implicated in the emergence
of strategies to fulfill the telecommunication needs of middle and low-income populations.
Some strategies are driven by large institutions such as the mobile phone network providers,
others are the outcome of the activities of entrepreneurial individuals, and yet others have
risen out of the creativity of consumers looking for ways to manage communication needs
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See for example, Horst & Miller (2006) for a vivid account of mobile phone use in Jamaica.
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within their means. No one group can be easily disentangled from the process. The issue all
are addressing is how to provide or access affordable telecommunications. Whether
implemented at the organizational or individual level, their actions constitute appropriations
of mobile phone technology for the benefit of the parties involved and result in new patterns
of use that are based on service providers’ desire to make a profit, and users’ desire to
conserve their resources. The consumer is being vigorously pursued by network providers
and intermediaries in search of commercial gain, while observers anticipate that the evasive
socio-economic “big push” will finally be realized through the use of this device. Expansion
of access (availability, accessibility and affordability) to telephony has indeed been greatly
facilitated by the adoption and appropriation of business and usage models by the various
actors.
What is more, it is not just the disparate actions of each group but the interactions
between and amongst them, that have culminated in the current telecommunications
environment characterized by steady network expansion, falling call tariffs, increasing
teledensity, increased opportunity for income generation, improved communication in
multiple spheres, and glimpses of what could be achieved when access to communication is
enhanced. Such an approach recognizes the development of the telecommunications industry
as a collaboration of sorts between all the players. Their interactions have been presented in
Chapter Seven as a cycle of technology appropriation (based on Bar, Pisani & Weber, 2007)
that produces new technological services and new social practices. For example, assuming
the cycle to begin with the introduction of a new technology, in this case the mobile phone,
network service companies provided their services with particular patterns of end-user
behavior in mind. Their calculations were proved wrong – while underestimating the latent
demand for telephone service, they also purposely ignored a potentially lucrative market
(low-income consumers) because of their perceived unattractiveness. Consequently,
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consumer response to the new technology, though enthusiastic at first, soon hit a ceiling.
Network providers responded to the slow-down by seeking out new business models to
attract new subscribers, one outcome of this being the introduction of prepaid billing.
Successive waves of appropriation have been generated by the back and forth between
network providers and users, as outlined in Chapters Four and Seven.
Mobile payphone operators are a unique class of users, having taken on the role of
industry intermediaries by sharing their subscriptions with the general public. This particular
appropriation, itself the result of a cycle of appropriation, has been instrumental in driving a
subsequent cycle that brought about the introduction of micro electronic airtime transfers
which is ironically destroying the payphone business. Technology appropriation is an
ongoing process that continually changes the industry and patterns of adoption and use,
creating winners and losers along the way.
In their model of technology evolution, Bar, Pisani and Weber (2007) highlight the
elements of power struggle and technological innovation – the technology appropriation
cycle could move the telecommunications industry forward by engendering innovative
approaches to service delivery, and creative adaptations by end users to make technology
useful to them. Or it could hold the industry back by stifling creativity and enabling power
brokers to maintain a chokehold on the reins of the industry. The evidence from this study is
that with mobile telephony, the former is more likely than the latter, because of the high
levels of flexibility inherent in this particular communication technology. However it is
important to acknowledge that in the context of technology-consuming countries, innovation
relates more to service delivery and usage patterns and less to the physical technology. For
technical developments they still depend on designers in other parts of the world.
The processes observed in this study bring the technological and political
dimensions of technology appropriation into relief. Where technological features allow it,
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mobile phone users have been able to adapt mobile phone service to their unique
circumstances in ways that sometimes upset network and other service providers. Attempts
by each group to pursue their own agenda add fuel to the appropriation cycle. In Chapter
Seven some of these agendas and their impacts are discussed. For example, to the dismay of
network providers, end-users appropriated caller identification, calling party pays and the
ability to cut off a call before it goes through (all technological elements of mobile
telephony) to transform missed calls into a communication form (“flashing”) To wrestle
back control over their revenue network providers have themselves engaged in various
appropriations designed to eliminate the need for “flashing,” (e.g., by making calls cheaper)
or to incorporate the practice into their service models (e.g., by offering call-me-back
services). It is important to note that if network providers had their own way, they would
prevent any appropriation practices that eat into their revenue. However, in many instances,
the mobile phone technology itself makes it difficult or impractical to achieve this; how, for
example, does one stop a mobile phone subscriber from flashing?
The ability of different players to exercise power is important in this scenario. At
any point in time who is the strongest party? The study results indicate that network
providers and end-users have stronger overall positions relative to intermediaries, especially
micro-entrepreneurial intermediaries. The outcomes of appropriation have tended to benefit
network providers and end users by making subscription and use less risky, more convenient
and more affordable. For mobile payphone operators on the other hand, despite their crucial
role in filling gaps in network service, there is always a trend towards eliminating the
middleman. As long as mobile payphone operators focus on shared access as their primary
service, within technology appropriation processes that are currently powered by attempts to
increase individual access, they are an endangered species in the market.
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8.5 Mobile Phones and Poverty Reduction
Of the multiple dimensions of poverty, discussions of the digital divide usually
highlight the aspects of digital poverty (lack of access to ICTs per se) and income poverty
(lack of access to adequate resources). Reducing digital poverty can alleviate income poverty
directly or indirectly. In this study I have explored how mobile telephony is influencing both
digital and income poverty. The move of the telecommunications industry towards more
affordable telephony helps to reduce digital poverty. Mobile payphones contribute to this
affordability enhancing process. With regards to income poverty, the influence of mobile
telephony is more indirect than direct in the long term. From the supply side, (production
and provision of products and services) mobile telephony generates income directly for
participants, including mobile payphone operators. Long-term income can accrue to the big
players – network providers and their employees, large and medium scale dealers, for
example – although even they are prone to failure. Smaller players such as micro-
entrepreneurial payphone operators are more vulnerable in the long-term because of their
relative inability to adapt to industry shocks such as technological change. From the demand
side (i.e., the use of ICTs) however, the short and long-term income benefits of mobile
telephony are endless, though indirect and diffuse. These benefits derive simply from the
efficiencies and opportunities that the ability to communicate contributes to the flow of life.
Translating these observations into livelihood terms for poor people, mobile phones may
serve as a direct source of livelihood (the supply side in which poor people participate in
providing mobile phone services to the public) or as a livelihood resource (the demand side
where the phone is used as a tool in everyday activities). The crosscutting potential of
mobile phones as a livelihood resource is what makes it important to achieve universal
service.
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8.6 Theoretical and Policy Implications
These findings have implications for theorizing ICT use in the development context.
ICT for development programs in Africa tend to have practical rather than theoretical
underpinnings. Thus, the theoretical literature on development rarely considers the
implications of new trends in communication, particularly in mobile communications; while
studies on the uses of wireless communication are cast in a pragmatic frame. In contrast, this
dissertation aims at constructing a grounded theory that investigates actual ICT use in Africa
as a developmental strategy. In this way, it contributes to the rethinking of theory in relation
to new developments in ICTs.
Whereas theoretical approaches to ICT development in low-income countries are
preoccupied with the relationship between telecommunications infrastructure and economic
development, this dissertation highlights that with mobile telephony the capacity for user
appropriation and industry innovation changes the dynamic so that infrastructure is not the
only foundation for theory development in this area. The user-centered approach adopted
here illustrates an alternative approach to framing and understanding ICT4D.
Conceptualizing mobile phone use in this study as an interactive process of
technology appropriation involving multiple actors uncovers aspects of mobile telephony in
the country that may be overlooked in studies that focus on one particular actor such as
consumers or policy makers. Moreover, even in studies of technology appropriation there is
a tendency to focus on the consumer as the party that appropriates technology. This study
makes a case for researchers to cast a wider net conceptually and in practice to illuminate the
interactive nature of technology appropriation. Eglash (2004) and Bar, Pisani and Weber
(2007), who recognize that designers and suppliers also engage in appropriations that are not
tied to their status as end users, have pointed the way in this direction. The process of
appropriation described here is one of the first attempts to apply Bar, Pisani & Weber’s
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(2007) technology evolution cycle in a general way to a single case study. The results show
that this is a useful approach that made it possible to obtain a comprehensive overview of the
telecommunications industry in Ghana over time, and help explain in broad terms how ICTs
come to be used in unexpected ways in developing countries. Bearing in mind the
exploratory nature of the study, and the goal to capture multiple facets of mobile telephony
in the country, framing the research in this way proved appropriate.
The capacity for mobile phones to be appropriated in diverse ways, and the fact that
this has promoted adoption of the technology, is a strong indication that the idea of
designing flexibility into ICTs or designing for appropriation (Bar, Pisani & Weber, 2007;
Eglash, 2004; Fischer & Giaccardi, 2006) merits close attention. This is relevant for both the
technological artifacts and their delivery models. Designing for appropriation involves more
than user-driven innovation or similar participatory processes. To engender a truly creative
environment, Fischer and Giarccardi propose meta-design, an approach that contains some
elements of user-centered design, but “transcends” it in that it “creates open systems that can
be modified by their users and evolve at use time, supporting more complex interactions
(rather than linear or iterative processes)” (2006, p.6, p.8). The goal is not so much to close
the design-use gap as to acknowledge its existence, and create conditions that facilitate user-
generated appropriation. Even without any express attempt to create such open systems for
users in developing countries, mobile telephony demonstrates this capacity; one can only
imagine what could emerge with more openness and empowering of users to appropriate. At
the same time, it is notable that the technology appropriation process contributes a layer of
unpredictability to ICT use that could help explain why unexpected uses are a common
outcome of technology deployment. Thus designing for appropriation also means being
prepared for and even encouraging the unexpected, which may be counterintuitive for the
ICT4D agenda.
336
As was stressed in Chapter Two, access to ICTs, especially at the level of universal
service, can be considered an important prerequisite for the derivation of associated benefits.
The conclusion that some public access models are transitory in nature is an important
conclusion in this regard. Most telecenters have faltered because of local challenges related
to project implementation and sustainability. Mobile payphones, on the other hand, are
faltering because the “project” is getting better as a result of technological change that makes
mobile phones more accessible. This is an indication that wireless communication may
indeed be the “missing link” as Kelly, Minges and Gray (2002) suggest, although at present
the link is more evident with telephony than with Internet services. It also complicates the
question of how to measure success. The mobile payphone has been performing a certain
task in the telecommunications industry – enabling access for those who cannot obtain
personal mobile phone subscriptions. As subscriptions grow, their function becomes
unnecessary – success for the industry as a whole ultimately means failure for payphone
operators. This turn of events reinforces the importance of flexibility not only in technology
and service delivery models, but also in ideas about how universal access and universal
service can be achieved. Claire Milne’s (1998) formulation of five stages of universal
service, for example, plots a path from network establishment through wide geographic
coverage, mass market take-up, network completion, and ending in service to individuals.
The universal service target is not just in the interest of libertarian ideals; evidence from
development economics shows that the structural impacts of telecommunications cohere
when universal service is achieved (e.g., Bedi, 1999; Nicol & Weber, 1986; Obijiofor, 1998;
Powell, 2001).
Another related lesson from the mobile payphone experience links back to
suggestions that the source of structural change from the ICT sector in developing countries
is likely to come from ICT consumption rather than ICT production (e.g., Pohjola, 2002;
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Quah, 2001). This is borne out by the finding that mobile payphones as a business have a
limited lifespan. Micro-entrepreneurs will certainly find new business avenues for their
energies, but will always be particularly subject to the vagaries of the new economy. On the
other hand, as already noted, consumption of mobile phone services by the general
population, organizations and governments is likely to continue and yield long-term
productivity, efficiency and welfare benefits. While governments in developing countries
need not abandon their visions of giving birth to the next Silicon Valley or the next
Bangalore, some realism may be in order in view of the evidence for the likelihood of
reaching this goal in the near future.
There have been various debates about the tendency for development projects to
focus on particular tools, methods or ideas to the exclusion of others. In ICT4D work, the
critique is usually that they are overly concerned with the ‘T’ in ICTs, that is, with
technology. In defense of ICT4D programs, the focus is now shifting from technology to
information and knowledge. For example, the few applications of the sustainable livelihoods
framework to ICT4D research highlight information as the central livelihood resource that
ICTs provide, while knowledge is the center of attention for international agencies such as
UNESCO with its “Towards Knowledge Societies” report (2005). But as far as mobile
phones are concerned, users in Ghana seem to place a higher emphasis on communication,
the “C” in ICT; mobile phones are, after all, first and foremost communication devices. This
does not mean information is not important to mobile phone users, the implication is that by
communicating, they are able to get the information they need. Reactions to the uptake of
mobile phones in Africa and other developing countries range from surprise to delight. This
growth has been attributed to a variety of factors including inadequate fixed line
infrastructure, innovative service delivery models and relative low cost of usage. Taking all
these into account, and placing them in the context of technology appropriation, this research
338
offers a more basic answer, which is that because of these characteristics mobile telephony is
so far, the ICT that most closely enables users to pursue their own chosen ends. Those ICTs
that offer the most simple and most direct forms of communication and access to
information and feedback may contribute the most to overall livelihood capability from the
perspective of users. Individual ICT products contribute differently to different capabilities
and mobile phones have emerged as the most popular because they facilitate that access and
feedback while requiring the least investment in terms of cost and usage.
Another issue that some have found surprising (and even problematic) is the
mounting evidence that mobile phone users in low-income countries engage primarily in
social rather than economic interactions. As others (e.g., Donner, 2006; Horst & Miller,
2006) have noted however, this is partly an outcome of the blurred lines between social and
economic interactions in African countries. This study supports this view and suggests that
based on the patterns of use observed, the availability of mobile telephony enables users to
network with other people, and to draw on those contacts when they are in need, whether
this is a need for money, information or conversation. According to Anthony Bebbington
(1999), “assets … or capitals … are not simply resources that people use in building
livelihoods: they are assets that give them the capability to be and to act” and access is
“perhaps the most critical resource of all if people are to build sustainable poverty alleviating
rural livelihoods.” Use of mobile phones and especially individual ownership of mobile
phones contributes immensely to opening up access to opportunities for users. But not access
to everything. Thus, it is only those contacts that are perceived to be potentially useful that
will be cultivated. This explains why research indicates that communicating with family and
friends, and arranging financial remittances are the major activities poor people perform via
mobile phones (e.g., Bayes, von Braun &Akther, 1999; Horst & Miller, 2006; McKemey et
al, 2003; Souter, 2005).
339
Some policy-related considerations can also be related to the research findings.
Universal access as a telecommunications policy has replaced the concept of universal
service in acknowledgement of the challenges of providing universal service in developing
countries. With the dominance of mobile telephony, even universal access is becoming more
and more vaguely defined. In Ghana mobile phone networks do not even have any of the
traditional obligations. Currently what mobile phone networks provide in their areas of
deployment can best be described as universal access to the network signal wherever it
reaches. This is an acceptable situation if telephony is seen as a purely commercial service.
Telephones however have a welfare component that is fulfilled by the availability of public
payphones. From this perspective, and considering the instability of the mobile payphone
sector illustrated in this research, the deployment of payphones should probably not be left
solely at the discretion of the private sector.
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It cannot be assumed that because micro-
entrepreneurs will provide mobile payphone services, network providers can be absolved of
any responsibility to put some payphones on the ground. In the interest of permanency, the
possibility of having them also maintain some physical payphone facilities could be
considered. This sounds like returning to discarded definitions of universal access based on
number of payphones per vicinity, however, the contention of this study is that policymakers
should not be so quick to lay aside previously set goals in what is now a highly unpredictable
environment.
The mobile payphone experience reinforces earlier observations (from the telecenter
movement) of the impact of sustainability challenges on the long-term future of certain types
of interventions. However, it also highlights an issue that has not been a significant factor in
the fate of telecenters – technological change. When implementing ICT4D projects it is no
171
Admittedly, Ghana Telecom is still deploying payphones around the country as a service
obligation.
340
longer enough to consider sustainability from the financial perspective. Project managers
also have to consider the inevitability of technological change and how the project and its
beneficiaries will adapt to these changes, expected and unexpected. Furthermore, the
activities of other industry players may change the market dynamics, again with implications
for project continuity or relevance. If the goal of poverty reduction programs is to achieve
long-term sustainable livelihoods that are easily adaptable or not easily unsettled by
environmental changes, then the promotion of certain types of micro-entrepreneurial
involvement in the mobile phone industry needs to carefully factor in the implications of
technology and industry changes that would affect the livelihood of the most vulnerable
market players. Measures should also be in place to ensure a non-traumatic transition for
project participants and beneficiaries, where projects are involved, or for micro-
entrepreneurs in general in the open market system.
Patterns of mobile phone use also have policy implications at different levels.
Although development-oriented thinkers may hope that ICT use by the poor will be more
directly related to specific development objectives such as education, health,
entrepreneurship or politics, the type of communication people want to engage in cannot be
dictated, especially with a technology as flexible and personal as the mobile phone.
According to the livelihood objectives that people are seeking and their situation in time,
they will communicate with the people or institutions that they believe can be of use to them.
If political, economic and other institutions show themselves to be unresponsive to the needs
of citizens, or are too expensive to access, people will not waste their precious mobile phone
airtime (which they are trying to conserve) trying to communicate with them. Hence, of the
numerous ways that people could use their mobile phone to achieve goals relating to
expansion of capital assets or influencing social structures, users in Ghana choose to engage
primarily in social interaction with family and friends, while using it, when it makes sense,
341
in business interactions as well. This could be partly because existing institutional structures
do not enable other types of use, but also because social relations are an important livelihood
resource. Personal relationships are often the key to obtaining access to institutions in
Ghana, and people may prefer to spend their money developing these relationships rather
than trying to access institutions through the formal channels. Having easier direct access to
personal safety nets is also a significant benefit of mobile phones to poor people, enabling
users to maintain friendship and kinship networks and to use them when needed to make
claims. To facilitate other uses of communication technologies, governments and other
relevant institutions would have to make it worth potential users’ time and money to partake
in these activities.
These conclusions point to several new directions for research. Having presented an
exploration of the mobile phone use in Ghana, the next step would be to carry out more
fieldwork to empirically test some of the conclusions reached in this study with more
quantitative data. For example it would be a worthy project to assess in concrete terms the
relative contribution of mobile telephony to the reduction of digital poverty and income
poverty, and to obtain statistically generalizable measures of rural and urban variations in
mobile phone access and use. There is also a wide space at the intermediate (meso) level of
the telecommunications industry that remains unexplored. Yet in this era of private sector-
led everything, it is important to gain a deeper understanding of the organizations operating
within the industry – their origins, evolution and/or demise; their business choices and
decision-making processes; their alliances and motivations are not insignificant contributors
to the achievement of national telecommunication goals. While larger organizations are
fascinating to observe from the business perspective, my immediate research interest would
be to follow micro-entrepreneur intermediaries as ICT-related livelihood opportunities
emerge and change. As a source of livelihood the mobile phone sector offers high levels of
342
opportunity and risk for the micro-entrepreneurs involved in the industry – how do they deal
with shocks to the environment that undercut their livelihood choices? In boom situations as
occurred in the first few years of the payphone phenomenon, do a reasonable proportion of
micro-entrepreneurs benefit enough to permanently lift them out of poverty or launch them
on a sustainable path to prosperity? What proportion fall back to their prior state of
existence? How can structures be shaped to enable them to participate in this volatile
industry in a sustainable fashion?
Another area of interest relates to the policies of universal service and universal
access. The rise and decline of mobile payphones documented in this study highlight the
primacy of universal service as the foundation of ICT-led development. Currently, strategies
associated with ICT4D are usually designed with universal access in mind, most of these
being computer-based. However the trends outlined in this study indicate that with mobile
telephony, universal service can be a reasonable objective. A study in this area would
consider how the idea of universal service could be reintroduced into the
telecommunications policy language for mobile telephony.
A third topic that this study opens up is whether the appropriation cycles and
outcomes occurring in the mobile phone industry can be replicated for the Internet industry.
This is particularly pertinent in view of the on-going convergence of mobile telephony and
Internet services. With some studies indicating that not only is there a stark difference in
levels of access to the Internet compared to mobile phones, but there is also a stark
difference in how people perceive and use these tools in African countries,
172
the questions
to investigate would include whether these differences will be erased with the mobile
172
For example Slater and Kwami (2005) for Ghana, and Molony (2005) for Tanzania.
343
internet, and especially what types of service models would best encourage positive
appropriations.
These suggestions for research all have access at their core. The goal is to better
understand the dynamics of access to ICTs for the ultimate objective of achieving socio-
economic development in low-income countries – e.g., how should access be provided,
access to which ICTs, by whom, to whom and in what ways? By their characteristics, mobile
phones and their users are showing us possible ways forward. Considering the overwhelming
focus of development projects on providing access to hard information-seeking and
processing systems (evidenced in the priority given to Internet access), it is also important to
pay attention to what people actually do with the ICTs at their disposal, in the context of
limited funds and diverse livelihoods. In this study I conclude overall that connectivity for its
own sake is a valuable resource, one that mobile phones are uniquely able to provide in ways
that are meaningful to poor people. Mobile phones do offer potentially life-changing
capabilities to users. However, whether or not specific potentials are pursued ultimately
depends on what the user wants. And since potential comes with access, it is arguably a good
strategy to pursue affordable access as a development goal without second-guessing what
benefits it will bring to users, if only to give them, in Bebbington’s (1999) words, the
“capability to be and to act.”
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GLOSSARY
Communication center: Privately-owned and profit-oriented businesses offering indoor
telephone and secretarial services.
Cedi: The official Ghanaian currency. All values quoted in this report can be converted into
the dollar equivalent based on the exchange rate during the time of the study – 9355 cedis to
one US dollar. In 2007, Ghana re-denominated its currency, now referred to as the
“Ghanaian cedi” which would be equal to $0.9355 at the study period rate. For simplicity
and clarity, this study maintains the “cedi” system that pertained prior to the re-
denomination.
Electronic airtime transfer: A system of purchasing airtime that involves having airtime
transferred directly from a vendor’s mobile phone onto the buyer’s phone. It is termed unit
transfer or credit transfer in Ghana. In the academic literature it is sometimes referred to as
micro prepaid airtime because it usually involves the transfer of small amounts of airtime.
Information and communication technologies (ICTs): This usually refers to the entire range
of technologies developed for the purpose of sharing information and communication,
including the print media, broadcasting, telecommunications, and computing. In this study it
refers to telephony and the Internet.
Micro-entrepreneur: Micro-entrepreneurs have been defined as self-employed people in
small-scale business, usually involving less than five people (International Year of
345
Microcredit 2005, 2005). In this study it refers mainly to such persons engaging in the
business of payphone and prepaid card sales.
Mobile payphones: These are payphones using wireless technology, rather than the fixed line
infrastructure, run by individual mobile phone subscribers, usually along streets (in booths or
under umbrellas) or in their homes. They are referred to as village phones, phone shops and
phone kiosks, amongst other names depending on the country or the form they take.
Mobile payphone operator: These are the people who either own or work at the mobile
payphone on a daily basis. They are also referred to as “umbrella people” or “phone ladies.”
Mobile phone subscriber: Some one who personally owns a mobile phone and/or SIM card
and subscribes to a mobile phone network.
Mobile phone user: Someone who does not own a mobile phone or SIM card, but has access
to mobile telephony either through friends, family, work or payphones.
346
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APPENDICES
Appendix A: Additional Data Collection Methods
Address Books, Call Logs, Text Messages
During interviews, the mobile phone address books and call logs of willing
participants were examined. This was intended to complement the information survey and
interview data on questions such as call recipients and length of calls. Self recall of media
and communication habits require that the researcher trust the respondent’s memory and
truthfulness. Accessing user transactions directly and if possible in real time provides the
most accurate data (Cohen & Lemish, 2003). Mobile phone address books and call logs
make it possible to access users’ actual rather than recalled practices. The collection of this
data did not involve simply recording the transactions, but also asking respondents questions
about the data.
Although several respondents agreed to give access to data stored on their mobile
phones, a number of challenges arose. First, collecting and discussing the data was a slow
and involving process that most respondents did not have the time for in addition to the
interview time. Secondly, the most efficient way to collect the raw data would have been to
download it onto a computer. However not all respondent’s phones had this capability, or
where they did the respondent did not have the necessary cable. While I personally
purchased a cable to download from one respondent’s phone, this was not a feasible option
because a different cable was usually necessary for each different mobile phone model. Thus
some willing participants were unable to share their data with me. Of the four sets of data I
collected, one was directly downloaded via cable, two were done manually with pen and
paper, and for one I resorted to using a digital camera to take snapshots of some of the data
screen by screen (this was for the respondent’s text messages only).
The information collected also differed for each respondent because each person had
different habits in terms of the data they consciously or unconsciously keep on the phone, as
well as the phone’s storage capacity. Most mobile phones save at least the last 20
transactions of numbers dialed, calls received and missed calls. Address books can hold from
20 to over 100 contacts, depending on the handset model and SIM card capacity. Some
respondents delete text messages immediately after reading them, others wait until their
inbox is full, then selectively delete. Some set up their phone to keep a copy of sent
messages, others do not. Therefore the comparability, and even validity of the data saved on
the phone could be called into question.
Finally, although the problem of self-recall was reduced by examining saved records, it was
not completely eliminated because while the stored data was a hard record of activities,
respondents did not always remember the context of the activity, for example, why a
particular person called them and what the outcome of the call was.
Photographs
Photographs of locations and practices were taken where possible and appropriate,
and with the permission of those involved. Their purpose was to capture interesting
observations visually, and also to serve as a reminder of particular respondents and items.
369
Mapping
The distribution of mobile payphone operators in the study locations was mapped
using a GPS navigator. I covered some areas myself, others were mapped by a research
assistant. Attempts were also made to secure geo-referential (longitude and latitude) data on
mobile phone cell site locations. The objective for seeking this mapping data was to
graphically demonstrate the distribution of mobile phone access infrastructure and services,
and evaluate its relationship to geographic and population characteristics.
This data was only partially useful for a number of reasons. Mobile phone network
providers were extremely reluctant to reveal data on the locations of their cell sites.
Ultimately, only one network provided this data. Mapping of payphone operator locations
was less problematic, since this was something I could freely do on my own. Even with the
data that was collected, usability was limited because of the lack of accurate and detailed
GIS maps of Ghana to provide some context for the markings (e.g., location of villages,
towns and cities; road networks; other infrastructure networks; population distribution,
poverty distribution). Attempts to have the Geography Department of the University of
Ghana create some maps for this purpose proved extremely expensive, and the resulting
maps did not contain consistent information over the research sites. Nevertheless, based on
some trial analyses of the data that was collected, I believe this would be a valuable source
of spatial data to complement any study of telecommunications in Ghana.
370
Appendix B: Interview Respondents
Policymakers and Regulators:
Issah Yahaya, Director of Policy Planning Monitoring & Evaluation, Ministry of
Communication
Joshua Peprah, National Communications Authority
Philip Prempeh, Business Development Manager, GIFTEL
Sam Mensah, Technical Director, GIFTEL
Mobile Phone Network Providers:
Mawuena Dumoh, Corporate Services Executive, MTN
Robert Palitz, Managing Director, Kasapa
Anonymous, former Areeba employee
Michael Awuah, Chief Technical Officer, Kasapa
General Manager, Onetouch
Marketing Manager, TiGo
Mobile Phone Retailers:
Assistant Manager, large mobile phone retail company
Branch Manager, large mobile phone retail company
Robert, independent mobile phone distributor
Roadside vendor, Osu
Roadside vendor, Kinbu
Mobile Payphone Operators/Airtime Vendors:
Fati and Mohammed Amoah, Apemanim, Space-to-Space payphone
Mr. Afrifa, Apemanim, Space-to-Space payphone
Emmanuel, Accra, Kasapa Home-Work payphone
Maame Esi, Labadi, One4All payphone
Sister Norley, Osu, Space-to-Space payphone
Alex, Osu, One4All payphone
Christian, Accra, Multiple networks
Ayisha, Osu, Space-to-Space payphone
Yinka, Osu, Space-to-Space payphone
Ike, Osu, Multiple networks
Juliana, Osu, Space-to-Space payphone
Mary, Accra, Space-to-Space payphone
Osei, Osu, Space-to-Space payphone
Richka, Prampram, Space-to-Space payphone
Agnes, Prampram, Space-to-Space payphone
Baby, Prampram, Space-to-Space payphone
Mobile Phone Subscribers and Users:
Charles, development officer, Accra
Isaac, banker, Accra
Patrick, student intern, Accra
Robert, banker, Accra
Maa Afia, student, Apemanim
371
Nana Fobi Kropa III, chief, Apemanim
Nana Konsua Birago II, queenmother, Apemanim
Osei Kwadwo, farmer, Apemanim
Esther, seamstress, Labadi
Joshua, driver, Labadi
Paul, carpenter, Labadi
Peter, machine repairer, Labadi
Salome, telephonist, Labadi
Sylvia, student, Labadi
Vivian, unemployed, Labadi
Akua, trader, Osu
Charipearl, caterer, Osu
Eric, Osu
Frederick, newspaper vendor, Osu
Kwesi, Osu
Madjoa, recent student, Osu
Yinka, payphone operator, Osu
Chawe, security guard, Prampram
“Chop-chop”, fisherman, Prampram
Sarah, hotel proprietress, Prampram
Wofa, fisherman, Prampram
372
Appendix C: Data Collection Instruments
Demographic Information: all Interview Respondents
1. Gender
1. Male
2. Female
2. Age ___________________________________
3. Area of Residence ________________________
4. Type of accommodation
1. Own
2. Rent
3. Rent-free/squatting
5. Apart from you, how many people live in your household? ________
Who? Age
1.
2.
3.
4.
5.
6.
7.
8.
6. Do you have any direct relatives (children, siblings, spouse) that live outside your community?
Who? Where?
1.
2.
3.
4.
5.
6.
7.
8.
7. What is your highest level of education?
1. No formal education
2. Primary school
3. JSS
4. Secondary/SSS
5. Technical/Vocational school
6. College / University
8. Can you read and write in English?
1. Easily
2. With difficulty
3. Cannot read or write in English
9. What language do you usually speak at home?
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__________________________
10. Which of the following do you have at home?
1. Electrical connection
2. Running water
3. WC toilet
4. Separate room for cooking
5. Waste collection service
6. Computer
7. Radio
8. TV
9. Fixed telephone line
11. What is your main occupation or job? ________________________________________
12. Do you any other job?
1. Yes (please specify) ____________________
2. No
13. What are your main sources of income? (maximum 3 answers, rank the answers) Please tick the
appropriate boxes
Source 1st 2nd 3rd
1. Salary/income from main occupation
2. Salary/income from other occupations
3. Income from other household members (e.g., spouse)
4. Money/gifts from relatives/friends
_. Other (specify):
14. Usually, what is your total income? (including money received from friends and relatives)
Monthly ______________________________ cedis.
374
Policymakers and Regulators Interview Guide
173
1. What is the goal of current telecommunication policy in Ghana?
2. What issues, ideas, examples influenced the content and language of the ICT4D
policy?
3. How is the policy being translated into regulation?
4. How is the policy to be evaluated in terms of results?
5. How would you evaluate the impact of telecommunication policy so far
6. Estimated cost of implementing ICT4D policy? What resources are needed and how
are they being acquired?
7. How are licenses allocated to mobile phone companies?
8. Are policy makers/regulators involved in decisions about which
standards/technology will be used by network providers – e.g., GSM, CDMA etc
9. What is Ghana’s policy regarding wireless spectrum licensing?
10. What policies and regulations guide the behavior of mobile phone companies in
Ghana?
11. What policies and regulations guide the behavior of public communication service
providers such as telecenters, payphones, internet cafes.
12. Can you make any direct associations between specific elements of telecom policy
and the current state of telecom environment in Ghana?
13. Do any of these have relevance for mobile payphone operators in Ghana? (e.g.,
requirements for setting up public payphones whether fixed or wireless?).
Considering the large numbers of these informal operators, are there any plans to
bring them into the formal system?
14. What is your assessment of the mobile phone industry in Ghana in terms of
competitiveness, fairness of competition, pricing levels, universal access, payphones
etc
15. Any complaints from the public regarding the practices of mobile phone companies?
If yes, how are they being addressed?
16. What kinds of data does the Ministry collect? (e.g., disaggregated data on the
distribution of the telecommunications network around the country? data on
government, non-governmental or community telecommunications development
projects around the country, data on telecom company disputes and resolution?,
data on employment levels attributable to the communications/mobile phone sector?
data on percentage of economic growth attributable to the communications/mobile
phone sector? Etc)
17. To what extent are mobile phone companies meeting national telecommunications
network expansion goals?
18. How does the Ghanaian administration define “universal access” or “universal
service”?
19. Has the emergence of wireless telephones affected this definition? Do mobile phone
companies have universal service obligations? What are they? When were they
instituted? And why? Do they differ from those of fixed line companies?
20. How much revenue is the GIFTEL generating? How are these funds being used?
Examples of projects?
173
This was modified depending on whether it was a regulator or a policymaker being interviewed.
375
21. Are any related but non-telecom measures being implemented to complement
telecom network expansion?
22. How are issues of exclusion and marginalization being addressed at the regulatory
level?
23. Are there alternative ways to manage the telecom development process in Ghana?
24. How enabled is the Ministry to perform its duties regarding telecommunications?
376
Mobile Phone Equipment Vendors
174
1. CURRENT BUSINESS ACTIVITY
a. How long has [VENDOR] been in operation? – What year did business start? Why?
b. What size is the company? How many branches does it have? Where are these branches
located? How many employees? Wage range of employees?
c. What products and services does [VENDOR] provide? What types of phones?
d. What is the lowest priced and highest priced model? What is the most popular phone and
why? (Can I get a price list of all models carried?)
e. What are the components of the price of a phone – ask for a breakdown of cost, tax, profit
margin?
f. Where do the phones come from? Are they sold as is, or any modifications made before
putting them on the shelf? (including unlocking etc)
g. How are decisions made about which phones to import?
h. Sales data – how many phones are sold per month, and how much revenue is generated.
Would [VENDOR] be willing to give access to company records on this? (If not, ask for
details such as how many phones were sold each year since [VENDOR]’s inception)
i. How does [VENDOR] market itself?
j. Repairs: what kinds of repairs do clients require? Is service available to the general public or
only to clients of the phone sales section? Ever had requests to change features of a phone’s
software or hardware? Any problems staff can’t fix?
k. Where do repair personnel acquire their skills?
2. CLIENTELLE
a. What kinds of people come to buy phones – e.g., workers buying for themselves, employers
buying for their employees; husbands/wives buying for their spouse; gender distribution in
general; old/young people; poor people.
b. How do clients choose which handset to buy? – e.g., do they have a particular phone or a
budget limit, or particular features in mind?
c. How do customers pay? Are there any financing options other than cash? Instances of
visitors failing to make purchase due to lack of funds?
d. Any new products/services introduced as a result of customers’ actions/requests?
3. RELATIONSHIPS with mobile payphone operators
a. Apart from clients, what other kinds of relationships does [VENDOR] have with other
institutions, e.g., mobile phone companies, other equipment sellers etc
b. Does [VENDOR] sell the kind of phones used by mobile payphone operators? If yes, where
do they come from? If no, why not? Have they had any requests?
c. Sales data over the years: How many sold to mobile payphone operators per year.
d. How much do these phone cost?
e. Is there a standard phone or varieties? If variety, what features do they have?
f. Can they be fitted with the SIM cards for any network?
g. How do buyers pay for the phone? Are there any financing plans for sale of GSM desktops to
mobile payphone operators.
h. Has the mobile-to-mobile payphone business affected [VENDOR’s] equipment sales and
other operations (e.g., any new services, products or adaptations targeted at payphone
operators?).
i. Is [VENDOR] aware of the nature of relationships with mobile phone companies and mobile
payphone operators.
174
This guide was modified as necessary depending on whether the respondent was a company
official or a microentrepreneur.
377
4. RELATIONSHIPS with other equipment vendors
a. How does [VENDOR] regard competing mobile phone sales companies?
b. How does [VENDOR] regard micro-entrepreneurial mobile phone sellers (e.g., their
authenticity, reliability)
5. RELATIONSHIPS with other institutions
a. What other institutions (specific institutions or types of institutions) does [VENDOR] have
ongoing relationships with? What is the nature of these relationships? [follow-up to question
3a]
6. DEVELOPMENTS, ADVANCES, PROBLEMS/CHALLENGES
a. How does business now compare with 5, 10 years ago, or when the company started
operating? What was the mobile phone market like then?
b. What benefits, problems, challenges faced as a company?
c. What benefits, problems, challenges faced as an individual in this company?
d. What benefits, problems, challenges faced as a mobile phone user?
378
Mobile Phone Network Providers Interview Guide
1. COMPANY DATA
a. Request company data on (as much as possible disagreggated by rural/urban):
Current network coverage
Yearly network coverage since beginning of operations
Subscriber growth since beginning of operations (no. of SIM cards activated, registered,
deactivated/expired + basis for determination – yearly figures.)
Statistics on sale of mobile phone handsets
Pricing plans (including no. of prepaid/contract subscribers)
Changes in pricing plans since beginning of operations
Call charges to and from all networks
Call charges to and from [NETWORK] payphone and all networks
Average revenue per subscriber (contract, prepaid)
Call origins and destinations (local/long distance/international, in-network/out-network)
Calling patterns – e.g., volumes throughout the day, attempted calls, failed calls
Profitability of mobile phone company (financial statements, annual reports?)
Fixed line subscription and network (waiting line, new applications, residential location
of applicants)
b. Barriers to network expansion.
c. No and location of cell sites – (+ why this would be a company secret?)
2. FIXED LINE SYSTEM
a. How does a person get a residential fixed line? (the process, how long does it take?)
b. How does a person get an office fixed line?
c. State of fixed line payphone system (how the system works e.g., cards/coins/collect calling, how
much does it cost to set up and run? What is involved in terms of materials and manpower? National
distribution of payphones including rural/urban, no. of functional payphones, level of use of
payphones e.g., revenue figures broken down by location, state of competition with other networks)
3. MOBILE PHONE SUBSCRIPTION
a. How does a person get connected to [vendor] by contract, by prepaid (the process, how long
does it take)?
b. How many contract vs prepaid? Which is preferable from company perspective? Why?
c. Any information on what kinds of people/institutions go for contract vs prepaid and why?
d. Do you sell handsets? What makes and models? Highest and lowest priced? How many,
what kinds of people buy handsets from [NETWORK]? Are handsets locked to
[NETWORK] network? Why? Thoughts on unlocking/decoding services in town?
e. Thoughts on dual SIM card?
f. Does [NETWORK] have authorized dealers/distributors? Who are they? Nature of the
relationship? Contact information if possible.
g. Prepaid mobile phone cards – origin of this billing system in Ghana (in detail), reasons, how
did the uptake occur,
a. where are the cards manufactured?
b. How are unit categories and prices determined?
c. What is the nature of the relationship between prepaid card sellers and
[NETWORK]? -How do vendors get the cards, what margins do they receive on
sales etc? (basically how does it work in terms of relationships and accounting?)
h. Any information on minutes lost due to expiry?
i. Unit transfer system – origin of this practice in Ghana (in detail), does [NETWORK] offer
this and since when, reasons for introduction, how does it work? How did the uptake occur,
how quickly did the public understand and accept this practice? Any problems?
379
j. Development of new strategies, products, services as a result of subscriber behavior? (e.g.,
flashing)
k. What marketing strategies is [NETWORK] using (including strategies/plans for fixed line
network)? Goals of these strategies. E.g., Detail, explanation and impact of various
products/promotions (free night calls, friends and family; any difference in strategies and
service uptake in rural vs. urban areas or any particular parts of the country?
l. Thoughts on how people use mobile phones in Ghana? Have you noticed (now or in the past)
anything particularly interesting, surprising, unexpected emerging from subscribers/users
themselves?
4. MOBILE PAYPHONE SYSTEM
a. Any ideas/details about the specific origin of the mobile payphone system.
b. Attitude towards the mobile payphone system.
c. Relationships with mobile payphone operators (e.g., supportive/competitive/ oppositional?).
a. [NETWORK] mobile payphone system (origins, motivation for introduction, when did it
start, What is the significance of the name?
b. Exactly how does it work? – does system, materials etc. belong to [NETWORK] or to the
individual operators? How do operators get into providing the service, where do setup
materials come from?
c. What is [NETWORK]’s relationship with operators (in detail)? Are call charges mandated by
[NETWORK] or determined by operators?
d. How many operators are currently in existence and where are they located? How are
locations chosen (broadly rural/urban and also specific locations in either area),
e. What kinds of people are participating (gender, age, socio-economic)?
f. Are any other organizations involved in the system? If yes, what are their roles?
g. Reason for setting up the system in this way?
h. What returns are being obtained? What benefits to [NETWORK]?
i. What problems, challenges for [NETWORK]?
j. Ability to identify which calls are made on payphone lines and which on regular subscriber
lines? (access to this data?)
k. Development of new business products, services, network expansion, interconnection
negotiation plans following the emergence of mobile payphone systems. E.g., Any changes
in the state of connectivity with other networks?
l. Efforts to reach poor people with telephone/communication services?
5. INDUSTRY RELATIONSHIPS/NETWORKS
a. Relationships with other actors in the telecom industry (e.g., other mobile phone
companies, equipment providers, subscribers, ). How do you see the competition?
b. Relationships with government/regulators (especially as regards imposition of social
obligations). Does [NETWORK] have universal service obligations? If no, what is the reason
for this? If yes, what are they? How are they being targeted? How does All4One factor in this
(NOTE: Don’t introduce this unless interviewee brings it up).
c. Relationships with external partners – e.g. any input into design processes, use of particular
technologies, handsets, services, software?
d. Decision-making processes (e.g., factors affecting decisions to extend network to particular
locations). How does public opinion/behavior factor into these?
e. Perception of the general telecom environment.
f. Perception of ICT for development perspective on mobile phones.
g. Who is benefiting most from the telecom environment/industry in Ghana today?
380
Follow-Up
Appropriation
a. Anything subscribers/users are doing that [NETWORK] is unhappy with? How are you
responding – anything the company has tried to block (and the outcome of that attempt);
anything the company has co-opted (and the outcome of that); any other type of (middle
ground) action the company has taken
b. What current trends in subscriber behavior are being followed by [NETWORK] and what are
the plans regarding these
Technology
a. How choice to use GSM was made – policy, foreign partners, local decision?
b. Does choice of technology restrict or facilitate operations in any way? Does this have any
influence on what can or cannot be done on the network?
c. Which spectrum was allocated
d. Why choice of particular provider for infrastructure.
e. Network coverage data
f. Any digitized coverage maps?
g. Geo-referential data on cell site location (1992, 2000, 2006)
h. Data on fixed line network (1992, 2000, 2006)
New Product introductions
a. Introduction of new products – motivation, source of ideas, adoption rate
b. Top-up from the UK – why, where from the idea, how does it work, has it been used so far
Credit purchase
a. Overall time frames for credit and account expiry
b. Do you need a special SIM card to sell [NETWORK] unit transfers? If yes, why and how
much is it. If no, why not?
c. Explain credit transfer cost and expiry in more detail – why are intermediaries now quoting
different prices
d. If subscriber already has units on the phone, is the total validity period extended with
purchase of unit transfer vs prepaid card?
e. Any data on unit transfer vs prepaid card sales
Flashing
a. What is the company position on flashing
b. What constitutes flashing units on [NETWORK]. How much credit do you need. Was there a
time when flashing units were not needed, Can a person make or receive calls when they
have fewer than flashing units
c. What is level of usage of Call Me Back service
Quality of service
a. Quality of service indicators + does flashing affect these in anyway?
b. What kinds of complaints do you get from customers
Network traffic
a. Volume of in-network calls
b. Direction of call traffic to and from regional capitals
c. Results of churn assessment after handset promotion
d. Status of late night call product – has it led to increased subscriptions, volume of late night
calls?
381
Intermediaries
a. Status of mobile payphone lines. Any documents on the proposal and business plan for this
product?
b. Content providers, Value added service providers – how do they fit into the distribution
chain?
c. What is the cost of community service projects to [NETWORK]?
d. Apart from distributing your products, do intermediaries serve any other purpose for the
company?
e. Do you see a time when market intermediaries will be eliminated from the industry?
Obligations
a. Mobile coverage obligations? Give examples of unprofitable areas into which [NETWORK]
has extended coverage.
382
Mobile Payphone Operators Interview Guide
Entry into the Business
a. Is this your own business or are you running it for someone else? If employed, by whom? Do
you receive a salary/wage?
b. When did you start doing this business?
c. What were you doing before starting this? Are you still doing that other business as