Cell Phones and the Digital Divide

Case study


By



Joseph Grant
CIS 301 OL
Management Information Systems




Mentor:
Daniel Neal


1. What strategies are cell phone companies using to close the digital divide and
market phones to the poorest segment of the worlds population?

Companies such as Nokia are sending human behavior researchers to gather as much
useful information as they can about potential cell phone buyers. This strategy is based
on a human centered design. The researchers send their data to cell phone designers and
they design the devices according to the populace. Making affordable devices for the
poorest of nations is another obstacle for cell phone providers to overcome. Making
cheaper devices is only part of the equation, the cost of data network access has to be
negotiated to ensure that lower income consumers can afford to purchase that access on a
continual bases. (Laudon & Laudon, 2010)

2. Why do economist predict the widespread cell phone usage in developing
countries would have an unprecedented effect on the growth of those countries.

Use of mobile phones worldwide has grown to an unprecedented rate for over a decade,
especially in developing countries where traditional landline networks have been slow to
expand. Through mechanisms like reduced costs, reduced risk associated with
remittances and personal travel, and increased information and communication economic
theory predicts that the aggregate effects of widespread use of mobile phones may
increase economic efficiency. This is especially true among the poor, who would receive
significantly high marginal benefit from these changes. Many economists believe that
widespread cell phone usage in developing countries would have a profound and
revolutionary effect on their economic well being in a way that traditional methods of
foreign aid have failed to achieve. (Pewglobal, 2014)

3. What are some examples of how cell phones might increase quality of life for
residents of developing countries?

Cell phones enable poor populations that are isolated geographically to remain reachable
under practically any circumstance. War, drought, natural disasters, or extreme poverty
are some of the circumstances that are know to disperse populations in developing
countries and driving the need for mobile communicative devices. Cell phones also have
implications for medicine in these countries. Doctor, patient interaction is increased by
cell phone. The information gathered through treatment and the classification of prevalent
diseases was greatly increased by cell phone use in these countries. (Laudon & Laudon,
2010)

Business and industry production is also increased by cell phone use. It has been
documented that possession of a cell phone increases profits on an individual level,
allowing people to take advantage of business of business opportunities. A study
conducted by the Centre for Economic Policy Research shows a direct correlation
between cell phone ubiquitous dissemination and positive gains in a countrys gross
domestic product. (H., 2013)


4. Do you believe that cell phones will proliferate widely through Africa and Asia?
Why or why not?

Cell phone use in Africa and Asia will continue to grow with the increasing access and
availability to mobile products and markets. There is a huge potential for growth in the
cell phone market associated with access to the population on these continents. The
majority of mobile devices on the continents are lower end phones, and the bulk of the
wireless networks are 2G, meaning voice and SMS only. Companies like Google have
worked to make as many services as possible accessible through SMS, and to find ways
to increase high-speed mobile data across the continent. As the network infrastructure
becomes more robust in these nations, increased smart phone use is inevitable. (H., 2013)

Communication market potential, business opportunities, and the increased demand for
devices in these countries will drive the proliferation of cell phones in Africa and Asia.


Works Cited

H., M. (2013, Dec 4). Mobile penetration in Africa is now at 80% and growing fast .
Retrieved May 2014 , from Phonearena: http://www.phonearena.com/news/Mobile-
penetration-in-Africa-is-now-at-80-and-growing-fast_id50014

Laudon, K. C., & Laudon, J. P. (2010). Management Information Systems: Managing The
Digital Firm (11th Edition ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall .

Pewglobal. (2014, Feb 13). Emerging Nations Embrace Internet, Mobile Technology.
Retrieved May 2014, from Pewglobal: http://www.pewglobal.org/2014/02/13/emerging-
nations-embrace-internet-mobile-technology/