Sustainable Finance, talking about the good work being supported by investment strategies that maximize financial, environmental, social and governance gains
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Johanna Hoopes | Thursday 19th November 2009
Our world is going mobile. Cell phones have quickly evolved from high-tech toys of the rich to a staple of development in emerging markets. Phones are becoming a tool to overcome distance, connect people with each other and access information across the world. In rural areas, mobile phones allow farmers to monitor crop prices, herders to check the weather, and migrant workers to transfer funds to their families millions of miles away. According to the Economist, more than 4 billion cell phones are now in use around the globe, and 75% of them are located in developing countries.  The proliferation of cell phones is creating new challenges and opportunities across the telecom value chain. Network operators, entrepreneurs, and end users are all innovating to create value and share the widespread benefits of this revolutionary technology.

Network operators in emerging economies must find cost-effective ways of serving significantly lower income consumers. Indian mobile operators have made the most effective inroads to support a huge population with limited infrastructure and extremely low income by employing a "managed capacity" model.  When moving to a new area, the operator requests a limited amount of calling capacity and pays for it NET 90 at the agreed price per unit of capacity. That leaves IT vendors such as IBM to manage the base station and customer service systems while running the mobile networks is handled by Ericsson and Nokia. This highly outsourced model allows them to transfer most of the risk to other parties and to focus on marketing and sales.
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