Executive Summary

• The Global Mobile Cellular Revolution
• Supplying Mobile
• Regulating Mobile
• Mobile Access
• Pricing Mobile
• A Mobile Future

• Mobile networks are generally provided by private companies which often tap the financial resources and technical expertise of strategic foreign partners;
• Users in developing countries are just as attracted to the functionality features of mobile as those in developed countries; and,
• Mobile networks are generally cheaper to install than fixed networks.

In the past few years, the availability of pre-paid schemes has transformed the prospects for mobile, especially in developing countries. The concept of paying for telephone service in advance is so appealing that it is surprising it took so long to develop. Pre-payment is good for operators who make their money up front, reducing their credit risk. The cost of acquiring a pre-paid subscriber is also much lower. It is also attractive for users who want to control their costs, desire anonymity or would not qualify for a post-paid service.

The magic of mobile pre-paid is that it is turning telephone service into a mass market commodity. Subsidized handsets are bundled with pre-paid cards, slickly packaged, and bought from supermarket shelves like washing pouder, soft drinks or breakfast cereal. The day is approaching when cheap pre-paid mobile handsets may be packaged for one-time use then thrown away like disposable cameras. The widespread availability of pre-paid mobile cellular in retail outlets means that a commodity that has traditionally been in short supply—telephone service—is now available on demand. If this model can be copied by developing countries, then one of the major barriers to achieving widespread access to telecommunications—insufficient supply—is eliminated.

The challenge for developing countries is to emulate the mass market success mobile is enjoying in developed countries. The availability of second-generation mobile systems, combined with the high level of demand for pre-paid access, gives them the opportunity to make a technological and commercial jump. This may require a change in the mindset of many developing country governments and mobile operators to get away from the perception that mobile is not for the masses. Enlightened policies can create the necessary environment to ensure the widespread availability of mobile cellular in every nation.