Dear Peter,

I think you'd be better off sticking to your initial recommendation. It
may very well be best for the operators to have their customers on a
subscription contract (and allow them to increase investment in
infrastructure), but for many people it doesn't seem to be an option.

I work on a project delivering content services such as job information,
health information, government information, etc. via SMS to bottom of
the pyramid (BOP) customers in Kenya (soon to be rolled out to other
countries). The project has a particular focus on Kibera, East Africa's
largest informal settlement, and it seems that being on a contract
simply wouldn't be an option for many of the people there.

The barriers include lack of a fixed addresses, lack of credit history,
the need to be able to tightly control spending and the need for micro
and flexible payments options (I see pre-pay as micro payments, and
subscriber contracts not to be micro payments, but I might be wrong
here. There may be a way to tailor the contracts that I don't know).

I would say that one answer to your last question (How can a telecom
operator have a relationship with its customers if it doesn't even know
how many of them there are, let alone who or where they are?) simply is
that the relationships operators should concentrate on building with its
customers is loyalty, which they should do by providing the most
attractive services to the BOP segment. The reason for operators to be
interested in Africa ATM is scale - massive untapped market. Market
research should be enough of a tool to know where to roll out
infrastructure, etc.

I don't really understand the model you describe as the second
generation of pre paid. How would people "top-up" their accounts using
the handsets themselves? I can see it working if you have a bank account
or a credit card, but how would it work if you don't. Can you explain?

Have you looked into recommendations around contracts and handset
technologies that support sharing of handsets? Handsets that allow more
than one SIM card, SIM cards that can be split into several virtual mail
boxes, etc. I'm not sure what the best way of supporting sharing of
handsets would be, but I know that there is a big need for it.

I'd be interested in seeing your research.

Best wishes,
Britt

:::::::::::::::::::::
Britt Jorgensen
OneWorld UK
[EMAIL PROTECTED]
t +1 646 918 6401
www.openknowledge.net
www.oneworld.net and www.oneworld.net/uk



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