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Christopher Foster Oxford Internet Institute

Does quality matter for innovations in low income markets? The case of the Kenyan mobile phone sector. Christopher Foster Oxford Internet Institute (undertaken during PhD research in IDPM, University of Manchester). Research focus. Innovations and low income groups

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Christopher Foster Oxford Internet Institute

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  1. Does quality matter for innovations in low income markets?The case of the Kenyan mobile phone sector. Christopher Foster Oxford Internet Institute (undertaken during PhD research in IDPM, University of Manchester)

  2. Research focus Innovations and low income groups • What is an ‘inclusive innovation’? • more than innovation • impact; process inclusion • Is quality a key element in this? Heeks(2013)

  3. Innovation and quality Low income markets = unclear 1) Extent of quality and effects in low income markets? • BoP view vs Empirical cases 2) Innovation in/for low income markets is different. • Interlinked stages; Intermediaries; User appropriation 3) What is effective policy around quality (if any)? • Policy as a process; Public/private standards

  4. Mobile phone sector in Kenya Scaled and low income focussed: • Operator coverage: 92% • Handset access: 70% • Mobile money: 83% Quality Issues at the fore…

  5. Quality concerns • Short term: Difficult to evaluate. • Medium term: Trust, cost, intermediaries • Long term:Risk of ‘big bang’ “close to 2.4 million mobile phones in the market are counterfeit, representing 9.39 % of the active mobile devices” (CCK 2013)

  6. Drivers of quality declines • New lead actors • Partnerships; manufacturers • New intermedaries • Adaptation • New users • Appropriation, use

  7. Policy • Existed in cases • Unclear implementation • Existence of extended intermediaries

  8. Conclusions Quality becomes key concern in how innovations are inclusive…. • Recommendations • More focus on innovation and quality • Responsivity to appropriation • Lead firms and low income focus (USF, support) • Policy is crucial • Firms: Low income entrance vs guarding quality • Policy Making + Implementation • Intermediaries: Policing and policy

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