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Wednesday, August 13, 2003

Zanzibar and mobile phones 

The BBC reports on Zanzibar's mobile phone revolution. The reports seems to indicate efficiency and welfare gains similar to what I had observed with the fishermen in Kerala.

Mbwana Simahimbo has owned a mobile phone for three years and he told BBC News Online that it has changed his life. "I use to have to drive around looking for fares. This was tiring, time consuming and cost me a lot in petrol. "Now, I wait for my customers to call me and I just go and pick them up." The mobile phone has had a huge economic impact on Mr Simahimbo. He reckons that on average he makes around US$15 a day in fares compared to up to $7 before he had a phone.

Though the average spend, at $10, is less than the Kerala case, the market is probably set to boom as the efficiency gains leads to increased incomes. Now, if only one could convince the "digital divide" brigade that spending money on low-tech mobile phone applications is probably what will help bridge the economic divide, digital or otherwise!!