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Mobile platforms to improve telecom & electricity service delivery to poor, urban micro-entrepreneurs in South AsiaRohan Samarajiva

1About LIRNEasiaRegional think tank with the mission ofCatalyzing policy change through research to improve peoples lives in the emerging Asia Pacific by facilitating their use of hard and soft infrastructures through the use of knowledge, information and technology.Since 2004, working mostly in ICT infrastructure, but also agriculture, disaster risk reduction, electricity, urban policy, etc.

22Countries that we engage with . . .

Purpose of 2012-14 studyExtraordinary increase of customers served by mobile operators after competition introduced in South AsiaWithout commensurate increase in service personnelNot too bad a perception of service qualityElectricity services provided by monopoly suppliers, mostly government-ownedCould we offer suggestions on how consumers in both sectors could be better served, with emphasis on using the potential of the mobile platforms? Could we catalyze the offering of services useful to the poor on mobile platforms, so that their development potential can be better realized?Research methods First, from supplier perspectiveHow are customers served? How are the relationships managed? Interviews with service providers + desk researchThen, from user perspectiveWhat services used? Problems? Satisfaction levels? Quantitative: Sample survey of 3,180 MEsQualitative: in-depth interviews of 76 participants and 12 ethnographies at sites of service provision55Not just analysis, but design of solutionsCKS is an innovation consulting practice that employs user-centered research and design methodologies, including ethnography, design analysis, and user experience, to help organizations systematically and routinely create products, services, and systems.The company has wide experience in India, but has also worked in different emerging economies worldwide including South Africa, China, Nigeria, Philippines, Bangladesh and IndonesiaSince being selected through a tender in 2008, CKS has partnered with LIRNEasia on many multi-country research projects

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Focus of studyMicro-entrepreneurs (MEs) = those employing 0 -9Paid part or full time workers Inclusive of family membersLow income = MEs in socio-economic classification (SEC) C, D and E, also some B1 B2 (for those employing 1-9 employees)SEC based on education and employmentClose correlation to incomeIn Bangladesh (Dhaka & other); India (Delhi & other); and Sri Lanka (Colombo & other)Urban definition = that used by National Statistics Offices in the three countries7

Given resource constraints, studied weak and strong cities in each countryStrong/weak determined by proxy indicators Sri Lanka: various poverty measures by provinceIndia: City Competitiveness Ranking by stateBangladesh: poverty + literacy + electrified householdsIn Sri LankaWestern Province: Colombo North Western province: Kurunegala, Kuliyapitiya, Puttalam & ChilawIndia: Delhi & Patna (largest city in Bihar)Bangladesh: Dhaka and Ghaibanda+Kurigram

Urban poor MEs11Quantitative: 3,180 MEs surveyed Kurunegala, Kuliyapitiya, Puttalam & ChilawColomboDelhiPatna9151279986Gaibandha & KurigramStrong and weak cities determined by proxy indicators12No country had registry of MEsBest possible source used to determine quotasMale/female %Business type (i.e., % retail, manufacturing, retail)Sri Lanka: Census of Industry (2003/2004) by Department of Census and StatisticsIndia : Non-agricultural Enterprises in the Informal Sector, 2000. SurveyBangladesh: Economic Census

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Qualitative: Research for deeper understandingIn-depth interviews, ethnographies and focus groups and 12 ethnographies at sites of service provision with 76 participantsDay ethnographies at sites of service provisionIn-depth interviews with service providersIn-depth interviews with MEsCommunity group design activities

14Sri Lanka (LK) sample older, more educated & more female compared to India (IN) & Bangladesh (BD)Bangladeshi citiesIndiancitiesSri LankancitiesAverage age363642Female micro-entrepreneurs9%12%26%Illiterate or primary schooling only39%87%29%

Numeracy: 90% + can do calculations in LK; 70% + in BDPlease tell me about your numerical abilities (as % low-income MEs)16Trade heavily represented among BD & LK micro enterprisesType of business (as % of low-income MEs)My business makes some goods or wares by manuallabourorbymachinery-ManufacturingMy business provide maintenanceandrepair of certain goods or activity-ServicesMy business buys and sells goods and wares-Trade

17More than 50% of IN MEs operate from variable locationsCould you tell us where your business is located? (as % low-income MEs)Most businesses started using savings. Formal loans most common in LKHow did you get the money to start your business? Tell the main source (as % of low-income MEs)Access to bank accounts highest in LK; 10% + have business accounts in BD & LKDoes your business have a separate bank account to use just for business purposes?(as % of low-income MEs)Do you have any bank account in your name? (as % of low-income MEs) MEs are predominantly cash-basedHow do you normally do make or receive payments in your business? [MC] (as % low-income MEs)

Business transaction are around cash21Mobiles most used by MEs for business22Mobiles used for business: Coordination with customers, suppliers & employees23Those without mobiles see no need; In BD, majority claim cost too highWhat is the main reason you dont use a mobile phone for business? (% low income MEs who dont use a mobile for business)24Low income MEs recharge more than other BOP Average recharge per month (USD)BangladeshIndiaSri Lanka BOP pre-paid mobile owners (2011)1.611.993.18 Low income MEs who use pre-paid for business (2013)8.916.2110.6725Dialog ARPU (average revenue per user is LKR 35225Majority of MEs use pre-paid mobilesAverage recharge per month (USD)BangladeshIndiaSri Lanka Low income MEs who use pre-paid for business8.916.2110.6726In LK 44% of post-paid customers on special ME packageAverage monthly outlay (USD)PostpaidUSD 12.30PrepaidUSD 10.67In LK, only one MNO offers SME plans. Benefits: lower rental, free minutes27Coverage & friends: Factors in choosing service provider28Most MEs do not interact with telecom service provider29Of those with mobile-service problems, most thought it was not worth complaining30Much worse in electricity . . . Why did you not complain to the service provider? (% low income MEs who use electricity for business)

31Telecom: Most interactions with service providers through call centersHow do you normally contact your telecom service provider? (% low income MEs who have interacted with service provider)

32Electricity: Phone complaints most common only in LK; Even there not all to call centersFor the main problem with electricity you complained about, how did you complain? (% low income MEs who complained) 33Most mobile users experience network-related problems34Satisfaction with mobile service-provider interactionExperience with service provider YES (% low income MEs who have interacted with service provider)

35Examples of possible solutions in telecomSupply- and demand-side studies show some overlap in problem perception37In LK, network coverage related issues resulted in customers leaving for a competitor without complainingWhat the service providers saidWhat the customers said37Problem: Network Coverage / Frequent Call Drops38

There are times when there is no network coverage because of which I lose out on my business. I wish there was a way to resolve this instantly.Name: Asif AliAge: 56 yearsEducation: Grade 9Occupation: Rental company dealing with furniture, cutlery, glasswareNumber of Employees: Four (Family members)

I have been running my business for the 15 years and I need good telecom service for my business. I need to be constant touch with my customers to follow up with them about their requirements and my payments.70% in LK use mobiles for business purposes40% in LK say connectivity issues affects their livelihood38Solution: Crowd Sourced Map of Problem Areas 39

Enable customers to log problems pertaining to coverage through USSD/ SMS. Operators can use this information to optimize the network and improve network connectivity.USSD / SMS No Coverage USSD / SMS Thank you for your feedback.

39Unintended VAS activation: One of the top reasons to call contact centre

Name: Supun FernandoAge: 38 yearsEducation: Grade 9Occupation: Shoe SellerNumber of Employees: Two

I have been running my business for the past seven years and I tend to get irritated with the messages I get from my telecom company.I am not educated, so it is difficult for me to understand the messages I receive and the messages are not in Sinhala. I tend to press the wrong button which activates the VAS without my knowledge. I realized this only when my balance was cutIn addition, MNOs send too many SMS; Most are ignored. In LK, SMS is not in local script; Cannot be understood.40Solution: Active reconfirmation41

Kindly press 8 if you wish to confirm activation of service, press 9 if you wish to deactivate the service.89

Solution: On activation of VAS, the ME receives a confirmation (automated call or SMS) requesting them to confirm their activation. ORReconfirmation request sent through SMS or IVR about VAS activated on phone at a given frequency (every 3-4 months). If VAS is not confirmed, it will get automatically deactivated.

41Example of solution in electricity50% in BD, & more in IN & LK lack advance notice about power cutsDo you get advance notice about power blackouts? - NO (%BOP MEs who use electricity for business)43The consumer being made aware of planned outages through multiple methods such as public announcements, newspapers, SMS and electronic media.If unplanned outage, use medium such as SMS to convey the information to consumer

Solution: Provide Information on planned & unplanned outages

SMSWhen setting up SMS services ensure that the sign up processes are not complicatedEnsure the services receive sufficient publicity to enable sign upUse the bill as a method of sending information

44Solution- information on planned blackouts

If you are mechanizing processes, then less hassle on CEB/ Leco. They already know about the problem and will not waste agent time.Be specific about how to use the bill. Use the work metering mechanism to send messages to customers.Bills can only be used once they are better formatted.44Problem: Called but no responseMy electricity bill has risen lately. Since I am the only earning member of my family, things are difficult for me. I switch off my refrigerator when I am not using it, but I would like to know more about how else I can reduce my electricity billName: Fatima RilayaAge: 46 yearsLocation: ColomboEducation: Grade 4Occupation: Food business Number of Employees:0

I require electricity for my business since I run my business from home.

Name: Santosh KumarAge: 24 yearsLocation: PatnaEducation: Grade 9Occupation: Food businessNumber of Employees:0

My business is very important for my livelihood. But when such disruptions happen my business suffers.

Once there was a major electricity shortage in this area. We called the office, but no one picked up, We had no choice but to go to the office ourselves to register our complaint.Problem- unable to contact no proper record keeping45Trade-offs & confusion in current LK system46ProsConsArea engineers officeCustomers feel as if they have spoken to someone with authorityLack of accountability as reference numbers are not always givenUnder-trained staff Unanswered callsTakes up valuable time of the area engineers

Centralised call centreEffective management of customers by trained staffMaintenance of historical data on customer complaints/inquiriesEstablishment IVRs for information provision Lack of a personal touchRemoved Expensive opportunity cost of engineers time being used etc.46

Solution : Dedicated call centerMaintain dedicated call centers Remove discretion from complaints-receiving process by accepting all complaints and issuing a reference number. Record calls so that supervisors can keep track of interactions. After query has been resolved, the consumer can rate the Service Provider via SMS. Consumer can rate the Service Providers response to the query via SMS

47Think this can be deleted?Record the call, not keeping track of call.47Do more with call center dataDistribution companies already have SAIDI/SAIFI data from systemCall centre data can be analysed together with system generated data for in-depth understanding of issues such as breakdowns and voltage fluctuations

48Know SAIDI and SAIFI if asked.

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