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   Date: 27th Sept 2010

Automotive telematics and infotainment applications quickly gaining momentum, says ABI

Only three years since the project started, new research conducted at the Millennium Villages by Ericsson , The Earth Institute and Millennium Promise shows that quality and availability of health and education services improved thanks to access to mobile connectivity. The recently published report, The Impact of Mobile Connectivity on the Millennium Development Goals in Africa, also shows increased benefits were identified for small businesses by reducing transportation costs and supporting micro business preconditions such as price and market information being accessible.

It has also been reported that the results of the monitoring and evaluation study -conducted in Ghana, Nigeria, Kenya and Tanzania- show that the introduction of mobile networks has the potential to influence socio-economic development for individuals and villages in remote areas. This is in line with different studies done showing that 1.2 percent growth GDP can be achieved in developing countries for every 10 percent increase in mobile penetration rate.

The release says that the aid of a mobile phone and a toll free number to offer the health services would add up to 6000 lives saved per year in the studied countries. In terms for transportation, respondents reported saving an average of USD 5 per trip by placing calls instead of travelling.

Elaine Weidman Grunewald, Head of Sustainability, Ericsson, says, "This report sets an important baseline, and the results of the study show the potential for expansion and use of mobile technology in other African and developing countries in rural, remote and poor areas. We believe that a large majority of the approximately 57 million people living in rural areas in these four countries could benefit from mobile communications with reasonable levels of investment in additional telecommunications infrastructure."

Lars Linden, Head of Ericsson Sub-Saharan Africa, says, "The tremendous growth of mobile networks and uptake of mobile subscriptions indicates ground-breaking opportunities for society taking advantage of the implemented infrastructure. However, there are still 1 billion people living outside mobile network coverage and electrical grid in the world. We have found that the use of renewable energy sources combined with customized applications presents a sustainable business opportunity for operators, at the same time supporting individuals to a better quality of life. Ericsson is committed to supporting this need"

The same opportunity for society and operators can be seen in other countries. In India mobile phone use is a large driver of income growth. Rural Indian mobile phone users most sought after services are: agricultural information (40%), entertainment services (16%) such as music, and financial services (8%) such as mobile remittance and money. Health applications were ranked as 5th in importance, according to the report.

"The mobile phone is the most powerful technology for ending poverty in the world today," said Professor Jeffrey Sachs, Director of Columbia University's Earth Institute. "With the spread of 3G and soon 4G technology, even the most remote schools in the poorest parts of the world can connect to the Internet and share ideas with other classrooms a continent away. Pastoralists, once isolated, can now quickly check on local market prices and make important decisions on whether to bring their herds in from kilometers away for sale in the local town. And critical health data and life-saving information can be sent by text messages to clinics to support rapid diagnoses for patients in remote villages. The Millennium Villages project is deeply honored to partner with Ericsson, a remarkable pioneer and leader in the field of telecommunications and development. With their bold vision and action, in partnership with rural communities throughout Africa, poverty is being rolled back and an era of new prosperity is dawning."

Currently, there are 5 billion mobile subscriptions worldwide. Out of those, 450 million are in Africa, which represents 43 percent of the African population. In Sub-Saharan Africa, the penetration is 42 percent, representing 297 million. It is forecasted that estimated that the mobile penetration in sub Saharan Africa will increae by 65% in 2013.

          
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