This was particularly true for Africa, where most citizens did not have access to the formal banking sector, Ernst & Young global deputy telecommunications leader Jonathan Dharmapalan said.
The use of mobile money transfer systems, such as M-Pesa, which was operational in Kenya and South Africa, were starting to spread across the continent.
Dharmapalan noted that there was in Africa, but also in other emerging markets, a large latent demand for people to enter the banking sector.
Not only was this a less costly, quicker and safer way to transfer money, but in many developing economies there was also a limited amount of actual printed money, which meant that printed money often did not reach the very rural areas, given the high cost of distributing and circulating bank notes, he pointed out.
Further, as these mobile services become popular among informal traders, they start participating in generating revenues for other service providers in the formal economy by purchasing services such as electricity.
This could, to some extent, benefit the gross domestic product of developing economies, noted Ernst & Young partner Serge Thiémélé.
Dharmapalan said that these money transfer systems were likely to eventually result in other mobile capabilities, such as mobile health services and disaster relief, in future.
However, these services were also being adopted in developed economies.
For instance, in Japan, mobile money transfer and payment systems were being used, owing to its convenience, he noted.
Overall, Ernst & Young expected the telecommunications sector in Africa to continue seeing significant growth in the years to come.
But infrastructure development remained a key constraint to reaching many rural areas.
Nevertheless, with many operators now willing to share infrastructure and with many governments assisting countries in providing universal service, the situation was improving.
The increasing adoption of solar-powered base stations and solar power for the recharging of cellphones, would also make a difference.
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Autor(en)/Author(s): Chanel de Bruyn
Quelle/Source: Creamer Media's Engineering News, 29.10.2010
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